From Core Starling’s 241st original article.
This article has a total of 4168 words, and the estimated reading time is 10 minutes.
The full name of MLCC is “Chip Multilayer Ceramic Capacitor”. Due to its small size, high stability, long life, low loss, and easy automatic placement, it is widely used in various electronic products and has now developed into a global demand. One of the largest and fastest growing passive components.
| The strong demand for 5G base stations and new energy vehicles has driven the rapid development of MLCC, and the delivery time of some vehicle-regulated products has exceeded 40 weeks
In terms of specifications, there are many MLCCs, and there are tens of thousands of models with different sizes, capacitances, precisions, and pressure resistance. Generally speaking, 0402, 0603, 0805, 1206 medium and large size packages of high capacitance and high withstand voltage MLCCs have a wide range of application scenarios and are commonly used sizes; 0201 and 01005 packages are small size, usually used in smartphones and watches. , headphones and other miniaturized electronic products; while 1808, 2220 and above super-sized package capacitors are generally used in ultra-high capacitance and ultra-high voltage scenarios.
At present, the driving force of MLCC industry demand mainly comes from 5G intelligent terminals, base station construction, automotive electronics, industrial control and other fields.
In terms of 5G terminals, communication technology has developed from 2G to 5G, and the transmission speed and available functions are constantly being upgraded. The frequency bands used are also increasing, and the number of MLCCs required by each device is also increasing accordingly. From the perspective of specific consumption, 500-1000 MLCCs are currently used in ordinary 5G mobile phones, and flagship models generally use more than 1000 MLCCs, and the higher the configuration, the more MLCCs are used.
According to Canalys data, the total global smartphone shipments in 2021 will be 1.35 billion units, a year-on-year increase of 7%, of which about 530 million 5G mobile phones will be shipped, a year-on-year increase of 75%, accounting for about 40% of the total shipments. %. In the future, with the continuous increase in the penetration rate of 5G mobile phones and the high-end development of smartphones, the demand for MLCC is expected to continue to increase.
Since the second half of last year, the demand for consumer MLCCs has been lower than expected in the short term due to the combination of factors such as the epidemic, rising raw materials, and transportation prices. However, 5G base stations and automotive MLCCs have become new growth points outside 5G terminals, and their share is gradually increasing. big.
In terms of 5G base stations, according to the statistics of the Ministry of Industry and Information Technology, by the end of 2021, the total number of mobile communication base stations nationwide will reach 9.96 million stations, of which 1.425 million stations have been opened for 5G base stations, which have initially covered cities above the prefecture level and key counties and cities across the country. In addition to the 400,000 5G base stations built in the first half of this year, as of now, the number of 5G network base stations in my country has reached 1.854 million, accounting for more than 60% of the world.
Source: Ministry of Industry and Information Technology;
Based on the large-scale construction of 5G base stations, the demand for MLCCs for a single base station has also increased due to the increase in the number of antennas and channels. In addition, frequency converters and electronic devices supporting base stations will also drive further growth in MLCC demand. According to the statistics of the research institute VENKEL, the average MLCC of 4G base stations is 3,750, while the average consumption of 5G base stations will exceed 10,000 , which will achieve a 2.7-fold increase.
In addition to 5G, in the context of the continuous improvement of new energy vehicles and automotive electronics rates, the automotive MLCC market will usher in an explosion, which will be the largest incremental market for MLCCs in the future.
According to data from the China Automobile Association, the sales volume of my country’s new energy vehicle industry in 2021 will be 3.521 million units, a year-on-year increase of 1.6 times, ranking first in the world for seven consecutive years. According to the forecast of China Passenger Transport Association, it is expected that by 2025, the sales volume of new energy vehicles in my country is expected to be close to 10 million; in terms of penetration rate, the penetration rate of new energy vehicles in my country in 2021 is 14.8%, and it is expected that this proportion will further increase in 2022. The market penetration rate may reach more than 20%.
In new energy vehicles, MLCC has been applied to various modules of automotive intelligent cockpit, intelligent driving and three-electric system. Since it is related to the safety of human life, vehicle-regulated MLCCs must be able to adapt to harsh environments such as high temperature, strong vibration, and shock. Therefore, more high reliability of MLCCs is required. In addition, the automotive MLCC certification cycle is long, the order is stable, the technical difficulty is higher, and the profit margin is larger.
