President Jang Deok-hyun "MLCC Capacity Expansion Needed"... Possibility of Investment in the Philippines Under Review

Lee Jae-yong Urges Seizing AI and Electric Vehicle Market Opportunities During Visit to the Philippines

Jang Deok-hyun, CEO of Samsung Electro-Mechanics, said on the 30th regarding the 'investment plan for next year,' "We may need to expand the capacity of multilayer ceramic capacitors (MLCC) with high utilization rates."

Before a special lecture for the Department of Materials Science and Engineering held at Pohang University of Science and Technology (POSTECH) in Pohang, Gyeongbuk, in the afternoon, CEO Jang told reporters, "We are considering a factory in the Philippines, and if we think about the time it takes to complete and operate the factory after investment, it would take about two years, so we think it needs to be built quickly."

Regarding the scale of the investment, he said, "We will decide considering market demand and other factors."

This is the first time the company has officially mentioned plans to expand MLCC capacity at its Philippine production subsidiary. Known as the "rice of the electronics industry," MLCC is a key component that stores electricity and supplies it stably as needed to help semiconductors operate smoothly.

The Philippine production subsidiary is a core production base for Samsung Electro-Mechanics' MLCC. This capacity expansion is interpreted as an effort to increase MLCC production for AI servers and automotive electronics (electronic and electrical equipment for vehicles).

Earlier this month, Lee Jae-yong, Vice Chairman of Samsung Electronics, visited Samsung Electro-Mechanics' Philippine site, toured the MLCC factory, and reportedly urged CEO Jang to seize opportunities arising from the expansion of AI, robotics, and electric vehicle markets.

Meanwhile, on the same day, CEO Jang explained industrial megatrends such as AI, automotive electronics, and humanoids, as well as the current status of Samsung Electro-Mechanics' new business initiatives, to about 150 students from the Department of Materials Science and Engineering at POSTECH.