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© joegough dreamstime.com Components | January 19, 2021

Fire hit Taiwanese MLCC manufacturer in China

On January 13 a fire broke out at Taiwanese passive component maker Walsin Technology’s Dongguan, China site.

The company, according to a report from DigiTimes, does not estimates any material impact from accident. The fire is said to have started at the plant’s utility engineering system and was extinguished soon after. No damage was made to production lines, inventory for MLCC’s and chip resistors or any personnel, the report continues. However, the company is still investigating the actual damages and potential losses, but stressed that over all operation had not been affected much by the fire. Nevertheless, the fire has raised concerns as both MLCC’s and chip resistors are in tight supply. And as pointed out by distributor Fusion Worldwide, often when unexpected events occur, it takes several months for the full market impact to be realised. The MLCC shortage has been hanging over the industry for some time now, mainly due to the growth in its use for smartphones and 5G production, but also increased amidst government shutdowns to curb the spread of the coronavirus. Fusion points out that it has already been reported that Walsin 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 sector as 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 of 5.31 billion USD from 2019.
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July 15 2021 8:57 am V18.20.2-2