Good afternoon, this is EVP Dong Lee, Head of IR and Planning Team at Samsung Electro-Mechanics. Thank you for joining our 2026 Q2 earnings conference call.

On today's call, I am joined by our CFO, Songdon Kim; EVP Tae-gon Lee, who is the Head of Strategic Marketing; VP Kyu Taek Park, Head of Support Team of the Component Division; EVP Panbaek Kim, Head of Support Team, Package Solution Division; and Hyeonseon Kim, Head of Support Team of the Optic Solution Division. We will start with a presentation on our Q2 company-level and divisional business results, followed by market trends and outlook by product before taking your questions.

Then first, our second quarter results. Q2 revenue was 3 trillion 457.2 billion Korean won, which is an approximately 8% increase QoQ and 24% increase on a YoY basis.

The details regarding revenue increase or decrease factors by division will be explained later during the divisional results. Q2 operating profit was 440.4 billion won, which is approximately 57% increase QoQ and around 107% increase on a YoY basis.

Pre-tax profit in Q2 was 433.3 billion won and net profit was 315.7 billion Korean won. Next, in terms of our financials, as of end of Q2, total assets was 16 trillion 566 billion Korean won, which is roughly a 6% QoQ increase.

For major financial indicators, liability to equity increased 2 percentage points to 57%, and debt to equity was 28%, which is an increase of 2% versus Q1. Equity ratio was around 64%, similar to Q1.

Next are the divisional results and future outlook. First is a look at our Component Division.

The Component Division's Q2 revenue was 1 trillion 649.4 billion won, which is roughly 17% increase QoQ and 29% increase YoY. Data center-related revenue tied to applications such as AI servers, network, and power equipment recorded strong growth, and automotive revenue also increased with advances in ADAS and xEV demand.

Revenue grew across all applications, but particularly in the industrial and automotive MLCCs. Q3 MLCC market is expected to see continued growth demand for high-capacitance, high-reliability MLCC demand driven by ongoing AI infrastructure investments and AI chip performance gains.

We'll focus on timely development and effective supply of cutting-edge MLCCs for AI applications, and we've entered into long-term agreements with 10 or so customers, including the top-tier hyperscaler and major semiconductor companies. We are currently actively responding to additional long-term supply requests from big key accounts.

The growing penetration of ADAS and growing xEV market is expected to support solid automotive MLCC demand, and so we will expand market penetration of our high-capacitance products for ADAS applications and high-voltage products for xEVs. Next is the Package Solution Division.

Q2 revenue was 771.6 billion, roughly 6% increase QoQ and 37% increase YoY. For FCBGA, supply of high-end substrates for major big tech AI accelerators and server CPUs continue to increase, and we started the full-scale supply of new AI data center network application products for a new customer.

Also, supply of automotive substrates for ADAS and autonomous driving increased, leading to revenue growth led by AI server and automotive applications. BGA revenue also increased with increased supply of mobile AP and memory substrates.

In Q3, FCBGA market is expected to see continued strong demand for high-end FCBGA for AI data centers. We will focus on increasing revenue with mass production of new substrates for AI accelerator and server CPUs for global big tech customers, and expand production capacity in Korea and overseas to capture demand from almost all of the top-class semiconductor customers related with AI and data centers to increase supply of our high-end substrates.

Lastly, the Optic Solution Division. Q2 revenue was 1 trillion 36.2 billion, roughly 4% decrease QoQ, but a 10% increase YoY.

Even though IT camera revenue slightly fell QoQ due to seasonality, our supply of differentiating products for new flagship smartphones of Korean and overseas OEMs increased, including new mass production of the 200-megapixel folded zoom cameras and high-resolution, large-angle OIS and slim OIS. Automotive camera revenue increased, driven by increased supply of high-pixel sensing and all-weather cameras for the global EV OEM, and adoption of in-cabin cameras in more vehicle models of a Korean OEM.

Looking at Q3, IT camera module market is expected to enjoy increased supply of high-performance cameras for the new foldable phone unveiled by the strategic customer, and continued demand from global mobile OEMs for differentiating camera modules. We will focus on strengthening our high-spec camera module lineup, including high-image-quality slim OIS and power prism folded zoom.

Also, further advances in ADAS and new camera applications such as humanoids are expected to grow in the future. We will focus on timely supply of specialty cameras for global EV OEM's next-generation platforms, preparing pilot mass production of our high-pixel sensing modules for humanoids, and focus on development of differentiating products such as AF and long-distance 3D sensing.

That completes the presentation on Q2 results. Now, Head of Strategic Marketing, Tae-gon Lee, will take you through the trends and outlook by key product.

Good afternoon, this is Tae-gon Lee, Head of Strategic Marketing, and I will share the market update and outlook for MLCCs, substrates, and camera modules, respectively. First, MLCC.

Q2 MLCC demand increased QoQ across all applications, including IT, industrial, and automotive. In particular, with AI infrastructure investments continuing and the accelerated increase in electric content in vehicles, demand for high-end MLCCs grew significantly.

