With the development of science and technology, people's pursuit of intelligence is getting higher and higher. Electronic components play an essential role in various applications. Passive components are the cornerstone of the electronic circuit industry. MLCC is the largest capacitor category in the market, with the advantages of small size, wide frequency range, long life, and low cost. Therefore, it is in high demand in various electronic product applications.
EVs Drive Demand for MLCCs
Among them, the new energy vehicle industry, which has a high demand for MLCC, is on the rise. Countries around the world are promoting the process of electric vehicles (EVs) replacing fuel vehicles. Because of its advantages of environmental protection and noise-free, EVs have gradually won the favor of the market. Among new energy vehicles, the three-electric system can significantly drive the demand for MLCCs. In addition, the penetration rate of ADAS has gradually increased and coupled with the equipment of audio, display, and other equipment in the car, the volume demand for Ceramic capacitors will increase significantly.
According to statistics, the volume of MLCCs that an EV needs to carry is about 10,000, which is about twice that of a fuel vehicle. According to British research firm LMC Automotive, global EV sales are expected to reach 35.44 million units in 2030, 7.6 times that of 2021. According to this trend, the market demand for MLCC will be largely driven.
Source: TDK
Manufacturers with a high market share of MLCC are mainly concentrated in Japan. Faced with such large market demand, major manufacturers have taken actions to increase MLCC production capacity to meet the increasing needs of emerging industries.
MLCCs Expansion plans of Leading Manufacturers
According to Nikkei, TDK plans to invest 50 billion yen to build a new MLCC plant in Kitakami, Iwate Prefecture, Japan, to increase MLCC production capacity for EVs and other uses. As the fourth largest MLCC factory, TDK has a market share of about 6%. The expansion of the capacity of the factory is the first time in its 16 years, and the investment of 50 billion yen will be the largest in history. It is estimated that by the end of 2024, the overall MLCC production capacity will be expanded to about 2 times the current level.
Prior to this, Murata, a global MLCC leader, also invested in the construction of a new plant. On March 8, Murata announced that it will invest 12 billion yen to build a new plant in the Iwami plant (its production subsidiary Izumo Murata Manufacturing Co., Ltd.) to increase the production of MLCC. The new MLCC plant in Thailand, which started in July 2021, is expected to be completed in March 2023.
Murata MLCCs has a market share of 40%. In order to cope with the increased demand for MLCC in the medium and long term, and build a production mechanism that can meet the demand, Murata said that it will increase the production of MLCC at a rate of about 10% per year.
Another major MLCC manufacturer, Taiyo Yuden, also announced on November 30, 2021, that it will build a new MLCC factory in its subsidiary Taiyo Yuden (Changzhou) Electronics Co., Ltd., which is expected to start production in 2023. The new MLCC plant in Taiyo Yuden (Sarawak) SDN. BHD in Sarawak, Malaysia will also be completed in March 2023.
Source: Internet
It is important to note that the demand for MLCCs with the industry push is not just about volume. The variety of MLCC downstream terminal products is rich, and its optimization needs are also changing with each passing day, which will further promote new requirements for MLCC. In the future, MLCC will continue to develop in the direction of high voltage, high frequency, and high reliability.
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