South Korea's leading electronic components maker Samsung Electro-Mechanics is expected to post operating profit well above the year-earlier period in the July–September quarter, helped by growing demand for components used in AI servers. LG Innotek, meanwhile, is expected to see revenue rise on the effect of a new smartphone launch, but operating profit is forecast to decline slightly as higher costs weigh on earnings.
Samsung Electro-Mechanics and LG Innotek, two leading South Korean electronic components makers, are showing divergent earnings outlooks for the July–September quarter of 2026. Samsung Electro-Mechanics, which has a high exposure to components used in AI servers, is expected to more than double operating profit from the year-earlier period on growing AI demand.
Samsung Electro-Mechanics' July–September revenue is forecast to rise significantly to KRW 3.8264 trillion (approximately ¥454 billion), with operating profit expected to reach KRW 645.3 billion (approximately ¥76.6 billion). Growing demand for MLCCs and semiconductor package substrates is cited as a factor driving higher earnings.
LG Innotek's July–September revenue is expected to reach KRW 6.097 trillion (approximately ¥723 billion), while operating profit is forecast to decline to KRW 197.3 billion (approximately ¥23.4 billion). The analysis indicates that although the launch of a new smartphone will boost revenue, higher costs resulting from the stronger won are weighing on profit.
The article points to rising demand for high-performance package substrates as the AI server market expands, as well as NVIDIA's plans to expand its supply chain, as factors supporting Samsung Electro-Mechanics' business opportunities. LG Innotek is considering long-term supply discussions and expanding production capacity.