(LEAD) Samsung Electro-Mechanics logs record profit in Q3 on AI boom

Samsung Electro-Mechanics had its strongest quarter on record from July through September. Revenue reached 3.76 trillion won, while operating profit climbed to 691 billion won. Net profit also increased to 485 billion won. These results matter because they show how demand for AI infrastructure is spreading beyond chipmakers to component suppliers.

The company linked the performance mainly to higher sales of multilayer ceramic capacitors, or MLCCs, for AI data-center servers and network equipment. Its component business grew across all application areas, led by AI-related products. Sales of package substrates for AI data centers and automotive uses also expanded.

Growth was not limited to data centers. Samsung Electro-Mechanics also reported stronger automotive sales and increased camera-module shipments for next-generation platforms of global electric-vehicle customers. The company plans to meet long-term MLCC agreements, develop advanced products earlier, and expand AI-data-center and EV-related sales.

The scale of Samsung Electro-Mechanics’ improvement was substantial. Third-quarter operating profit jumped 165.5 percent from a year earlier to 691 billion won. Revenue increased 30.3 percent to 3.76 trillion won. Net profit also rose 115.7 percent to 485 billion won.

These were not merely higher results. Revenue and operating profit both set quarterly records, according to the company’s regulatory filing. The figures show that sales growth translated into an even sharper rise in operating earnings. That matters because it indicates strong demand and improved business performance across key component lines.

The main engine was demand tied to AI infrastructure. MLCC sales rose for AI data centers, servers, and network equipment. Package-substrate sales expanded for AI data centers and automotive applications. Camera-module shipments also increased for next-generation EV platforms, adding another source of growth.

Multilayer ceramic capacitors, or MLCCs, are small electronic components made from alternating ceramic and conductive layers. Their basic job is to store and release small amounts of electrical energy. They also help smooth unwanted changes in voltage and reduce electrical noise. Reliable power control is essential in dense, high-performance equipment.

AI data centers contain large numbers of servers and networking devices that process heavy workloads. These systems can experience rapid changes in electrical demand. MLCCs are placed near circuits to support stable power delivery and protect sensitive components from noise or voltage fluctuations. In that way, they help equipment operate consistently.

The article identifies MLCCs for AI data centers, servers, and network equipment as a major source of Samsung Electro-Mechanics’ stronger sales. It also reports demand from automotive applications. The company is pursuing long-term supply agreements and developing advanced MLCC products earlier to meet expected customer needs.

AI applications require substantial computing capacity, so companies are building more data-center servers and network equipment. Each expansion increases demand for the electronic components inside those systems. This creates opportunities not only for chip manufacturers, but also for suppliers of power, connection, and packaging components.

The key mechanism is scale. More servers require more MLCCs to help manage electrical power and noise. They also require package substrates, which connect semiconductor packages to circuit boards and help route electrical signals. More network equipment creates additional demand for similar supporting components. The article reports stronger sales across these AI-related product lines.

Samsung Electro-Mechanics said MLCC sales for AI data centers, including servers and network equipment, drove improved earnings. Its package-substrate sales also expanded for AI data centers. The company plans to respond to rising demand by strengthening advanced-product development and expanding supply to these facilities.

Samsung Electro-Mechanics’ growth extends beyond AI data centers. Automotive applications contributed to higher MLCC sales, and package-substrate sales also expanded for automotive uses. The company additionally shipped more camera modules for next-generation platforms developed by global electric-vehicle customers.

These products serve different needs. MLCCs help manage electrical power in vehicle systems. Package substrates connect semiconductor packages with circuit boards and route signals. Camera modules provide images for vehicle functions and other platform features. Together, these components support increasingly electronic vehicles and their digital systems.

The article presents automotive demand as an important second growth area alongside AI infrastructure. Samsung Electro-Mechanics aims to expand camera-module sales by supplying next-generation EV platforms. It also plans to strengthen sales of MLCCs and package substrates for automotive applications as those customer programs develop.

Package substrates and camera modules support different parts of modern electronic systems. A package substrate is the intermediary base that connects a semiconductor package to a circuit board and routes electrical signals. A camera module combines image-sensing and optical parts to capture visual information. These functions are important in both computing equipment and vehicles.

In AI servers, package substrates help connect advanced processing packages to the wider system, allowing signals and power to move between them. In electric vehicles, camera modules capture images for vehicle platforms and related functions. Their exact uses can vary by customer and platform, but both products help connect hardware with the capabilities it needs.

Samsung Electro-Mechanics reported expanded package-substrate sales for AI data centers and automotive applications. It also reported increased camera-module shipments for next-generation EV platforms. The company plans to supply more camera modules and respond to rising demand for AI-data-center substrates.

Long-term supply agreements matter because complex technology systems need dependable component availability. They can give a supplier clearer visibility into future orders while helping customers plan production. In a global supply chain, that planning can reduce uncertainty around essential parts such as MLCCs and package substrates.

Early development of advanced components is important because customer platforms can require new specifications and higher performance. A supplier that develops products ahead of demand may be better positioned to qualify them and begin deliveries when a technology company needs them. This can strengthen customer relationships and improve a company’s market position.

Samsung Electro-Mechanics said it is working to meet long-term MLCC supply agreements with major global technology companies. It also plans to develop advanced products earlier and respond quickly to demand for AI-data-center package substrates. These steps support its stated goal of expanding sales in AI and EV markets.