Multi-Layer Ceramic Capacitor Industry Threatened by COVID-19 Surge
The recent surge in COVID-19 cases in Asia have caused two of the top three global producers of ceramic capacitors to shut down major factories in Japan and Malaysia. Global supplies are extremely tight in the Multi-Layer Ceramic Capacitor (MLCC) industry, as manufacturers are scrambling to find alternatives.
Affect on MLCC Production:
- Murata Manufacturing Co – temporary closure of factories in Japan
- Samsung Electro-Mechanics – operating as normal
- Taiyo Yuden Co – temporary closure of factories in Malaysia
Note: As of 2020, these three companies produce over 60% of the global MLCC supply.
How This Affects Supply Chain
Multi-Layer Ceramic Capacitors play a crucial role in circuit systems, offering high stability, low losses, and an extremely high rate of efficiency for applications in electronics. They’re used in numerous applications from smartphone screens to industrial laser power supply systems.
The disruptions in supply chain due to the COVID-19 outbreak are enormous. Electronics sales were already facing higher than normal demand thanks to stay-at-home electronics consumption. But these production disruptions put further strain on manufacturers who will see delivery periods for MLCC’s increase from 14 weeks to up to 25 weeks. Prices have also increased as much as 40% for high-tech models.
How to Prevent Future Supply Chain Disruptions
Staying on top of industry news and proactively identifying components at risk of disruption are crucial in the electronics business. SiliconExpert recently developed a new module that identifies risks in supply chain and helps you find alternative solutions. We even offer predictive analysis solutions using machine learning to help see if components fall out of compliance, before they happen!
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