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Samsung Electro-Mechanics Suwon campus (Photo courtesy of Samsung Electro-Mechanics) |
[Alpha Biz= Kim Jisun] South Korea’s leading electronic components makers Samsung Electro-Mechanics and LG Innotek delivered robust first-quarter results, driven by strong demand from AI servers and automotive electronics.
Samsung Electro-Mechanics reported record quarterly revenue of KRW 3.2091 trillion, marking the first time it has surpassed the KRW 3 trillion threshold. Operating profit rose 40% year-on-year to KRW 280.6 billion, despite reflecting a one-off retirement benefit cost of KRW 71.4 billion.
Growth was led by its components business, which posted KRW 1.4085 trillion in revenue, up 16% year-on-year. Demand surged for industrial applications such as AI servers, power, and networking equipment, alongside increased supply of automotive MLCCs driven by the expansion of advanced driver assistance systems (ADAS).
MLCCs (multi-layer ceramic capacitors) are essential components that store and regulate electricity for semiconductors and other devices. AI servers typically require 10 to 15 times more MLCCs than conventional servers, at higher unit prices—making them a key driver of profitability.
The package solutions segment saw revenue jump 45% to KRW 725 billion, supported by strong demand for high-value FC-BGA substrates used in AI accelerators and server CPUs for global tech companies.
Meanwhile, the optical solutions segment posted revenue of KRW 1.0756 trillion, up 5% year-on-year, driven by mass production of high-end smartphone camera modules—including 200-megapixel sensors—and expanding supply to electric vehicle markets.
Looking ahead, Samsung Electro-Mechanics plans to focus on supplying high-value MLCCs for AI servers and next-generation FC-BGA products amid ongoing data center infrastructure upgrades. Industry observers expect the company to regain annual operating profit of over KRW 1 trillion following its strong start to the year.
LG Innotek also reported record first-quarter revenue, supported by similar tailwinds in AI infrastructure and automotive electronics, with both companies expected to sustain earnings growth into the second quarter.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
