Amotech, a domestic manufacturer of electronic components, is in conversation with a sizable North American electric vehicle manufacturer about the bulk supply of MLCCs for electric vehicles. After providing MLCC to China’s top electric vehicle manufacturer the previous year, this is anticipated to be the second significant order. As a result, it is anticipated that this year will see a noticeable improvement in performance in the multilayer ceramic condenser (MLCC) market, which has been marketed as a new industry since 2018. Due to US restrictions, Amotech has been trying to deliver MLCCs to Huawei, China, etc. but has not had much success.
Amotech is reportedly in talks with North American electric car customers about increasing MLCC supply for electric vehicles, the industry on the 13th reported. Since last year, Amotech has provided certain MLCCs for electric vehicle customers in North America, although the volume was minimal. It is anticipated that it will be able to provide MLCC in significant numbers to clients in North America through this supply arrangement.
Growing Market
The automobile MLCC market is growing as the trend towards auto electrification accelerates. An electric car typically has more than 10,000 MLCCs installed. It is a high value-added product as well, with an average selling price (ASP) that is approximately two to three times greater than the MLCC for smartphones.
As a producer specialising in brushless (BLDC) motors and passive electronic components, Amotech launched a new MLCC company in 2018. It also talked about giving Huawei in China MLCCs for use in communications. Despite its ambitious entry into the MLCC new market, Huawei was unable to produce large revenues as a result of US government sanctions.
The MLCC industry, which had been sluggish, didn’t start producing results until 2021. Amotech was successful in securing MLCC supply agreements with North American electric car firms and China’s top electric vehicle company in 2022 after beginning with ZTE, a Chinese manufacturer of telecommunications equipment.
An insider in the sector stated, “I am aware that Amotech is now considering a substantial supply of MLCC with North American electric vehicle businesses.”
Aiming at Increasing Size of Production
Amotech is aiming to increase the size of its MLCC line before acquiring significant customers. This is due to the fact that it is hard to respond when full-fledged supply starts using just the Incheon plant’s present production capacity (CAPA). Since last year, Amotech has been advocating for the growth of its MLCC line in Vietnam.
At its operations in Seoul and Incheon, Amotech intends to concentrate on MLCC R&D and production of high value-added MLCCs, while its factory in Vietnam, which is presently promoting facility development, will produce MLCCs below the middle-end level.
The market anticipates that Amotech’s MLCC sales would pick up this year. According to a representative from the components business, Amotech struggled to find customers despite having adequate MLCC mass-production capability.
According to the securities sector, Amotech’s MLCC sales will increase to 65 billion won this year. This is an increase of 536 percent from 2022. “Recently, not just the MLCC industry, but also the current business divisions such as motors and antennas are recovering,” a representative from Amotech said.
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