Wednesday, April 23rd, 2014
SEOUL, KOREA - Samsung Electro-Mechanics said on April 22 in a regulatory filing that it would acquire assets of Samsung Fine Chemicals producing ceramic powders, the source material for multi-layer ceramic capacitors (MLCC). The acquisition date would be early June, with the purchase price estimated at 31.1 billion won.
A Samsung Electro-Mechanics official said, "As the demand for ceramic powers grows with the development of MLCC technology, we decided to buy the asset as a way to secure the stable source of the material at lower cost." With the takeover of the facility, the company could increase the portion of the in-house supply out of the total MLCC material requirement.
The company expects that it will be able to strengthen its control over the MLCC finished goods market with the acquisition of the ceramic powder facility. A multi-layer ceramic capacitor is an electrical component used to store energy electrostatically in an electric field and an essential part of the smartphone, home appliance, and vehicle by the tens or even thousands.