The average lead-time for aluminium and ceramic capacitors is now 18 weeks, while for tantalum capacitors it is over 20 weeks, says iSuppli.
For aluminium capacitors, the lead-times and higher prices will last until at least Q4 and maybe into Q1 2011. The situation is exacerbated by a shortage of the aluminium foil used as the conductor.
The hardest-hit ceramic capacitors include high-capacitance components and high-voltage parts, which will take the longest to recover, as they require more capacity to build because of their longer cycle times.
However, unlike tantalum capacitors, a diverse supply base exists for ceramic capacitors, and iSuppli is seeing manufacturers commit capital in order to expand their capabilities due to high demand.
As a result of the increased capacity, combined with a slowing of consumer demand for ceramic capacitors, the segment should come back into balance by late fourth quarter.
Nonetheless there is potential for spot shortages in ceramic capacitors, and specialty products will continue to have long lead times even though overall supply will improve significantly.
For tantalum capacitors, no real short-term solution exists on supply issues, and manufacturers have been conservative in adding capacity.
Combined with issues in the supply chain for tantalum ore, serious shortages are the order of the day for tantalum capacitors.
‘Not surprisingly, this is the reason why lead times for the parts stretch to 20 weeks and beyond,’ says iSuppli, ‘while the recent downturn has prompted manufacturers of raw materials for tantalum capacitors to scale back significantly.’
Manufacturers won’t invest in further capacity without long-term commitments from capacitor manufacturers, supply chain research shows.
Problems with tantalum capacitors are expected to continue until the end of the year, with some improvement in Q1 2011 as raw material issues get sorted out.
Pricing should stabilise in the first quarter of 2011 but will remain at higher levels for the foreseeable future.
For aluminium capacitors, the lead-times and higher prices will last until at least Q4 and maybe into Q1 2011. The situation is exacerbated by a shortage of the aluminium foil used as the conductor.
The hardest-hit ceramic capacitors include high-capacitance components and high-voltage parts, which will take the longest to recover, as they require more capacity to build because of their longer cycle times.
However, unlike tantalum capacitors, a diverse supply base exists for ceramic capacitors, and iSuppli is seeing manufacturers commit capital in order to expand their capabilities due to high demand.
As a result of the increased capacity, combined with a slowing of consumer demand for ceramic capacitors, the segment should come back into balance by late fourth quarter.
Nonetheless there is potential for spot shortages in ceramic capacitors, and specialty products will continue to have long lead times even though overall supply will improve significantly.
For tantalum capacitors, no real short-term solution exists on supply issues, and manufacturers have been conservative in adding capacity.
Combined with issues in the supply chain for tantalum ore, serious shortages are the order of the day for tantalum capacitors.
‘Not surprisingly, this is the reason why lead times for the parts stretch to 20 weeks and beyond,’ says iSuppli, ‘while the recent downturn has prompted manufacturers of raw materials for tantalum capacitors to scale back significantly.’
Manufacturers won’t invest in further capacity without long-term commitments from capacitor manufacturers, supply chain research shows.
Problems with tantalum capacitors are expected to continue until the end of the year, with some improvement in Q1 2011 as raw material issues get sorted out.
Pricing should stabilise in the first quarter of 2011 but will remain at higher levels for the foreseeable future.