Industry insiders pointed out: ” In the past, a fuel vehicle used about 3,000 MLCCs, and a hybrid vehicle used about 6,000 MLCCs. Electric vehicles use a lot of MLCCs in the three-electric system, so the consumption will be about 10,000. More than 10 times the mobile phone market usage. ”
Since the beginning of this year, due to the soaring oil price and the support of local government subsidy policies, new energy vehicles have been widely welcomed by the market, and the shipments of Tesla, BYD and other new car-making forces have also been rising, which has driven the car-level market. MLCC usage is higher. Although the inventory of auto MLCC dealers is currently low, it is only maintained at the regular water level for 2-3 months. However, even so, there are shortages. Among them, the large-size and high-capacity MLCC of the car is obviously out of stock, and TDK’s delivery date has reached more than 40 weeks .
| The annual sales volume of MLCC exceeds 4 trillion pieces, and the world’s major manufacturers usher in a boom in production expansion
In recent years, driven by the needs of 5G smart terminals, 5G base stations, smart cars, and industrial replacement of aluminum electrolytic capacitors/tantalum capacitors, the MLCC market has shown a good development trend of steady growth in both shipments and market size.
According to data from the China Yuan Association, the global MLCC sales in 2020 will be about 4.39 trillion, a year-on-year increase of 10.1%. It is expected to reach 6.05 trillion by 2025, with an average growth rate of about 6.6% in 5 years; in terms of sales, the global MLCC market in 2020 will be 101.7 billion yuan, an increase of 11.1% year-on-year, and it is expected to reach 149 billion yuan by 2025. .
Image source: China Electronic Components Industry Association
It is worth mentioning that, as the world’s largest producer, exporter and consumer of consumer electronic products, the market size of China’s MLCC industry is about 46 billion yuan, accounting for about 45.23% of the world’s total, making it the world’s largest MLCC market .
From the perspective of the global competition pattern, among the top 11 MLCC manufacturers in the world in 2020, 4 are Japanese manufacturers, with a total market share of 44.32%, of which Murata has a market share of nearly 30%, with a production capacity of about 150 billion units/month; South Korea’s Samsung Electro-Mechanics has a market share of 20.45%, with a production capacity of about 100 billion units per month; Taiwan’s representative manufacturers Yageo and Huaxinke have a combined market share of about 21.14%; and mainland China’s representative companies Yuyang Technology, Fenghua Hi-Tech, San The total market share of Huan Group and others is 11.26%, and the production capacity is relatively small, but it has increased significantly in recent years.
In order to increase profit margins and avoid the vicious competition of homogenization of low-end MLCCs, in recent years, large Japanese and Korean manufacturers have gradually withdrawn from low-end production capacity in consumer products, and began to focus on high-end automotive, communications, and industrial markets.
Among them, in the field of automotive MLCC, Murata accounts for about 55%, TDK accounts for about 25%, and the combined market share of the two is as high as 80%, basically monopolizing the global automotive MLCC market, with products covering automotive power and autonomous driving. In the field of communication MLCC, Murata accounts for about 40%, and Samsung Electro-Mechanics accounts for about 30%. As the world’s second largest MLCC manufacturer, Samsung Electro-Mechanics is also gradually making efforts in the automotive market.
Affected by the previous market boom and the strong demand in the vehicle regulation market, domestic and foreign MLCC manufacturers ushered in a boom in production expansion. Among them, major Japanese and Korean companies have indicated that they will expand MLCC production at a rate of about 10% per year, and the production capacity of domestic companies such as Yuyang Technology, Fenghua Hi-Tech, and Sanhuan Group will also double in the next 3-5 years.
Global MLCC Major Manufacturers Expansion Dynamics
Source: Core Starling finishing
With the advancement of production expansion, in the short term, there will be a new round of competition in the MLCC market. However, the annual growth rate of the entire MLCC market remains at 5% to 10%, and the annual new production capacity is 200 billion to 400 billion ; among them, Japanese companies are mainly expanding production in the direction of vehicle regulations, and some consumer MLCCs are There are production cuts, so for the long-term situation of the entire market, this wave of “production expansion” will not cause serious overcapacity in the future.
| The domestic substitution of MLCC is accelerating, and domestic manufacturers are ushering in a golden period of development
It is well known in the industry that China is the world’s largest producer, exporter and consumer of 5G terminal products. Huawei, Xiaomi, OPPO, VIVO and other companies are all leading 5G terminal companies and need to purchase a large number of MLCC products every year. In addition, China also has the world’s largest new energy vehicle market. The rapid growth in sales of new energy vehicle companies such as BYD, NIO, Ideal, and Xiaopeng will drive the rapid increase in MLCC demand.
