Samsung suppliers look to reduce smartphones reliance
Smartphone market matures, making profitability difficult
Component suppliers for Samsung Electronics are looking to reduce their reliance of smartphones.
The smartphone market has matured while competition between the suppliers are intensifying, forcing them to look for new revenue stream elsewhere.
Mcnex is looking to camera modules for automobiles. It currently supplies them to Hyundai Motor Group. The company relies on smartphones for 90% of its sales but is expecting demand from automobiles to increase going forward.
In 2018, automotive camera module accounted for 15.1% of its sales. This decreased to 9.2% last year. But as of the third quarter in 2020, this has gone up to 10.6%.
Powerlogics, another camera module company, is collaborating with Hyundai Motor Group is recycling used batteries. It has built a 10MWh pilot line for energy storage systems that reuse used batteries for Hyundai. Powerlogics relied on smartphones for 82.9% of its sales last year. It is also increasing shipment of protective circuit for batteries.
DAP and Korea Circuit, which relies on boards for smartphones for their sales, is looking to expand in the automotive market.
DAP has supplied its radar board for Hyundai Mobis since last year. Mobis uses the board to make radar before supplying them to Hyundai Motor Group. Automotive currently accounts for late-10% in sales for DAP but it is planning to expand this.
Korea Circuit, which produces boards for smartphones and semiconductors, is also looking to expand in the automobile sector, people familiar with the matter said.
The automobile industry require stricter standards for supplies due to the importance of safety. However, once suppliers enter the supply chain, they can expect a long-term deal.
Amotech is waiting for a customer’s approval for its multi layer ceramic capacitors.
The company has previously supplied antenna module for Samsung’s WPC, NFC and MST.
Dreamtech, meanwhile, is hoping to expand in the healthcare sector. It has recently divided its operations into two __ one for smartphones and another for healthcare.