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Samsung Motor's operating rate at the MLCC plant in the Philippines drops to 40%

Shulou Source: shulou.com Published: 2023-11-24 13:11:46 10月02日 Update

CTOnews.com December 3 news, according to The Elec reported that Samsung Motor in the Philippines multilayer ceramic capacitor (MLCC) factory operation rate has dropped to 40%. This is due to a drop in market demand for MLCC, which also affected Murata and Ocean Electric. Samsung Electric and its suppliers have sent employees to the Philippines to invest more money in factories. Most of them have returned.

Some work on the plant that the supplier had planned for early December has also been delayed until next year, sources said.

CTOnews.com learned that MLCC is the core component of electronic devices, controlling stable current flow in electronic circuits, which is crucial for smart phones, home appliances, automobiles and other products, but in environments higher than the guaranteed temperature, MLCC often reduces capacitance to ensure normal operation.

Samsung Electric manufactures MLCCs in Busan, South Korea, 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 and falling demand.

For example, demand remains solid in Tianjin, where factories produce MLCC primarily for automotive and industrial use rather than IT.

In 2020 and 2021, Samsung Electric enjoys an operating rate of around 80% to 90% for its parts factories, including MLCC. But in the first quarter of this year, that had dropped to 70 percent, then increased to 74 percent throughout the first half. By the third quarter, however, the cumulative rate had dropped to 65 per cent; excluding the first half, it was 48 per cent.

Murata's remaining orders for the July-September period were 194.5 billion yen (about 10.153 billion yuan), down from 220 billion yen (about 11.484 billion yuan) last year. The company said slowing demand from the PC market was an important factor. Sunlure also indicated a fifth consecutive drop in remaining orders for the quarter.