Samsung Electro-Mechanics has secured a major contract to supply multilayer ceramic capacitors (MLCCs) to BYD, China’s leading electric vehicle manufacturer and global market leader.
On Tuesday, industry sources revealed that Samsung Electro-Mechanics had inked a deal worth hundreds of millions of dollars to supply MLCCs to BYD, with deliveries already underway. This development is being hailed as a tangible outcome of Samsung Electronics Chairman Lee Jae-yong’s recent visit to China.
MLCCs, crucial components that regulate current flow in electronic circuits, constitute approximately half of Samsung Electro-Mechanics’ revenue. The company’s automotive MLCC division, known for its high-tech requirements and profitability, is a cornerstone of its business strategy.
A single electric vehicle can incorporate between 3,000 and 18,000 MLCCs, depending on its powertrain, safety features, driving systems, and infotainment capabilities. As electric and autonomous vehicle technologies advance, the demand for MLCCs per vehicle continues to climb, with more electrified models requiring higher quantities.
During last month’s China Development Forum, Chairman Lee toured Xiaomi’s electric vehicle (EV) factory in Beijing before visiting BYD’s headquarters in Shenzhen, Guangdong Province. Sources indicate that Lee discussed potential collaborations in the automotive sector with BYD Chairman Wang Chuanfu. The subsequent announcement of the supply deal has led industry analysts to attribute this success to Lee’s diplomatic efforts.
At this year’s annual shareholders’ meeting, Samsung Electro-Mechanics outlined its strategy to expand its automotive MLCC business. CEO Jang Deok hyun announced that the company has successfully transitioned into a vehicle parts supplier and is securing over 50 new automotive clients annually. The firm aims to generate 1.5 billion USD (2 trillion KRW) in sales from the automotive sector, alongside its AI and server businesses, this year.
To meet the surging demand driven by advancements in autonomous driving and the expanding EV market, Samsung Electro-Mechanics is bolstering its portfolio of high-performance, highly reliable products.
BYD overtook Tesla as the top EV manufacturer last year, reporting sales of 106.9 billion USD. The company’s growth trajectory continued in the first quarter of this year, with sales exceeding 1 million vehicles, marking a 59.8% year-over-year increase.
In a groundbreaking development this February, Samsung Electro-Mechanics became the first company worldwide to create a miniature high-voltage MLCC for LiDAR systems, a critical component in autonomous vehicles. This innovative product, measuring just 1.0mm × 0.5mm, boasts a capacity of 2.2 microfarads and a 10-volt rating and has secured automotive reliability certification.
