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An Interview with China Electronics News

Release time:2022-09-23 Pageviews:623
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Lately, there has been an interview on EYANG Technology by China Electronics News.



Being called “Rice of the Electronics Industry”, MLCC has a broad range of application, especially in such popular areas as auto electronics and data centre with a surging demand. However, it is more difficult to predict trend of the market due to the lower demand for smart phones, tablets and PCs as well as a sluggish market in consumer electronics. Facing this, MLCC manufacturers expand their production one after another with a firm confidence in the whole industry.

Mr. Will Chen, director of EYANG Strategy & Business Development and Auto Business, fully stressed the importance of MLCC in the interview. He stated that without MLCC, it is impossible to make full use of highly advanced ICs with semiconductor processing technology, namely, CPU, DSP, GPU, FPGA, etc.


A Strong Growth of automotive MLCCs in Smart EV


Nearly 56% of capacitors’market share was taken up by ceramic capacitors given its fundamental position in passive components. Among them, more than 90% share belonged to MLCC for its excellent performance in high temperature and voltage, small size and wide capacitance range.



Speaking of MLCC market application, one shall not miss smart phones, auto electronics, home appliances, industrial control, data centre, to name just a few. In auto electronics, one of the most popular industries, MLCC can be used in audio-visual entertainment, navigation communication, safety control, smart cockpit, smart drive, and modules of EIC system (battery, motor and electric control system).


A trend of smarter and more electrified vehicles exerted some influence on the MLCC market demand. Approximately 3,000-4,000 MLCCs are used in a fuel vehicle while 17,000-18,000 in an NEA(New Energy Automobile), with mostly high-end models.



Data source: (CECA)China Electronic Components Association


SAE(Society of Automotive Engineers) defined levels of driving automation in six successive levels including L0, L1, L2, L3, L4 and L5. As a result, MLCC demand will be larger with higher automation levels and quicker development of automobile electrification. A fuel vehicle in L0 will need about 3,000 MLCCs; an L2 HEV(Hybrid Electric Vehicle) more than 6,000; an L3 EV(Electric vehicle) over 10,000.


Promotion of automotive MLCC cannot be realized without factors including automobile electrification progress, development of audio-visual entertainment, ADAS and Autopilot system. According to predictions from a research report, annual average growth rate of NEA sales revenue exceeded 30%. It also estimated that proportion of NEA in sales market will be over 50% in 2025, and a two billion US dollars automotive MLCC market growth will be witnessed.


Although MLCC market is still booming due to demands from auto electronics, fluctuations of consumer grade MLCC can be seen as a result of inventory backlog and demands decrease.


The latest data from Canalys showed that in 2022 Q2, shipment volume of global smart phone decreased to 287 million. And Counterpoint predicted that smart phone sales volume in 2022 would drop by 8% compared with that of 2021. Starting from 2023, a single digit growth will occur in smart phone market. According to a research by TrendForce, it will take at least 90 days to consume inventory for consumer grade MLCC of all sizes.


Data source: Organized according to public information


Consumer and automotive electronics take up 30% and 10% of MLCC downstream application respectively. We are currently facing a splitting market. On the one hand, a declining consumer market and decreasing demands force a lower price for consumer grade MLCC. On the other hand, automotive grade MLCC maintains a stable price with a firm demanding automotive market. Except for demands, releasing of expanded production last year also gave pressure to the price.


Price of standard consumer grade MLCC products was cut gradually and high end products stay robust as an impact of market supply and demand. Standard consumer grade MLCC witnessed a lowering demand. Meanwhile high end MLCC market, especially automotive grade remains prosperous.


Commencement ceremony of EYANG's industrial and automotive grade MLCC project was held on August, 2022 in Fenggang, Dongguan. Five advanced MLCC production lines will be introduced aiming at a leading R &D and manufacturing base globally with focuses on industrial and automotive grade MLCC featuring high reliability, voltage and capacitance which can be used in automobiles and base stations as well as RF and ultra micro MLCC.


Mr. Will Chen also said, as a head electronics enterprise in China, EYANG Technology is striving to become a leading BQS (Best Quality Sourcing) in MLCC field. As early as 2015, EYANG was certified with IATF 16949 and began to provide clients with automotive grade MLCCs. After years of exploring, there are A and Q series automotive grade MLCC with applications such as OBC(On Board Charger), ADAS(Advanced Driver Assistance System), V2X(Vehicle to Everything), audio-visual entertainment, etc. The company has passed tests of AEC-Q200 with sizes from 0201 to 1210 and is still expanding capacitance range on all sizes. There is no doubt that EYANG automotive grade MLCC has made contributions on offering MLCC solutions for NEA and maintaining a stable supply chain.

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