[Asia Economy Reporter Ki-min Lee] Lee Jae-yong, Vice Chairman of Samsung Electronics, who is accelerating on-site management this year, visited the Busan plant of Samsung Electro-Mechanics, which produces automotive multilayer ceramic capacitors (MLCC), on the 16th.
On the afternoon of the same day, Lee Jae-yong visited the Busan plant of Samsung Electro-Mechanics to inspect the dedicated production plant for automotive MLCC and encourage the employees. The visit to Busan was accompanied by Kyung Kye-hyun, President of Samsung Electro-Mechanics, Kim Doo-young, Head of the Component Business Division, and Kang Bong-yong, Head of the Management Support Office.
The Busan plant of Samsung Electro-Mechanics produces MLCCs for automotive and IT applications, as well as next-generation package substrates. In particular, Samsung established a dedicated production plant for automotive MLCCs in Busan in 2018 to respond to increasing demand.
MLCC is a miniature component that regulates the current flow steadily to ensure stable operation of electronic circuits and prevents electromagnetic interference between components. Since MLCC supplies electricity steadily to semiconductors, it is used in most electronic products.
About 3,000 to 15,000 automotive MLCCs are installed in a single vehicle, and with the expansion of automotive electronics, electric vehicles, and autonomous vehicles markets, automotive MLCCs are considered a so-called "blue ocean." According to KB Securities, the global MLCC market size is expected to rise from 16 trillion won this year to 20 trillion won in 2024. Additionally, the automotive MLCC segment, which accounts for 29% of the total MLCC market this year, is expected to expand to 35% by 2024, according to industry estimates.
During his visit to the Busan plant, Lee Jae-yong directly examined the rapidly growing automotive MLCC business driven by ▲ the development of information and communication technologies such as 5G and artificial intelligence (AI), ▲ the spread of electric and autonomous vehicles, and ▲ the increasing demand for automotive electronic components, urging proactive measures to secure future market leadership.
He also received reports from management on the technological development status of ▲ high-temperature and high-pressure automotive MLCCs, ▲ high-performance and high-capacity MLCCs for smart devices, and ▲ next-generation electronic components such as communication and camera modules, and discussed mid- to long-term response strategies in line with the spread of new technologies like AI, 5G, and electric vehicles.
Lee said, “The pace of change is accelerating. Let’s lead innovation at the forefront,” adding, “We must not be complacent or afraid of change. Let’s not be intimidated by uncertainty and keep challenging ourselves continuously.”
In June last year, Lee also held a meeting with Samsung Electro-Mechanics management to discuss investment and competitiveness enhancement plans for key businesses such as automotive MLCCs and 5G modules.
Lee has been intensifying on-site management as the global economy faced difficulties before and after the COVID-19 pandemic. This visit marks his 15th domestic and overseas on-site visit. After visiting the Manaus and Campinas subsidiaries in Brazil during the Lunar New Year holiday in January, he subsequently visited the Gumi smartphone factory (March), Semiconductor Research Center (June), Home Appliance Division (June), and Samsung Display (June).
On the 6th of this month, Lee also visited the Suwon plant of Samsung Electronics and held a meeting with employees participating in the in-house venture program 'C-Lab.'
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