Samsung Electro-Mechanics to focus on IT, automotive electronics sectors

South Korea’s Samsung Electro-Mechanics is set to focus on information technology and automotive electronics sectors as they are core growth engines for the company, its chief executive said.

Chang Duckhyun, the company’s CEO, said products for next-generation IT sectors including artificial intelligence, clouds, servers and the metaverse, as well as goods for automotive electronics such as electric vehicles and autonomous driving cars will lead to the long-term growth of the company.

“We set the next-generation IT sectors and automotive electronics as two main future growth engines,” stressed Chang in a recent media event. “We will keep developing technology and seeking market dominance in the areas.”

Its flagship multi-layer ceramic capacitor (MLCC) has established itself as a key component of IT and the next-generation automobiles, while the camera module division is cooperating with global companies on smartphones, self-driving and the metaverse sectors, said Chang.

TO INVEST MORE IN HIGH-PERFORMANCE SEMICONDUCTOR SUBSTRATE

The company’s semiconductor substrate business has been showing solid growth in line with the development of 5G mobile communication, AI and cloud technologies.

Samsung raised investment in high-performance semiconductor substrate capacity expansion to 1.3 trillion won ($1.1 billion) from an initial 1 trillion won as demand is expected to increase more than expected, given the growing 5G and AI sectors.

The company also decided to invest $267 million in its Vietnamese unit to expand production of high-performance semiconductor substrate flip chip-ball grid array (FCBGA), a type of highly integrated package board used in the central processing units (CPUs) of PCs.

Write to Sin-Young Park at nyusos@hankyung.com
Jongwoo Cheon edited this article.