Samsung's MLCC will focus on the automotive market
According to industry sources, SAMSUNG ELECTRO-MECHANICS (SEMCO) is focusing on MLCC Business to fill the gap left by its panel-level packaging (PLP) business plan after the transfer to Samsung Electronics.
SEMCO plans to hold a MLCC briefing on June 12th at the MLCC plant in the Noksan Industrial Park in Busan. The Busan plant is equipped with a dedicated production line for the automotive MLCC. SEMCO plans to introduce the growth potential of automotive MLCCs at the briefing.
SEMCO has been increasing its efforts to promote its automotive MLCC as they will replace its PLP business. The PLP business will be handed over to Samsung Electronics in June this year. MLCC is SEMCO's most profitable product. Last year, MLCC increased the company's operating profit to 1 trillion won.
Currently, SEMCO's MLCC is primarily used for information technology (IT) equipment. MLCC sales of IT equipment accounted for approximately 80% of the company's total MLCC sales. Although the current sales of automotive MLCCs are less than 10% of total sales, they have huge growth potential. In particular, the demand for MLCC in electric vehicles is about five times that of current fuel vehicles. In addition, in January of this year, SEMCO has stated that it will shift the focus of MLCC business from MLCC for IT to MLCC for automotive and other industries, and increase MLCC sales for non-IT industry to 30% of total MLCC sales.
SEMCO's new investment in automotive MLCC production lines continues to increase. As of now, it has invested 91.12 billion won in production facilities, more than double the investment last year. Most of the funds were used to build a new automotive MLCC plant in Tianjin, China, and to expand the Busan plant.