CONTENTS
Jon Barrett Managing Editor
Demand high for bellwether component
Isuppli reports that capacitors have experienced a surge in demand thanks to global consumer demand. Unfortunately, this demand is tempered by long lead times, rising prices and shortages.
Senior analyst at iSuppli, Rick Pierson, said: “Despite their tiny size and
minuscule price (commonly a fraction of a cent) capacitors serve as a bellwether for demand trends in technology. This is because capacitors are extensively used in nearly all electronic products. For example, Apple’s iPad contains 702 capacitors, while the iPhone 4 has 469.”
Regarding aluminiumcapacitors, the average lead time (the time it takes to
deliver after an order is submitted) is around 18 weeks, well beyond the normal 10 to 12 weeks. Long lead times and increased prices aren’t expected to improve until late 2010 or early 2011.Makingmatters worse, aluminumfoil is in short supply, pushing prices higher.
According to iSuppli ceramic capacitors are also averaging 18-week lead times,
with some products on allocation. Hardest hit are high-capacitance and high- voltage parts.
For tantalumcapacitors, no real short-termsolution exists on supply issues.
Combined with tantalumore supply chain issues, serious shortages are the order of the day, leading to 20-week lead times.
ISuppli expects improvements in Q1 2011 as rawmaterial issues are sorted.
Depending on the productmix and strategic importance, pricing on these commodity parts can be expected to continue across the board. Pricing should stabilise in Q1 2011 but remain at higher levels in the foreseeable future.
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