News

The MLCC market recovers, and the amount of inductors and resistors increases

Author:ROGER
Release on:2021-03-02

In 2020, the passive component market is expected to gradually recover. Chen Taiming, chairman of Taiwan-based passive component leader Yageo, said recently that no inventory is available in upstream, midstream, or downstream, and customer inventory replenishment needs are emerging, coupled with normal market demand, the current actual inventory days may be less than 70 days. The supply chain industry said that capacitors, resistors, and inductors are expected to embrace the business opportunities of the 5G era, and the usage is obviously increasing, which will further promote the tight supply and demand of passive components in 2020.

Observing the development process of 5G in 2020, mainland China has established a strong sub-6GHz low frequency band, including 5G infrastructure, terminal device demand will obviously escalate, and the use of multilayer ceramic capacitors (MLCC) is expected to increase by at least 20%, it is estimated A high-end

The amount of MLCC will be 1,200~1,500, and the amount of MLCC for mid-level mobile phones will also increase to more than 500~600.

The traditional feature phone with inductive components only uses 20~30 in the generation.

After the generation of mobile phones, the average consumption is about 50. 4G LTE mobile phones require up to 100 pieces, while the average use of inductors such as flagship phones such as iPhone exceeds 200 pieces. The amount of inductors used in the 5G generation will increase by 20 to 30%, and it is estimated that each 5G mobile phone uses about 200 to 250 inductors. For the resistance part, the price has recently stopped falling significantly.

During the interview, Chen Taiming said that the automotive component industry suffered several shocks after the fourth quarter of 2018. Although demand seems to have been there, kinetic energy has been frequently disrupted by the trade war, which has led to a conservative view and desperately reducing inventories. Up to now, the market has found that the inventory has been over-removed, supply and demand have begun to tighten, and upstream, midstream and downstream have begun to build inventory. However, it is not easy to recruit workers in the near future. Observing the inventory situation at the end of December and early January will be more clear.

The market is optimistic about the pan-national giant system, including Yageo, New Kellett, etc. The operation in 2020 is expected to be better than 2019. For example, New Kellett is actively expanding its mainland Chinese brand mobile phone customers, and Guohong Group has also continued to adopt a merger strategy to further move to 5G. , Automotive, AI and other industry trends are getting closer.

Huaxin Technology recently invested NT$1.14 billion to purchase about 3,900 square meters of industrial land in Zhongli, actively preparing space for production and logistics, and is expected to embrace the business opportunities of passive components for base stations, servers, and terminal devices brought about by 5G. Huake's business group includes Huaxinke, Xinchang Electronics, etc., and its operational outlook will also usher in dawn.

The supply chain industry believes that the long-term trend of 5G and automotive electronics will remain unchanged. Although Taiwanese industry players mostly rely on passive components for IT, such as Yageo’s system has incorporated acquisition strategies such as Pulse and Kemet. Companies with high-end technologies will further strengthen the group's capabilities in the fields of high-end automotive electronics and wireless communications.

For Yageo, in the future, capacitors will account for about 50% of revenue, and resistors will account for about 15%. After the acquisition of Kemei, it can accelerate its entry into high-end markets such as Europe, America and Japan, and complement Yageo's existing mainland market. It will also increase the proportion of Yageo’s automotive products to a double-digit percentage.