The United States imposed a ban on Huawei, and the MLCC business of this Korean company was hit

According to THE ELEC, the US ban on Huawei has had a negative impact on South Korea's Amotech's MLCC business.

Amotech originally planned to supply MLCCs for telecommunications components to Chinese companies including Huawei in early 2020. However, the pandemic delayed China's 5G deployment plans, affecting the company's shipments. Furthermore, the pandemic also delayed the company's MLCC production plans.

However, in May, Amotech resumed supplying MLCC samples to potential customers in China. The products are currently in the customer testing phase. However, due to the US sanctions on Huawei, some of the company's supplies may be put on hold.

It is understood that Amotech's goal is to supply precious metal electrode MLCC.

Amotech's sales in the first half of 2020 were 102.1 billion won (about 600 million yuan) and its operating loss reached 1.7 billion won. The company had previously expected MLCC to become a new growth engine in the first half of 2020, but now it can only pin its hopes on the fourth quarter of this year or the first quarter of 2021.