Samsung Electro-Mechanics Accelerates Leap as Global MLCC Leader... Establishes Advanced Equipment TF Organization

Establishment of Equipment Advancement TF Team... Improving Production Efficiency of MLCCs for Electronic Devices and Automotive Applications

[Asia Economy Reporter Ki-min Lee] Samsung Electro-Mechanics is accelerating its plans to become a global leader in multilayer ceramic capacitors (MLCC). Recently, Samsung Electro-Mechanics formed a task force (TF) to actively advance projects aimed at modernizing its production processes.

According to industry sources on the 23rd, under the direction of CEO Kyung Kye-hyun, who took office earlier this year, Samsung Electro-Mechanics established an equipment advancement TF under the Component Solutions Division last month and launched an internal project.

MLCCs are as small as the thickness of a hair but control the flow of electricity, delivering a precise amount where needed. The size of MLCCs varies from 0.4mm × 0.2mm, similar to the thickness of a hair at 0.3mm, up to 5.7mm × 5.0mm. Because manufacturing MLCCs requires extremely fine processes, only a few companies can mass-produce them. Therefore, raising yield rates is essential due to the high unit price per component.

With the establishment of this TF, Samsung Electro-Mechanics is expected to accelerate the implementation of an AI-based smart factory, which has been underway since the second half of last year. Industry insiders anticipate that the Samsung Electro-Mechanics TF will play a role in improving productivity on the automotive MLCC line at the Busan plant and efficiently allocating new production facilities being built in Tianjin, China. Previously, Samsung Electro-Mechanics introduced AI into MLCC quality visual inspection equipment last year to enhance inspection efficiency and yield rates.

Samsung Electro-Mechanics is focusing not only on MLCCs for electronic devices but also on securing market share in automotive MLCCs. As electric vehicles, which use more than ten times the number of MLCCs compared to small electronic devices like mobile phones, become commercialized, the automotive MLCC market is also growing.

Accordingly, the overall MLCC market size, which was in the early 10 trillion KRW range last year, is expected by the industry to grow to the 20 trillion KRW range in 2024. In particular, the share of automotive MLCCs, which accounts for about 20% of the total MLCC market, is expected to expand to 35% in 2024.

In terms of global MLCC market share, Murata Manufacturing holds the 30% range, Samsung Electro-Mechanics the 20% range, and Taiyo Yuden 10%, with Samsung Electro-Mechanics ranking second. However, in the automotive MLCC sector, Japanese companies dominate, and Samsung Electro-Mechanics holds less than 10%.

In response, Samsung Electro-Mechanics announced last year its goal to raise its global market share in automotive MLCCs to second place by 2022. Samsung Electro-Mechanics is undergoing certification tests with global automakers to verify its technology while also focusing on internalizing raw materials.

This content was produced with the assistance of AI translation services.