Samsung SDI Discontinue EMC Power Discrete Semiconductor Image

Samsung SDI discontinue Epoxy Molding Compound for Power Discrete Semiconductors

In the sec­ond half of August of 2018, Sam­sung SDI announced that it was exit­ing the epoxy mold­ing com­pound for pow­er dis­crete semi­con­duc­tor pack­ages. With almost a 4% mar­ket share of the 150,000 Met­ric Tonne epoxy mold­ing com­pound mar­ket, Sam­sung SDI was the #9 largest epoxy mold­ing com­pound man­u­fac­tur­er by weight. It is unclear at this time whether Sam­sung SDI plan to com­plete exit the Epoxy Mold­ing Com­pound busi­ness or only in the low-cost pow­er dis­crete semi­con­duc­tor are­na.

Samsung SDI issue a Notification of Product Discontinuance Letter

On August 20th, 2018, Sam­sung SDI sent out let­ters to many of its cus­tomers announc­ing the dis­con­tin­u­a­tion of sev­er­al epoxy mold com­pounds. The let­ter read as fol­lows:

130, Sam­sung-ro, Yeong­tong-gu, Suwon-si, Gyeong­gi-do, 16678, KOREA

Notification of Product Discontinuance

August 27, 2018

Dear val­ued cus­tomer,

We wish you every suc­cess with your busi­ness and thank you for your con­tin­ued strong sup­port of Sam­sung SDI Co., Ltd. We owe our suc­cess to our loy­al cus­tomers like you.

Unfor­tu­nate­ly, Sam­sung SDI Co., Ltd. has decid­ed to dis­con­tin­ue EMC grades sup­plied to <CUSTOMER NAME>  due to theirs con­tin­ued oper­at­ing deficits despite our inter­nal efforts. Under these hard sit­u­a­tions, we have no oth­er options than to dis­con­tin­ue pro­duc­tion.

We sin­cere­ly apol­o­gize for any incon­ve­nience this may have caused and we extend our heart­felt thanks for your under­stand­ing.

(1) Prod­uct Name

Sam­sung SDI Dis­con­tin­ued Prod­uct Name

Prod­uct Name Size
SG-8200DTA 48MMx62GR
SG-8200DTB 48MMx60GR
SG-8200DTV 48MMx55GR
SG-8200DXC 48MMx60GR
SG-8100GSP 48MMx60GR
SG-8200GS 48MMx60GR
SG-8100GSA 14MMx6.2GR
SC-CCCR2 48MMx69GR
SG-8100GSA 18MMx8.2GR
SG-8100GSA 14MMx5.8GR
SL-7300JX 18MMx9.0GR
SL-7300JX 18MMx9.0GR
SG-8200DGH 18MMx13GR

(2) Effec­tive Date: From Sept 1st, 2019 (As of ship­ping date)

Sin­cere­ly yours,

Sam­sung SDI Co., Ltd.
Young-Hyun Jun

History of Samsung SDI into the Epoxy Mold Compound Market

Sam­sung SDI is a rel­a­tive new­com­er in the Epoxy Mold­ing Com­pound busi­ness, hav­ing acquired this busi­ness in 2014 from Cheil Indus­tries when Cheil Indus­tries was acquired by Sam­sung SDI Co., Ltd.

Cheil Indus­tries itself has been in the busi­ness for a long, most­ly as a small play­er, sup­ply­ing only low-end prod­ucts with rel­a­tive­ly low mar­ket share. In the ear­ly 2000’s, Cheil Indus­tries start­ed aggres­sive­ly expand­ing it’s EMC busi­ness by pro­mot­ing super low-cost epoxy mold­ing com­pounds for sin­gle, very-large vol­ume dis­crete appli­ca­tions. These appli­ca­tions were typ­i­cal­ly TO220, TO247 and TO92 pack­ages — very mature prod­ucts at the time Cheil Indus­tries entered the mar­ket.

The sales prices Cheil Indus­tries request­ed were very, very low — under­cut­ting the com­pe­ti­tion by as much as 60%. If the goal was to gain mar­ket share, it cer­tain­ly worked and with­in a few years, Cheil Indus­tries start­ed tak­ing busi­ness away from old­er, more estab­lished play­ers such as Henkel (now Huawei Hysol), Kyocera and Nit­to. Through 2018, Cheil Indus­tries, now as Sam­sung SDI grew from a small niche play­er to the 9th largest epoxy mold com­pound sup­pli­er by vol­ume.

Alternatives to Samsung SDI Epoxy Mold Compounds

Sam­sung SDI, of course, is not the only sup­pli­er of Epoxy Mold­ing Com­pounds, and with Sam­sung exit­ing the busi­ness, the more tra­di­tion­al man­u­fac­tur­ers with years of man­u­fac­tur­ing expe­ri­ence and sus­tain­able price mod­els are inter­est­ed in regain­ing the mar­ket share they pre­vi­ous­ly lost to Sam­sung. The pack­ages with which these prod­ucts are man­u­fac­tured are mature still, how­ev­er, and the man­u­fac­tur­ers of these TO220, TO92 and ISOTOP pack­ages are still under enor­mous price pres­sure from their cus­tomers to keep the costs as low as pos­si­ble.

At the same time, tra­di­tion­al man­u­fac­tur­ers are eek­ing out ever high effi­cien­cies, reduc­ing the cost to pro­duce and sup­ply these epoxy mold­ing com­pounds. CAPLINQ is no excep­tion to this and we are only more than hap­py to offer price com­pet­i­tive epoxy mold­ing com­pounds for each of the Sam­sung SDI prod­ucts list­ed above.

Please vis­it us at www.caplinq.com to learn more about our whole range of epoxy mold com­pounds includ­ing our Trans­fer Mold Epoxy Com­pounds and our Com­pres­sion Mold Epoxy Com­pounds. If you have any oth­er ques­tions about Sam­sung SDI’s prod­uct dis­con­tin­u­a­tion please feel free to leave a com­ment below or don’t hes­i­tate to con­tact us.

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