Samsung Electronics is also reviewing its supply chain and considering plans to restructure it in response to the U.S. tariff policy. (Concerns have been raised about the reduction in component prices from customers) but it seems too early to make a definitive situation, so I think we need to look into it further.
Jang Duck-hyun, president of Samsung Electro-Mechanics, met with reporters on the 28th at Seoul National University in Gwanak-gu, Seoul, and said this. On that day, Jang gave a special lecture on 'The Core Technology of a Digital Future' to about 200 graduate students in the Department of Materials Science and Engineering at Seoul National University.
As the U.S. government announced plans to impose tariffs on smartphone manufacturers, concerns were raised that Samsung Electro-Mechanics, which has Samsung Electronics as its major client, might also bear the burden. U.S. President Donald Trump announced on the 23rd (local time) a policy to impose a minimum 25% tariff on 'smartphones produced overseas.' According to Samsung Electro-Mechanics' business report, the revenue share from Samsung Electronics last year was about 30%.
Jang noted, 'If the imposition of tariffs is confirmed, we will consider various measures, such as restructuring the supply chain in the medium to long term. It is not a short-term issue, so we plan to strengthen the fundamentals by focusing on technology development.'
Jang announced plans to commence full-scale operation of the glass substrate pilot line in the second quarter. He said, 'Preparations for the pilot line operation are nearing completion, and we plan to supply samples to two or three of the global big tech companies in the U.S. this year.'
He estimated that it would take about 4 to 5 months for the sample tests to be passed and added, 'Even if the glass substrate is introduced, it will be gradually commercialized while competing with existing technologies. The demand for glass substrates in the AI and server markets is definitely strong in the medium to long term.'
Jang explained that he also plans to accelerate efforts to target the multilayer ceramic capacitor (MLCC) market for vehicles in China. He said, 'More than 50% of the vehicles sold in China are electric cars,' adding, 'The integration of advanced driver-assistance systems (ADAS) in electric vehicles is significant, and MLCCs are applied more than three times compared to before. This presents a huge opportunity for Samsung Electro-Mechanics, so we will speed up efforts to expand our market share.'
He explained that discussions with the Philippine government are ongoing to expand the MLCC factory in the Philippines. Jang stated, 'We are investing with an outlook toward 2026 to 2028,' adding, 'We positively expect that the demand for MLCCs will increase in the medium to long term, so we are in detailed discussions regarding the expansion of the local factory in the Philippines.'
On that day, Jang explained how Samsung Electro-Mechanics is responding to the rise of AI-based automation technology and the increasing demand for high-performance semiconductor package substrates and passive components to graduate students at Seoul National University.
In particular, he revealed that the key to realizing 'ultra-small and high-capacity' in MLCCs is the miniaturization of dielectrics, while for package substrates, the development of high-layer, large-area, and fine circuit formation technologies is essential. He also mentioned that the core competitiveness of Samsung Electro-Mechanics lies in material technology, stating, 'We are actively developing new energy technologies, such as all-solid-state batteries, that can be applied to small IT devices.'