Capacitors


CApACitor shortAges eAse


Buyers can expect lead times to ease formost capacitors this year, although tags formany are expected to stabilize at higher prices. By Gina Roos


While there are some select capacitor lines including tantalum, aluminumelectrolytic andmetallized filmstill on allocation, capacitormanufacturers say the component shortages that began last year are starting to ease. Pricing also is starting to stabilize but atmuch higher tags than they were a year ago.


Many componentmanufacturers were surprised by the sudden


rebound in demand last year, which resulted in tight supply because many componentmanufacturers cut back on capital spending during the recession and weren't addingmuch production capacity.


Last year everything was in short supply, said David Valletta,


executive vice president, worldwide sales, Vishay Intertechnology Inc.,Malvern, Pa.


When demand started to rise last year,manufacturers were


cautious about adding production capacity.Many say they continue to add capacity this year but typical lead times of about four to six weeks are just amemory formany capacitor types. For example, some suppliers quote about 20 to 30-week lead times for tantalumcapacitors and about 24 weeks for filmtypes.


"If themarket continues to grow as a lot of companies expect,


capacity will be the biggest challenge for capacitormanufacturers this year," said Tony Coalson, senior vice president of sales & marketing,Murata Electronics North America, Smyrna, Ga.


Capacitor suppliers say demand is strong acrossmany industry


sectors including automotive, fixed telecom,mobile communications including smart phones, PCs, and industrial. Other growing sectors include lighting, alternative energy and healthcare (homemedical devices).


Onemarket that stands out among all of themis automotive as


demand for vehicles rises in Asia, particularly in China, say suppliers. "Automotive continues to be very strong," said Per Loof, chief


executive officer for Kemet Corp., Greenville, S.C. "A huge part of the 22 |March 2011


Allocations persist


Supply and pricing of rawmaterials are still having a significant impact on capacitormakers. "It wasn't just the component manufacturers that hunkered down [during the recession], it was also thematerials suppliers," said Loof. "Getting their capacity back in play is starting to work but it has presented some interesting challenges for us."


Loof said the "allocations are a bitmore controlled as the


inventories have been replenished." Products that are still in tight supply include polymer,metallized filmand aluminumelectrolytics, he said.


"We need capacity on thematerials supply side aswell,whichmay


hamper our ability to get everything back to normal," added Loof. "Last year we had a number of products on allocation but in the


fall it started to improve when our capacity started to rise," said Coalson. "Additionally, some of the void in the distributor supply chain started filling up. They have a good inventory position compared to 12months ago," he added.


www.electronics-sourcing.com


worldwants cars that haven't had it in the past. Add a green component to that and itwill be evenmore interesting."


The handsetmarket will be strong because ofmore smart


phones coming into play that requiremore components than a basic 2G phone, said Coalson. Flat panel TVs are also driving up the parts count, he added.


Coalson also noted a big surge in smart-grid related products


including smartmeters as well as home healthcare products. Healthy demand also is driving some componentmanufacturers


likeMurata and several distributors to focus part of theirmarketing strategies around select and growing verticalmarkets. These include lighting, smart grid, automotive andmedical/healthcare.


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