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View of Samsung Electro-Mechanics' Suwon plant. (Photo=Samsung Electro-Mechanics) |
[Alpha Biz= Paul Lee] Samsung Electro-Mechanics has officially shut down its Kunshan plant in China, continuing its strategic pivot toward high-value semiconductor substrates and multilayer ceramic capacitors (MLCC). This move follows the closure of its Dongguan plant, further streamlining its operations.
According to Samsung Electro-Mechanics' 2024 audit report released on Monday, the liquidation process for its Kunshan subsidiary, which began at the end of 2019, was completed by the end of last year.
Established in 2009, the Kunshan plant primarily produced HDI (high-density interconnect) boards for smartphones to capitalize on the rapidly growing market. However, as the industry saw low entry barriers and increased competition from Chinese firms, profitability declined, leading to the decision to exit the business.
The company had also completed the closure of its Dongguan plant by the end of 2023. The Dongguan facility, which produced speakers, decks, keyboards, and floppy disk drives (FDDs), was Samsung Group’s first manufacturing base in China, established in 1992 following diplomatic relations between South Korea and China.
Following these closures, Samsung Electro-Mechanics now operates only two remaining facilities in China: the Gaoxin and Tianjin plants. The Tianjin facility remains a key production hub for MLCCs and was personally visited by Samsung Electronics Chairman Lee Jae-yong.
With the rising demand for high-value markets such as artificial intelligence (AI) and automotive electronics, Samsung Electro-Mechanics plans to accelerate its focus on advanced semiconductor substrates, including flip-chip ball grid array (FC-BGA), automotive MLCCs, and glass substrates.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
