The high demand for multi-layer ceramic capacitors (MLCC) is expected to continue at least until early next year.
Murata and Taiyo Yuden’s remaining orders for MLCC during the July to September period doubled from a year ago.
Taiyo also increased its MLCC sales forecast for the year thanks to high demand from IT and electronic as well as automobile sectors.
MLCC market saw high growth in 2018 but this slowed down from 2019 to the first half of 2020.
But demand for them increased starting in the second half of 2020.
Murata saw sales from MLCC increase 29.7% year-on-year during the third quarter this year; Taiyo saw a 12.2% increase over the same time period. Samsung Electro-Mechanics also saw an increase of 34.3% during the quarter compared to a year ago.
Taiyo also increased its annual sales forecast of 221.5 billion yen it made in August to 228.5 billion yen earlier this month during its conference call for the July to September period.
Its estimate for the first half of this year didn’t meet expectations but its estimate for the second half was 10% higher than it initially expected, the company had said.
It said it had 57.2 billion yen worth of remaining orders for the quarter.
Meanwhile, Murata said it saw new orders of 198.1 billion yen during the quarter, an increase of 18.7% from a year ago.
It had 220 billion yen worth of remaining orders, more than double that of 103.3 billion yen last year.
Samsung Electro-Mechanics’ component business, which manufactures MLCC, is also expected to see sales of up to 1.25 trillion won during the fourth quarter, an increase of 30% year-on-year, according to South Korean analysts.
The South Korean component had said during its third-quarter conference call that demand for MLCCs from PC and TV were slowing down but those from smartphones and automobiles would continue to be solid.