The latest news from the Business Times, the first quarter of 2017 global chip multilayer ceramic capacitors (MLCC) supply is hot. At present, the delivery date of some manufacturers has been extended by 2-4 weeks, with a supply gap of 5%. In addition, the second quarter of Apple's iPhone 8 has already started the stock-up period ahead of schedule. In order to fully support the new generation of Apple products, the Japanese factories of MLCC's global first camp are afraid to further reduce the supply of non-Apple's MLCC production capacity. At present, the global MLCC has entered a substantial shortage stage.

        Some distributors have revealed that it is indeed being chased by customers, although it is not the point where the big boss personally rushed to grab the goods. If the order demand is 100%, it can only meet 95% of the demand, and the delivery period has been extended by 2-4 weeks. More importantly, the market has not yet entered the peak of the shipment of mainland brand mobile phones. The market conditions are so tight, if Apple's new generation of iPhone8 starts the stocking mechanism in the second quarter, then the manufacturers can turn all to Apple, will increase capacity supply of MLCC.

        It is reported that the iPhone8 has a stocking period of at least half a year, and the number of this wave is extremely large, at least 100 million. While each large MLCC manufacturers do not seem to have plans for new capacity. The Japanese factory only expands the production capacity of the vehicle. Whether Apple's stocking period has caused the gap between supply and demand, all parties have been ready for that.

        Taiwan factory giants revealed that the MLCC production line has a crop productivity rate of over 90%, and the supply is in a tight snack stage. Another supplier, Walsin, also said that production capacity was at a high level in the first quarter.

        Why is MLCC out of stock?

        In the middle of last year, Japanese manufacturer TDK sent a letter to the client saying that it would withdraw from the general MLCC and said that the delivery would be extended for two months. In addition, TDK also requires customers to find suppliers. As the fifth largest manufacturer in the world, TDK accounts for about 7% of the global market.

        Because market supply is gradually becoming saturated, coupled with changes in customer demand, many MLCC manufacturers are adjusting product direction to miniaturization and RF components. The relevant fields have entered. After TDK exited the general MLCC market, some Taiwan giants, Walsin and He-Xin began to have a single-turn effect.

        In addition, Samsung began to strengthen product control due to the explosion of mobile phones, resulting in the extension of MLCC delivery.

        Last year, Samsung's new flagship Galaxy Note 7 caused several cell phone explosions around the world due to battery problems. After the accident, Samsung Group has become stricter in quality control, and the delivery of Samsung Motor MLCC has been lengthened, resulting in a 30% shortage of MLCC in the second half of 2016.

        Apple's Big Four MLCC Suppliers

        Apple's four major MLCC suppliers are Murata, Taiyo Yuden, Samsung, Kyocera. Among them, Mouser and Samsung are the world's top two MLCC suppliers.

        Murata: At present, the global MLCC is mainly dominated by Japanese and Korean manufacturers, of which Murata (Murata) is the world's largest MLCC manufacturer. It is reported that an iPhone 6 Plus and iPhone 6 are equipped with about 1,300 electronic components, and about 700 are made in Japan. Among them, 400 may be from the global MLCC boss Murata (0402 size ultra-small MLCC). In 2015, Murata took a 37% share of the global MLCC market and remained at the top of the list.

        Samsung: The rise of Samsung Motor relies heavily on the internal consumption of its own brother Samsung Electronics. Since 2011, relying on Samsung Electronics, coupled with its highly cost-effective miniaturized high-capacity MLCC, Samsung Motors has had a good time. In 2015, Samsung Motor's global MLCC market accounted for 19% of the market, second only to Japan's Murata.

        Taiyo Yuden: Japan's electronic component manufacturer, founded in 1950, headquartered in Tokyo, has developed the famous That's-series CD-R. Now, it mainly produces ceramic capacitors, ceramic resistors, CD-R, DVD and so on. In 2015, Taiyo Yuden occupied a 12.5% share in the MLCC market, ranking third in the world.

        Kyocera: Founded in 1959, it was originally a manufacturer of technical ceramics. In October 1982, the company changed its Japanese name, while English version remains the same. Now it is the top ten MLCC suppliers in the world.

        Mainland China Manufacturer

        Fenghua: China's leading MLCC capacitor company, the largest manufacturer of new passive components in China, and one of the world's eight manufacturers of chip components. It has independent intellectual property rights and key technology of core products. It has large-scale production capacity for the set supply of electronic equipment for computers, mobile phones, household appliances and so on.

        Eyang: Eyang is one of the largest MLCC manufacturers in China. Since its establishment in 2001, it has maintained rapid growth. By 2014, its annual production capacity has exceeded 100 billion pieces, ranking first in China. Relevant sources said that if excluding Apple and Samsung, Eyang currently has 40-50% of the MLCC capacitor market share, the main customers are Lenovo and ZTE.

        Torch Electron: As a well-known supplier in the domestic military and civil high-end capacitor market, it has ranked second in sales revenue of domestic military MLCC manufacturers for five consecutive years since 2009.

        Taiwan System

        Yagen: Taiwan's largest manufacturer of passive components, and the first supplier of sourced components in Taiwan. Yagen has surpassed Japanese manufacturer Rohm to become the world's largest manufacturer of chip resistors. In July of the same year, it acquired the world-famous Philips global ceramic components and magnetic materials division, and achieved key process technology, becoming the world leader in passive component service supply.

        Digi-Key: Taiwan's top three passive non-material suppliers, currently has eight production bases in Asia Pacific. In 2010, its capacitor market share was the fourth in the world, and its resistance market share was the second in the world.