Due to the popularization of 5G smartphones, electric vehicles (EV) and automotive electronics and other applications, the production capacity of global passive components is expected to grow by about 10% next year.
In the price part, the demand growth of passive components will slightly exceed the supply growth next year, with the growth range of demand of about 15%. It is estimated that the quotation of MLCC and chip resistance R-chip will have the opportunity to increase again in the second and third quarters next year.
From the perspective of the usage of a single mobile phone, the average passive component usage of a 4G smartphone is about 750pcs to 800pcs, and the usage of 5G mobile phones will increase to more than 1,000pcs, an increase of 20% to 30%.
In terms of automotive electronics, the demand for automotive entertainment systems, advanced driver assistance systems (ADAS), and Internet of Vehicles has increased significantly, also with the drive of electric vehicles. Starting from this year, automotive electronics accounted for 35% and 50% of components in vehicles and electric vehicles. MLCC, resistors and capacitors are the key components of automotive electronics and are expected to benefit from this trend.
Yageo said that there is no need to worry about orders next year, but the overall situation for next year is still unclear. Some orders are longer-term, and the group tries to meet customer needs.
From the perspective of product inventory days, Yageo pointed out that there is no chance to make up before the end of 2021, and inventory days are still low.
Walsin recently pointed out that orders for the next three months can be predicted, and the average utilization rate of products including MLCC and chip resistors will maintain 90% high-end.
Observing the product inventory days, the inventory days of Walsin passive components are below 45 days, and the normal level is about 2 months, indicating that the current inventory level is low.
Yageo is the world’s third largest MLCC supplier and the world’s largest supplier of chip resistors.
Global MLCC manufacturers include Murata, Samsung, Yageo, Taiyo Yuden, and TDK, AVX, etc. Mainland Chinese manufacturers include EYANG, Fenghua, CCTC, Torch Electron,etc. Global chip resistor manufacturers include Yageo, Uni-Ohm, Walsin, Fenghua, Rohm, KOA, Panasonic, Vishay, etc.
