Seoul: Samsung Electro-Mechanics Co., an electronic components affiliate of Samsung Electronics Co., announced that its first-quarter net income experienced a nearly 80 percent increase from the previous year, spurred by robust demand for components used in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the company's net profit for the period from January to March reached 252.7 billion won (US$170 million), marking a significant 78.4 percent rise from 141.6 billion won in the same quarter the previous year. The regulatory filing also revealed that Samsung Electro-Mechanics' operating profit climbed 39.9 percent year-on-year to 280.6 billion won, while revenue saw a 17.2 percent increase, totaling 3.2 trillion won.
The company's financial performance surpassed market expectations, with analysts predicting an average net profit of 203.4 billion won, as per a survey conducted by Yonhap Infomax, the financial data firm associated with Yonhap News Agency.
Samsung Electro-Mechanics attributed the impressive quarterly earnings to strong sales of its high-end product offerings. These include automotive multilayer ceramic capacitors (MLCCs) designed for AI applications and advanced chip packaging solutions for servers.
The company anticipates that the global investment trend in AI infrastructure will persist into the second quarter, maintaining solid demand for higher-value components such as MLCCs, which are integral to AI servers.