Samsung Electro-Mechanics’ MLCC plant in the Philippines runs at 40%

The operating rate of Samsung Electro-Mechanics' multilayer ceramic capacitor (MLCC) plant in the Philippines has dropped to 40%. This is due to a drop in market demand for MLCCs, which has also affected Murata and Dayang Electric. Samsung Electro-Mechanics and its suppliers have sent workers to the Philippines to invest more in factories. Most of them have returned.

Some work on the plant that the supplier had planned to do in early December has also been delayed until next year.

MLCC is the core component of electronic devices. It controls the stable current flow in electronic circuits and is crucial to products such as smartphones, home appliances, and automobiles. capacitor to ensure proper operation.

Samsung Electro-Mechanics produces MLCCs in Busan, South Korea, as well as in Tianjin, China, and the Philippines. But the component maker has recently reduced production of general-purpose MLCCs because of the recent global economic downturn, which has had the biggest impact on the IT market, with lower demand.

Demand in Tianjin, for example, remains solid as factories there produce MLCCs mainly for automotive and industrial uses rather than IT.

In 2020 and 2021, Samsung Electro-Mechanics enjoys an operating rate of around 80% to 90% at its parts factories including MLCC. But in the first quarter of this year, that has dropped to 70%, and then increased to 74% throughout the first half of the year. But by the third quarter, the cumulative run rate had dropped to 65%; excluding the first half, the run rate was 48%.

Murata Manufacturing's remaining orders for the July-September period were 194.5 billion yen, a decrease from last year's 220 billion yen. The company said the slowdown in demand from the PC market was an important factor. Taiyo Yuden also said remaining orders for the quarter fell for the fifth consecutive time.

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