According to THELEC report, Samsung Electro-Mechanic said that it may not launch new MLCC products this year because its new plant in Tianjin, China may not be completed as planned in the second half of this year. In addition, its production in Southeast Asia has also been affected by the COVID-19 pandemic.
Samsung Electro-Mechanic stated that due to the policies implemented by the Chinese government after the outbreak of COVID-19, the company was forced to stop finalizing work on the new MLCC plant in Tianjin, China. According to earlier reports, the new plant aims to increase the revenue of Samsung Electro-Mechanic's MLCC division.
Bae Gwang-ok, the key executive of Samsung Electro-Mechanic, said, "We will share the details as soon as we know exactly when the plant can start running."
In addition to the problems with the construction of the Tianjin plant, Samsung Electro-Mechanic’s MLCC production facility in the Philippines was also affected by the pandemic. Bae said that the spread of the virus has setbacks its MLCC plant in the Philippines.
Bae pointed out that due to orders from the local government in the Philippines, less than half of the employees went to work. As a result, the operating rate of its MLCC plant in the Philippines in the second quarter is expected to be less than 80%. Samsung Electric hopes to make up for losses as much as possible by consuming inventory and increasing the operating rate of the Busan plant.
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