Supply of SMD fuses still climbing

Fuses in surface-mount packages now represent half of China makers' output. Variants as small as 0402 have been added to the mainstream selection.

Miniaturization continues in China's line of fuses as terminal products require smaller components. Output is now equally split between SMD and DIP types, and projected to lean toward the former in the coming year. Further, makers have broadened their standard surface-mount units to include more compact 0402 variants, which together with 0603 units are expected to be in great demand in the near future. They will as well press on with R&D on resettable types to enhance this category, targeting wide use in batteries, transformers and speakers. At present, such fuses still represent between 30 and 40 percent of yield for the SMD class.

Dongguan Sinobile Energy Technology Co. Ltd will focus on boosting SMD releases to keep up with the trend. Such kinds currently represent 30 percent of its yield. Dongguan Walter will further pursue SMD resettable fuses as an R&D objective in the next one or two years while maintaining production of DIP one-time and resettable units.

To sharpen competitive edge, many local suppliers are trying designs that will lower costs and prices. Conquer Electronics has introduced single pigtail axial lead models for this reason. It developed a cover layer made of special materials and an anti-explosion package.

In general, customization will drive product development. Between 20 and 60 percent of makers' shipments are based on buyers' requirements.

Most China manufacturers are confident of sustained growth, which is fueled mainly by the mobile electronics and automotive industries. In the past three years, the country benefited from a 5 to 10 percent CAGR in sales of fuses and circuit breakers, exceeding the global market. The last realized total revenue of $11.2 billion in 2012, which will climb to $15.9 billion by 2019 at 5.2 percent CAGR, according to 51Report, a specialized research company in China.

Buoyed by this outlook, makers such as Aupo (Xiamen) Electronics Ltd have been raising their fuse production. The supplier implemented a 15 percent boost in the past year, bringing its aggregate annual output to 1 billion units. It will raise this further by 10 percent by end-2016 and in 2017, and set a bigger ratio for shipments to overseas destinations to realize 10 percent higher export value in the next 12 months.

There are more than 400 makers of fuses in China, over 70 percent of which are local enterprises. They also offer related components, including circuit breakers and thermal cutoffs. The lineaccounts for 20 to 80 percent of production.

More than half of the suppliers have factories in Guangdong province, specifically in the cities of Shenzhen and Dongguan. Others are based in Xiamen and Yueqing, respectively in in Fujian and Zhejiang provinces.