UPDATED. 2019-11-20 23:10 (수)
Korea Circuit, DAP to benefit from Samsung Electro-Mechanic’s restructuring
Korea Circuit, DAP to benefit from Samsung Electro-Mechanic’s restructuring
  • Gijong Lee
  • 승인 2019.10.26 08:43
  • 댓글 0
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Samsung unit to streamline money-losing HDI biz by year’s end

Samsung Electro-Mechanic’s moves to restructure its money-losing smartphone HDI substrate business is triggering concern about which rivals would reap the biggest benefits.

According to industry sources on Oct. 25, local suppliers such as Korea Circuit and DAP Corp. are likely to take over the bulk of the supplies currently provided by Samsung Electro-Mechanic.

“These two companies have successfully supplied to Samsung Electronics, making them good candidates,” said one market watcher. “Also, they have production lines in Korea, making due diligence easier.”

Korea Circuit has supplied around 20% of Samsung Electronics’ smartphone substrates, while DAP supplied a little over 10%. So far, Samsung Electro-Mechanic has been the biggest supplier.

They can expect to supply the Samsung smartphones next year that are produced under the ODM method. These phones are to take up around a third of Samsung’s smartphone production next year based on a new cost-cutting strategy.

Samsung Electro-Mechanic is currently considering several different ways to streamline its HDI production facilities in China, including selling off parts of the business. It also is planning to shut down and merge its Busan HDI production lines with those in Vietnam.

Another market source said Samsung Electro-Mechanic may choose to retain its sales figures by placing the substrate orders in an OEM method. The Samsung unit’s substrate solution business producing the HDI substrates have been in the red for five years since 2014.


The Elec is South Korea’s No.1 tech news platform.

 


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