SMD variants ascend to mainstream crystal oscillator supply

Companies will continue to step up production, relegating conventional DIP kinds to the minority category.

Continuous miniaturization driven by the trend in electronics applications has made SMD products the key type in the crystal oscillator line in China. The category now accounts for about 60 percent of output from 50 and 40 percent in 2014 and 2013, overtaking traditional DIP units. For makers such as Tongfang Guoxin Electronics Co. Ltd, the share reaches as much as 80 percent. Strong Electronics & Technology Ltd will increase the proportion by year-end to 70 percent from 60 percent.

Shenzhen Crystal Technology Industrial Co. Ltd and Strong Electronics have released models measuring 1.6x1.2mm. There are 2x1.6mm kinds in the local selection as well. The current popular sizes include 7x5mm, 5x3.2mm, 3.2x2.5mm and 2.5x2mm.

China suppliers also have high frequency, low phase noise, and improved precision and stability on the agenda. They continue to underscore TCXO, VCXO and OCXO units to expand product range. The first typically has ±0.1 to ±3ppm frequency stability over operating temperature, VCXO ±25 to ±100ppm and the last ±0.06 to ±200ppb.

At present, basic SPXO and FXCO kinds make up the mainstream selection. Companies turn to foreign sources, primarily Japan, for ceramic substrates used in SMD units. They adopt locally available quartz blanks, ICs, electrodes, and metal for the lid.

Mainland China is the key production hub for the line, churning out about 40 percent of worldwide volume. More than 500 companies constitute its pool. About two-thirds are homegrown operations and the rest with investment from Taiwan, Hong Kong, South Korea and Japan. The latter group includes industry players Epson Toyocom, NDK, KDS, TXC and Vectron.

The major production areas are the provinces of Guangdong, Zhejiang, Jiangsu, Shandong and Hebei. The first plays host to 40 percent of the makers.

Holding up against MEMS technology

Mainland companies are confident of the crystal oscillator's greater use in the long term and have no plans to venture into MEMS manufacture despite the latter's advantages. The last includes better reliability, frequency stability, shock and vibration resistance, and more-compact form.

The conventional type remains a core component in the telecom, networking, consumer electronics, research and measurement, medical, industrial, vehicle, and military and aerospace sectors. The first three are the main demand drivers, in particular, smartphones and tablet PCs.

In addition, the automotive segment is expected to widen opportunities for crystal oscillators. Increased sales of luxury cars and SUVs, which boast advanced electronics such as tire pressure monitoringand anti-lock braking systems, have significantly raised requirement. In coming years, the development of connected cars will ensure sustained growth. The applications cover infotainment, collision avoidance and vision systems, backup cameras, automotive Ethernet and powertrain control.

Mainland makers focus on car infotainment. Automotive-use models represent 20 to 30 percent of Tongfang Guoxin's yield, and are mainly for such end devices. Strong Electronics' selection is for alarms, navigation and vehicle consoles.

From this broad application base, the global crystal oscillator sector is projected to hit nearly $3.2 billion by 2020, or at 5 percent CAGR from 2014 to 2020, according to MarketsandMarkets.

The MEMS category is dominated by foreign players, including SiTime, Micrel and Silicon Labs. Its market is forecast to expand by almost 70 percent CAGR in 2013-18, according to TechNavio.

See a comparison table of crystal oscillator suppliers on GlobalSources.com