Samsung Electro-Mechanics is accelerating the expansion of its MLCC portfolio targeting the AI server and automotive electronics markets. Pictured are Samsung Electro-Mechanics MLCC products. [Samsung Electro-Mechanics]
Samsung Electro-Mechanics is accelerating the expansion of its MLCC portfolio targeting the AI server and automotive electronics markets. Pictured are Samsung Electro-Mechanics MLCC products. [Samsung Electro-Mechanics]

Samsung Electro-Mechanics more than doubled its operating profit in the second quarter from a year earlier, riding the wave of AI adoption. The company also set an all-time quarterly sales record after signing long-term supply agreements for multilayer ceramic capacitors, or MLCCs, with more than 10 customers including top-tier hyperscalers.

Samsung Electro-Mechanics said Thursday its consolidated second-quarter sales reached 3.46 trillion won ($2.38 billion), with operating profit coming in at 440.4 billion won.

Sales rose 24 percent year-on-year and 8 percent quarter-on-quarter, setting a new all-time quarterly record. Operating profit surged 107 percent from a year earlier and 57 percent from the previous quarter.

Pre-tax profit was 433.3 billion won and net profit was 315.7 billion won, up 153 percent and 143 percent, respectively, from the same period last year.

The company attributed the earnings improvement to higher MLCC sales for data center applications — including AI servers and networking equipment — and expanded supply of high-value semiconductor substrates for AI accelerators and server CPUs to global big-tech customers.

Growing demand for advanced driver assistance systems and autonomous driving also contributed to profitability, as shipments of high-value automotive components such as camera modules and semiconductor substrates increased.

Samsung Electro-Mechanics has signed long-term supply agreements, or LTAs, for MLCCs with more than 10 customers — including top-tier hyperscalers and major semiconductor companies — and said it is actively responding to requests for additional contracts.

The company counts Nvidia, AMD, Amazon and Marvell among its key customers.

Driven in part by the hyperscaler LTAs, the Component Solutions division posted second-quarter sales of 1.65 trillion won, up 29 percent year-on-year and 17 percent quarter-on-quarter.

The division's growth was fueled by higher MLCC sales for data center applications — covering AI servers, networking and power equipment — as well as expanded automotive product supply in line with advances in autonomous driving and rising demand for eco-friendly vehicles.

With MLCC demand expected to remain strong in the third quarter, Samsung Electro-Mechanics plans to accelerate development of its most advanced AI-grade MLCC models and push further into high-capacitance, high-voltage products for the autonomous driving and eco-friendly vehicle markets.

The Package Solutions division recorded second-quarter sales of 771.6 billion won, up 37 percent year-on-year and 6 percent quarter-on-quarter.

The division continued to supply FC-BGA (flip-chip ball grid array) substrates for AI accelerators and server CPUs to global big-tech customers, while automotive substrate sales for autonomous driving applications also increased.

The Optical Solutions division posted second-quarter sales of 1.04 trillion won, up 10 percent year-on-year but down 4 percent from the previous quarter. Expanded supply of camera modules for new flagship smartphones from domestic and overseas customers, along with growth in automotive-specific products, supported the year-on-year gain.

In the third quarter, Samsung Electro-Mechanics plans to begin full-scale mass production of high-performance substrates for new AI accelerators and server CPUs. The company also intends to press ahead with production capacity expansions at home and abroad to meet demand for high-value FC-BGA substrates for data centers.

The Optical Solutions division will expand supply of high-performance camera modules for new foldable smartphones from key customers. The company also plans to continue developing new applications, including products for next-generation electric vehicle platforms from global EV customers and cameras for humanoid robots.

"Demand for high-value data center and automotive components will persist, driven by continued AI infrastructure investment, advances in AI semiconductor performance, and the spread of autonomous driving technology," a Samsung Electro-Mechanics official said. "We will sustain our growth momentum by expanding supply of high-performance substrates, MLCCs and automotive camera modules."


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