Until now, they worked aluminum die-casting materials through Computerized Numerical Control(CNC) equipments, but from now, they have decided to use extruded aluminum materials. It is expected that the rear supply chain will slosh once more due to this.
Samsung Electronics’ mobile communication division is known to apply extrusion products instead of die-casting aluminum starting from Galaxy S6.
The incremental launching method melts and extracts aluminum ingot into long bar shapes. After the bars are cut into adequate sizes, they are carved into metal cases via CNC. It has outstanding appearance and texture, and is much stronger than the original die-casting method, which melts aluminum into liquid and cools it in molds. The problem is that the incremental launching method has a higher production cost and longer manufacturing time than the die-casting method.
Samsung Electronics paid special attention to the quality of metal cases so as to higher the completeness of Galaxy S6.
To solve the problem of gap widening in the metal case, they had used extruded aluminum materials for Galaxy Note 4 Edge, which did not cause any problems. This is why Samsung Electronics’ mobile communication division management paid attention to extruded aluminum materials.
The increase in metal case production capacity as CNC equipments were massively arranged in smartphone factories located in Vietnam earlier this year also had an influence. Samsung Electronics plans to invest 1.28 billion dollars into factories in Vietnam this year to develop about 10,000 CNC equipments. The rear supply chain has been organized, with most equipments to be installed in Vietnam’s own line, some CNC equipments to be leased to plastic case cooperative companies, etc.
Galaxy S6 is a masterpiece that Samsung Electronics devised to overcome their smartphone business slump, and the quality of the metal case, which is the differentiation point, may determine its success.
Interests of the business world are concentrated on whether Samsung Electronics will diffuse extruded aluminum material to middle-low priced smartphones, in succession to Galaxy S6. Currently, extruded aluminum material companies mainly produce interior·exterior materials for TV’s, industrial materials, etc. A change in the existing supply change is expected once Samsung Electronics starts using extruded aluminum materials for metal cases. Extruded aluminum material companies that own factories in Vietnam are especially expected to gain direct benefits for smooth procurement of materials. Furthermore, if the demand rises due to the spread of application to middle-low priced smartphones, new beneficiaries are likely to be formed as it leads to changes in existing material companies or new entries.
An analyst of the stock market said, “Taking into consideration that Samsung Electronics’ metal case has a projected demand of 200 million cases, there is chance that it will rise as a black hole in the aluminum material market. Domestic cooperative companies that own factories in Vietnam will be scouted to procure extruded aluminum materials, and for the time being, the remaining quantity will be procured from Chinese companies.”
Staff Reporter Lee, Hyung-soo |goldlion2@etnews.com)