Samsung Electro-Mechanics clinches MLCC supply deal with China's BYD
Samsung Electro-Mechanics, the electronic components arm of Samsung Electronics, has secured a major supply deal with Chinese electric vehicle giant BYD for its multilayer ceramic capacitors, industry sources said Wednesday.
The South Korean firm has already begun shipments of MLCCs, worth hundreds of billions of won, to several Chinese firms, including the world's largest EV maker, BYD.
MLCCs are essential components in electric devices, which store and manage the electricity, ensuring semiconductors operate smoothly. These tiny yet powerful parts are used across a wide range of devices, from smartphones and PCs to vehicles.
MLCCs remain a key revenue driver for Samsung Electro-Mechanics, accounting for nearly half of the company's sales. Automotive MLCCs are especially profitable due to their technological complexities and the massive volume required for each vehicle.
Around 3,000 to 4,000 MLCCs are needed for a conventional vehicle, while an electric vehicle carries around 18,000 pieces.
The company has ramped up efforts in the automotive sector to diversify and strengthen its business portfolio. At this year's shareholders' meeting, CEO Chang Duk-hyun pledged to reach 2 trillion won ($1.4 billion) in combined sales from its automotive and AI server components in 2025.
The MLCC supply deal comes on the heels of a high-profile visit to China by Samsung Electronics Chairman Lee Jae-yong last month. According to sources, Lee made a stop at BYD's headquarters in Shenzen, where he met with Chairman Wang Chuanfu. He also toured Xiaomi's electric vehicle plant in Beijing and met with Chairman Lei Jun. The meetings signal Samsung's growing ambition to expand its business in the lucrative vehicle components sector, with China's EV giants emerging as key partners in that push.
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