Samsung Electro-Mechanics component business sales approach 50%… Positioning itself as a core business unit

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Samsung Electro-Mechanics’ components business division, which is in charge of the core MLCC product, emerged as a key business unit last year, accounting for 50% of the company’s total sales. As demand and prices for MLCC are increasing due to the influence of COVID-19, performance is expected to be good this year.

According to Samsung Electro-Mechanics’ business report on the 13th, sales in the commercial components segment accounted for 49.32% of the company’s total sales last year. The components business division posted sales of 4.77 trillion won and operating profit of 1.635 trillion won last year. Compared to the previous year, sales increased by 31% and operating profit by 91%.

This is due to the growing demand for major components such as MLCC and inductors, while the demand for information technology (IT) devices has skyrocketed due to the influence of COVID-19.

Samsung Electro-Mechanics MLCC ‘Winning Product’ is at the forefront of good performance. MLCC is an electronic component that acts as a dam to store electricity and send out a certain amount of it at a certain time. Almost all electronic products including smartphones, PCs, tablets, game consoles and electronic components are equipped with MLCCs. An MLCC is a small, high value product that is half the size of a grain of rice.

On average, 800-1,000 MLCCs are installed in smartphones, 3,000 in general cars, and 15,000 in electric vehicles. 5G mobile communication (5G) smartphones, server data centers and electric vehicles have also recently been equipped with high specification MLCCs.

MLCCs need to stack as many thin layers as possible inside to accumulate a lot of electricity, so advanced technology is very important. Smaller MLCCs are known to be more competitive.

Samsung Electro-Mechanics has secured the leading competitiveness of the MLCC. Last year, Samsung Electro-Mechanics drew attention to the development of an industry-leading performance MLCC that outperforms Murata. They developed an MLCC product with a size of 0402 (0.4 mm wide x 0.2 mm long), a capacitance of 1 microfarad (㎌), and a nominal voltage of 6.3 volts (V). Samsung Electro-Mechanics has created the highest capacity and maximum voltage rating in the industry among 0402 products.

MLCC’s selling prices also rose steadily, leading to record profits. The average selling price of MLCC rose 13.3% year-on-year as supply chain risks surfaced and companies turned to preemptively securing key electronic components.

The components business segment has established itself as a key business unit, driving the overall profitability of the company. As of last year, the components division accounted for 71% of the company’s total operating profit.

Samsung Electro-Mechanics has ensured differentiated MLCC competitiveness in the global market. Samsung Electro-Mechanics has announced plans to double total sales by 2026 and achieve #1 position in the global MLCC market for computing. In the global MLCC market, Samsung Electro-Mechanics is known to be second only to Murata of Japan.

By Staff Reporter So-ra Park [email protected]

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