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<From the left, Samsung Electro-Mechanics President Duckhyun Chang and LG Innotek President Cheoldong Jeong.>

Samsung Electro-Mechanics and LG Innotek recorded their best quarterly performance despite being in the first quarter, which has traditionally been a low season. On top of Samsung and Apple, its key customers, maintaining strong smartphone sales, the outstanding results are also thanks to expanding their business to high value-added multilayer ceramic capacitors (MLCC), semiconductor substrates, and auto parts. Samsung Electro-Mechanics and LG Innotek, which posted their highest performances since their foundation last year, are expected to set new records this year as well.

Samsung Electro-Mechanics announced on the 27th that it recorded KRW 2.6168 trillion in sales and KRW 410.5 billion in operating profit in the first quarter. Sales rose by 14% and operating profit by 15% compared to the same time last year. Both sales and operating profit recorded the highest performance, as of the first quarter.

The increasing supply of high-performance package substrates such as high value-added MLCCs for industrial and electronic applications, high-end application processors (APs) and ultra-thin central processing units (CPUs), and high-end camera modules led to the company’s earnings.

The component division's sales reached KRW 1.2293 trillion in the first quarter, up 13% from the same period last year and 5% from the previous quarter. The supply of high value-added products such as high-end MLCCs has expanded. Samsung Electro-Mechanics plans to expand its highly-reliable MLCC lineup, resistant to high-temperatures and high-voltages, to aggressively target the industrial and automotive markets.

The optical communication solution division grew 12% compared to the previous quarter and 3% compared to the same time last year, as the supply of high-end camera modules such as folded zoom and high-performance camera modules for electric use expanded.

In the package solution division, sales rose by 44% in the same period since last year and 8% compared to the previous quarter. The supply and demand situation in the semiconductor package substrate market is expected to remain tight, and Samsung Electro-Mechanics plans to expand the supply of high value-added package substrates.

LG Innotek announced on the 27th that it recorded KRW 3.9517 trillion in sales and KRW 367.1 billion in operating profit in the first quarter. Compared to the same period last year, sales increased by 28.7% and operating profit increased by 5.8%. LG Innotek also recorded their highest sales and operating profit in the first quarter.

An LG Innotek official said, “High-performance camera modules for smartphones and semiconductor substrates for 5G communication led to our performance," adding, "The entire product lineup of electronic parts also supported the performance by increasing sales.”

The optical solution business recorded KRW 3.885 trillion in sales, up 33% from the same time last year. Even during the off-season, the supply of new models to customers has expanded, focusing on high value-added products such as multiple camera modules and 3D sensing modules.

The substrate material business generated KRW 415 billion in sales, up 16% from the same time last year. It demonstrated solid performance mainly in semiconductor substrates for 5G communication, such as substrates for radio frequency package-in-system (RF-SiP) and substrates for 5G millimeter wave antenna-in-package (AiP).

The electronic parts business recorded sales of KRW 313.8 billion, an increase of 18% compared to the same time the previous year, and an increase of 8% from the previous quarter. Sales increased in the entire product lineup of electronic components. LG Innotek is focusing on improving profitability by expanding the development of general-purpose products in the electronic parts business.

[Table] Samsung Electro-Mechanics and LG Innotek's Q1 earnings (Sourced by each company)

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By Staff Reporter So-ra Park srpark@etnews.com