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Makers raise production targets amid rosy forecast

Posted: 05 May 2004 ?? ?Print Version ?Bookmark and Share

Keywords:capacitors? paumanok? darfon electronic? yageo? ningxia xingri electronics?

Global production of capacitors is predicted to continue its upward trend through the next four years, according to estimates from Paumanok. The market-research firm forecasts production to reach 811 billion units in 2006, 865 billion units in 2007 and 961 billion units in 2008.

The forecast is also consistent with optimism sweeping across Asia. Since last year, makers in Asia have ramped up production capacities, expecting an upsurge in demand. In Taiwan, Darfon Electronic Corp. added a production line for 0603 (0201) chip capacitors, anticipating robust demand this year, says Z.C. Chen, vice president.

Armed with a rosy forecast of 15 to 20 percent market growth, Yageo Corp. raised its monthly capacity from 2.5 billion to 4 billion chip capacitors. Overall, the company produces 8 billion units if production of its offshore units is taken into account, says Julia Wang, deputy manager.

Mainland China makers are not to be outdone. Ningxia Xingri Electronics Co. Ltd targets annual output of 1 billion units by next year; that is more than three times its current production capacity.

In Hong Kong, Fujicon Electric Co. Ltd tripled its production capacity of 30 million V-chip aluminum electrolytic chip capacitors by setting up a new plant. The company has moved its production facilities to Guangdong. "This will allow our company to reduce production costs and offer more-competitive quotes, as well as shorter lead times," says Raymond Lee, sales manager.

The supply growth follows increasing demand from the notebook-PC, consumer-product and telecom-device applications.

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