Samsung Electronics’ vice-chair and de-facto leader Lee Jae-yong on Thursday visited Samsung Electro-Mechanics’ factory to inspect the automotive multilayer ceramic capacitors (MLCCs) line located in Busan.
The visit is part of a series of on-site management by Lee at Samsung’s various factories. This also marks the first time the vice-chair toured the site since it began operation in 2018. The Busan plant operates automotive MLCC-dedicated lines.
During his visit, Lee discussed business strategies with the Busan plant executives. He said that with the rapid change of pace of future technologies such as AI and 5G, Samsung should take the lead in the innovation. He added that the company should continue to advance its technologies despite the uncertainties in the industry.
Samsung Electro-Mechanics provides MLCCs for various Samsung products, such as in automotive, smart devices, and camera modules.
As an essential part of electronics, multilayer ceramic capacitors act like “dams” to control electric currents. They temporarily charge and discharge electricity regulating the current’s flow as stable levels. The MLCCs also prevent and remove electromagnetic interference inside electronic products.
Global Expansion of Automotive MLCC
Recently, the fast penetration of autonomous vehicles and electric-powered cars created fast-paced demand for automotive MLCCs. In an effort to supply the growing demand, the affiliate ramped up its production to expand the MLCC business into the automotive market.
Last Sunday, Samsung Electro-Mechanics announced that it developed five new types of MLCC products for automobiles. The electronics parts supplier introduced two MLCCs for an anti-lock brake system and three for the powertrain.
Samsung Electro-Mechanics follows Japan’s Murata Manufacturing as the world’s largest MLCC provider.
Since 2016, Samsung began mass-producing automotive MLCCs, supplying to leading global automakers located in China and Europe. Currently, the conglomerate is constructing a new MLCC line in Busan and Tianjin, China.
According to data, KB Investment & Securities projects that automotive MLCC expands its share of the global MLCC market from 29 percent to 35 percent by 2024. During the same period, the global MLCC market is forecasted to grow to 20 trillion won ($16.6 billion) from 16 trillion ($13.3 billion) won this year.