Samsung Electro-Mechanics achieved its highest-ever quarterly revenue in the second quarter of 2026. This was the result of multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers and semiconductor package substrates (FCBGA) simultaneously driving performance. Although the two products are manufactured by different business divisions, they share a commonality: as the computational performance and power consumption of AI servers increase, both must advance accordingly.

■ Q2 Revenue of KRW 3.4572 Trillion... Up 24% Year-over-Year

On a consolidated basis, Samsung Electro-Mechanics posted KRW 3.4572 trillion in revenue and KRW 440.4 billion in operating profit for the second quarter of 2026. Compared to the same period last year, revenue increased by 24% and operating profit surged by 107%. Compared to the previous quarter, revenue rose 8% and operating profit increased by 57%.

The company explained that the improvement in performance was driven by increased supply of MLCC for AI servers, networks, data centers, and automotive applications, as well as high-value-added FCBGA and autonomous driving-related components.

■ The Roles of MLCC and FCBGA Inside AI Servers

MLCC and FCBGA perform different roles within an AI server.

MLCC is a passive component that controls the stable flow of current in electronic circuits and supplies the necessary power. FCBGA is a package substrate that connects high-integration semiconductor chips, such as AI accelerators or server CPUs, to the motherboard while transmitting electrical signals and protecting the chips.

As the performance of AI servers increases, the data processed by the processor and power consumption rise together. In this process, the demand for high-capacity, high-reliability MLCC grows to maintain power stability, and the demand for high-layer-count, large-area FCBGA also increases concomitantly to connect the signals of large AI semiconductors quickly and stably. Samsung Electro-Mechanics stated that large-area, high-layer-count technology is required for high-performance computing FCBGA.

■ Component Business Division Revenue of KRW 1.6494 Trillion... MLCC Long-Term Supply Agreements Signed

The Component Business Division, which oversees MLCC, recorded Q2 revenue of KRW 1.6494 trillion, up 29% year-over-year and 17% quarter-over-quarter. This was driven by expanded sales of high-value-added products for AI servers, data centers, and automotive applications.

Samsung Electro-Mechanics stated that it has signed long-term MLCC supply agreements with about 10 customers, including top-tier hyperscalers and major semiconductor companies, and is responding to additional requests.

■ Package Solution Business Division Revenue of KRW 771.6 Billion... Mass Production of Substrates for New AI Accelerators Begins in Earnest

The Package Solution Business Division, responsible for FCBGA, recorded Q2 revenue of KRW 771.6 billion. This figure represents a 37% increase year-over-year and a 6% increase quarter-over-quarter. The growth was influenced by increased supply of substrates for AI accelerators, server CPUs, and high-value-added automotive applications.

Samsung Electro-Mechanics is ramping up mass production of high-performance substrates for new AI accelerators and server CPUs.

■ Not a Single Product, but Simultaneous Entry into 'Power + Semiconductor Connection'

It is difficult to interpret Samsung Electro-Mechanics' AI benefits solely as an increase in MLCC sales. This is because MLCC, which is responsible for the power stability of AI servers, and FCBGA, which handles signal connections for high-performance semiconductors, support the improvement of the same server's performance from different positions. This signifies that the company is not dependent on a single product but is simultaneously entering the power and semiconductor connection structures within AI servers. This is also the background for why both the Component and Package Solution business divisions can grow together if AI infrastructure investment continues.

■ Optical Solutions... Expanding Applications with Humanoid and Automotive Cameras

The Optical Solution Business Division is showing a different growth path. While expanding the supply of automotive cameras, Samsung Electro-Mechanics is also pursuing initial mass production of high-megapixel sensing modules for humanoids and developing autofocus and long-distance 3D sensing products. While AI server components are currently driving performance, automotive and humanoid cameras are categorized as businesses aimed at expanding applications in the future.

■ Future Variables... Conversion of Long-Term Contracts into Performance and FCBGA Mass Production Effects

The variables to watch going forward are whether the MLCC long-term supply agreements will translate into actual supply volume and profitability improvements, and how much the mass production of FCBGA for new AI accelerators and server CPUs will increase Package Solution revenue. If the performance and power density of AI servers continue to rise, the concurrent demand for both products is likely to remain a key pillar supporting Samsung Electro-Mechanics' performance. This is an interpretation based on the company's official outlook and product roles, and actual performance may vary depending on customer investments, contract terms, and supply schedules.

[※ This article covers corporate and industry trends and does not recommend buying or selling any specific stock. Business performance may vary depending on market conditions and customer investment schedules, and investment decisions and responsibilities lie with the investor. This is an article partially assisted by AI.]