Samsung Electro-Mechanics Records Historic Q1 Revenue Driven by AI and Automotive Sector Boom

Samsung Electro-Mechanics has delivered a stellar financial performance for the first quarter of 2026, with quarterly revenue surpassing the 3 trillion won mark for the first time in the company's history. The company reported a total revenue of 3.2091 trillion won, representing a 17 percent increase compared to the same period last year. Operating profit also saw a massive surge, climbing 40 percent year-on-year to reach 280.6 billion won. This robust growth was primarily propelled by the soaring demand for high-value-added industrial and automotive components, particularly in Advanced Driver Assistance Systems and artificial intelligence servers.

Looking closely at the business segments, the Package Substrate division emerged as the star performer, generating 725 billion won, which marks a phenomenal 45 percent increase in revenue year-on-year. This explosive growth was driven by the expanded sales of Flip Chip Ball Grid Array substrates tailored for artificial intelligence accelerators and high-performance server Central Processing Units. Meanwhile, the Component division, which handles Multi-Layer Ceramic Capacitors, maintained a strong upward trajectory, recording 1.4085 trillion won in revenue, up 16 percent from the previous year.

The semiconductor industry is currently undergoing a massive transformation, with artificial intelligence workloads demanding unprecedented levels of processing power and power delivery efficiency. Advanced packaging substrates like high-layer Flip Chip Ball Grid Arrays have become critical bottlenecks in shipping next-generation artificial intelligence hardware. Samsung Electro-Mechanics has strategically positioned itself to capture this wave. Moving forward, the company expects the high-demand trend for high-value Flip Chip Ball Grid Array substrates across artificial intelligence, server, and networking sectors to persist. The company plans to sustain its growth momentum by initiating full-scale shipments of new artificial intelligence networking products and aggressively expanding its market share in substrates for artificial intelligence accelerators and server Central Processing Units.