Samsung Electro-Mechanics eyes potential of Indian market

Samsung Electro-Mechanics' (SEM) invitation for Electronica India 2025 / Captured from SEM LinkedIn page

Samsung Electro-Mechanics (SEM) is seeking to expand its presence in India as part of a strategy to tap into the region’s potential as one of the world’s fastest-growing markets for IT devices, electric vehicles (EVs) and data centers.

According to SEM’s LinkedIn page, the company is set to showcase its latest technology at Electronica India 2025, which will take place at the Bangalore International Exhibition Center from Wednesday to Friday (local time).

Started in 2000, Electronica India is one of South Asia’s leading international trade fairs for electronic components, systems and applications. This is the second time SEM is participating in Electronica India, following last year’s edition, which drew 46,000 attendees and 566 companies from 25 countries.

SEM will showcase its product portfolio at the event, including multilayer ceramic capacitors (MLCCs), camera modules and semiconductor substrates, and engage with key partners to raise local brand awareness, strengthen customer communication and identify potential clients in India’s growth sectors such as IT and automobiles.

SEM has a software unit in India, but no manufacturing base. However, it is bolstering its engagement in line with the region’s growing importance as a market and manufacturing hub for global IT and EV brands.

According to data from IMARC Group and other research firms, India’s consumer electronics market was estimated at between $83.9 billion and $89.1 billion in 2024, and is projected to grow 6.8 to 9.6 percent annually through 2034 to reach as much as $162.7 billion, buoyed by surging demand for smartphones, TVs, home appliances and wearables.

The rising geopolitical risks of manufacturing in China have prompted companies like Samsung Electronics and Apple to expand manufacturing in India. Samsung operates one of the world’s largest smartphone manufacturing bases in Noida and has recently expanded into laptops. Foxconn, which produces Apple products, is also increasing its presence in India.

A mockup of Samsung Electro-Mechanics' (SEM) multilayer ceramic capacitors / Courtesy of SEM

According to a report by Counterpoint Research, India is expected to account for 20 percent of global smartphone production this year. “India’s manufacturing ecosystem continues to expand, while local manufacturing capabilities are steadily improving in terms of yield and complexity,” the report said.

The situation underscores the growing need for SEM to respond to both the growth of the Indian market and the global push to establish component supply chains in the country.

Described as “a dam for electricity,” MLCCs play a critical role in electronic circuits by storing electrical charge and releasing it when needed, thereby stabilizing the flow of electricity to semiconductors. As electronic devices become more sophisticated, the number of MLCCs required is rising, while the technologies needed to produce them are becoming increasingly complex.

As India’s electronics market continues to grow, local demand for the company’s high-performance MLCCs remains strong. Meanwhile, demand for SEM’s camera modules are also expected to see solid demand amid the simultaneous growth of midrange and premium smartphones.

India’s rise as a hub for artificial intelligence (AI) data centers and cloud services is another reason for SEM to pay greater attention on the region.

The country is now witnessing rapid growth in data center infrastructure, particularly in southern India. According to a report by Colliers India, data center capacity in the region, including Bengaluru, Chennai and Hyderabad, is expected to increase by 65 percent by 2030.

The expansion in data center infrastructure will result in stronger demand for SEM’s advanced substrates, such as flip chip ball grid arrays (FC-BGA) for AI accelerators and servers.

During the 2025 International Electronic Circuits and Advanced Packaging Show in Incheon earlier this month, SEM unveiled high-performance AI server substrates that offer more than 10 times the area and more than three times the number of internal layers compared to conventional FC-BGAs.

According to iM Securities analyst Ko Eui-young, sales of SEM’s FC-BGA for server and network applications are estimated to have accounted for more than 40 percent of total FC-BGA sales in the second quarter of this year, suggesting the company is well positioned to benefit from India’s expanding data center infrastructure.

India’s growing prospects in EVs are also a key reason for the company to concentrate on the region’s potential.

India is the world’s third-largest automobile market, and EV adoption is accelerating rapidly. With the expansion of EVs and charging infrastructure, demand is surging for highly reliable components such as high-temperature, high-voltage MLCCs, as well as chip substrates for automotive electronics.

SEM, a key supplier of MLCCs to Tesla, now considers automotive MLCCs as a future growth driver. Given the trajectory, analysts anticipate the company will post more than 1 trillion won ($730 million) in automotive MLCC sales this year.