Samsung Electro-Mechanics eyes $737 mn in sales of automotive MLCCs

[Courtesy of Samsung Electro-Mechanics Co.]

Samsung Electro-Mechanics Co., an electronic component manufacturing subsidiary under South Korea’s Samsung Group, has set the goal of achieving 1 trillion won ($737.18 million) in sales from its multilayer ceramic capacitor (MLCC) segment for electric vehicles this year.

“We are preparing for the transition to future industries,” said Kim Wi-heon, chief of MLCC development at Samsung-Electro Mechanics, during a media briefing in Seoul on Friday.

The company plans to achieve 2 trillion won in sales by 2025 from its automotive electronics business, which includes MLCCs, cameras, and semiconductor packaging.

MLCCs are essential components that store and supply electricity to semiconductors as needed and eliminate signal interference within electronic devices.

They are also crucial for all devices that use integrated circuits (ICs), including smartphones, TVs, and EVs.

Samsung Electro-Mechanics aims to actively develop automotive MLCCs as a future growth driver.

Automotive MLCCs require advanced technology compared to those used in information technology (IT) devices, taking three times longer to develop and costing over three times as much. Demand is also high, with a single EV requiring up to 20,000 MLCCs.

Market research firm TSR projects that the automotive MLCC market will grow at an annual average of 12 percent to 9.5 trillion won in 2028 from 4 trillion won in 2023.

Kim highlighted the increasing proportion of EVs and the expansion of advanced driver assistance systems (ADAS) as key factors driving the company’s focus on automotive MLCCs. He emphasized the company’s particular attention to ADAS and powertrains.

“Unlike MLCCs for IT devices, automotive MLCCs must have a guaranteed lifespan of over 15 years and be able to withstand voltages up to 2000 volts, as well as resist shock, bending, and vibration,” Kim said. “They must also operate reliably at temperatures up to 150 degrees Celsius to be used in high-temperature environments like engines.”

Samsung Electro-Mechanics has developed and manufactured its own MLCC raw materials to enhance its technological competitiveness.

Kim noted that the company has been operating a dedicated raw materials factory for automotive electronics at its Busan site since 2020, which is a rare capability among companies.

Looking ahead, the company is targeting next-generation MLCC applications in humanoid robots, aerospace, and energy sectors.

“The MLCC market is shifting from IT to electric and autonomous vehicles, and will eventually move towards robotics, space, and energy industries,” Kim said.