Neontech was the exclusive supplier of cutting equipment for multi layer ceramic capacitor (MLCC) to Samsung Electro-Mechanics new factory in Tianjin, China, TheElec has learned.
The factory began trial production in September last year. Samsung’s potential additional investment to expand the factory will boost Neontech’s earnings as well.
Samsung said at its fourth quarter conference call that it has wrapped up the initial installation of equipment at the factory. It said it will react flexibly to market demand in its operation of the factory.
Neontech accounted for 70% of the cutting equipment used by Samsung for MLCC used in IT devices last year. Compatriot equipment vendor Fito accounted for the remaining 30%. Fito, a private company, manufacturers both MLCC cutting equipment and dipping equipment, used to apply electrolyte on the MLCC. Fito focuses more on dipping equipment than cutting equipment.
A Neontech spokesperson said its MLCC sales recovered in 2020 and expected demand for the components from smartphones to increase this year.
The company is aiming for annual sales of late-50 billion won this year, over 40% higher than its 2020 sales of 39.3 billion won. The sales of last year take into account those of its subsidiary KYS, a factory automation system company it acquired in April.
Neontech relies of 70% of its sales from equipment; 25% of those are from cutting equipment.
It is also hoping long-term sales growth from saw and sorter used to cut semiconductor packages. Saw and sorters are used to cut packages with diamond wheels and to sort out defects. It is supplying them to Samsung Electro-Mechanics, Nepes, Simmtech and Korea Circuit. Sales from them last year was lower than expected, however.
Neontech announced that it won orders of around 3.7 billion won for saw and sorters in January.