Samsung Electro-Mechanics and LG Innotek are concentrating on automotive electronic components. LG Innotek increased its sales of those components by 25% last year and Samsung Electro-Mechanics, which jumped into the business four years ago and organized a dedicated team last year, is striving as well.
According to industry sources, LG Innotek concluded automotive electronic component supply contracts worth a total of 2.8 trillion won or so in 2015 alone, boosting the amount by 87% from a year ago. Its order backlog jumped from approximately four trillion won to about 6.2 trillion won between the end of 2014 and the end of 2015, too. Its automotive electronic component sales rose from 532.5 billion won to 629.6 billion won during the same period, when the ratio of the sales to the overall sales increased from 8% or so to 11%.
In the third quarter of 2015, LG Innotek raised its share in the global vehicle communication module market to 29.5%. In addition, it is currently supplying vehicle camera modules, battery management systems, DC-DC converters, DCT motors and many more to auto parts manufacturers and automakers.
In the meantime, Samsung Electro-Mechanics is supplying some carmakers such as BMW with its automotive MLCCs, camera modules and wireless mobile phone charging modules. It is planning to sign M&A deals in order to beef up its capabilities in the sector, too. Samsung Electronics recently set up its own team for the same business, signaling a series of collaboration projects to be led by the two.
Both LG Innotek and Samsung Electro-Mechanics are focusing on the automotive sensor market, which is expected to grow at an annual average of 22.9% for 10 years to come based on the mandatory use of advanced driver assistance systems (ADAS) in North America and Europe.