According to industry insiders, the weak demand for MLCC in mainland China may cause Samsung’s sales to drop by 20%. 40% of Samsung’s MLCC revenue comes from mainland China. Under the impact of the trade war, distributors and end customers in mainland China adjusted their inventories and demand fell sharply.

Samsung Motor’s sales and operating profit for the fourth quarter of this year are estimated at 2.1 trillion won ($1.9 billion) and 310 billion won ($279 million), with annual growth rates of 24% and 196% respectively. Although operating profit doubled compared to the same period last year, it still reduced by 50 billion won ($45 million) from market expectations.

The MLCC inventory adjustment in mainland China can be said to be the result of the trade war. As trade wars escalated, companies in mainland China fell in demand for MLCC. At present, nearly half of Samsung Motor’s MLCC is exported to mainland China. Some experts pointed out that the sluggish demand in the mainland will reduce Samsung Motor’s sales by 20%.

In this regard, Samsung Motor is actively studying high-end MLCC with entry barriers. “Fortunately, the price of high-end MLCCs continues to rise,” said Jo Chul-hee, Korea investment and securities research analyst. “In addition, Samsung Motor is increasing the supply of automotive MLCC, which is expected to account for more than 10% of the company’s sales next year. .”