Passive components industry to maintain15% growth

After rebounding from a negative growth rate in 2009 to nearly 21 percent YoY progress last year, Taiwan’s passive components industry will sustain at least 15 percent development in 2011-12, forecast Industrial Economics and Knowledge Center. Applications such as smartphones, touchscreens, tablet PCs and broadband devices are boosting orders for the line. The complexity of next-generation mobile phones, in particular, is driving demand for upscale components such as multilayer ceramic capacitors and chip resistors. LED TVs, meanwhile, are a major adopter of aluminum electrolytic capacitors.
In the PC sector, iPad-like tablet PCs require chip resistors, chokes and solid tantalum capacitors. High-power resistors and capacitors are popular in LED lighting products.

Besides strong demand from emerging markets, regular replacement of old electronic devices bodes well for the industry.

Currently, Japan is the largest passive component producer worldwide, having the key knowledge and necessary equipment for this segment’s development.
With decades of manufacturing experience and cooperation with Japan makers, however, Taiwan suppliers are gradually catching up, ranking second, the island accounts for 20 percent of global market value at present.

Aside from ready-made models, companies offer customization services. Their core advantages are the relatively lower prices and service flexibility.

Resistors, capacitors and inductors constitute the three major categories in Taiwan’s passive components industry.

Yageo, Polytronics and Ta-I are some of the leading providers of the first, while Lelon, Holy Stone and Chinsan offer mainly the second. For the inductor segment, there are Chilisin, King Core, Mag.Layers and ABC.