By application, industrial MLCC demand was particularly strong for high-end MLCCs, such as the high-temperature, high-voltage, high-capacitance MLCCs that are paired with high-performance AI accelerators and next-generation CPUs. Because AI servers have highest technology requirements, only a few companies are able to supply, making MLCC supply even tighter.

Such growing supply uncertainties have led to long-term supply contracts already signed with 10 or so accounts, including top-tier hyperscalers and key semiconductor companies, and we're also actively engaged with additional long-term supply requests from key customers. Automotive MLCC market also continues to grow, driven by penetration of eco-friendly vehicles and higher autonomous driving levels.

In addition, the MLCC content per vehicle is increasing, and high-end MLCC for powertrain and ADAS is also continuing to drive solid demand growth. MLCC for IT applications also saw QoQ demand growth.

Regarding outlook for Q3, MLCC demand is expected to see another quarter of growth across applications. For industrial MLCC, supply is expected to become even tighter due to AI technology advances driving significant increase in MLCC content per box and greater demand for higher-reliability MLCCs with high-temperature, high-voltage, high-capacitance characteristics needed for the harsh AI server environment.

In particular, in the case of the 1005 45 microfarad product, demand is expected to grow by more than 7 times in 2027 versus this year, given the large quantities of the product being adopted in the big tech company's new platform. Considering the limited physical space in AI servers, demand for high-capacitance MLCC is likely to increase, and so we're focused on launching next-generation new products, including 68 microfarad and 150 microfarad, to preempt this demand.

In response to data center adoption of 800-volt systems and higher heat levels, we have been increasing the 1-kilovolt high-voltage lineup and design-in activities of the 125-degree, 150-degrees ultra-high-temperature MLCCs. Meanwhile, the increasing power consumption in AI chips has been driving rapid increase in demand for silicon capacitors.

We have announced last May that SEMCO has successfully joined the key supply chain of global big tech companies and is in great position to expand supply to wider varieties of semiconductor customers. For automotive, we continue to capture the increasing demand for small-size, ultra-high-capacitance MLCCs needed for advanced ADAS.

We're also expecting demand for 100-volt high-capacitance components used for 48-voltage power systems to increase in the future. We're ready to respond quickly to this market shift.

Growing competition over EV range and charging time is driving wider deployment of ultra-fast charging infrastructure, and so we will actively seize opportunities to increase our market share. For IT applications, we expect to see another quarter of growing demand for high-end MLCCs, including the ultra-small and ultra-high-capacitance low-ESL products driven by strong demand for semiconductor packages and memory such as SOCAM.

We're working with key semiconductor companies on new qualification of our ultra-small-size, ultra-high-capacitance landside capacitors, and will focus on timely capture of growing demand for next-generation low-ESL MLCC products. We're also focusing on timely capture of high-temperature, low-profile MLCC products for next-generation memory, such as DDR6, LP6, SOCAM, to benefit from memory demand growth.

Regarding long-term supply agreements, MLCC demand is continuing to grow from a variety of applications, including AI, automotive, and industrial. We're engaging in strategic talks with major big tech customers.

Regarding MLCC pricing, with even tighter supply expected due to increasing AI demand, we will take a strategic approach to pricing while carefully monitoring supply and demand situations. Next is substrates.

Flip chip BGA market demand recorded solid growth in Q2 as the shift from generative AI to agentic AI drove server CPU demand. Demand for AI accelerators also recorded solid growth as big tech investments continued.

This has led to a significant QoQ increase in our data center-related revenue, and we started full-scale supply of our new AI data center network product to the new North American big tech account. Q2 BGA market demand grew QoQ despite soft smartphone and PC set demand, thanks to the pricing adjustments in the industry to reflect higher raw material prices for BGA.

Our revenue also increased, driven by increased supply of BGA for data center SSD controllers. FCBGA is expected to remain a sellers' market in Q3, with demand for server CPUs and AI accelerators continuing to remain strong and driving market growth.

With supply remaining tight, we will continue to have pricing discussions with key customers. Supply of high-end products for data centers is expected to grow significantly on a QoQ basis in Q3, therefore driving further profitability gains.

In data centers, larger-area semiconductors require larger, high-multilayer substrates, leading to even greater shortage of FCBGA supply. We will leverage our strengths in multi-core and embedded technology to continue talks with almost all of the top-class semiconductor customers related with AI and data center products about capacity expansion and long-term supply arrangements to maintain our edge in advanced substrate market by adding new capacity at the right time.

Q3 BGA demand is expected to increase QoQ with mobile customers planning new product launches in the second half. We will focus on capturing demand from increasing supply of new ARM CPUs for PC and tablets, and the demand from data center SSD controller customers.

At the same time, we will develop new applications tied to satellite antennas and data centers with heightened design-in activities. Lastly is a look at camera modules.

Q2 IT camera demand had decreased QoQ due to seasonality of major customers' flagship smartphones launched in Q1. However, automotive camera demand in our addressable market increased slightly QoQ with growing xEV demand.

