Samsung Electro-Mechanics Co Ltd

009150: XKRX (KOR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	₩437,113.00	Xlwsp	Zhwmjsfts

Semco Hit by MLCC Price Competition, but Long-Term Growth on Auto MLCC Is Intact

Kazunori Ito

Dec 8, 2023

Business Strategy and Outlook

Samsung Electro-Mechanics is the global second supplier of multilayer ceramic capacitors, which account for 40%-45% of Semco’s revenue and 50%-60% of operating income. MLCCs are necessary to stabilize and control electric flow, and thus necessary for all electronic circuits. We believe the robust demand for MLCCs, mainly from smartphone and automotive manufacturers, will be the driver of Semco’s growth in the midterm.

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