According to the Korean media Thelec, on March 13, industry news revealed that AMOTECH is discussing with large North American electric vehicle manufacturers to expand the supply of MLCC products for electrical equipment. AMOTECH has supplied some MLCCs for electrical equipment to North American customers since last year, but the supply quantity is very small. Through this supply contract, it is expected to supply MLCCs in large quantities to North American customers. This is also the second largest order after supplying MLCC to Chinese electric vehicle manufacturers last year.

It is reported that AMOTECH is a manufacturer specializing in passive electronic components and brushless DC (BLDC) motors. In order to diversify its revenue structure, the company launched a new MLCC business in 2018. Although AMOTECH devoted itself to the MLCC market with great enthusiasm, its MLCC business was not smooth.

AMOTECH has tried to use MLCC products in the communication field for telecommunications equipment suppliers such as Huawei in China, but due to political factors, it has not brought significant sales growth. Starting from 2021, AMOTECH's stagnant MLCC business has begun to turn around. In 2021, AMOTECH will supply communication equipment company ZTE. By 2022, AMOTECH has successfully signed MLCC supply contracts with North American electric vehicle manufacturers and Chinese electric vehicle manufacturers, and the company's performance is constantly improving.

According to industry insiders, AMOTECH is currently discussing with North American electric vehicle manufacturers that the supply scale of MLCC for electrical equipment is quite considerable, and it is expected that the performance of the MLCC business unit will achieve a significant improvement this year.

To ensure supply, AMOTECH is advancing the expansion of MLCC production lines. It is understood that in the future, AMOTECH will mainly carry out MLCC research and development and high-end MLCC production in the Seoul and Incheon factories, and the recently added Vietnam factory will mainly produce MLCCs below the mid-range. Driven by the electrification and intelligence of automobiles, the demand for automotive MLCC market is expected to achieve a compound growth rate of more than 25%, reaching more than 1.1 trillion units in 2024. It is estimated that the global automotive MLCC market capacity in 2024 will be about 55 billion yuan .

In the future, the automotive MLCC market will be extremely promising. An AMOTECH official said: "Recently, not only the MLCC business, but also the performance of existing business divisions such as motors and antennas have also recovered. Starting from turning losses into profits in the fourth quarter of last year, it is expected that there will be substantial performance improvements in the second half of this year."

Source: China Powder Net