Samsung SDI Co Boston Consulting Group Matrix

The market for advanced materials essential for next-generation semiconductors is experiencing robust expansion, with projections indicating significant growth driven by the escalating demand for high-performance electronics, artificial intelligence, 5G networks, and the Internet of Things. Samsung SDI is strategically capitalizing on this trend by increasing sales of its premium semiconductor patterning materials, a segment where its advanced technological capabilities are a key differentiator.

Samsung SDI's foldable OLED materials are a clear star in their portfolio, riding the wave of the booming electronic materials sector, particularly with the rise of foldable displays.

As a key supplier of essential materials for these cutting-edge screens, Samsung SDI is strategically positioned to capitalize on the growing demand for display innovation.

The foldable smartphone market, a significant driver for these materials, saw over 10 million units shipped in 2023 and is expected to continue its strong growth trajectory through 2024 and beyond.

Samsung SDI's advanced material solutions are integral to the performance and durability of these next-generation displays, solidifying their market presence as a critical supplier.

Samsung SDI's electronic materials for traditional displays, such as those used in LCDs, represent a classic cash cow. This segment benefits from consistent demand as these displays remain prevalent in many consumer electronics and automotive applications, even as newer technologies emerge.

The stability of this business is underscored by Samsung SDI's strong market position in these established material categories. In 2023, the company continued to be a key supplier, leveraging its scale and expertise to maintain profitability in a market that, while not experiencing explosive growth, offers reliable revenue streams.

These mature products are crucial for generating the stable profits and cash flow needed to invest in Samsung SDI's high-growth areas, like advanced battery technologies and next-generation display materials. The consistent demand ensures a predictable income that underpins the company's overall financial health and strategic investments.

Samsung SDI's batteries for mainstream mobile devices, a cornerstone of its business, operate as a classic Cash Cow. This segment benefits from Samsung's established market position and strong relationships with major smartphone and laptop manufacturers.

Despite the mature nature of the mobile device market, these batteries continue to generate substantial and reliable revenue for Samsung SDI. The company's deep integration within the supply chains of leading device makers ensures consistent demand and profitability, even as Samsung SDI strategically invests in emerging battery technologies.

Samsung SDI's established contracts for its current generation prismatic EV batteries also function as a Cash Cow. These long-term agreements with major automotive manufacturers guarantee a predictable revenue stream, bolstering the company's financial stability and providing a solid base for future growth initiatives.

For the fiscal year 2023, Samsung SDI reported total revenue of approximately 15.9 trillion KRW, with its automotive battery division playing a crucial role in this performance. The stability from these existing supply deals offers reliable cash flow, enabling strategic investments in other promising business areas.

Samsung SDI's electronic materials for traditional displays, such as those used in LCDs, represent another significant Cash Cow. These materials continue to see consistent demand across various consumer electronics and automotive applications, even with the rise of newer display technologies.

The reliability of this business is reinforced by Samsung SDI's strong market share in these established material categories. In 2023, the company maintained its position as a key supplier, leveraging its scale and expertise to ensure profitability in a market that, while not experiencing rapid expansion, offers dependable revenue streams.

These mature product lines are vital for generating the stable profits and cash flow necessary to fund Samsung SDI's investments in high-growth sectors like advanced battery technologies and next-generation display materials. The consistent income from these segments underpins the company's overall financial health and its capacity for strategic expansion.

Batteries for general consumer electronics, excluding mobile devices and power tools, are a considerable Cash Cow for Samsung SDI. This segment thrives on high sales volumes within a mature market, ensuring steady and predictable demand. Samsung SDI's robust manufacturing infrastructure and extensive customer network in this area facilitate consistent cash flow with minimal need for significant new capital outlays.

Samsung SDI's legacy battery production lines, including those at its Hungary plant, are considered Cash Cows. These older facilities, representing substantial past investments, continue to generate significant cash flow for the company. Even as some lines are optimized or converted to newer technologies, their current operations provide a stable cash contribution.

These operations are critical for maintaining Samsung SDI's baseline cash flow during periods of technological transition. For example, the company has been actively investing in its Hungary facility to enhance its competitiveness. In 2023, Samsung SDI announced further investments in its European operations, underscoring the ongoing strategic importance of these established production capabilities.

Battery products for micromobility, such as e-scooters and e-bikes, are currently positioned as a Question Mark within Samsung SDI's BCG Matrix. Demand recovery for these batteries has faced explicit delays, signaling a challenging market environment.

This segment likely exhibits low growth and a smaller market share relative to Samsung SDI's other battery applications. Consequently, it represents a drain on resources without a clear path to significant market leadership or profitability in the near term.

Samsung SDI's legacy power tool batteries and older IT battery chemistries are firmly in the Dogs quadrant. These products face declining demand and are being replaced by newer technologies, representing a drain on resources. Similarly, their standard-range EV batteries that do not utilize LFP technology are also classified as Dogs due to increasing competition from more cost-effective LFP alternatives embraced by major automakers. The battery supply for specific, lower-selling Audi EV models also falls into this category, reflecting reduced demand driven by external market factors affecting the vehicle sales themselves.

Samsung SDI began manufacturing its 46-series cylindrical batteries in the first quarter of 2025. This move positions them to capture a growing segment of the electric vehicle battery market, which is experiencing significant expansion.

While the 46-series batteries hold considerable promise for high growth, their current market share is minimal. Achieving a dominant position, akin to a 'Star' in the BCG matrix, will depend on successful market penetration and substantial scaling of production and adoption.

Samsung SDI's foray into LFP batteries and its new prismatic battery initiative for the North American market, particularly its joint venture with GM (though the primary JV is with LG Energy Solution, Samsung SDI is a key supplier in the broader EV battery ecosystem), represent significant "Question Marks." These segments exhibit high growth potential but currently hold minimal market share, demanding substantial investment to gain traction.

The LFP market, while growing at an estimated 20% CAGR through 2030, is dominated by Chinese firms, making market entry challenging for Samsung SDI. Similarly, the North American EV battery market, targeted by new prismatic battery ventures, requires massive capital outlay and a successful ramp-up to achieve dominance, with current market share for these specific new ventures being effectively zero.

These ventures are crucial for diversification and capturing future market share, but their success is contingent on navigating intense competition and scaling production effectively. The significant investments made, such as the plant targeting mass production by 2027, underscore the high-risk, high-reward nature of these "Question Mark" businesses.