Q3 IT camera demand may be affected by the adjustment in Chinese OEMs' handset launch schedules to cope with memory supply issues, but we look forward to strategic customer's foldable phone launch and also the US OEM's new flagship launch. We will differentiate ourselves with high-performance, ultra-slim, new-feature actuator technology, and the lens integrated prism and miniature lens technology to break into new customers and applications.

Q3 automotive camera demand is expected to be similar to Q2, and we will continue to expand high-pixel camera lineup targeting next-generation autonomous driving platforms, and actively capture the growing automotive camera market by winning new design-ins of major North American customers to reinforce our technology leadership in the autonomous driving market. We will also scale up mass production of camera modules for global humanoid customer, and pursue design-in on high-resolution recognition modules to gain an early lead in the newly emerging physical AI market.

Thank you. 지금부터 질의응답을 시작하겠습니다.

질문을 하실 분은 전화기 버튼에 별표와

Q&A session will begin. Please press *1, that is * and 1, if you have any questions.

Questions will be taken according to the order you have pressed the number *1. For cancellation, please press *2, that is * and 2 on your phone.

다음으로 질문을 주실 분은 하나증권의 김민경 님입니다. The first question will be provided by Min-kyung Kim from Hana Securities.

Please go ahead with your question. 안녕하세요, 하나증권 김민경입니다.

질문 기회에 감사드립니다. 저는

MLCC 관련 질문 두 가지 드리려고 하는데요. 첫 번째는 최근 AI용 MLCC 공급 계약 공시하신 것처럼 관련 수요가 매우 빠른 속도로 증가하고 있는 것 같습니다.

추가적인 공급 계약도 진행 중이신지, 그리고 캐파 운영 전략은 어떠신지 말씀 부탁드립니다. 두 번째는 MLCC 출하량, 재고, ASP 실적은 어땠는지랑 3분기 전망 공유 부탁드립니다.

감사합니다.

I have two questions regarding MLCC. The first question is related with the recent announcement of your additional MLCC supply contracts for AI applications.

I'm wondering if you have additional supply contracts that's currently being discussed. Also, what would be your MLCC capacity operation plans for this year?

Second question regarding MLCC is your actual MLCC shipments, inventory, ASP data points in Q2, and your guidance on these data points for Q3. 질문 주신

AI용 MLCC 관련 답변드리도록 하겠습니다. AI 서버용 MLCC 시장은 하이퍼스케일러의 지속적인 AI 데이터센터 투자와 GPU 연산 성능 향상, 서버용 네트워크 고속화에 따라 최첨단 하이엔드 MLCC의 채용이 지속적으로 증가하고 있어 향후에도 가파른 성장세를 이어갈 것으로 전망하고 있습니다.

100마이크로패럿 이상의 초고용량품과 125도 고온품 등 최첨단 제품은 성능과 신뢰성 측면에서 최고 수준의 기술을 요구하고 있어 대응 가능한 업체가 당사 포함 소수에 불과합니다. 이에 따라 시장 내 수급 긴장도는 점차 높아지고 있으며, AI 서버 주요 고객을 중심으로 안정적인 물량 확보를 위한 장기 공급 계약 체결 니즈도 증가하고 있어 당사는 탑티어 하이퍼스케일러 및 주요 반도체 업체 등 10여 개의 고객들과 장기 공급 계약을 체결하였으며, 추가로 주요 고객들의 장기 공급 계약 요청에 적극적으로 대응하고 있습니다.

당사는 AI 서버용 MLCC 시장에서의 주도권을 강화하기 위해 최첨단품 수율 개선 및 생산성 향상을 진행하고 있으며, 예년 대비 캐펙스 규모도 확대하여 공급을 극대화할 수 있는 생산 기반을 구축해 나가고 있습니다. 또한 AI 서버용 MLCC의 기술 요구가 빠르게 고도화되는 가운데 당사가 보유한 초고용량품 제품 라인업을 기반으로 사이즈, 전압, 온도 조건별 최첨단 기종을 적기 출시하여 고객의 다양한 요구에도 신속히 대응하고 있습니다.

이를 통해 AI 서버용 MLCC 시장에서 기술 리더십을 강화해 나가는 한편, 시장 성장을 상회하는 매출 성장을 지속해 나가도록 하겠습니다.

To answer your first question regarding our supply of MLCCs for AI servers, as you've mentioned, with the continuing investment by hyperscalers in AI data centers, and also advances in GPU compute performance, and also the higher-speed networks that are being adopted on servers, there is continuing demand for adoption of cutting-edge, high-end MLCCs in AI data center servers. We expect this steep growth curve to continue for some time in the future.

When we talk about cutting-edge MLCC products, those would be the high-capacitance products with 100 microfarad or above, or those that have high-temperature characteristics of 125 degrees and above. These are products that require the highest level of technology in terms of performance and reliability, and only a few companies, including SEMCO, is able to supply at that level.

This is resulting in growing tension on the supply side of the market. Therefore, customers, especially those that have AI server needs, are showing stronger needs and wishes to secure long-term supply agreements in order to secure stable MLCC supply volume going forward.

Based on this, we have already signed long-term supply agreements with 10 or so customers, including the top-tier hyperscalers and key semiconductor companies. In addition to the already signed LTAs, we are currently actively responding to additional long-term supply agreement requests from other major customers.

