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Passive component makers see demand rise on China car sales pickup

3.6.2020
Reading Time: 2 mins read
A A

As China’s car market has started picking up gradually since the second half of April, demand for auto-use passive components, diodes and MOSFET devices is expected to grow significantly in the months ahead, pushing up revenues of related suppliers, according to industry sources.

The sources said automotive power devices are expected to join 5G and networking as the most important driver for China’s economic recovery, with the Chinese government placing automotive power devices among semiconductor segments with priority for self-sufficiency, providing huge business opportunities for related Taiwanese suppliers.

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Taiwan’s passive components leader Yageo Group has placed development focus on offerings for 5G, networking, automotive and industry control applications, and has acquired BrightKing, Pulse Electronics and Kemet to expand its product lines to include high-end circuit protection components, RF communications devices, antenna modules and automotive MLCCs, thus further boosting its global market shares and widening customer bases, the sources continued.

Yageo, through merging Kingpak Technology into its affiliate Tong Hsing Electronic Industries, has also ventured into the automotive CIS segment and will incorporate more LiDAR sensors into next-generation autonomous vehicles.

The sources said Chinese market demand for MLCC products needed for 5G networking infrastructure applications will continue to grow in the second half of the year, when more 5G handsets with high price-performance ratios are expected to hit the market.

Yageo and local peers Walsin Technology, Ta-I Technology and Chilisin Electronics have all registered robust shipments in the first half of the year thanks to strong demand for notebook, PC, server and networking applications, and the demand will linger into the second half.

Meanwhile, Taiwan diode makers including Lite-On Technology, Taiwan Semiconductor, Panjit International and Eris Technology are also expected to enjoy stable shipments for automotive and IT applications in the second half of the year.

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Source: DigiTimes

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