Electronic parts makers Samsung Electronics and LG Innotek are booming thanks to AI and iPhone

According to financial information service FN Guide, Samsung Electro-Mechanics' sales for the April-June period increased 7.3% year-on-year to 2.3826 trillion won (about 277.442 billion yen), and its operating profit increased 1.2% to 1.28 trillion won (about 1.28 trillion yen).
The company's sales rose 2% to 209.1 billion won (about 24.3 billion yen). The company supplies multilayer ceramic capacitors (MLCCs) and cameras for Samsung Electronics' Galaxy series of smartphones.
The company provides modules for the Galaxy S24, an artificial intelligence (AI) smartphone. In 2024, the demand for the Galaxy S24 increased, and the company's performance also improved. In addition, the demand for MLCCs for electrical equipment continues to grow.
This has led to the company's favorable performance. Meanwhile, LG Innotek's sales for the April-June period increased 14.5% to 4.4735 trillion won (about 520.86794 billion yen), and its operating profit increased 393% to 4.4735 trillion won (about 520.86794 billion yen).
The strong performance is expected to be a rebound from the sluggish operating profit in 2023, as well as the slowdown in sales of Apple's smartphone "iPhone 15."
The effects of AI products are expected to become apparent at the end of 2024 or in the first half of 2025. An industry insider said, "AI will have an impact on the growth of not only semiconductor manufacturers, but also electronic product manufacturers.
"Samsung Electro-Mechanics is leveraging the strengths of its group companies, but it will take some time for LG Innotek to see results."