Key capacitor manufacturers advance ceramic category

Multilayer types are on the agenda of the few China companies that ventured into the line dominated by foreign players.

Hurdling high technology and cost challenges, major China capacitor suppliers boost initiatives to build up the minority ceramic category as adoption of the component widens in various electronics. They emphasize multilayer chip variants or MLCCs to meet the continuing trend for miniaturization in terminal applications.

Shenzhen Eyang is therefore looking to develop 008004 units, having started mass production of 01005 kinds. At the same time, the manufacturer is increasing output for 0201, which will overtake 0402 units by year-end. The former currently has 40 to 50 percent share from 20 percent in early 2015.

Guangdong Fenghua Advanced Technology Holding Co. Ltd has realized the trial run of 01005 variants. It will concentrate on this and 0201 in the coming year. Releases in 0603 and 0402 currently account for about 70 percent of the maker's yield.

China companies project 0201 and 01005 kinds will displace 0603 and 0402 from the mainstream in 2016, driven by developments in smartphones and wearable electronic devices. Following the lead of major industry players, they will sustain efforts for further product miniaturization. Murata, for instance, has introduced 008004 variants.

Ceramic capacitors are increasingly used for their advantages of enhanced specific capacitance, frequency and reliability. They can be employed as filters and for commutation, coupling and high-speed charge-discharge in electric circuits. Globally, this passive component is the largest category in the capacitor market, accounting for more than 45 percent.

Multilayer types lead, with share surpassing 90 percent. Fueling this trend is the steady release of features-rich electronic devices. Despite decreasing shipments of smartphones and tablet PCs, China makers are counting on greater demand for such variants from 4G LTE handsets, which require 400 to 500 such components compared with about 300 in traditional models. They also hope to benefit from the emerging wearables and Internet of Things segments, while taking advantage of an expanding base in the industrial control equipment, medical and automotive electronics, new energy and military fields. In 2015-21, the subcategory is expected to post double-digit CAGR worldwide, according to Persistence Market Research.

With these developments, domestic manufacturers are bolstering production capacity for ceramic capacitors. Guangdong Fenghua targets about 44 percent increase by end-2016, or 20 billion units monthly. The product type represents about 90 percent of the company's yield. Shenzhen Eyang will raise its annual level to 200 billion units by this year's end from 120 billion at present.

Foreign-led supplier pool

Mainland China is the biggest manufacturing hub for the line, churning out approximately 50 percent of global output.

About 30 companies make up the sector, two-thirds of which are locally owned and the rest with investment mainly from Japan, Taiwan and South Korea.

In addition to Murata, the latter group includes Samsung Electro-Mechanics, TDK, Kyocera, Taiyo Yuden, Yageo and Walsin. The second set up four factories for ceramic capacitors in Tianjin, and Suzhou and Dongguan respectively in Jiangsu and Guangdong provinces. Murata has plants in Wuxi, Jiangsu, and Beijing.

Guangdong Fenghua, Shenzhen Eyang and Chaozhou Three-Circle are their domestic counterparts. So far, only 10 percent of mainland capacitor makers offer ceramic kinds due to the steep technology and cost requirements.

Together, these major international and homegrown players generate more than 80 percent of the mainland's total ceramic capacitor production. The category is anticipated to grow steadily at an annual rate exceeding 10 percent.

The makers gather mainly in the Pearl River and Yangtze River Delta regions, and the Bohai Bay Rim Economic Region.

See a comparison table of ceramic capacitor suppliers on GlobalSources.com