President Kyung Kye-hyun of Samsung SDI announced that the company plans to double its current revenue by 2026.
At the company’s 48th annual shareholders meeting that was held on Wednesday at the EL Tower, President Kyung said that the company’s sales and operating profit in 2020 were the third and second highest respectively during the company’s history despite the global economic crisis stemming from COVID-19.
The company made about $7.3 billion (8.2 trillion KRW) in sales last year. According to President Kyung, the company’s sales will reach at least $14 billion (16 trillion KRW) within the next five years.
President Kyung announced that he would place the company’s MLCC (Multilayer Ceramic Capacitor), which is one of the company’s main businesses, at the top of the world. The company is currently placed second in the MLCC market for IT devices, and President Kyung’s goal is have the company at the top of the market by 2025. He also emphasized that the company’s camera and substrate businesses, which are the foundations of the company’s overall business, would continue to grow through differentiated technologies.
He predicted that all three businesses will make a steady growth this year. Due to increased contact-free activities and expansion of 5G since the COVID-19 crisis, he believes that demands for MLCCs and IC substrates will make a huge jump this year.
“We believe that the market size for electronic components related to Samsung Electro-Mechanics will be 10% bigger this year compared to last year.” said President Kyung. “Based on this trend, we believe that our company will also be able to make a growth of at least 10% this year.”
President Kyung focused on growth of the company’s IC substrate business in particular. As development of “customized chips” based on ARM continues to spread, he believes that there will be more demands for IC package substrates such as FC-BGA (Flip Chip Ball Grid Array).
“While our substrate business only accounted for about 2% of our operating profit in 2019, the percentage jumped to 12% last year.” said President Kyung. “Lack of supply of substrates such as BGA and FC-BGA will likely continue this year as well.”
Regarding the company’s camera module business, President Kyung emphasized that the company would look to secure profitability by focusing on reduction in production cost through enhanced technologies for lenses and actuators as it is seeing effects of reduced demands for its customers’ flagship smartphones.
Additionally, he said that the company plans to release its first automotive MLCC, which is equivalent to that of a Japanese company that is the leader in the market, this year and that the company plans to strengthen its ability to supply MLCCs continuously by expanding the company’s new plant in Tianjin.
Staff Reporter Kang, Hyeryung | kang@etnews.com