1. Overview of the passive components industry
1 passive components -The cornerstone of the electronics industry
passive components, different from active components. In China, it was previously called passive devices and active devices. The passive element does not require power drive inside, and it does not consume power itself. It only needs to input a signal to make amplification, oscillation, calculation and other responses, without the need for an external excitation unit. Various electronic products contain passive components, which is the cornerstone of the electronic circuit industry.
passive components are mainly divided into two categories: RCL (resistance, capacitor, inductance ) and RF components, among which RCL accounts for about 90% of the total output value of passive components. In RCL, resistors, capacitors, and inductors are three main types. The main functions of capacitors are bypass, decoupling, filtering and energy storage; resistors are generally used for voltage division, shunt, filtering and impedance matching; the main uses of inductors are filtering, stabilizing current and anti-electromagnetic interference.
2 downstream applications drive a new round of global price increase
Since 2017, the passive component market has continued to improve, opening a new wave of price increase. The products mainly involve MLCC (layered ceramic capacitor ) and R-Chip (chip resistor). The biggest increase is the high-end MLCC products with small size and large capacity. Some models have increased by more than ten times, and the R-Chip has increased slightly less than MLCC. On March 28, 2018, Qilixin, a subsidiary of Guoju, issued a notice of inductor price increase, adjusting the increase range between 45% and 68%. At this point, all three core passive components have started a new round of price increases.
From the history of the development of passive components, the changes and development of the downstream application market have dominated the development of the passive component market. In addition, capital expenditure and technological upgrades are also important driving forces for the development of passive components. Passive components are the cornerstone of the development of the electronics industry. In terms of market size, the passive components market size reached US$25 billion in 2017, and is expected to reach US$32.89 billion in 2021. The main application areas of passive components include consumer electronics, automotive electronics, home appliances, etc., among which consumer electronics accounts for more than 70% of the industry's application space.
2. The development path of Japan's passive components
1 The rise of Japan's passive components industry
Japan's electronics industry rose rapidly after World War II, in addition to the favorable factors and strategies such as the increase in demand for electronic products in Japan after the war, the strong innovation and technological strength of Japanese manufacturers, and the active expansion of overseas territory. There is also a deeper development logic behind it: the Japanese government's active economic policies, strategic trade incentive policies, and the international electronics industry environment are extremely beneficial to Japan. According to different domestic development stages and international environments, the Japanese government has reformed the import tariff structure and adopted a lower tariff level for raw materials (the cost of raw materials for upstream passive component manufacturers is therefore reduced). High tariffs on electronic products with higher production in the country have opened up enough space for local enterprises to grow, and it also opens up the development of passive component suppliers in the country. On the other hand, the government's support for its own oligarchs is also a very important factor, and it "turns a blind eye" to joint monopoly among enterprises, and even allows comprehensive trading companies to be not subject to the monopoly law in the form of law. It has promoted the rapid development of the entire electronics industry chain, including passive component manufacturers such as TDK and Murata, and improved their respective international competitiveness.
After its heyday in the 1990s, Japan's electronics industry was gradually replaced by countries such as South Korea. Traditional strong industries such as consumer electronics, semiconductors, , and home appliances have been greatly impacted. The acquisition of Toshiba's flash memory business marks the end of an era, but Japanese electronic components manufacturers have grown rapidly with the east wind of smartphones with their deep technical barriers, forming seven major industrial giants: Kyocera, TDK, Murata Production, Nippon Electric, Toktokeng , Alpine Electric and Rohm.
