Out of stock of aluminum capacitors due to COVID epidemic in Southeast Asia

In addition to the severe impact of the COVID epidemic on the global semiconductor industry, as the epidemic spreads in Southeast Asia, the production of passive components such as capacitors, resistors, and inductors has also been affected. The market has gradually become in short supply, and the impact of the shortage of these components can be far greater than the shortage of chips.

Now 5G, home office electronics, electric vehicles, and renewable energy technologies are increasingly demanding aluminum capacitors. However, the factories of Japan’s Chemi-Con, Nichicon, and Rubycon, which are the world’s top suppliers, were forced to close in July and August due to the epidemic, and the capacitors produced by these factories accounted for more than 50% of the global market.

Credit: DIGITIMES

Although the current blockade has been lifted, the factory has only restored 60% of its manpower. The current production capacity is much lower than before. According to Digitimes, the epidemic may reduce the shipments of aluminum capacitors in Malaysia by 30% to 60%. The current delivery time has been extended to more than 6 months.

In response to the impact of the closure of Japanese manufacturers’ factories in Southeast Asia, the orders for capacitors were handed over to the relatively stable Greater China region. The revenue of suppliers in Taiwan in the first half of 2021 exceeded 20% year-on-year, while the growth momentum of manufacturers in mainland China is also very strong. “For the first half of 2021, Jianghai posted 56.5% increase in revenue to CNY1.67 billion (US$257.4 million) and 46.5% increase in net profit to CNY204 million. Aluminum capacitors represent nearly 78% of revenue, increasing by 61.9% on year, thanks to growing demand for solar energy and EV charging infrastructures.“

Although the situation in Malaysia and Indonesia has improved, the problem of capacitor shortage will not be alleviated in 2021. The supply of these components may improve next year, but no one can guess what will happen in the long run.