Samsung Electro-Mechanics President Visits CES: "Creating High Added Value in Servers and Automotive Electronics"

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[Asia Economy Reporter Park Sun-mi] Jang Deok-hyun, CEO of Samsung Electro-Mechanics, who has been in office for one year, announced plans to focus business capabilities on the core sectors of semiconductor substrates, camera modules, and MLCC, while creating high added value in the server and automotive parts (electronic components) sectors, which are seen as future growth engines.

On the 6th (local time), Jang visited the Las Vegas Convention Center (LVCC) in the United States, where CES 2023, the largest electronics and IT exhibition, was held, and toured the business-related exhibition booths. At the site, Jang said, "We started mass production of server semiconductor package substrates (FCBGA) in November last year, and we plan to further grow this area this year."

Given the global economic uncertainties this year, making future predictions is difficult, so the strategy is to focus on sectors with growth potential. Samsung Electro-Mechanics succeeded in mass-producing server semiconductor package substrates (FCBGA) for the first time in Korea last November. This product connects the central processing unit (CPU) to the main substrate, transmitting electrical signals and power to devices, and is considered a high value-added product in the industry. Samsung Electro-Mechanics has recently invested a total of 1.9 trillion KRW in the FCBGA business over the past year, the largest scale for a single business.

He also expressed attachment to the automotive parts business. Jang said, "Automotive parts are a future growth engine," adding, "At the end of last year, we established a dedicated automotive parts organization within the business division through a regular organizational restructuring," and "In particular, we separately established automotive parts organizations in the MLCC and camera module businesses." Jang's judgment is that the company should increase the proportion of servers and automotive parts centered on the existing core businesses of semiconductor substrates, camera modules, and MLCC.

He said, "Despite the difficult environment last year, the automotive parts sector grew, and we expect a favorable outlook this year as well." He added, "We are also considering new businesses that can utilize and develop the technologies the company currently possesses. However, new businesses require product development stages and consultations with customers, so it will take more than five years to see results."