0201, 01005 MLCCs advance to mainstream supply

Some China MLCC manufacturers are planning the development of 008004 units as the trend for miniaturization continues in consumer electronics applications.

As consumer electronics remain the biggest growth catalyst of multilayer ceramic capacitors, China makers of the component prioritize the introduction of higher-capacitance but lighter and smaller types. They are turning out more 0201 and 01005 chip units, which are expected to displace 0603 and 0402 from the mainstream in 2017 amid climbing requirement in smartphones and wearable electronics. A few suppliers, including Shenzhen Eyang, plan to push R&D further to 008004, following industry leader Murata's lead.

Manufacturers such as Guangdong Fenghua Advanced Technology Holding Co. Ltd and Shenzhen Eyang have realized mass manufacture of 01005 variants this year. The former will raise output for 0201 and 01005 in 2017, while 0402, 0201 and 01005 kinds already account for more than 90 percent of the second's MLCC output.

In terms of capacitor performance, China companies underscore high reliability. Guangdong Fenghua has released chip models with flexible terminations. Such types have a four-layer electrode structure, which includes a conductive resin layer, for enhanced mechanical stress and thermal shock resistance. These can withstand bending of more than 3mm and thermal shocks over 3,000 times.

Although consumer electronics are still the core base, which will represent more than 67 percent of total market share by 2020, MLCCs find expanding applications in other industries. The last includes the wearables, industrial control, medical, automotive electronics, military, new energy and emerging IoT sectors. This is expected to sustain the line's development at nearly 3 percent CAGR globally from 2016 to 2020, according to Technavio.

In China, the projection is about 5 percent increase in sales yearly, encouraging some companies to bolster manufacturing capacity. Guangdong Fenghua has raised its level to 180 billion multilayer ceramic capacitors annually from 160 billion in 2015. In end-2016, it will boost this further, with monthly capability reaching 20 billion units from 15 billion. Shenzhen Eyang will be able to handle 12 billion units each month by this year's end and hit 16 billion in 2017.

China is the largest manufacturing hub for the category, churning out approximately half of the world's volume. Its supplier pool includes the majority of industry giants such as Murata, Samsung Electro-Mechanics, TDK, Kyocera, Taiyo Yuden, Yageo and Walsin. The homegrown leaders include Guangdong Fenghua, Shenzhen Eyang and Chaozhou Three-Circle. Combined, these key players account for more than 80 percent of China's MLCC output.

In all, about 30 companies make up the line and two-thirds are domestic enterprises. They are based in the Pearl River and Yangtze River Delta regions and the Bohai Bay Rim Economic Region.