China’s MLCC Industry Relies on Market Size and Structural Changes to Challenge Japan’s Dominance

China’s rapidly growing multilayer ceramic capacitor (MLCC) market is expected to become the largest market by 2025, accounting for 43.5% of global MLCC demand, according to Chinese market research firm JW Insights. I’m here. The study estimates that China will use more than 250 billion of his MLCCs, up from 150 billion in 2021. Especially in China, the number of his MLCCs installed in new energy vehicles will surpass the number of internal combustion engine vehicles this year, reaching 90 billion units. According to the same estimate, by 2025, the number of he MLCCs for new energy vehicles will reach 330 billion worldwide, surpassing the number of conventional vehicles.

So far, Japan has maintained its hegemony in the MLCC market. Led by companies such as Murata Manufacturing and Taiyo Yuden, Japan accounts for about 51% of his MLCC production capacity globally, followed by South Korea’s Semco and Taiwan’s Yageo. According to 2019 data, Chinese companies account for about 6% of global production capacity.

However, in 2016 Murata started shifting its focus to high-end MLCCs for automotive and IoT applications, leaving the low-end market to be filled by other Asian competitors. Currently, macroeconomic conditions such as the recent lockdown in China, the war between Russia and Ukraine, and global inflation have created new opportunities for these foreign suppliers to gain further footholds, and currently Japan’s Murata Manufacturing and TDK. is making inroads into the automotive sector dominated by and together account for his 80% of the global market.

According to the latest data obtained from IT consulting firm TECHDesign, the consumer electronics sector will be the largest user of MLCCs in 2020, accounting for 64.2% of global MLCC demand, while 5G and new energy vehicles will account for 19% and 13.5%. occupies Its. The recent slowdown in demand for consumer electronics and the resulting high inventory levels, coupled with the rapidly growing automotive market, has led to the entry of consumer MLCC suppliers into the automotive sector and a structural change within the MLCC industry. is occurring.

JW Insights shows that automotive-grade MLCC manufacturers typically do not rely on distributors or dealers, and enjoy direct and close relationships with customers that keep new entrants at bay. However, current automotive-grade MLCC capacity is not keeping up with demand, and orders are flowing to new entrants in the automotive MLCC market. For example, China’s Fenghua Electronics, a major player, is embedded in BYD’s supply chain. Another of his MLCC manufacturers in China, Viiyong Electronic Technology, has also started supplying Chinese automakers. South Korea’s Semco is likely to be the biggest winner in structural change. JW Insights estimates that Semco’s MLCC shipments will surpass TDK this year, making it the world’s second largest supplier of automotive-grade MLCCs.

According to Murata Manufacturing data, each hybrid electric vehicle (EV) contains an average of 12,000 MLCCs, and a pure EV contains an average of 18,000 MLCCs. That number will continue to grow as vehicles become more electrified. China’s large new energy vehicle market may give local suppliers an advantage, but Japan’s dominance in his MLCC industry, especially if his MLCC is critical to vehicle safety. We still have a long way to go to break through. Japan continues to lead in this area. In addition, Japan also dominates the key ingredients used in MLCCs. China’s MLCC Industry Relies on Market Size and Structural Changes to Challenge Japan’s Dominance

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