Novatech has witnessed rapid revenue growth, surpassing $100 million in 2022, driven by the swift diversification of neodymium-based magnet applications. Now, the Samsung supplier is prioritizing R&D efforts to introduce new technologies to the market.
Established in 2007, Novatech specializes in neodymium magnet technology, with a portfolio covering magnets, shield magnets and core materials for laptops, wireless charging pads and smartphone devices, as well as new opportunities in automotive sensors.
In an interview with The Worldfolio, the company president, Oh Choon Teak, explains how the firm is structured: “Our headquarters, equipped with production facilities, houses both marketing and research and development teams. The Korean Institute of Magnetic Technology, which is dedicated to innovative technology development, focuses intensively on researching materials, techniques and applications related to magnets. It collaborates with various OEMs and automotive component manufacturers, particularly for field components such as automotive sensors.”
The firm, he continues, has a factory equipped for magnet equipment production in Hwaseong, as well as overseas subsidiaries in China and Vietnam, with plans underway to establish a new branch in Laos.
Oh Choon Teak, Novatech
“I see Novatech becoming a global entity with a strong international presence.”
Oh Choon Teak, CEO, Novatech Co., Ltd.
A one-stop shop for magnet technology, Novatech is obliged to compete against established companies such as Hitachi Metals, Shin-Etsu and Arnold Magnetic in the U.S. Mr. Oh, however, is confident that his firm retains a significant competitive advantage in the field.
“Our competitive edge lies in our expertise in magnet application,” he says. “We meticulously analyze magnet properties and incorporate them into our products. But our real advantage comes from our commitment to R&D. For example, Apple’s iPad and Samsung’s tablet PC used to have 125 magnets per device. Through continuous research and development, we have managed to reduce the number of magnets in Samsung tablet PCs from 125 to 27, a remarkable achievement.”
Elsewhere, the firm’s prioritizing of innovative R&D practices has borne fruit in the development of its pioneering Motor Position Sensor (MPS) technology, which utilizes magnets to provide an accurate measurement of the steering wheel shaft. “Currently,” Mr. Oh confirms, “we’re on track for mass production, and our next step involves proposing our technology and solutions to global OEMs.”
Looking to the future, Mr. Oh is expecting the automotive industry to be a major growth driver for the company. “As we transition to the era of electric vehicles and autonomous vehicles equipped with advanced AI functions, the importance of controllers, sensors, motors and other mechanical and electrical parts used in these vehicles will only increase. With the shift to motor-powered vehicles, meanwhile, the demand for magnets is also increasing.”
If the automotive industry looks set to be the company’s main growth driver, there are nevertheless other opportunities for expansion on the horizon. One such opportunity is in the field of home appliances, where AI and VR are beginning to be used more widely to realize advanced functions, meaning growth in the demand for sensors and actuators. To this end, Novatech is already developing magnets or miniaturized motors for use in such components, with market rollout just around the corner.
“Our long-term strategy,” Mr. Oh states, “is focused on prioritizing innovation in both cost and quality to attract a larger customer base. As part of this initiative, we have launched a rare-earth mine development project in Laos to develop neodymium in a country other than China, which we hope will address the unique costs and risks associated with the extraction of rare- earth minerals."
For his part, Mr. Oh remains cautiously optimistic about the future. While acknowledging that the global supply chain realignment poses as many potential risks as it does opportunities, the company is as focused as ever on expanding into the global market.
“The majority of inquiries we receive from overseas pertain to magnets and shield magnets,” Mr. Oh explains. “For instance, Indian car manufacturers and IT device makers often ask about our magnet offerings. Our primary focus is on closely collaborating with our partners to optimize magnet applications through simulations, sample production and testing.”
The future may be uncertain, but the stage is set for Korean SMEs to storm the global stage. “I believe,” Mr. Oh states, “that Korean engineers have unparalleled technological prowess. And my goal is for our company to be recognized as an industry leader, renowned for its technical capabilities and commitment to Environmental, Social and Governance (ESG) management.”
For more details, explore their website at http://www.mynovatech.com/
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