You've also asked about our plans of running our MLCC capacity this year. We are focusing on improving the yield of our cutting-edge MLCC products and improving the productivity in order to further strengthen our lead in the MLCC market for AI servers.

We've also budgeted a larger CapEx size versus previous years so that we'll be building a production base that could maximize supply. Also, we're noticing that the technology demands for MLCCs for AI servers is rapidly becoming more and more sophisticated.

We will be leveraging the already wide high-capacitance product lineup that we have to launch a diverse combination of different cutting-edge products MLCCs in different size, voltage, or temperature conditions so that we'll be able to capture the variety of needs coming from our customer base. Overall, this year will we remain focused on continuing our technology leadership in the MLCC market for AI servers to deliver a revenue growth that once again outpaces the market.

질문 주신

MLCC 2분기 출하량, 재고, ASP 실적 및 3분기 전망에 대하여 답변드리도록 하겠습니다. 2분기 출하량은 산업, 전장 중심으로 전 응용처에서 증가하였습니다.

AI 서버, 네트워크, 파워 등 데이터센터향 및 xEV향 수요 확대를 바탕으로 산업, 전장용 출하량은 더블 디짓 수준의 성장을 기록했으며, 이에 따라 전체 재고는 감소하였습니다. 블렌디드 ASP는 산업, 전장용 고부가 제품의 비중이 지속 확대되면서 지난 분기에 이어 이번 분기도 상승 추세가 이어졌습니다.

3분기는 앞서 말씀드린 바와 같이 하이퍼스케일러가 주도하는 AI 서버용 MLCC 수요 증가가 지속될 것으로 예상됩니다. 또한 전장 시장의 경우 외부 기관에서 2분기 대비 두 자릿수 수준의 xEV 출하량 증가를 전망하고 있는 만큼, 이에 따른 전장용 MLCC 수요도 견조하게 유지될 것으로 예상됩니다.

이러한 시장 수요를 바탕으로 당사 매출도 전분기 대비 확대될 것으로 예상되며, 고부가 제품 비중 증가에 따라 블렌디드 ASP 역시 상승할 것으로 전망하고 있습니다.

Your second question was about MLCC Q2 shipment, inventory, ASP, and our third quarter outlook. In terms of second quarter MLCC shipments, shipment increased across all applications, but particularly around industrial and automotive applications.

We saw double-digit level growth in industrial and automotive MLCC shipments supported by strong demand from data center applications, including AI servers, network, and power equipment, as well as increasing demand for xEV applications. With growth in shipments, our overall inventory decreased.

In terms of second quarter blended ASP, with growing share of the high-end industrial and automotive MLCC in overall makeup, our blended ASP once again increased on a quarter-on-quarter basis. Regarding outlook for Q3, we do expect once again there to be continued increase in demand for MLCCs for AI servers, especially coming from hyperscalers.

Also, on the automotive side, according to third-party sources, the shipment of xEVs are expected to grow by double-digit in Q3 versus Q2, and therefore, we think that there will be solid demand being maintained for automotive MLCCs as well in Q3. Overall, supported by such strong market demand, we expect our MLCC revenue to increase on a quarter-on-quarter basis, and with the higher share of high-end MLCCs, we expect our blended ASP also to increase.

다음 질문 받아주시기 바랍니다. 다음으로 질문해 주실 분은

JP모건의 권재현 님입니다.

The following question will be presented by Jay Kwon from JP Morgan. Please go ahead with your question.

질문 기회 주셔서 감사합니다.

JP모건 증권의 권재현입니다. 저는 그 두 가지 그 실리콘 커패시터랑 플립칩 BGA 각각 질문 좀 드리려고 하는데요.

첫 번째로 일단 저희 플립칩 BGA 그 기판 증설을 저희 검토 중이신 걸로 알고 있는데, 가능하시다면 혹시 세부적인 좀 캐파 증설 및 향후 운영 계획에 대해서 답변해 주시면 감사드리겠습니다. 그리고 두 번째는 저희 5월에 1.5조 원 규모의 실리콘 커패시터 공급 계약도 공시하셨는데요.

향후의 시장 전망을 어떻게 하시는지, 또 추가 수주 가능성도 저희가 볼 수 있는지 말씀 부탁드립니다. 감사합니다.

My first question is about the flip chip BGA. We've been told that you are considering increasing your capacity of FCBGAs.

If possible, can you share with us some details about that capacity expansion and how you plan to operate this additional capacity in the future? Second question is about the silicon capacitor.

You've announced back in May that you signed 1.5 trillion won silicon capacitor supply contract. Can you give us some market outlook on silicon capacitors, and is there a possibility of winning additional contracts?

예, 먼저

FCBGA 캐파 증설 및 사업 운영에 대해 말씀드리겠습니다. AI 패러다임이 학습에서 추론 중심으로 전환됨에 따라 글로벌 빅테크들은 추론에 특화된 자체 반도체 칩 개발을 확대하고 있으며, 참여 업체도 증가하는 추세입니다.

