Samsung Electro-Mechanics earnings reached a quarterly record in the third quarter of 2026, with operating profit rising 165% from a year earlier to KRW 691.0 billion. Revenue increased 30% to KRW 3,763.3 billion, supported by demand for components used in AI data centers.
Key Takeaways
- Operating profit also rose 57% from the preceding quarter, while revenue increased 9%.
- Package Solution sales grew 58% year over year, while Optical Solution sales fell from the prior quarter.
- The company expects strong AI component demand to continue in the fourth quarter and plans further capacity investment.
Samsung Electro-Mechanics earnings and AI demand
In its third-quarter business results, Samsung Electro-Mechanics said both revenue and operating profit were quarterly records. The company attributed the improvement to broader Component Unit sales led by AI products, higher sales of package substrates for AI data centers and automotive applications, and expanded camera-module supply for EV customers.
The Component Solution business makes multilayer ceramic capacitors, or MLCCs, among other products. The company said sales increased across its applications, led by AI data center uses such as servers, networks and power.
| Item | Details |
|---|---|
| Component Solution Q3 revenue | KRW 1,883.0 billion; up 36% year over year and 14% quarter over quarter |
| Package Solution Q3 revenue | KRW 939.0 billion; up 58% year over year and 22% quarter over quarter |
| Optical Solution Q3 revenue | KRW 941.3 billion; up 3% year over year and down 9% quarter over quarter |
Package substrates grow as camera sales soften
Package Solution growth reflected increased supply of high-value substrates for server processors, AI accelerators and networks, as well as automotive applications. By contrast, Optical Solution revenue declined from the second quarter amid softer demand from overseas customers for IT camera modules.
The optical business nevertheless grew from a year earlier. Samsung Electro-Mechanics cited new camera modules, supply for foldable phones and expanded automotive supply among the factors behind that increase.
Fourth-quarter outlook and capacity plans
Samsung Electro-Mechanics expects strong demand for high-end AI data center components to continue in the fourth quarter. A company representative said MLCC revenue should rise significantly despite typical seasonality, supported by automotive and AI server demand. These expectations are management forecasts, not reported results.
The company said it has signed or is in the process of signing long-term MLCC agreements with about 50 customers, and expects more than half of next year's MLCC revenue to come from such agreements. It also plans to double fourth-quarter supply of server CPU substrates using embedding and multi-core technology.
A new Philippines plant is scheduled to begin mass production of high-end MLCCs in 2027. The company also said its KRW 6.8 trillion package-substrate investment is intended to serve AI data center demand, with production starting in stages from 2027 and a meaningful revenue contribution expected from 2028. Capital expenditure is expected to exceed its original expectations.
Next milestone
The next confirmed milestone is the planned start of mass production at the new Philippines MLCC plant in 2027.
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