WiTS Empowers the Future of Wireless Charging Technologies

The success of Korean conglomerates has had a positive trickle-down effect on domestic suppliers, providing them with growth momentum and core capabilities. However, in recent times, due to an increasingly saturated and competitive domestic landscape, it has become essential for enterprises to think globally to continue their growth trajectories. In order to achieve this goal, Korean companies will need to find their place in the global supply chain. How can Korean companies compete against their Japanese and Chinese counterparts? What is the role of Korean suppliers in the global supply chain?

As large Korean companies dominate the consumer market and high-tech industries, their growth is evident, which is likely to put small and medium-sized companies in a difficult position. Because large Korean companies occupy a dominant position in the domestic market, it is not easy for small and medium-sized companies with technology to secure competitiveness. The strong capital and technological power of large corporations can make competition more difficult. Additionally, it is not easy for small and medium-sized businesses to increase sales or make profits just by entering overseas markets.

Of course, differentiated competitiveness is necessary to become part of the value chain of a global company, but going through this process can lead to stable and rapid growth. Based on this growth, we believe it is important to move to the next stage through continuous R&D.

The Vietnamese market is emerging as a manufacturing hub, with major players like Apple and many Korean companies establishing a significant presence there. I'm interested in learning more about your internationalization process. Currently, 70% of your production from your Vietnam factory is directed towards Samsung. How do you anticipate the evolution of your international clientele in the coming years?

As more companies from China move to Vietnam, we expect to secure good trading lines and better supply and demand of raw materials. (China-based raw material companies are also moving to Vietnam.) Not only Samsung but also Samsung's tier 1 suppliers can expand their business in Hanoi. We are currently expanding into the electronics business, so there is a good environment for WiTS to grow in this sector in the future. Additionally, with Samsung Display nearby, there are favorable conditions for related manufacturing, providing us with opportunities to expand our business in various ways.

The demand for mobile phone shipments in 2023 is slightly lower than in 2022 and the market is facing stagnation. especially amid high interest rates, it's worth noting that 2022 witnessed a significant surge in EV sales globally, from the U.S. to China. As a wireless charging company now operating in various segments and applications, where do you perceive the most promising opportunities for your company?

I'd like to address this question in three parts. Firstly, let's discuss the smartphone industry. It's evident that smartphones will increasingly feature power transfer and wireless charging capabilities. Presently, Samsung smartphones support power transfers ranging from 15 to 20 Watts, with the potential for future enhancements in output. While Apple devices already incorporate wireless charging, Samsung's implementation is limited to flagship products. However, the crux of wireless charging lies in power transfer, which is expected to advance with more sophisticated, efficient, and less thermally intense technology, particularly tailored for smartphones.

Moving on to the second part, we have consumer appliances. The introduction of the new standard known as KI this year is poised to elevate power transfer capabilities from the current 50 Watts to a projected range of 100 to 200 watts in the future. We aim to integrate this technology into consumer appliances such as induction cooktops, coffee makers, and Samsung's robotic washing machines.

Lastly, let's consider the EV sector. We are in the process of developing a wireless charging function with a radius of 11 kilowatts, and we are actively engaged in addressing technological challenges to secure the appropriate technology for this endeavor.

WiTS was established in 2019 following the acquisition of Samsung's wireless business. Now, with capabilities in power transfer and communication through NFC technologies, how do you envision the evolution of your business? Will you expand across all product lines, or will you concentrate solely on the automotive sector?

Power transfer technology offers boundless possibilities. Our NFC and wireless charging technologies can be seamlessly applied to smartphones, wearable devices, and beyond, thereby expanding our product portfolio in the future. Furthermore, our wireless charging solutions will extend beyond smartphones and traditional charging pads. We have collaborations in progress with KG Mobility showcasing our commitment to diversifying our offerings through the automotive sector.

Despite the novelty of wireless technology in automotive applications, your company is positioning itself as a new supplier for automotive OEMs. Often, breaking into the automotive industry can be challenging for new suppliers due to stringent quality requirements, production capabilities, and speed of execution. How do you plan to leverage your company's business and organizational strengths to remain highly competitive in the automotive markets?

I am confident in our technological expertise. Our colleagues and engineers at WiTS have extensive experience in collaborating with Chemtronics throughout the development and manufacturing phases of electronic parts. Therefore, I foresee no issues regarding quality, certifications, or specifications. However, our main concern lies in our nascent stage of entry into the OEM business.

I would encourage you to visit our Vietnam corporate headquarters to witness firsthand the capabilities of our plant. Tier one clients who have personally toured our Vietnam factory have attested to our unparalleled competitiveness in making such an entry.

Recently, at CES2024, you showcased an electric vehicle with wireless charging capability. A new development that has seen the collaboration of WiTS, WiTricity from the US, and Korean car maker, KG Mobility. Looking ahead three years into the future, what will be the next steps for your business?

Regarding EVs, while these functions offer excellent capabilities, infrastructure is essential for their application. Through our partnership with KG Mobility, we aim to commercialize and mass-produce this technology by 2026. Additionally, we plan to actively seek partnerships with global OEM manufacturers, including Hyundai Motor Company. As for infrastructure development, recognizing that we cannot undertake this task alone, we are exploring collaboration with government agencies and construction companies. Given the high volatility of the EV market, we are committed to continuously enhancing our capabilities, aiming to increase from the current 7-kilowatt capacity to 11 kilowatts and eventually to 22 kilowatts in the future.

Tesla has secured significant contracts with American manufacturers for charging stations, positioning Tesla as the certification standard for most EV cars in the US. Regarding the introduction of your wireless charging technology, could you share your insights on its implementation? Will charging stations be located in supermarket parking lots or homes? How do you foresee the adoption of wireless charging for EVs progressing?

Our market expansion efforts encompass both public and private sectors. I believe our technology is versatile enough to be applied in various scenarios, including public charging stations and private residences. In fact, wireless charging stations are already available in public parking lots, with establishments like Samsung stores featuring them. Additionally, KG Mobility has ventured into the charging station business, and we've presented them with proposals for our chargers.

While we're not directly involved in operating charging stations, our focus lies in supplying the chargers for these stations. As for private charging stations, given the limited availability of private properties in Korea, we recognize the challenges in supplying chargers for such setups. Therefore, we showcased our products at CES alongside WiTricity to garner interest and promote our offerings.

In the Korean landscape, we are actively engaging with local municipalities and counties to propose the installation of our chargers in apartment complexes and residential areas. This approach aligns with our strategy to expand the adoption of wireless charging in both public and private settings.

Chemtronics began as a family business, and you're one of the sons who has taken the helm at WiTS. Looking ahead to 2030, what objectives have you set for yourself? What personal achievements do you hope to accomplish for the company?

While 2030 may seem distant, I'd like to focus on our short-term goals. Currently, our annual revenue reached approximately 100 billion KRW for WiTS. When combined with Chemtronics' revenue, this would exceed 600 billion KRW. With WiTS spearheading electronic parts production, my goal is to ensure our company's growth mirrors that of Chemtronics, fostering a more stable business environment.

I aspire to establish stability in both the electronic and automotive electronics sectors. This year, we're hopeful about pursuing an IPO listing. Through consistent investments in technology and cultivating a more stable business framework, our vision is to reach a revenue of 1 trillion KRW by 2030. Unlike the volatile nature of the mobile business sector, electronic parts offer a longer-term perspective, spanning five to ten years. By solidifying our presence in the electronic parts market, we aim to secure sustained growth for the future of our company by 2030.