또한 AI 반도체의 고성능화로 인한 칩 대형화, HBM 채용 확대로 인해 패키지 기판도 초대면적, 고다층화가 가속화되고 있으며, 이에 따라 공급 업체들의 캐파 잠식이 가중되고 있습니다. 최근에는 주요 고객들의 부품 임베딩, 멀티코어 등 하이엔드 기판에 대한 요구가 증가하고 있으며, 양산 공급 능력 및 기술력을 갖춘 소수의 업체만 대응 가능하여 고부가 기판의 공급 부족은 더욱 심화되고 있습니다.

이에 당사는 AI, 데이터센터 관련 대부분의 탑클래스 반도체 고객들과 투자 지원을 포함한 전략적인 장기 공급 계약 협의를 진행 중이며, 이를 기반으로 캐파를 증설할 계획입니다. 당사는 고객사와 함께 차세대 제품 개발 관련 협업을 강화하고, 차별화 기술 확보에 역량을 집중하는 한편, 캐파 증설을 차질 없이 준비하여 고객 수요에 적기 대응하고 중장기 사업 확대를 추진하겠습니다.

To answer your first question about our FCBGA capacity expansion and our operational plans, with the AI paradigm shifting from training models to inference and reasoning, the global big tech companies are now focused more on developing their own proprietary chips that specialize for reasoning and inference, and more and more companies are participating in this development. Also, with higher performance of AI chips, chips are getting larger in sizes and adopting more and more HBM together, which means that the package substrate itself has to become ultra-large size and high-multilayer.

This is actually aggravating the capacity consumption of these substrate suppliers. On top of that, recently we're seeing that key customers are having stronger demand for high-end substrates that have multi-core or have embedded components.

At this level, there's only a few companies that are able to supply this with the right technology level and the mass production capacity, and this limited supply is further aggravating the shortage in supply of high-end substrates. Given this market situation, we are talking with almost all of the top-tier, top-class AI and data center-related semiconductor companies about long-term supply contracts, including investment support, and we will plan our capacity expansion based on these talks.

Also, we are strengthening our collaboration with customers about developing next-generation substrate products and focusing on securing differentiated technology. Our key priority would be to respond timely to customer demand by preparing our capacity expansion smoothly and to focus on expanding our business in the mid to long term.

질문 주신 실리콘 커패시터 시장 및 추가 수주 등 사업 전망에 대해서 답변드리겠습니다. 실리콘 커패시터는

MLCC 대비 로우 ESL의 전기적 특성이 우수하고 두께가 얇아 AI 서버용 반도체 패키지에서 반도체 칩과 가장 가까운 위치에 탑재되어 시스템 성능과 안정성을 뒷받침하는 핵심 부품입니다. 이에 따라 모바일에서 AI 데이터센터로 응용처가 확대되고 있으며, AI 데이터센터 관련 실리콘 커패시터의 채용 증가가 예상되어 시장 규모 또한 지속 확대될 것으로 전망됩니다.

당사는 MLCC와 실리콘 커패시터의 상호 보완적인 특성을 기반으로 현재 AI 관련 주요 반도체 업체들과 추가 공급 계약을 협의 중에 있으며, MLCC, 실리콘 커패시터, 패키지 기판까지 턴키로 공급할 수 있는 전 세계 유일한 기업 강점을 바탕으로 초기 시장을 주도적으로 선점하여 큰 폭의 매출 성장을 추진해 나가겠습니다.

To answer your question about our silicon capacitor and whether there's possibility of additional orders, versus MLCCs, silicon capacitors have better electric characteristics, such as low ESL. Also, versus MLCCs, silicon capacitors are thinner.

Therefore, they are key component that is mounted nearest to the semiconductor chip on an AI server semiconductor package and play a critical role in guaranteeing overall system performance and reliability. There's been a shift of expansion of silicon capacitor applications from the traditional mobile to AI data centers, and we are expecting there to be an increase in silicon capacitor adoption in AI data centers, and market size therefore to continue to grow.

Based on the mutual complementary characteristics between MLCC and silicon capacitors, we are currently in additional talks about supply contracts with key semiconductor companies related with AI. Also, SEMCO is the only company in the world that can provide on a turnkey basis not only the silicon capacitor, but MLCC and package substrates.

Therefore, using that unique strength and leverage, we will focus on gaining a lead in the early market and to deliver significant revenue growth going forward. 다음 질문 받아주시기 바랍니다.

다음으로 질문해 주실 분은 현대차증권의 김종배 님입니다. The following question will be presented by Jong-bae Kim from Hyundai Motor Securities.

Please go ahead with your question. 네, 안녕하세요.

현대차증권 김종배입니다. 우선 질문 기회 주셔서 감사합니다.

저도 두 가지 정도 간단한 질문이 있는데요. 첫 번째로는 이제

FCBGA 관련해서 신규 빅테크 거래선 진입, 그리고 가격 조정 등으로 인해서 당장 하반기 실적에 대한 기대감이 높아지고 있는 것 같은데, 관련해서 하반기 전망에 대해서 좀 구체적인 내용 공유 부탁드리고요. 두 번째로는 이제 카메라 모듈 관련된 질문인데요.

