FOUNTAIN INN, S.C. (March 4, 2022) – KYOCERA AVX, a leading global manufacturer of advanced electronic components engineered to accelerate technological innovation and build a better future, is set to acquire ROHM Semiconductor’s tantalum and polymer capacitor business assets. The two companies recently reached a final agreement, which states that ROHM Semiconductor (ROHM Co., Ltd.) will transfer its tantalum and polymer capacitor business assets — including all of its tantalum and polymer capacitor manufacturing lines and relevant intellectual property — to KYOCERA AVX. The transfer is scheduled to be executed on August 5, 2022, and ROHM will continue to produce tantalum and polymer capacitor products and supply them to KYOCERA AVX until all relevant production lines have been successfully transferred to the KYOCERA AVX manufacturing site. This will ensure a continuous supply for ROHM customers and immediately increase the already extensive selection of electrolytic capacitor solutions available to KYOCERA AVX customers.
Global passive electronic component markets are currently experiencing a significant amount of financial turbulence, a situation brought about by global economic stimulus programs and the continued impact of the pandemic on key materials and component segments of the high-tech economy. In short, 2021 revenue and volume numbers for capacitors, resistors, inductors and circuit protection components are reaching all-time highs.
A significant amount of these revenues are being converted into excess capacity, especially in areas of technological sophistication where the market needs more competition – areas such as high voltage, high frequency, high temperature and robust mechanical passive component designs.
Japanese manufacturer Taiyo Yuden, will invest MYR 680 million (EUR 140 million) to expand its multilayer ceramic capacitors manufacturing facility in Kuching, Malaysia as the company is looking to increase its production capacity in the ASEAN region.
Several research firms describe the electronics market environment as “stable” entering the all-important calendar Q4. Lead times, for example, have leveled out, according to LevaData and the ECIA, and demand shows no sign of abating. However, logistics experts continue to point to seemingly endless backups at international seaports and retailers are bracing for holiday shipping delays.
Industrial, medical, and military demand for high quality, high-voltage multi-layer ceramic capacitors (MLCCs) has been hit hard by a shift in production by the world’s largest MLCC manufacturers who are focusing on a seemingly insatiable demand for smaller, lower voltage – and in some way – lower performance MLCCs. This demand has been fueled by the global growth of 5G networks and continued advancements in smart phones and mobile devices who are consuming significantly more MLCCs per device.
The challenges related to semiconductor and other component shortages will be with us for a considerable time, according to more than a dozen manufacturing executives. We asked these decision-makers and their partners about current issues; the impact of shortages; how long the scarcity will last and how they are protecting themselves from counterfeit goods. We also asked what they see as a long-term solution for the severe boom-bust cycles typical of the electronics industry.
Capacitor, resistor and inductor markets all showed signs of increased demand in August, with lead times for all three product lines reaching new heights. Lead times increased again in August 2021 by 2.1 percent. This follows a 3.4 percent month-to-month increase in July 2021, which has subsequently taken capacitor demand and lead times back to levels where MLCC shortages were dictating supply and demand back in 2019.
Lead times are increasing for multiple types of passive electronic components in 2021.Figure 1 below is from Paumanok’s latest market research report titled “Passive Electronic Components: World Market Outlook: 2021-2026.” It reveals that we are about to enter a new level of value in the passive component supply chain. The index, which follows 53 types and configurations of passive component (capacitors, resistors and inductors) show a spike in lead times reminiscent of recent spikes that demonstrated shortages and price increases.
There is an on-going interest from space industry to accommodate commercial EEE components in space systems. The attention is especially paid to automotive grade components that comply to AEC-Q200 automotive qualification standards. Capacitors are the most critical EEE passive components for space applications due to their various number of applications and performances’ reliability.
On the evening of the 13th, an earthquake measuring 7.3 on the Richter scale occurred in the northeastern region of Japan, which affected the production of manufacturers such as Murata, Renesas, and Shin-Etsu. Among them, Murata’s factories in Fukushima and Miyagi have suspended operations; Renesas estimates that it will take a week to resume normal production.
Murata Manufacturing Co., Ltd.’s production subsidiary Okayama Murata Manufacturing Co., Ltd. (Setouchi City, Okayama Prefecture) has been expanding its welfare and energy buildings Construction of a new production building was initiated in December 2019 and was just recently completed. A ceremony was held for the new production building on January 20, 2021.
As lead times grow, expect the MLCC market to tighten throughout 2021. By TTI’s vice president of product and supplier marketing, Jeff Ray.After a prolonged lull during 2019 and most of 2020, the supply of MLCCs is beginning to tighten. Lead times are extending across many case sizes and suppliers, both in commercial and automotive-grade components.
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