This is the monthly market research report that updates all 54 component categories Paumanok studies under the Passive Component (Capacitor, Resistor, Inductor and Circuit Protection) categories. Paumanok tracks the raw material feedstocks and finished component markets on a monthly basis. These are all part of our Industrial Blockchain system for the 8532 and 8533 HTS Codes for Capacitors and Resistors in support of accurate taxonomy, ESG Compliance and Green Bond Investing-
Here are the Highlights from January 2022-
•MLCC are once again the focus of potential supply restraints amidst rumors that Murata was going to idle production in China. The rumors began last week regarding an idling of the production facilities amidst the pandemic variant; however, this caused a rumor that Murata was going to move all Chinese capacitor production to other locations under expansion. This is causing supply chain confusion as a second Murata MLCC factory opened in Wuxi in October 2020.
•The RUMOR of the idling of the Murata MLCC factories in China, coupled with supply chain issues for electrodes, means disruption in MLCC supply beginning February.
•Murata has announced the expansion of their MLCC production facilities in Thailand, with a whole new factory coming online in March of 2023. The company has also announced a new factory for MLCC plating technology in Japan. Plating means nickel plating of the MLCC terminations, which is a complex mass-produced industrial operation handling billions of pieces per year. The company will focus on R&D on ultra-small case size chips.
•Taiyo Yuden announced that they would also be adding new MLCC production capacity at their Malaysia facilities which will also become operational in March of 2023.
•TAIYO YUDEN CO., LTD. will construct a factory on the premises of TAIYO YUDEN (CHANGZHOU) CO., LTD., and start producing multilayer ceramic capacitors in 2023.
•Samsung EMCO opened a second MLCC plant in Tianjin, China, before the end of 2020. Samsung Electro-Mechanics aims for this facility to become the center of its automotive MLCC business over the next few years.
•Yageo Corporation, on the other hand, has announced their intentions to shift production of MLCC away from PRC to ROC, with a new factory for MLCC coming online in August 2022 (Good Timing) in Kaohsiung as part of its plan to make Taiwan its manufacturing hub over the next five years.
•Walsin also announced its intentions to place 60% of its production in ROC and keep 40% in PRC, which is a change from the current 50%/50% split.
•Demand remains strong for all passive components, with only slight relaxation in the markets for resistors and inductors and a slight tightening of demand and a slight increase in lead times for capacitors.
•The red flag is in MLCC materials, with nickel price and palladium price both skyrocketing in January 2022. Both metals are used as MLCC electrode and account for about 8% of CGS. The Norilsk Nickel Mine in Siberia is the world's largest producer of both metals and fears of embargo have arisen amidst a war footing in Eastern Europe.
•When we view all of the above intelligence it seems as if there is a concern over a shortage of MLCC that will last until new capacity comes online in March 2023.
•Both Yageo and Walsin announced their strategy to increase production in Taiwan and create a balance with production in China- both stated their goal was 60% Taiwan production of MLCC. Meanwhile both manufacturers reported a 15% and 18% quarterly drop in revenues for the December 2021 quarter compared to the September quarter, which was unusual, and further supports changes in the China marketplace.
The 31 Page Presentation With Presenter's Notes
- The 31 Page Presentation With Presenter's Notes
- Size6.88 MB
- Length31 pages