Samsung Electro-Mechanics Posts Record Q3 Results on AI Demand

Samsung Electro-Mechanics said on the 28th that it recorded consolidated revenue of 3.7633 trillion won and operating profit of 691 billion won in the third quarter of this year. Revenue rose 30% and operating profit increased 165% from a year earlier, setting quarterly records for both measures. The company cited rising demand for high-value products, particularly for AI data centers, as a factor behind the results.

The Components Division, which makes multilayer ceramic capacitors (MLCCs), posted Q3 revenue of 1.883 trillion won, up 36% year over year. Sales increased across all applications, including products for servers, networking and power systems in AI data centers. Samsung Electro-Mechanics said the move to higher-performance GPUs for AI servers is driving demand for MLCCs with higher capacitance and smaller sizes.

On its earnings call, the company said it had signed or was negotiating long-term supply agreements with about 50 customers for high-value products, including high-capacitance and high-voltage components, as well as advanced products facing a substantial supply shortfall relative to demand. It expects related sales to account for more than half of MLCC revenue next year. The Package Solution Division recorded revenue of 939 billion won, up 58% year over year, the fastest growth among the divisions. Growth came from expanded supply of high-value products for server CPUs, AI accelerators and networking, along with high-performance substrates for ADAS and autonomous driving.

Samsung Electro-Mechanics said it plans to begin phased mass production of expanded flip-chip ball grid array (FC-BGA) capacity in 2027, with the added output to be reflected fully in revenue from 2028. It said customer requests for additional supply continue, as the large-scale expansion still will not meet all demand. The company expects strong AI demand to continue in the fourth quarter of this year and next year. It forecast that rising demand for high-capacitance, high-voltage MLCCs and larger, higher-layer-count FC-BGAs will keep average selling prices on an upward trend for a considerable period. For 2027, it projected substantial earnings growth in every quarter starting with Q1 and a full-year record.

Samsung Electro-Mechanics said on the 28th that it recorded consolidated revenue of 3.7633 trillion won and operating profit of 691 billion won in the third quarter of this year. Revenue rose 30% and operating profit increased 165% from a year earlier, setting quarterly records for both measures. The company cited rising demand for high-value products, particularly for AI data centers, as a factor behind the results.

The Components Division, which makes multilayer ceramic capacitors (MLCCs), posted Q3 revenue of 1.883 trillion won, up 36% year over year. Sales increased across all applications, including products for servers, networking and power systems in AI data centers. Samsung Electro-Mechanics said the move to higher-performance GPUs for AI servers is driving demand for MLCCs with higher capacitance and smaller sizes.

On its earnings call, the company said it had signed or was negotiating long-term supply agreements with about 50 customers for high-value products, including high-capacitance and high-voltage components, as well as advanced products facing a substantial supply shortfall relative to demand. It expects related sales to account for more than half of MLCC revenue next year. The Package Solution Division recorded revenue of 939 billion won, up 58% year over year, the fastest growth among the divisions. Growth came from expanded supply of high-value products for server CPUs, AI accelerators and networking, along with high-performance substrates for ADAS and autonomous driving.

Samsung Electro-Mechanics said it plans to begin phased mass production of expanded flip-chip ball grid array (FC-BGA) capacity in 2027, with the added output to be reflected fully in revenue from 2028. It said customer requests for additional supply continue, as the large-scale expansion still will not meet all demand. The company expects strong AI demand to continue in the fourth quarter of this year and next year. It forecast that rising demand for high-capacitance, high-voltage MLCCs and larger, higher-layer-count FC-BGAs will keep average selling prices on an upward trend for a considerable period. For 2027, it projected substantial earnings growth in every quarter starting with Q1 and a full-year record.