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RAW MATERIALS: MLCC Costs To Produce: Fixed and Variable Cost Structure for Multilayered Ceramic Chip Capacitors ISBN: 1-89-3211-38-X (MLCCCOSTSTOPRODUCE)



Focus of This Specific Report

MLCC- Multilayered ceramic chip capacitors; the workhorse of the passive electronic component industry.  This report focuses specifically on the fixed and variable costs of production for multilayered ceramic chip capacitors.

When Science Meets Money

The critical scientific principal surrounding capacitor technology is that capacitance is equivalent to the physical size, or available surface area of the finished component.  This in turn makes the raw materials consumed in the production of capacitors the most expensive portion of “Cost of Goods Sold,” and the area where the application of best practices can have the greatest impact on decreasing the cost of goods sold and increasing operating margins.

MLCC- Costs To Produce-Focus of This Specific Report:

The goal of this report is to determine the cost of goods sold for multilayered ceramic chip capacitors as an industry.  This report also breaks down the various fixed and variable costs associated with the MLCC dielectric and makes comparisons.  The study shows the impact of materials costs has on the financial structure of the capacitor industry on a global basis.

Key Definitions In This CGS Study on MLCC:

The following definitions are standard metrics that are used to establish the financial status of any industry.  Here we apply these terms to the capacitor industry as a whole.-

Total MLCC Cost Structure:

Total cost (TC) describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of capacitors produced and include variable cost inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery.

MLCC: Fixed MLCC Production Costs:

In economics, fixed costs are business expenses that are not dependent on the activities of the business. They tend to be time-related, such as salaries or rents being paid per month. This is in contrast to variable costs, which are volume-related (and are paid per quantity).


In management accounting, fixed costs are defined as expenses that do not change in proportion to the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales.


Along with variable costs, fixed costs make up one of the two components of total cost. In the most simple production function, total cost is equal to fixed costs plus variable costs.

MLCC: Variable Production Costs:

Variable costs are expenses that change in proportion to the activity of a capacitor business. In other words, variable cost is the sum of the marginal costs associated with capacitor production. In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit- in this instance- capacitors.

Raw Material Costs:

Costs associated with raw materials consumed in the production of a finished product.

Raw Materials consumed as DIELECTRICS in the surface mount capacitor industry include: 

  • Barium Titanate and related ceramic materials

The primary Raw Materials consumed as ELECTRODES in the surface mount capacitor industry include:

  • Nickel
  • Palladium
  • Silver

The primary Raw Materials consumed as TERMINATION materials in the surface mount capacitor industry include:

  • Copper
  • Silver

Variable Overhead Costs:

Variable costs are expenses that change in proportion to the activity of a business. Variable manufacturing overhead costs are variable costs that are not a direct costs, but indirect costs. Variable costs are sometimes called unit-level costs as they vary with the number of units produced.

Variable Labor Costs:

Labor is in some cases considered as a variable cost, especially in the capacitor industry, where part-time labor is brought on in accordance with increases in unit demand.  Variable labor charges are an aspect of the capacitor industry that continues to be under scrutiny because this is where the industry usually falls short in an up turn- not enough personnel to meet short term demand, which increases lead times and stabilizes pricing.

Report Summary and Conclusions-

This study addresses the global markets for MLCC and their cost structure based upon fixed and variable costs.  The study also compares the Cost Structures of the top MLCC Vendors and compares profitability and assesses multiple attributes to success based upon

·      SGA,

·      R&D,

·      Customer Base and

·      Regional Production Costs.



This study ties together the raw material markets for ceramics and metals into the production of MLCC and establishes the competitive cost structures related to fixed and variable costs and establishes the variable cost structure is outside the control of most manufacturers and contributes directly to the bottom line. Find out how companies compare and contrast in this $20 BB Global Market.

This chart below illustrates the entire MLCC Ecosystem and how this study fits into the overall architecture as a keystone report-

Figure 1: Paumanok ISBN# 1-89-3211-38-X Research: 1988 to Present Day Description of The 8532 Capacitor Blockchain Project; Including Connections Between Components and Materials

Source: Paumanok Blockchain Project 2022


Paumanok Provenance in the 8532 HTS-Trade and Transactions- CAPACITORS- : All 300 Technical-Economic deep dive analysis (In PDF or NFT Minted Format) in the collection are written by Dennis M Zogbi and are considered digital assets covering granular relationships in the 8532 and 8533 Harmonized Tariff Schedule (Blockchain) for ubiquitous electronic components consumed in all electronic devices connected to the feedstock raw materials required for their manufacture.  The founder has been a keynote speaker at multiple industrial conferences worldwide; a key member of electronic industry association and is the columnist for Berkshire Hathaway’s TTI Marketeye for 25 years and an on-site advisor for technology hedge funds that use the founder’s blockchain formulas to invest in equities, commodities and futures.  The founder has engineered blockchains for mergers and acquisitions, new product development, disruptive technologies, new markets and new cultures.  Repeat customers over the past 30 years include brand name OEM, EMS and Financial Institutions in the USA, Japan, China, Germany, France, UK, Israel, Italy, Belgium, Slovenia, Korea ROK, Singapore, Thailand, Philippines; Australia, Indonesia and Iceland.

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RAW MATERIALS: MLCC Costs To Produce: Fixed and Variable Cost Structure for Multilayered Ceramic Chip Capacitors ISBN: 1-89-3211-38-X (MLCCCOSTSTOPRODUCE)

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