Samsung Electro-Mechanics doubled its operating profit on AI and automotive demand. The company said on Wednesday it posted second-quarter revenue of 3.46 trillion won and operating profit of 440.4 billion won. Revenue rose 24 percent from a year earlier and operating profit jumped 107 percent. Performance also improved from the previous quarter. Revenue rose 8 percent and operating profit increased 57 percent.

Profit indicators broadly rose. Pretax profit increased 153 percent from a year earlier to 433.3 billion won, and net profit rose 143 percent to 315.7 billion won.

By division, components led the revenue expansion. Component sales rose 29 percent from a year earlier and 17 percent from the previous quarter to 1.65 trillion won.

The package business posted the highest growth rate. Package sales rose 37 percent from a year earlier to 771.6 billion won, and increased 6 percent from the previous quarter.

Optics was mixed. Revenue rose 10 percent from a year earlier to 1.04 trillion won, but fell 4 percent from the previous quarter, the only decline among the three divisions.

The company cited a shift in end-demand as a driver of the improvement. It said sales expanded for MLCCs for data centres, including AI servers and networks, and for automotive electronics.

Changes in the supply product mix also played a role. The company explained that supplies of high value-added semiconductor substrates (FCBGA) to global big tech customers increased, and supplies of automotive electronic components related to ADAS and autonomous driving also rose.

Rising demand also led to supply contracts. Samsung Electro-Mechanics signed long-term supply agreements (LTA) for MLCCs with more than 10 customers, including top-tier hyperscalers and major semiconductor companies, and is responding to requests for additional long-term supply contracts.

Conditions in the third quarter are also favourable. It is expected that strong demand will continue for AI, data centre and automotive electronic components as investment in AI infrastructure continues, AI semiconductor performance improves and autonomous driving technology spreads.

Its response is focused on high value-added items. Samsung Electro-Mechanics plans to increase revenue by ramping up mass production of high-performance substrates for new AI accelerators and server CPUs, and by expanding supplies of high-performance automotive camera modules.