AI NewsWaveSamsung Electro-Mechanics Posts Record Q3 Operating Profit of 691 Billion Won on AI Component Boom
Key points
- Q3 operating profit of 691 billion won, a record
- Supply shortage of MLCCs and FC-BGAs for AI servers continues
- Plans to double supply of ultra-large substrates in Q4
Samsung Electro-Mechanics announced its third-quarter 2026 results on Oct. 28. EBN reported that rising demand for high-value components for AI data centers lifted operating profit to a record 691 billion won, and IT Chosun reported that operating profit more than doubled from a year earlier. Both outlets cited growing sales of multilayer ceramic capacitors (MLCCs) and semiconductor package substrates as the background.
Remarks from the earnings call were also reported. EBN said the company expressed confidence that a supply shortage of MLCCs and FC-BGAs for AI servers is driving profitability and that it will set a record every quarter from the first quarter of next year. Chosun Biz reported that the supply shortage of FCBGAs for AI servers continues and that the company is negotiating price increases with customers, and that it plans to double its fourth-quarter supply of ultra-large substrates for server CPUs from the previous level.
IT Chosun reported that Samsung Electro-Mechanics is expanding substrate production capacity but cannot keep up with customer demand, and that long-term supply agreements for MLCCs are also growing. Chosun Biz reported that the company said it will keep responding to long-term supply agreement demands from major big tech customers and expand supply of ultra-high-capacity MLCCs.
News from the robotics field also emerged. Chosun Biz and EBN reported that Samsung Electro-Mechanics has begun mass production of camera modules for humanoid robots. According to Chosun Biz, third-quarter revenue of the Optical Solutions business was 941.3 billion won, slightly down from the previous quarter but up about 3% from a year earlier. Techworld News reported that on Oct. 28 Nvidia is expanding semiconductor manufacturing capacity with supply chain partners including Amkor Technology, Ibiden, KYEC, Samsung Electro-Mechanics, SPIL and Unimicron.
Samsung Electro-Mechanics recently made its cooperation with Nvidia official. iNews24 reported on Oct. 21 that the company will jointly invest with Nvidia in production facilities for advanced package substrates for AI chips and pursue long-term supply cooperation, and Industry News (인더스트리뉴스) reported that it will expand dedicated production facilities in Sejong and Busan. Chosun Biz reported on Oct. 22 that Samsung Electro-Mechanics will expand package substrate production facilities with investment of several trillion won from U.S. big tech companies.
Glossary An MLCC (multilayer ceramic capacitor) is a small component that briefly stores electricity in electronic circuits and stabilizes current. Semiconductor package substrates such as FC-BGAs electrically connect a chip to the main board.