Seoul:Samsung Electro-Mechanics Co., an affiliate of Samsung Electronics Co., reported record-breaking third-quarter revenue and operating profit, fueled by a substantial increase in demand for products utilized in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the company's operating profit for the July-September period soared by 165.5 percent year-on-year to 691 billion won (approximately US$516 million). Revenue also saw a significant rise of 30.3 percent, reaching 3.76 trillion won, both figures marking new quarterly records as detailed in a regulatory filing.
The net profit saw an impressive increase of 115.7 percent from the previous year, totaling 485 billion won. Samsung Electro-Mechanics attributed this financial success to the heightened sales of multilayer ceramic capacitors (MLCCs) for AI data centers, which include servers and network equipment, as well as applications in the automotive sector.
Further growth was observed in the company's component business, particularly in AI-related products, with a notable expansion in sales of flip-chip ball grid array substrates for AI data centers and automotive uses. Additionally, the company experienced an uptick in shipments of camera modules for next-generation platforms of global electric vehicle customers.
Samsung Electro-Mechanics is focused on fulfilling long-term MLCC supply agreements with prominent global technology firms and aims to bolster its market position by advancing product development. The company also plans to quickly respond to the increasing customer demand for package substrates used in AI data centers and intends to expand sales by providing camera modules for next-generation EV platforms.