Samsung Electro-Mechanics Co., Ltd.Profitability from high-value products

Samsung Electro-Mechanics Co., Ltd. made its best performance ever due to booming of MLCC (Layer Ceramic Capacitor) last year. While global IT markets are showing downward trend due to trade conflict between the U.S. and China this year, it is planning to defend its profits with high-value products such as automotive electric field (electronic equipment) and MLCC for industries.



Samsung Electro-Mechanics Co., Ltd. made an announcement on the 29th that it made $7.2 billion (8.93 trillion KRW) in sales and operating profit of $1. Sales and operating profit increased by 20% and 233% respectively. Its sales have risen to $8.3 billion (8 trillion KRW) in 5 years since its establishment in 2013, and its operating profit is the biggest ever since its establishment.



MLCC, which has led its biggest performance ever, is a ultra-small part that supplies current stably to semiconductors. It is smaller than a grain of rice and will mostly be used for power-driven products such as Smartphones, tablet PCs, Smart TVs, and electric vehicles.



Global MLCC markets are based on a structure where Samsung Electro-Mechanics, Japan's Murata, and Taiyoyuden have dominated 90%. Samsung Electro-Mechanics Co., Ltd. is the second largest company in the global MLCC market, accounting for 25 percent of the global MLCC market.



Samsung Electro-Mechanics Co., Ltd. is predicting that demands for MLCC for electric fields will increase by 30% compared to last year and demands for MLCC for industrial purposes will increase by 20% due to increase in sales of 5G and AI (Artificial Intelligence).



"We are going to increase percentage of MLCC sales for electric fields and industries by one third this year to double-digit growth rate from single-digit increase last year." said Lee Byung-joon, head of Samsung Electro-Mechanics' management support division, at a conference call (telephone conference) that was held after announcement of performance.



"While operation rate of성인만화

production lines of Taiwanese companies dropped sharply in the fourth quarter due to decreased IT demands, Samsung Electro-Mechanics recorded a high rate of operation of more than 90 percent due to increase in demand for electric fields." said a representative for Samsung Electro-Mechanics Co., Ltd. "From the second quarter of this year, production lines will recover to full-operating system due to lack of supplies."



Sales in the fourth quarter of last year were 1.9981 trillion won, down 16 percent from the previous quarter, but increased by 16 percent compared to the fourth quarter of last year. Operating profit in the fourth quarter of last year was 252.3 billion won, down 38 percent from the previous quarter, compared to the fourth quarter of last year.



According to performance by division, Component Solution Business Department that is in charge of MLCC business recorded $793 million (896.1 billion KRW) in 4th quarter of last year, which is 13% decrease compared to 4th quarter of last year, but increased by 29% compared to 4th quarter of last year. Although sales of MLCC for automotive and network equipment increased, supply of MLCC for IT has decreased due to reduction of demands for mobile trading lines.



Its module solution business recorded 687.3 billion won in sales, which is 22% less than the previous quarter. Compared to fourth quarter of last year, it increased by 18%. Although its sales increased year-on-year due to increase in supply of high-end multi-cameras, its sales decreased from third quarter due to reduction of supply of cameras and telecommunication modules due to off-season.



Its sales in fourth quarter of this year for board solutions were 381.8 billion won, which is a 12 percent decrease compared to first quarter and third quarter of sales. Sales of RFPCBs and main boards for Smartphones decreased and sales of package boards decreased as demands for CPU (Central Processing Unit) for PCs decreased.