최근에 이제 뭐 휴머노이드나 ADAS 등 피지컬 AI 관련해서 카메라 모듈 관련해서 시장 관심이 높아지고 있는 것 같은데, 관련해서 좀 구체적인 내용 업데이트 부탁드립니다. 감사합니다.

My first question is about the flip chip BGA. There, I think, is growing expectations for stronger flip chip BGA performance in your second half, given that you've announced that you've entered the supply chain with a new big tech account, and also there's been pricing adjustments in flip chip BGA.

Can you give us a bit more detail about your outlook for flip chip BGA in the second half? Second question is about camera modules.

There's also increasing market attention on camera modules, given that there's new applications emerging. In addition to ADAS, there's also humanoids and physical AI.

You've always emphasized these new applications. Can you give us some updates and details about your camera module business?

예, 질문 주신

FCBGA 하반기 사업 전망에 대해 말씀드리겠습니다. 앞서 말씀드린 바와 같이 AI 수요 증가에 따른 빅테크 기업들의 데이터센터 증설 투자 및 자체 칩 도입 등으로 수요가 급증하고 있으며, 다수의 글로벌 빅테크 거래선들로부터 당사의 참여 요청이 있습니다.

이에 당사는 서버 CPU, AI 가속기 양산 이력을 기반으로

2분기부터 신규 빅테크향 AI 데이터센터 네트워크용 신제품 공급을 시작하였고, 하반기에도 주요 거래선들의 신제품 양산이 예정되어 있습니다. 최근에는 패키지 기판의 수요 증가와 고사양화뿐만 아니라 원자재 가격 상승까지 더해지면서 기판 가격은 꾸준히 상승하고 있는 추세입니다.

당사는 하반기 고부가 신제품 공급 및 전략적 가격 대응을 통해 하반기 큰 폭의 매출 성장을 전망하고 있으며, 패키지 기판 사업의 지속 성장을 위해 최선을 다하겠습니다. To answer your first question about flip chip BGA outlook in the second half, with big tech companies continuing to invest in data centers and also developing their own proprietary chips to meet the AI demand, we're seeing rapid increase in demand for FCBGAs, and we're getting various requests to participate in the supply chain from a large number of global big tech customers.

We already have a track record of producing flip chip BGAs for server CPUs and AI accelerators, and leveraging this, we already started supply of a new flip chip BGA product for the AI data center network of a new big tech account in Q2. We also have mass production schedules throughout second half for new products to be supplied to key customers.

In addition to the strong demand for package substrates and the higher specifications, there's been increase in raw material prices. All of this is leading to steady increase in substrate prices overall.

To summarize, we have plan of supplying new high-end substrates in the second half, and we will also be responding strategically to pricing. Overall, therefore, we expect there to be a significant growth in revenue in the second half, and we will continue to focus on continuing this growth trend of our package substrate business.

질문 주신 향후 카메라 모듈 사업 전망에 대해 답변드리겠습니다. 먼저 스마트폰용 카메라는 메모리 수급 이슈 영향으로 세트 수요 정체가 전망되고 있으나, 당사가 주력하고 있는 플래그십용 카메라 모듈에서는 메인 카메라의 고화질 슬림화, 신규 폴디드 줌 기술 등 거래선별 차별화 성능 요구가 지속되고 있습니다.

이에 당사는 다변화된 글로벌 거래선 기반을 강점으로 거래선별 맞춤형 솔루션 제공, 차세대 제품 선행 확보를 통해 기술 리더십을 강화해 나가도록 하겠습니다. 전장용은 자율주행 기술의 발전과 함께 고정밀 센싱, 고신뢰성 카메라 수요 확대와 로보택시와 같은 무인 자율주행 서비스 등 다양한 영역으로 응용처가 확대되고 있습니다.

이에 당사는 글로벌 거래선의 차기 플랫폼 전환에 적기 대응하고 로보택시용 차세대 고부가 신규 라인업 확대를 통해 자율주행 시장에서의 제품 경쟁력을 강화해 나가겠습니다. 또한 휴머노이드용은 당사의 차별화 기술, 품질 신뢰성 및 글로벌 공급 거점을 기반으로 연내 초도 양산 공급 예정이며, 탑티어 거래선들과의 차세대 제품 개발 협력을 확대하여 성장하는 피지컬

AI 시장에도 적극 대응해 나가도록 하겠습니다.

To answer your second question about our camera module business, first, look at smartphone cameras. Even though there is overall growth stagnation expected for the smartphone camera market overall due to decrease in set supply tied to the memory supply issues, our key focus in the smartphone camera market has been the flagship camera modules, and in that segment, we actually continue to see demand from our key customers for cameras that have differentiating performance, including high image quality, slim camera modules, and new folded zoom technology.

The strength of SEMCO's camera module business is that we have a wide, diversified global customer base, and leveraging this strength, we will be focusing on providing customized solutions for each of the customers, and also strengthening our technology leadership by developing next-generation camera module technology ahead of time. On the automotive camera module side, we're seeing an expansion of automotive cameras to a wider variety of applications.

