| Samsung Electro-Mechanics' multi-layer ceramic capacitors (MLCC) / Courtesy of Samsung Electro-Mechanics |
By Baek Byung-yeul
Samsung Electro-Mechanics, a global supplier for high-end components used in electronics and mechanical devices, will add its multi-layer ceramic capacitors (MLCC) production line for automotive electronic devices in China.
Industry sources said Monday Samsung Electro-Mechanics will build an MLCC manufacturing line for automotive electronic devices in Tianjin, China. The company is expected to invest 500 billion won ($443.6 million) to build the infrastructure. The company has produced MLCC for information technology (IT) devices.
Samsung Electro-Mechanics said the expansion of the production line in China has not been confirmed yet, adding “this will be discussed at an upcoming board meeting.”
Samsung Electro-Mechanics is expected to begin construction of the plant at the end of this year and complete it by the end of next year. Industry watchers presume it will begin producing MLCCs starting in 2020.
The company has been enjoying soaring demand for MLCCs, which are used in mobile phones and cars. Once the company adds a new MLCC manufacturing line, Samsung Electro-Mechanics is expected to boost its profit as about 15,000 MLCCs per vehicle are required for automotive electronic devices.
The company has operated an MLCC line for automotive electronic devices at its plant in Busan but had decided to add another production line thanks to growing demand.
Adding a new MLCC manufacturing line is in line with Samsung Group's plant to invest in new businesses. Last month, the group announced it will invest 25 trillion won for three years in artificial intelligence (AI) technology, fifth-generation (5G) networks, biotechnology and automotive electronics devices.
Thanks to the growing demand for MLCCs, the company posted 1.8 trillion won in sales and 206.8 billion won in operating profit in the second quarter. Its operating profit is skyrocketed 193 percent year-on-year.