China (mainland) – Strong demand from consumer electronics, communication, automotive and office automation industries are fueling growth in the multilayer chip inductor (MLCI) industry in mainland China. Demand from these sectors is expected to exceed 20 billion units. To meet this demand, production of MLCIs is projected to grow at 20 percent in 2008, as more mainland suppliers expand their capacity.
In mainland China, there are an estimated 20 makers of MLCIs, with a combined capacity of around 13.5 billion units. Leading players in the industry include Guangdong Fenghua Advanced Technology (Holding) Co. Ltd, Shenzhen CSG Electronics Co. Ltd (SNEC), Sunlord Electronics, Shenzhen Microgate Technology Co. Ltd, Taiyo Yuden Dongguan Fty and AEM Suzhou Fty. These large-scale makers are usually armed with advanced processes such as dry/wet and laser processing.
Zhaoqing Yingda Electric Actuator Co. Ltd is a subsidiary company of Guangdong Fenghua Advanced Technology. Zhaoqing Yingda is capable of producing MLCIs and chip beads in case sizes of 1005 (0402), 1608 (0603), 2012 (0805) and 3216 (1206). The company’s monthly capacity for MLCIs is 280 million units.
Due to overwhelming bulk orders, the company targets to increase capacity. “The target capacity for our MLCIs is at least 20 percent growth in 2008,” says Chen Jiawang, vice general manager. In October 2007, the company has equipped its production facility with new production and testing machines from Japan, Taiwan and the United States. According to Chen, the new equipment acquisition is worth over $2.7 million. Aside from enhancing production lines, the company has also established its own material workshop.
In terms of product development, Zhaoqing Yingda is focusing on smaller models with higher inductance, frequency, power and reliability. To date, the company has seven patents for its models. Its latest products include a 0402 series with minimum thickness of 0.5mm. The series features inductance up to 330µH. Through its cooperation with the South China University of Technology and the Chinese Academy of Science, Zhaoqing Yingda intends to raise the level of inductance in its future products.
SNEC began to mass-produce MLCIs in 1995. Currently, the company has expanded its product line to include chip ferrite inductors, chip beads, pinnacle beads and chip bead arrays. The company has an annual capacity of 4 billion units. In the next six months, the company plans to expand capacity by as much as 150 percent annually to reach 10 billion units in 2009. Last year, the company has invested $3.5 million for its dry process line expansion.
At present, SNEC is working to develop more super high current chip beads and chip ferrite inductors. The company’s chip inductors are suited to various applications such as automobiles, consumer electronics and office equipments. It counts Toshiba, Solectron, Acer, Vtech, Motorola, Uniden and LG as its biggest clients. To develop new products, SNEC has forged technical ties with Tsinghua University, Huazhong University of Science and Technology, Hong Kong University of Science & Technology, and South China University of Technology.
Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.