With the direct acquisition of essential components, Company A aims to maximise manufacturing efficiency. Proportion of indirect supply via Bosch, Continental, and Samsung Electro-Mechanics ADAS and powertrain are added to the MLCC portfolio.
Boost MLCC Production to North American Company A
It is anticipated that Samsung Electro-Mechanics will boost the amount of MLCC it directly provides to North American electric vehicle manufacturer A like Tesla. This modification took place as Company A sought to increase production efficiency through the direct acquisition of essential components. Sales of MLCC from Samsung Electro-Mechanics are anticipated to surpass 20% this year.
The amount and percentage of multilayer ceramic capacitors (MLCC) that Samsung Electro-Mechanics exclusively delivers to Company A, a key North American manufacturer of electric vehicles, is anticipated to expand significantly this year, according to the industry on the 13th. MLCC is a part that regulates current to flow steadily in circuits for electronic products. An expert from the sector remarked, “Recently, Company A developed a strategy to maximise production effectiveness and directly buy essential components for electric vehicles. As a result, it is anticipated that a greater percentage of MLCCs will be supplied by Samsung Electro-Mechanics directly to Company A.”
Expansion of MLCC’s supplied to Company A
Through Tier-1 parts manufacturers like Bosch and Continental, Samsung Electro-Mechanics has been informally supplying MLCC to Company A, but the new strategy is anticipated to bring about a shift.
The MLCC range that Samsung Electro-Mechanics delivers to Company A is anticipated to expand as the company’s direct MLCC supply from Samsung Electro-Mechanics to Company A grows. Following the development of two varieties of MLCCs for advanced driver assistance systems (ADAS) in 2021, Samsung Electro-Mechanics stated in 2022 that it had created 13 types of MLCCs for automobile powertrains that could endure high temperatures of 150°C.
According to Samsung Electro-Mechanics, the MLCC for ADAS created in 2021 complies with AEC-Q200, the automotive electronic component reliability test standard, and may be utilised for infotainment as well as ADAS in automobile bodywork, chassis, and other components. Among electrical components, the MLCC for the powertrain has the highest dependability requirements. It is anticipated that chances to provide MLCCs for powertrains to firm A would arise in the future because Samsung Electro-Mechanics indicated last year that it would do so for global clients.
Being Built in a New Facility in Tianjin
Sales of MLCC from Samsung Electro-Mechanics are anticipated to make up over 20% of total sales this year. The percentage of automotive use in MLCC sales last year was in the mid-to-high 10% range, as is well known. For IT goods, Samsung Electro-Mechanics used a significant percentage of MLCC in the past, while using a small percentage of MLCC for industrial and automotive use. The new Tianjin MLCC plant specialises on manufacturing MLCCs for high-end IT devices and electric vehicle batteries. The area of the new Tianjin facility is 1.4 times larger than that of the current Tianjin plant.
Tough Competition in MLCC Business
It is anticipated that the competition between Samsung Electro-Mechanics and Japan’s Murata Manufacturing Plant, TDK, and Taiyo Yuden would intensify as Samsung Electro-Mechanics expands its market share in the automotive MLCC industry. Murata, TDK, and Taiyo Yuden are major participants in the automotive MLCC market which can handle high temperatures as well as pressures.
In addition to MLCC, Samsung Electro-Mechanics also provides camera modules to company A. Company A’s automotive camera module sector saw the establishment of a two-way system between Samsung Electro-Mechanics and LG Innotek. Company A made a recent announcement on the construction of a new factory in Mexico. Around 2 million electric vehicles may already be produced annually by company A.
The Numbers Game
In the component segment, which includes MLCC, Samsung Electro-Mechanics reported sales of 3,707,7 billion won and an operating profit of 354.3 billion won last year. Sales dropped by 16% and operating profit dropped by 56% from the prior year. The optical communication solutions segment had revenues of 1,463.9 billion won and an operating loss of 19.6 billion won in the previous year.
The Package Solution Division reported KRW 2.733 trillion in revenue and KRW 465 billion in operating profit. 7,244.9 billion won was the total revenue last year, and 799.6 billion won was the operating profit. Sales climbed by 0.6% over the prior year, but operating profit fell by 26%.
Dependable Heat Resistance
Yet, due to heat generation and power consumption when sending electricity to the vehicle, the internal MLCC must be very dependable because the operational temperature of the powertrain can reach 150°C. For energy storage in a condition above the stipulated temperature, MLCC typically reduces its capacitance. The recommended temperatures are 85°C for IT products, 125°C for electric vehicles, and 150°C for power trains.
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