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Taiwan Aluminum Capacitor Makers Expect Strong 1Q22

25.1.2023
Reading Time: 1 min read
A A

Taiwan-based aluminum electrolytic capacitors makers (including Apaq Technology, Lelon Electronics, and Taiwan Chinsan Electronic) are poised to enjoy a particularly strong first quarter of 2022 despite tight supply of upstream materials, according to industry sources.

The three makers all saw their revenues hit new monthly highs in December 2021, and may sustain similar growth momentum in first-quarter 2022 as supply of aluminum electrolytic capacitors is expected to fall short of demand throughout the first half of the year, the sources said.

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The sources continued that the world’s leading aluminum electrolytic capacitor suppliers Chemi-con, Nichicon, Rubycon, and Panasonic, all based in Japan, have all seen their delivery lead times for shipments to clients extended to over 20 weeks since the second half of 2021. Because the situation has not yet improved, many orders have been transferred to major suppliers in Taiwan and China.

Capacitor makers in Taiwan and China continue to enjoy strong order momentum for server, automotive, high-end graphics card, display card, and energy applications, but demand for TV and notebook power applications has shown signs of weakening, the sources indicated.

The makers will have a chance to raise their quotes to reflect increased production costs arising from rising power rates in China, international aluminum prices lingering at high levels of US$2,800-3,200 per metric ton, and ever-mounting shipping rates and labor costs, the sources added.

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Source: DigiTimes

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