Fire at Walsin Plant Renews Concerns over MLCC Shortages
A Walsinproduction plant in Dalang, Donguan, China caught fire on Jan. 13. This location is the main hub for the company’s MLCC and chip resistors. While the cause is unknown, it did not affect the production floor or inventory area. Often when unexpected events occur, it takes several months for the full market impactto be realized.
AnMLCC shortage has been loomingfor a year due to the growth in its use for smartphones and 5G production amidst government shutdowns to curb the spread of the coronavirus. Already, it has been reported that competitors Murata and Taiyo Yuden have extended delivery time amid the growing demand and resurgence of COVID-19.
While the majority of MLCCs produced are used in consumer electronics and 5G smartphones, the components are also prevalent in the automotive sector. In 2018, a shortage of automotive-specific MLCCs rocked the industry. This is a growing sectoras more and more MLCCs are required in electric vehicles, autonomous vehicle technology, and driving assistance systems (ADAS).
By 2025, the global MLCC market is projected to be worth 14.36 billion USD – an increase of5.31 billion USD from 2019.