MarketEye: International Passive Components Technology & Market Development Forum; Shenzhen China: A Review

The conference was organized so that on the first day of the forum, the topic of discussions focused on component technology, while on the second day of the forum, the topic of discussion was raw materials:

Vishay Intertechnology, Inc.:

Vishay Intertechnology opened the component technology segment of the show with a presentation that included their MicroTan® conductive polymer tantalum chip capacitors, including their new 0402 (K-Case) in addition to the ultra-small M (0603) and P Case (0805). The focus of these products is for defense and medical markets and that they were available in standard and low-ESR type chip configurations.

Vishay also noted their new 592D Tantamount® high cap/low profile chip capacitor with up to 2200 microfarads at 6.3 volt and targeted toward low profile circuit applications in wireless modems in PCMCIA cards and in USB circuits.

Murata Manufacturing, Inc.

Murata’s presentation focused upon piezoelectric ceramic components for automotive under-the-hood applications. After a brief technology overview, which described the relationship between applied power and vibration in the ceramic and Murata’s long history of piezo-ceramic research and development (it began in Japan in 1955) and its importance in the advancement of computer microprocessors. The company noted they were shipping 5 billion pieces of ultra-small ceramic resonators per year to the world market (all applications) for 2009, and that they maintain a 65% to 70% worldwide market share for these special piezo-ceramic components. The remainder of the Murata presentation focused on their success with piezo-ceramics in the automotive electronics markets, noting that each engine control unit in an automobile requires one ceramic resonator, and that there are 12 additional applications per automobile for safety, comfort and convenience and power train circuits, with a key focus in piezo-buzzer technology for creating unique turn signal sounds.

TDK-EPC:

TDK presented updated information on their merger with EPCOS and the creation of TDK-EPC, with its focus on passive components, that combine the key capacitor, resistor and inductor assets of TDK with that of EPCOS to create the largest core passive component company in the world. The company will have major presence in the electronic markets in Japan, China, Europe and the Americas and number one market positions in critical areas of discrete inductors, sensors and varistors; and top global positioning in electrostatic capacitors (MLCC and DC film) and power capacitors (AC Film). TDK also discussed its massive commitment to their environmental impact, and the major under taking to make the company environmentally friendly. The company also discussed its critical positioning in the supply of Neodymium magnets for applications in the growing hybrid electric vehicle market worldwide.

Taiyo Yuden Company Limited:

Additional component presentations from Taiyo Yuden, discussed their advancement of LTCC technology and the use of this technology platform to create wireless antenna modules.

Tyco Electronics:

Tyco Electronics discussed the recent changes in circuit protection requirements for USB 3.0, that require the additional protection in the connector for two additional high speed data lines.

Bencent:

Bencent finished the component presentations with a presentation about their role in the domestic Chinese market for overvoltage protection components, where they specialize in gas discharge tubes and thyristor technology for protection of telecommunications, CCTV and power infrastructure equipment in the Chinese market. Representatives from Bencent also discussed the development of a Chinese standard for circuit protection that would be similar to that of the IEC standards in Europe and the Rural Electrification Code in the USA.

ISuppli

iSuppli gave a fascinating presentation on the teardown of the Apple iPhone®, showing the number of passive components for the third generation iPhone at 828 pieces with a market value of $4.63 USD per phone. The presentation showed a progressive increase in passive component content with each new introduction of the iPhone series.

Presentations on the Raw Material Supply Chain:

The second day of the conference focused on the materials supply chain for passive components.

Rhodia E&C

Rhodia E&C, a major vendor of additives consumed in the global ceramic capacitor supply chain; and a major worldwide player in the sensitive area of processed rare earths. The company described the development of ultra-fine particle rare earth materials for use in advanced ceramic dielectric material processing for MLCC, piezo-ceramics, filters, ferrites and sensors. The company focused on the excellent dispersion of its additives with ceramic dielectric materials used in MLCC, and the resulting superior mechanical strength of the finished multilayered component.

3M Asia Limited

3M described “an industry revolution” for the components industry, especially mass-produced MLCCs, chip resistors and ferrite beads. The company has developed a UCT – Universal Cover Tape, that sets a new threshold for achieving consistent de-taping; and offers new levels of advanced performance during the pick and place process for all components, resulting in increased factory output and enhanced productivity.

SinoCera

SinoCera, a major Chinese producer of barium titanate and formulated ceramic dielectric materials in China, described their meteoric rise in both materials production capacity and materials sales and offered a positive future outlook for supplying the international ceramic capacitor market with engineered dielectric materials. The company focused their presentation on their work to produce advanced barium titanates for applications in high capacitance MLCC. 48% of sales for SinoCera are for local Chinese component manufacturers while 52% are exported to Korea, the USA and Taiwan for consumption. SinoCera sold 540 metric tons of ceramic dielectric materials in 2008, and expects to sell 1200 metric tons in 2009. About 50% of revenues are derived from sales of barium titanate and 50% are derived from sales of composition materials such as X7R, COG and X5R. The company employs an advanced hydrothermal technology platform for the development of barium titanates that are targeted toward MLCC manufacturers who compete in the high capacitance segment between 2.2 and 100 microfarads. This technology platform is enhanced by the addition of the ability to apply a chemical coating to the barium titanate particles via physical deposition to create a powder that can form extremely thin dielectric layers required for high capacitance ceramic chip capacitor developments and mass production.

Paumanok Presentations: Components and Raw Materials

Paumanok Publications, Inc. was asked to make two presentations; one on Emerging Markets For Passive Components in Consumer Electronics; which forecasts unit demand for capacitors, resistors and inductors for consumption by key end-product in the consumer audio and video imaging markets; and new technologies that will drive up the content per “black box” for passive components. The second presentation was on “Raw Material Usage & Supply in The Passive Components Industry," which showed the audience the detailed supply chain for passive components from feedstock materials, through engineering and into component production. This presentation also showed how the competition among the dielectric and wear part industries was creating excessive demand for rare metals and specific additives.

Audience Q&A:

The audience were given question and answer sessions with the invited speakers on each day. The general direction of these questions were directed at trying to determine the critical areas of technology development in each segment of the core passive components industry, regardless if the subject was on the agenda. Many questions regarded the development of advanced ceramic materials and the construction of multiple layer MLCC for high capacitance applications; however, additional questions were directed toward the development of thin film resistors, integrated passive devices and integral passive substrate materials. None of these latter technologies were discussed in the technology sessions of the conference, but many questions came regarding the development of these technologies from the audience regardless. Also, a substantial number of questions from the audience came regarding electric double layer carbon “supercapacitors” and their application in hybrid trucks and busses for battery load leveling and the recoup of regenerative braking energy.

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