Samsung Electro-Mechanics CEO Kyu-hyun Gye-Hyun held a’first quarter management status briefing’ for domestic employees at the Suwon plant in April, which was the 100th day of his inauguration, and made this announcement.
According to the industry on the 14th, Samsung Electro-Mechanics is expected to improve its performance this year even amid the novel coronavirus infection (Corona 19). President Kyung, who took office in January of this year, is evaluated as a’passing point’ for his first year management performance.
At the end of last year, President Kyung became the CEO of Samsung Electro-Mechanics from the Samsung Group executive greeting. Among Samsung Electronics affiliates, it was the only company to change its representative and received attention because it is the 50th representative.
Born in 1963, President Kyung graduated from Seoul National University Department of Control and Measurement Engineering and the same graduate school. After joining Samsung Electronics in 1994, he contributed to strengthening semiconductor competitiveness by developing memory products such as DRAM, Flash, and Solid State Drive (SSD).
In 1997, it developed the world’s first Direct Rambus DRAM, and in 2013, it developed the world’s first 3D V-NAND flash, and won the’Proud Samsung Person Award’. In the semiconductor industry, he is a’semiconductor design expert’ who is evaluated to have played a key role in making Korea the number one memory semiconductor. In recent years, he was awarded the’Defrost Technology Award’ in recognition of such contributions. This award is given to talented people who have contributed to the development of electronic engineering technology.
Starting this year, as the CEO of Samsung Electro-Mechanics, he is focusing on expanding sales and enhancing profitability in the multilayer ceramic capacitor (MLCC) and substrate business.
MLCC is a component that regulates the current flow and prevents electromagnetic interference between components so that the electronic circuit operates stably. It is called’the rice of the electronics industry’ because it is used in most electronic products such as smartphones, PCs, home appliances, and automobiles.
Samsung Electro-Mechanics is planning to improve profits by offering high value-added products in particular. In the MLCC business, the product line for electronic equipment is also expanding following IT and industrial use. Automotive MLCCs must operate stably in environments such as high and low temperatures, strong impact, and humidity. In addition, since a minimum of 3000 to a maximum of 15,000 MLCCs are installed in automobiles, it is a high value-added product compared to IT products.
Samsung Electro-Mechanics aims to rise to the second place in the global automotive MLCC market by 2022. As part of this, in July of this year, it developed and released 5 types of MLCCs for automobiles.
MLCC is displayed on a car model.[사진=삼성전기 제공]
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The substrate business also plans to actively respond to the demand for high value-added products through’selection and concentration’. Samsung Electro-Mechanics is preparing to withdraw from the low-margin rigid printed circuit board (RFPCB) business. Instead, it is expanding its production capacity to meet the demand for package substrates such as a 5G mobile communication (5G) antenna module and a central processing unit (CPU) for laptops, which are high value-added products.
Changes were also made for qualitative growth. Samsung Electro-Mechanics recently established a global manufacturing center and quality assurance room through reorganization. Earlier, in April, a task force for advanced component facilities (TF) was established to increase the competitiveness of MLCC facilities.
In fact, Samsung Electro-Mechanics is expected to improve earnings this year even in the Corona 19 situation. According to F&Guide, a financial information company, Samsung Electro-Mechanics is expected to record 259.4 billion won, up 87% from the same period of the previous year, in the consensus on the fourth quarter’s leaf business.
Samsung Electro-Mechanics’ cumulative sales up to the third quarter were 6,3246 billion won and operating profit was 563.1 billion won. Considering that Samsung Electro-Mechanics’ total sales and operating profit of last year were 8.84 trillion won and 734 billion won, the overall performance of this year is expected to increase in Corona 19 as well.
Securities market forecasts that Samsung Electro-Mechanics will produce solid results from 4Q to next year. This is because a positive business environment is being created by increasing demand for MLCC, Samsung Electro-Mechanics’ flagship product, recovering demand for IT devices, and expanding the 5G market.
There is also an expectation that Samsung Electro-Mechanics will return to the 1 trillion club next year. Samsung Electro-Mechanics recorded 1 trillion in operating profit in 2018 and entered the 1 trillion club, but last year’s operating profit fell to 730 billion won due to the deteriorating industry conditions. Park Hyung-woo, a researcher at Shinhan Investment Corp. said, “The next year’s growth engine for Samsung Electro-Mechanics is MLCC and 5G communication parts,” he said. “Samsung Electro-Mechanics is expected to see an operating profit of 1.1 trillion won next year.”
[사진=삼성전기 제공]
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