The supply of aluminum electrolytic capacitors is expected to remain tight throughout the first half of 2021, thanks to strong demand for server, power supply, automotive electronics, and 5G infrastructure applications, according to industry sources in Taiwan.
Major Japan-based makers Nippon Chemi-con, Nichicon, Rubycon and Panasonic have all seen their supply remain short of demand, with delivery lead times extending to 24-30 weeks despite running at full capacity, the sources said.
This has prompted some of their clients to turn to Taiwanese suppliers including Lelon Electronics, Kaimei Electronics, and Taiwan Chinsan Electronic and even Chinese vendors such as Aihua Group and Nantong Jianghai Capacitor, all of them logging capacity utilization rates of 80-100% with average delivery lead times at 16 weeks, the sources continued.
The makers in Japan, Taiwan and China have all raised their quotes to reflect increased costs for raw materials including aluminum foil, the sources said.
Taiwan's leading maker Lelon has seen clear order visibility through August, with 5G infrastructure, automotive electronics and industrial control applications to provide major growth momentum for the company in 2021, the sources noted.
Lelon has entered the supply chains for high-end in-vehicle entertainment systems, ADAS systems and drivetrain systems, and its new plant in Suzhou, China will start commercial production of high-end aluminum capacitors later in the year, with its product portfolio and revenues to receive a significant boost as a result, the sources added.
Its first-quarter 2021 revenues expanded 35.57% on year to NT$2.125 billion (US$75.89 million).
Kaimei's order visibility for its major products aluminum capacitors, resistor chips and fan series is clear through July, and its B/B ratios for such offerings are all higher than 1.0, the sources said.
The company is smoothly proceeding with capacity expansion and expects its second-quarter revenues to grow further. Its first-quarter revenues surged over 90% on year to NT$1.717 billion, and net earnings shot up 68.28% sequentially and 121.82% on year reaching NT$244 million.