In addition to the development of autonomous driving technology, we're seeing an increase in demand for high-precision sensing and high-reliability cameras for new applications such as driverless autonomous driving robotaxis. Therefore, our focus on the automotive side is to further our competitiveness in the automotive driving market by timely responding for the new platform that will be announced by the global customer, the OEM, and also by expanding the new automotive product lineup for the robotaxi applications.

There's also the humanoid application side, and we are planning to start pilot mass production of our humanoid-related camera module based on the next-generation differentiating technology, quality, reliability, and also the fact that we have a global supply base. We're also going to continue to work with top-tier customers to develop next-generation camera module products so that we will be in good position to actively respond to the newly growing physical AI market.

다음 질문 받아주시기 바랍니다. 다음으로 질문해 주실 분은 대신증권의 박강호 님입니다.

The following question will be presented by Kang-ho Park from Daishin Securities. Please go ahead with your question.

네, 안녕하세요. 질문 기회 주셔서 감사드립니다.

대신증권의 박강호입니다. 어려운 상황에서

2분기 좋은 실적 축하드리겠습니다. 저는 이제 기판 부분에 질문 하나, 그다음에 전반적인 질문 하나 좀 드리겠습니다.

먼저 그 기판 부분에서는 이번 달 7월 초에 유리 기판 JV 설립 관련하여 본계약을 체결하신 것으로 알고 있습니다. 유리 기판의 사업화 현황 및 향후 전망에 대해서 좀 공유 부탁드리겠습니다.

두 번째로는 아까 말씀하신 것처럼 AI 중심으로 MLCC, FCBGA 사업이 지속적으로 성장을 하고 있습니다. 특히 이제 데이터센터나 전장용 쪽에서 고부가 중심으로 이 매출이 확대되면서 삼성전기의 향후 실적에 대한 기대치가 높아지고 있다고 보고 있습니다.

혹시 3분기 실적 전망에 대해서 말씀 부탁드리겠습니다. 감사합니다.

I have two questions. First question is related with substrates.

If I understand correctly, you signed the main contract related with the establishment of a joint venture for the glass substrate business early July, earlier this month. Can you give us an update on the business development of the glass substrate business and future plans?

Second question is about your third quarter outlook. As you mentioned during the presentation, this huge AI demand is driving growth of your MLCC and flip chip BGA business.

Also, with the data centers and automotive growth increased, there's an increase in the high-end product share across your business lines. This is driving up market expectations for your Q3 earnings.

At this point, can you share what you expect to see in Q3? 예, 질문 주신 유리 기판 사업 추진 현황에 대해 말씀드리겠습니다.

당사는 차세대 패키지 기판 솔루션 중 하나인 유리 기판을 신사업으로 육성하기 위해 사업화를 단계적으로 준비해 나가고 있습니다. 작년 말

JV 설립을 위한 MOU 공시 이후 지난

7월 초에 일본 스미토모화학의 자회사인 동우화인켐과 유리 기판의 핵심 소재인 글라스 코어 생산을 위한 합작법인 설립을 위해 본계약을 체결하였으며, 당사는 합작법인 지분의 66.2%를 보유할 예정으로 연내 법인 설립을 최종 완료할 예정입니다. 당사는 데이터센터향 빅테크 고객들과 대면적 고다층 유리 기판의 개발 협력을 진행해 왔으며, 일부 고객과는 기술 승인 샘플 평가 단계를 진행 중에 있습니다.

이와 함께 생산 설비 구축, 공정 안정화, 품질 검증 등을 단계적으로 추진하고 있으며, 28년부터 본격 가동을 목표로 고객 니즈에 적기 대응하여 유리 기판 시장을 선점해 나가겠습니다. To answer your first question about the glass substrates, glass substrates have been one of the new businesses that we've been developing as a next-generation package substrate solution.

We have been developing the glass substrate business stage by stage. The joint venture agreement that you've mentioned is the joint venture agreement that we've signed with Dongwoo Fine-Chem, which is a subsidiary of Japanese company Sumitomo Chemical.

We had the joint venture MOU signed last year, and early July, early this month, we announced that we signed this main agreement for the joint venture establishment. This joint venture is to produce glass cores, which is a key substance that's necessary for production of glass substrates.

We are planning to own 66.2% stake of this joint venture, and we're aiming to complete the establishment of this legal entity within this year. In terms of the development of the technology, we have continuously been working with big tech customers that have data center needs in the development of large-area, high-multilayer glass substrates.

With some of these customers, we're already in sampling phase for engineering qualification. We have plans to develop this step-by-step, including deploying the production facilities, stabilizing the production process, and doing quality control and verification.

Our current timeline is to have full-scale operations from 2028, and we will be aiming to secure early lead in the glass substrate market by timely responding to customer needs. 질문하신

3분기 실적 전망에 대해 말씀드리도록 하겠습니다. 우선 지난 2분기는 AI 서버, 네트워크 및 전장용 고부가 MLCC, FCBGA 매출이 확대되었고, 고부가품 확대에 따른 믹스 개선 등으로 전분기 및 전년 동기 대비 증가된 실적을 시현하였습니다.

