Samsung Electro-Mechanics is said to be supplying a large volume of multilayer ceramic capacitors (MLCC) to the Chinese electric vehicle manufacturer BYD. Analysts suggest that this development results from Samsung Electronics Chairman Lee Jae-yong's recent visit to China, where he met with Chinese partners to expand the MLCC business into the vehicle electronics sector.

Lee Jae-yong, the chairman of Samsung Electronics, visits the production site of MLCC (Multi-Layer Ceramic Capacitor) products at Samsung Electro-Mechanics' Philippine corporation in Calamba, Laguna. /Courtesy of Samsung Electronics

Samsung Electro-Mechanics is reported to be supplying MLCC worth billions of won to Chinese corporations, including BYD, the world's largest electric vehicle manufacturer. MLCC, which stores and releases electricity to protect circuits, is a key component that accounts for about half of Samsung Electro-Mechanics' total revenue.

Chairman Lee recently visited Beijing to attend the China Development Forum, hosted by President Xi Jinping, where he toured Xiaomi's automotive plant and BYD's headquarters in Shenzhen, Guangdong province. MLCC is a core component for electric and autonomous vehicle electronic systems.