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Lelon Ramping Up Capacity to Meet Demand in 2021

29.1.2021
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Taiwan’s aluminum capacitor maker Lelon Electronics has seen clear order visibility through second-half 2021 thanks to strong demand for diverse applications at clients in China, the US and Europe, according to industry sources.

Lelon’s orders have come from a variety of sources including Chinese and European vendors of telecom equipment, makers of notebooks and games consoles supporting stay-at-home economy, and suppliers of large-size display devices, automotive electronics as well as Wi-Fi 6 and other networking devices, the sources said.

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To meet the strong demand, Lelon is expected to ramp up new capacity at its plant complex in Huizhou, China in second-quarter 2021 and complete capacity expansion at its Suzhou plant in the second half of the year, the sources said, adding that the additional capacities will be mainly for manufacturing aluminum capacitors for 5G infrastructure, automotive and Wi-Fi applications.

Suppliers of upstream materials such as aluminum foil have raised quotes by 3-8% to reflect increased copper and chemical costs and increasingly tight supply, the sources said, but Lelon is expected to enjoy a stable supply of aluminum foil from its subsidiary Liton Technology.

Lelon said that it will have 80% of employees stay behind through the Lunar New Year in mid-February so as to sustain high capacity utilization during the holiday period to better satisfy clients’ demand.

Source: DigiTimes

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