3분기에도 AI, 데이터센터 투자 확대 지속, 자율주행 고도화 등에 따른 관련 부품 수요 강세는 지속될 것으로 예상되어 MLCC 및 FCBGA 타이트한 수급 상황은 더욱 심화될 것으로 전망됩니다. 이에 당사는 MLCC의 경우 AI 서버, 네트워크 및 ADAS 관련 높은 판가의 초고용량, 고온, 고압 등 고부가품 공급을 적극 확대하겠으며, 주요 하이퍼스케일러 및 반도체 업체들과 전략적인 장기 공급 계약 협의를 지속하는 한편, 가격에 대해서도 수급 상황을 고려하여 적극적으로 대응해 나가겠습니다.

FCBGA는 글로벌 빅테크향 AI 가속기 및 서버 CPU용 신제품 양산 등 데이터센터용 하이엔드 제품 공급을 적극 확대하고, 시장 상황을 반영한 가격 협의를 계속할 계획입니다. 또한 탑클래스 반도체 고객사들과 장기 공급 계약 협의에 따른 국내외 캐파 증설을 차질 없이 진행해 나가겠습니다.

카메라 모듈도 ADAS 고도화에 대응하는 전장용 고부가품 공급 확대 및 휴머노이드용 신제품 양산을 본격화할 계획입니다.

To answer your question about third quarter outlook, to look back on Q2, we had increase in our high-end MLCC and flip chip BGA revenue for AI server, network, as well as automotive applications. With this increase in share of high-end products, product mix improved, and we were able to therefore deliver better performance both on QoQ and YoY basis.

Looking towards Q3, we do expect the demand for related components to continue to remain very strong as the AI data center investments continue to expand and autonomous driving technology advancements continue. With stronger demand expected on these key components, we expect the supply to become even tighter for MLCC and flip chip BGA in Q3.

Therefore, we will focus on actively increasing supply of high-end MLCCs, the high-capacitance, high-temperature, high-voltage MLCCs that have the higher selling prices that will be supplying towards applications related with AI server, network, and ADAS. We will also be continuing to have strategic long-term supply agreement talks with key hyperscalers and semiconductor companies, and also actively respond on pricing, taking into account the supply and demand situations.

For flip chip BGA, we will focus on actively increasing the supply of high-end substrates for data centers, including the mass production of new substrates for AI accelerators and server CPUs for global big tech customers. Also, we will continue to have price talks with customers to reflect the market situation.

Also, we will focus on carrying out the capacity expansions in Korea and overseas in line with these long-term supply contracts and talks that we're having with the top-class semiconductor customers. Also, on the camera module side, we will focus on increasing supply of high-end camera modules for automotive applications, and also to increase and scale up the mass production of new camera modules for humanoid applications.

이에 따라

3분기도 MLCC, FCBGA 등 고부가 제품 중심의 타이트한 수급 상황 심화, 장기 공급 계약 확대, 그리고 평균 판가 상승 효과 지속에 따라 전분기 및 전년 동기 대비 더욱 큰 폭의 실적 확대로 3분기에 역대 최대 실적을 달성할 것으로 전망됩니다. 한편, 이러한 추세는 4분기에 이어 27년에도 더욱 강화될 것으로 예상되어 지속적인 실적 개선이 전망됩니다.

당사는 AI, 데이터센터 및 전장 등 고성장 시장에 역량을 집중하는 한편, 선제적인 캐파 확대 등을 통해 시황 및 공급망 변화에 신속하게 대응해 나가겠습니다. 아울러 실리콘 커패시터, 유리 기판 등 신사업 분야 또한 글로벌 빅테크 고객사들과 협업을 한층 강화하고 중장기 사업화 준비를 차질 없이 추진해 나가겠습니다.

감사합니다. Therefore,

to summarize, in Q3, we expect the supply situation to become even tighter around our key high-end products, that's MLCC and flip chip BGA. We expect to increase the number of long-term supply contracts, and we expect there to be continued upward movement in our ASP.

Overall, we do expect there to be an even more significant earnings growth on a QoQ and YoY basis versus Q2. At this rate, we are on track to setting a new earnings record in Q3.

Actually, we expect this upward momentum to even become stronger as we move into Q4 and even 2027. We're expecting there to be continuous improvement in our overall business performance.

As we've always done so, we will continue to focus on the high-growth areas and markets such as AI data center and automotive, and we will also back this up with preemptive capacity expansions so that we're able to quickly respond to changes in market situation and supply chain. At the same time, we will also develop our new businesses, such as silicon capacitors and glass substrates, by closely working with our key customers, including global big tech companies, so that we're able to, at the same time, prepare for mutual long-term business development.

그럼 이것으로

2026년 2분기 실적 설명회를 마치도록 하겠습니다. 참여해 주신 모든 분들께 감사의 말씀을 드리며, 혹시 추가 질문이 있으시면 저희 IR 팀을 통해 별도로 문의해 주시기를 바랍니다.

감사합니다.

This concludes our second quarter earnings conference call. If you have any further questions, please forward them to our IR team.

Thank you very much.