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Miniaturized MLCC market to recover thanks to 5G

Monday, December 23, 2019

Taiwan- and China-based MLCC suppliers have stepped up their pace of equipment orders for additional production capacities recently, an indicator suggesting the market for MLCCs may come back to life in 2020.

According to sources at passive component equipment makers, an influx of short lead-time orders has started pulling in. The orders are mainly those for making miniaturized MLCCs, as well as power inductors.

Besides, the MLCC market outlook is promising thanks to the arrival of 5G, industry sources believe. The amount of MLCCs used for a 5G handset is 30-50% more than that of MLCCs for a 4G LTE one.

Many MLCC suppliers are actually bracing for robust demand from China's 5G smartphone market in 2020, and expect to enjoy a new wave of prosperity to be triggered by large-scale 5G commercialization worldwide.

Industry leaders Murata and Semco have both rolled out their new 0201 MLCCs for use in 5G smartphones and other terminal devices, while Taiwan-based MLCC firms are also gearing up to develop new products catering to 5G.

In addition, Taiwan-based Yageo is looking to beef up its manufacturing workforce in Taiwan and China, and has also encouraged its staff to work overtime during the Lunar New Year holidays in late January, according to industry sources.

Yageo and other Taiwan-based MLCC suppliers have managed to cut their inventory levels to 90-120 days, which will be further lowered to even less than 70 days at the end of 2019, the sources noted.

By: DocMemory
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