Chip capacitor makers target releases in scaled-down package sizes

Major players in mainland China's chip capacitor industry take the lead in R&D and production of units in 0201 and 01005 as miniaturization in mobile electronics devices continues.

Chip capacitor development and manufacture in mainland China will remain focused on miniaturization, spurred by this strong trend in various electronics, especially mobile devices. Suppliers are aiming for smaller packages such as 0201 and 01005 to widen their selections dominated by 0402, 0603 and 0805 types. They are leveraging wide use of the component because of its advantages not only of small size but also of high capacity, Q value, thermal resistance and reliability.

Large companies spearhead initiatives for R&D and production, which are expected to gather following. This is as demand rises for such variants, especially 01005 capacitors, in smartphones and wearable devices.

The 01005 MLCC project undertaken by Eyang, a major chip capacitor maker in the mainland, passed the technology appraisal of the Shenzhen Science & Technology Innovation Commission. This paved the way for Eyang to become a key supplier of the chip component to local mobile electronics manufacturers such as ZTE. The units have capacitance of 0.1µF, while those with 0.22µF are already on the drawing board for release in coming years. The company is looking to step up development and aims to tackle next-generation 008004 kinds, with a long-range objective of assuming top position in terms of production scale and technology globally.

In the aluminum electrolytic and tantalum subcategories, the R&D thrust is toward high voltage, besides enhanced capacity and reliability and miniaturization. Shenzhen Topmay Electronic Co. Ltd has introduced model TMCE24 chip aluminum electrolyte capacitor, which boasts a rated voltage of up to 100VDC and comes in variants with 0.1 to 1,500µF capacitance.

MLCCs on spotlight

Overall, there is special stress on multilayer ceramic capacitors or MLCCs, being the chief subcategory with more than 80 percent share of the mainland's total output for chip capacitors.

While the line has been posting annual sales growth of about 10 percent in recent years, thanks tothe mobile electronics market, MLCCs have been exceeding this and reached as much as 15 percent.

Globally, the MLCC segment is projected to have a market scale of up to $11.5 billion in 2020, according to the China Electronic Components Association. It is expected to pull away further from other chip capacitor types in the next one or two years after springboarding from the release of the iPhone 8. Added momentum will be gained in the years to come from wearable devices and VR products, besides green energy products and military hardware.

Steady production rise

Most mainland makers increased their output by 5 to 10 percent and will do so again on the back of the demand upswing in Europe, North America and Asia.

Guangdong Fenghua Advanced Technology Holding Co. Ltd, one of the largest MLCC suppliers in China, will maintain a 10 percent boost in chip capacitor production in 2018.

Half of the manufacturers in the line in the mainland are locally owned and the other half with investment, mostly from Japan, Taiwan and Hong Kong. In terms of shipments, the latter, including world-renowned companies Murata, TDK, Yageo, Samsung and Walsin, accounts for more than 60 percent. Eyang and Guangdong Fenghua are among the domestic counterparts.

Most homegrown enterprises concentrate on entry-level and midrange products. Chip capacitors make up between 30 and 80 percent of their aggregate deliveries.

The key manufacturing centers are in Guangdong, Zhejiang and Jiangsu provinces, specifically in the cities of Zhaoqing, Shenzhen and Dongguan in the first and Suzhou in the last. These areas will continue to attract entrants because of the industry chains in place there.