Samsung Electro-Mechanics aims for 1 trillion won in sales of MLCC for defense purposes
Optimistic outlook for sustained growth including hybrids
Blueprints for robot and aerospace development,
Kim Wi-heon, head of Samsung Electro-Mechanics MLCC product development, introducing their products at a seminar held at Samsung Electronics briefing room in Seoul on the 17th. Photo=Samsung Electro-Mechanics,
, ‘[Seoul Economic] ‘,
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, Samsung Electro-Mechanics(009150), ‘has self-stated that they aim to achieve 2 trillion won in sales related to defense next year. Behind this pledge lies a confidence in the high growth potential of the defense-specific multilayer ceramic capacitor (MLCC) business that is aggressively expanding. The company has also outlined a blueprint to seek new growth momentum of MLCC in areas such as artificial intelligence (AI) servers, robotics, and aerospace.’,
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, ‘Kim Wi-heon, head of Samsung Electro-Mechanics MLCC product development, stated at a seminar held in Seoul on the 17th, “This year, we will achieve sales of 1 trillion won from defense-related MLCC alone, and by 2025, we aim to achieve 2 trillion won in sales from all defense-related products including MLCC.” MLCC is a type of electronic component that is made by stacking layers of ceramic and electrodes, playing a role in controlling the flow of electric current. In simpler terms, it acts like a dam that temporarily stores electricity and releases it when needed.’,
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Approximately 300 million won worth of MLCC in a 500cc wine glass. Reporter Heo Jin,
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, ‘Samsung Electro-Mechanics particularly emphasizes its plan to strengthen the production of defense-specific MLCC among various types of MLCC. Defense-specific MLCC products are used as vehicle components. They must be able to operate over a wide temperature range, withstand shocks, handle high voltage and current capacity, and above all, ensure safety and reliability.’,
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, ‘The company’s shift from its traditional focus on products for information technology (IT) devices to defense-specific products is driven by the overwhelming growth potential aligned with the development of electric vehicles and advanced driver-assistance systems (ADAS). According to Samsung Electro-Mechanics, the defense-specific product market is expected to grow by an average of 12% annually until 2028. This growth rate is significantly higher compared to around 5% for IT products and approximately 7% for traditional industrial products such as servers and networks. Kim, the head, predicted that despite some slowdown in the electric vehicle market, the defense market is anticipated to continue growing. He explained, “In addition to purely electric vehicles, there are also hybrid vehicles, and the quantity of MLCCs required per vehicle is increasing, which is a trend indicating continuous growth in demand for MLCC.” If a smartphone requires 700 to 1,000 MLCCs, an electric vehicle requires up to 30,000 MLCCs.’,
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, ‘In the long term, they also aim to leverage the surging demand for AI products and expand into robotics and aerospace fields with MLCC as a new growth driver. Particularly for defense-specific products, both high capacitance for IT products and high reliability required for defense must be combined, demanding high technological capabilities. Kim mentioned, “Our company’s key advantage in MLCC technology lies in being able to self-produce raw materials, a core element of MLCC technology, and directly manufacture products according to customer specifications as requested. Based on this, we believe that we have a competitive edge in securing MLCC technology for use in AI servers, robotics, and aerospace applications that need to withstand extreme environments.”.’,
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