[Concall] Samsung Electro-Mechanics "Automotive Sales Proportion More Than Doubled"

Samsung Electro-Mechanics, which posted improved results in the second quarter compared to the first quarter through a strategy to expand supply of high-profit automotive components, plans to take a more aggressive approach to increasing automotive sales in the second half of the year.

On the 26th, during a conference call following the announcement of its second-quarter earnings, Samsung Electro-Mechanics stated regarding the proportion of automotive products within multilayer ceramic capacitors (MLCC), "In 2021, it was only in the single digits, but through continuous expansion of the product lineup and increased market share among electric vehicle clients, the product proportion in the second quarter of this year more than doubled compared to 2021."

Samsung Electro-Mechanics explained, "The automotive market is expected to continue high growth, so we plan to continuously expand sales by strengthening high value-added product lines such as those for high temperature and high pressure. We also aim to capture the market and increase our share in new industrial growth sectors such as AI servers, satellite internet, and robotics by utilizing small-sized, high-capacity products."

They also stated that they are focusing on expanding their automotive business in the camera module sector. Samsung Electro-Mechanics said, "Automotive camera modules are increasing in number from the existing front and rear cameras to include side and interior cameras as electric vehicles expand and autonomous driving technology advances." They added, "High-specification needs such as adoption of high-resolution cameras to improve sensing accuracy are expected to continue." "Accordingly, by actively responding to market and customer needs using high-resolution, high-quality modules and lens technology, we plan to expand the business scale through increased supply for major clients requiring high-resolution products and diversification of customers to traditional OEM companies," they added.

Regarding this year’s capital investment plan, they said, "Considering the market slowdown, some parts of the investment plan are being adjusted, so it may decrease compared to the plan at the beginning of the year." Regarding the third quarter business outlook, they said, "Due to ongoing uncertainties in the external business environment such as US-China conflicts and global economic slowdown, demand recovery for some products is expected to be delayed, but for MLCC, supply expansion is anticipated due to inventory depletion by Chinese customers since the second half of last year and seasonal factors."

They continued, "In the case of package substrates and camera modules, although some markets such as PCs still face weak demand factors, slight growth compared to the previous quarter is possible. In sectors such as automotive and servers, by actively expanding supply of high value-added products including MLCCs, power inductors, high-resolution camera modules for autonomous driving, and large-area high-layer substrates for servers and automotive use, we will build a stable mid- to long-term growth foundation by expanding not only sales but also profitability."

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