Samsung Electro-Mechanics (009150) posted record quarterly revenue and operating profit, driven by expanding sales of components for artificial intelligence data centers. Camera module revenue fell from the previous quarter, but multilayer ceramic capacitors (MLCCs) and semiconductor package substrates led the growth, lifting the operating margin above 18%.
Samsung Electro-Mechanics said on the 28th that third-quarter consolidated revenue reached 3.7633 trillion won ($2.64 billion) and operating profit 691 billion won ($484 million). The figures were up 30% and 166%, respectively, from a year earlier. The operating margin rose 9.4 percentage points year-on-year to 18.4%.
According to financial data provider FnGuide, the one-month consensus estimate for the company's third quarter stood at 3.8334 trillion won in revenue, 662.6 billion won in operating profit and a 17.3% operating margin. Revenue came in slightly below the consensus, while operating profit exceeded it.
Revenue at the components division, which handles MLCCs, rose 36% from a year earlier to 1.883 trillion won. Expanded sales of high-margin products for AI data centers, including servers, networks and power supply units, underpinned the results. The company said the capacitance of MLCCs required per graphics processing unit (GPU) and application-specific integrated circuit (ASIC) is doubling every year.
Revenue at the package solution division climbed 58% from a year earlier to 939 billion won. The gain came from wider supply of flip-chip ball grid array (FC-BGA) substrates, high-margin products used in server central processing units (CPUs) and AI accelerators. The company plans to expand AI-related FC-BGA production capacity at each of its manufacturing bases, including Busan, Sejong and Vietnam, in a timely manner.
Revenue at the optics solution division rose 3% from a year earlier to 941.3 billion won but fell 9% from the previous quarter on weaker demand from overseas customers. The division expanded supply of cameras for next-generation global electric vehicle platforms and began mass production of high-pixel sensing modules for humanoid robots.
"Demand for high-specification components for AI data centers will remain strong in the fourth quarter," Samsung Electro-Mechanics said. "We plan to continue responding to demand for long-term MLCC supply contracts, centered on major Big Tech customers, and to increase supply of compact, ultra-high-capacity products."