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.
Empower Semiconductor, the world leader in Integrated Voltage Regulators (IVR), today announced a breakthrough with the highest performance, most configurable, and smallest commercially available range of capacitors. E-CAP™ is a vastly superior performing capacitor, far exceeding the semiconductor industry’s previously leading Multi-Layer Ceramic Capacitors (MLCC).
The Neutrino Energy Group continues to innovate new neutrino-based energy technologies that will take the pressure off of potentially problematic sustainable energy sources. At the same time, top energy scientists are proposing new methods for storing electricity in electromagnetic capacitors, which eliminate battery waste and last indefinitely. In the near future, these technologies will combine to usher in a new era of global energy that is both fully renewable and truly clean.
Yageo Corp (國巨), the nation’s largest passive components supplier, on Saturday broke ground for a new plant in Kaohsiung that is expected to begin commercial production in 2022.Yageo chairman Pierre Chen (陳泰銘) told the groundbreaking ceremony that it would be the company’s first new plant in the city in 15 years as it embarks on a plan to move its high-end technology production back home from overseas.The plant, which is expected to be completed in August 2022, would produce passive components, such as chip resistors, inductors and multi-layer ceramic capacitors (MLCCs), starting in October that year, Yageo said.
Passive component vendor Yageo has announced net profits surged 10.1% sequentially and 80% on year to NT$3.63 billion (US$127.1 million) in the third quarter of 2020, with EPS reaching NT$7.37.Yageo’s net profits for the first three quarters of 2020 totaled NT$9.27 billion, rising 55.5% on year. EPS for the nine-month period came to NT$20.03, compared with NT$14.26 during the same period in 2019.Yageo posted a 37.4% gross margin in the third quarter of 2020, up 6.4pp on year. Gross margin for the first three quarters of the year arrived at 40.1%, up 3.6pp from the same period in 2019.
Source: Yageo enjoys profit rise in 3Q20
The global value of passive electronic component shipments increased by more than 10 percent in the September 2020 quarter due to strong sales for multilayered ceramic chip capacitors (MLCC) consumed in 5G handsets and a revival in automobile production.A combination of revised guidance from major passive component manufacturers, coupled with some early financial reporting by major MLCC manufacturers, has revealed a surge in component demand impacting the global supply chain on a quarter-to-quarter basis.
The following slide deck was published by Vishay Intertechnology, Inc. in conjunction with their 2020 Q3 earnings call.