Samsung Electro-Mechanics Co. Ltd. (SEMCO), a leading South Korean electronic components manufacturer, is poised to report robust third-quarter results, supported by strong demand from the artificial intelligence and automotive sectors, according to analysts at Daiwa Capital Markets.

Key Forecasts

• Estimated operating profit: KRW 268 billion, up 19% year-over-year
• Performance beat: Above market consensus
• MLCC factory utilization: Exceeded 95% during Q3

Analysts S.K. Kim and Daekoon Kim noted that the company’s strong results are being driven primarily by continued global demand for multilayer ceramic capacitors (MLCCs) — essential components used in AI servers, electric vehicles (EVs), and advanced computing systems.

AI and Automotive Demand Leading Growth

The surge in MLCC demand for AI data centers and autonomous vehicle electronics has helped boost utilization at SEMCO’s MLCC production facilities to over 95% in the July–September quarter, one of the highest levels in recent years.

Additionally, growing sales of flip-chip ball grid array (FC-BGA) substrates — a key component used in AI accelerator chips and high-performance processors — contributed significantly to quarterly earnings improvement.

Outlook

The analysts expect Samsung Electro-Mechanics to maintain strong performance momentum into the fourth quarter, as the AI boom continues to drive demand for high-end semiconductor components. The company is also likely to benefit from steady growth in the automotive electronics segment, which increasingly relies on advanced passive components and substrates for electrification and connectivity applications.

Conclusion

Samsung Electro-Mechanics’ Q3 earnings are expected to reflect the company’s strategic positioning at the intersection of AI infrastructure growth and next-generation vehicle technologies. With sustained demand from both sectors, SEMCO remains well placed to post solid profit expansion through the remainder of 2025.