South Korean electronics component manufacturer Samsung Electro-Mechanics ( Samsung Electro - Mechanics ) announced its financial results for the third quarter of 2026 on October 28th. Revenues increased by 30% year-on-year to 3.763 trillion Korean won (about $2.64 billion), and operating profit soared by 166% to 691 billion Korean won (about $484 million), both reaching record highs for the quarter. Driven by the continuous growth in investment in artificial intelligence data centers, there was strong demand for multi-layer ceramic capacitors ( MLCC ) and semiconductor packaging substrates, which offset the decline in revenue from camera module business. Following the release of the financial report, Samsung Electro-Mechanics' stock price surged nearly 8% on the Seoul market, and during the same period, the South Korean Composite Stock Price Index ( KOSPI ) also saw a significant increase.
Samsung Electro-Mechanics achieved revenue of 3.763 trillion Korean won in the third quarter, a year-on-year increase of 30%; operating profit reached 691 billion Korean won, a year-on-year increase of 166%, with the growth rate of operating profit significantly exceeding that of revenue. During the same period, the company's operating profit margin rose to 18.4%, an increase of 9.4 percentage points from the same period last year, indicating a significant improvement in profitability. The net profit disclosed by the company increased by 113% year-on-year, further reflecting the driving effect of core business growth on overall performance.
This growth in performance is mainly due to the increased demand for electronic components related to the AI data center. As large technology companies continue to expand their AI servers and data centers, the demand for high-performance capacitors and advanced packaging substrates has risen, driving the sales growth of Samsung Electro-Mechanics' related products. At the same time, the revenue from camera module business has decreased, but this has not changed the overall growth trend of the group's revenue and profits.
Multilayer ceramic capacitors ( MLCC ) and semiconductor packaging substrates are the two product categories that have seen the most significant growth for Samsung Electro-Mechanics this quarter. MLCC are widely used in power management, voltage stabilization, and circuit filtering of electronic devices. AI Servers, due to being equipped with a large number of high-performance processors, require higher stability in power supply and reliability of electronic components, thereby increasing the demand for high-performance MLCC.
Semiconductor packaging substrates are used to connect chips to external circuits and are an important component of high-performance processor and server chip packaging. As the requirements for chip performance, power consumption, and data transmission capabilities in AI computing devices continue to increase, the demand for related substrate products is also on the rise. The strong performance of Samsung Electro-Mechanics in these two areas has significantly boosted the group's operating profit margin and offset the weakness in the camera module business.
Looking ahead to the next few quarters, Samsung Electro-Mechanics expects that the demand for components related to AI data centers will remain strong, and plans to continue signing long-term supply agreements with major large-scale technology customers to support the sustained growth of related businesses.
Long-term supply agreements help companies improve the predictability of future orders and provide support for capacity planning. As AI's infrastructure investments continue to expand into servers, network equipment, and related electronic components, Samsung Electro-Mechanics is expected to continue to benefit from the growing demand brought about by data center construction.
This financial report shows that the impact of AI's infrastructure investments on Samsung Motor has been clearly reflected in revenue and profit growth. Future performance will mainly depend on the sustainability of high-performance MLCC and semiconductor packaging substrate orders, as well as whether the related businesses can maintain the current high profit levels.