As the most basic components in the fields of mobile phones, base stations, and automobiles, considering the security and convenience of the supply chain, domestic MLCC manufacturers are expected to usher in a golden period of development after this round of expansion.
Among many domestic MLCC manufacturers, Yuyang Technology is one of the few companies in China with a complete MLCC product line. It has achieved full coverage from the most widely used consumer grade to high-end industrial grade and vehicle grade.
In the consumer field, Yuyang Technology has launched a series of ultra-micro, C0G low-loss, high-frequency, high-temperature and other products, which are widely used in mobile phones, PCs and other peripherals, network communications, home appliances, routers, IoT modules and other products. ; In the industrial field, Yuyang has a series of products such as medium and high voltage, high frequency and high reliability, and ultra-high temperature, which are mainly used in base stations, servers, industrial power supplies, optical communications, photovoltaics and other industries; and in the field of vehicle regulations, the company’s MLCC products have passed the It has been certified by AEC-Q200 and IATF16949 and other vehicle regulations, and is mainly used in automotive electronic control systems, intelligent cockpits, ADAS assisted driving systems, power systems, audio-visual entertainment systems and other scenarios.
The main application scenarios of MLCC of Yuyang Technology
Source: Yuyang Technology
Core Starling noticed that Yuyang recently launched a consumer-grade MLCC product with a model size of 008004, making it the first domestic manufacturer to pass the test and identification of the authoritative organization – China Saibao Laboratory.
As a representative of a new generation of ultra-miniature products, 008004 has a smaller size than 01005, and its volume is reduced by about 75%. It can be mixed with MLCCs of various sizes. The recent development of the capacitance value has exceeded 100pF, and it has been built into the chip. , smart wearables and high-end mobile phones and other customer projects with more urgent needs for miniaturization, and will soon achieve mass shipments.
After 21 years of intensive cultivation, Unisun Technology has continuously consolidated its advantages in miniaturization and high-frequency MLCC products.
Liao Jie, vice chairman of Yuyang Technology, said: “The advantage of Yuyang is miniaturized products, which are mainly used in consumer electronics, 5G terminals and other industries that have a large demand for miniaturization, accounting for 80% of the company’s shipments. In the future, while maintaining mass production of 0201&01005 products, the company will also accelerate the deployment of 008004 and other products to prepare for the miniaturization of next-generation consumer electronics and 5G terminal products.”
In addition, Yuyang’s automotive-grade MLCC has been continuously enriched and expanded in the early stage, and has now formed two product series of automotive-grade A series MLCC and car-grade Q series low-loss MLCC, which have been supplied to automotive electronics customers in batches. . Liao Jie believes that with the increase in the production capacity and the expansion of the product range of automotive-regulated products, Yuyang Technology will become the core supplier of domestic replacement of automotive-regulated products in the future, and establish its leading position in the market.
In order to speed up the pace of development, Yuyang plans to expand new factories in Dongguan and Chuzhou respectively on the basis of the existing production capacity of 26 billion pieces/month.
“Yuyang Technology has already started to expand the Xinhua East production base in Chuzhou at the end of 2020, covering an area of about 130,000 square meters, with a planned production capacity of 500 billion pieces per year.” Liao Jie said, “In addition, the company will start in August 2022. It is also planned to expand the new South China production base in Dongguan, covering an area of 33,000 square meters, with a planned production capacity of 220 billion pieces/year. The expanded product lines of the above two production bases are mainly industrial grade, vehicle grade and full range of full size It is estimated that after the completion of the capacity expansion, the total production capacity of the company will double from the existing 26 billion pieces/month to 60 billion pieces/month by 2025, ranking in the forefront of the country. “
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Picture: Yuyang Technology’s manufacturer zone in Huaqiang Mall
| write at the end
In the short term, with the increase in the number and penetration of MLCCs in 5G terminals, base stations, new energy vehicles and other fields in recent years, it will bring obvious performance flexibility to domestic leading companies represented by Yuyang Technology; In the long run, the current market share of MLCC in my country is only 11%, and the huge domestic replacement demand in the future will promote the healthy growth of the industry.
However, the MLCC industry has obvious cycles. Only by continuously optimizing product structure and customer structure, further increasing the proportion of high-end products, and increasing the value of high value-added products, can manufacturers go through the fog of cycles and continuously increase market share to become bigger and stronger. .