Multi-layer ceramic capacitor, abbreviated as MLCC, has a complex production process, and is an indispensable electronic components. It is in short supply now, thus prices is increased continuously.
With the upgrading of smart phones and the popularization of energy vehicles, the demand for MLCCs has doubled. In the case of iPhone, one iPhone 4s use about 500 MLCCs, one iPhone 6 about 800, one iPhone 7 about 900, and this year's iPhone 8 and iPhone x dosage reached 1000 and 1100 or so. In terms of automotive electronics, the MLCC consumption of new energy vehicles was significantly higher than that of the conventional models. The number of MLCCs required for a pure electric car was about 6 times that of a conventional internal combustion automobile, and the overall demand was extremely strong.
However, after experiencing several cycles from shortage to excess, the industry tends to expand cautiously and that result in the MLCC in short supply.
From the upstream raw materials point of view, the electrode material comes from the precious silver-palladium material. As of November this year, the price of palladium metal materials has increased 68.72% compared to the first half of last year. Therefore, under the dual catalysis of the release of downstream demand and the upward price hike of upstream raw materials, MLCC price inflation will continually grow in 2018.
PCB industry accelerated towards eastward, and thrived in the mainland China. Due to the costs of supporting industrial chain, labor and transportation, the global PCB industry shifted from the western developed countries to the Asia, while the production capacity in Asia are mainly concentrated in mainland China.
According to Prismark's estimate, PCB production in China in 2017 will reach 28.972 billion U.S. dollars, accounting for over 50% of global PCB value. At present, there are about 2,500 PCB manufacturers in the world and more than 1,200 in mainland China, accounting for half of the total PCB manufacturers.
In terms of PCB product category, China manufactured over 60% of the global market of the middle- and low-grade single- and double-sided, multi-layer PCB boards in 2013. However, in the field of high-end PCBs, a big gap between China and Western countries is still very clear. 5G times is coming, the demand for communication PCB ushered is double. Compared to 4G, 5G use a higher frequency of RF microwave PCB materials, requiring higher requirements for low loss, high integration, high consistency, and easy processing.