The reason why Japanese manufacturers are successful is that electronic components are different from other industries such as consumer electronics. They have very high requirements for materials, so that good materials can make good devices.Japan is unique in material technology, so Korean manufacturers are also clever and can only sigh; second, the production process of electronic components requires long-term exploration and accumulation of Know-How, which is highly consistent with the Japanese craftsman spirit and corporate culture, forming an insurmountable gap; third, the downstream support of high-end and sophisticated technology, Japan adopts a strategy of choice and concentration, and actively deploys high-end fields such as automotive electronics, robots, high-end manufacturing, industrial control, aerospace, etc., and the strong industrial demand makes it more high-end and more refined. The main functions of
2 capacitor market competition pattern and the Japanese manufacturer
capacitor are charge storage, alternating filtering or bypassing, cutting off or blocking DC voltage, providing tuning and oscillation, etc., and are widely used in circuits for direct-through transmission, coupling, bypass, filtering, tuning loop, energy conversion, control, etc. At present, Japan is the dominant player in the passive component market, while the United States, South Korea and China each have their own strengths. The industry leaders Murata and TDK, the two passive components revenue exceeded 10 billion US dollars last year, accounting for more than half of the market share. American manufacturers also actively developed passive components after World War II. The two passive leaders Weiss and Gigi-Mei have successfully gained positions in this field through multiple major mergers and acquisitions. South Korea's Samsung developed a super-small MLCC in 1988, and it was not until 2007 that it began to significantly expand production for MLCC. Although the domestic industry currently mainly focuses on medium and low-end products, a number of high-quality manufacturers have also emerged.
- Japan: Kyocera, Murata, Panasonic (Panasonic) TAIYO YUDEN, TDK, Fujitsu (FUJITSU), Hitachi (HITACHI), KOA United States: AVX, KEMET, Skywell, VISHAY.
- Germany: EPCOS, WIMA.
- South Korea: Samsung Electric (SEM), Sanhe (SAMWHA), Sanying (SAMYOUNG)
- China: Huaxinke, Guoju, Jieshang, Shixin, Heshentang, Hemei Electric, Zhibao.
- China: Aihua Technology, Yuyang Technology, Torch Electronics, Warwick Electronics, Jinfukang, Fenghua Hi-Tech
In 2017, the global capacitor market size was US$20.9 billion and the domestic market size was 98.7 billion. Currently, the global capacitor industry structure is dominated by Japan, the United States and China, among which Japan is in a leading position, monopolizing high-end components, and has the strongest strength in electrolytic capacitors, ceramic capacitors, film capacitors, and other industries. capacitors can be divided into: ceramic capacitors, film capacitors, aluminum electrolytic capacitors, tantalum electrolytic capacitors, supercapacitors, etc. From the global market share in 2015, the output value of ceramic capacitors and aluminum electrolytic capacitors have a relatively high share, of which ceramic capacitors account for 54%, aluminum electrolytic capacitors are 23%, and film capacitors and tantalum capacitors account for 11% and 12% respectively.
1) Ceramic Capacitor
Ceramic Capacitor is better than traditional aluminum electrolytic capacitors in life, volume, ESR (Equivalent Series Resistance), and voltage range. With the advent of large-capacity ceramic capacitors, capacity below 100uF has been replaced with traditional aluminum electrolytic capacitors, and super-large-capacity ceramic capacitors above 300uF have been gradually developed and are expected to be used on a larger scale. Ceramic capacitors can be divided into single-layer ceramic capacitors, MLCC (chip multi-layer ceramic capacitors) and lead-type multi-layer ceramic capacitors. In addition to the characteristics of "direct-to-transit" capacitor compatibility, MLCC also has the characteristics of large capacity, long service life, high reliability, low ESR, high temperature and high voltage resistance, small size, wide capacity range, and suitable for surface installation. It has considerable advantages in cost and performance.
The world's major MLCC manufacturers include Japan's Murata, Sun Yudian, Kyocera, TDK, American Kimei, South Korea's Samsung Mechanical and Electrical, Guoju, Huaxinke, Hesundo, Xinchang, China's Yuyang, Fenghua Hi-Tech, Sanhuan, and Torch Electronics. Among them, the top five manufacturers are Murata, Samsung Electric, Guoju, Sunlight and TDK, which together account for 85% of the total market share. Domestic MLCC products are still in their infancy and have growth potential.
Japanese and Korean MLCC giants are moving towards miniaturization and large capacity.Japanese and Korean manufacturers have begun to adjust their strategies, and their production capacity has gradually shifted to automotive electronics, industrial miniaturization, high-capacity, high-quality products and RF components. Upgrading the product structure is also gradually abandoning the mid- and low-end market, creating a gap in the supply end of mid- and low-end passive components.
2) Murata Production Institute - Passive Components Giant
Company Profile Murata Production Institute is a world-leading electronic components manufacturer and was established in October 1944. The main product is ceramic capacitors, ranking first in the world. Other leading products include ceramic filters, high-frequency parts, sensors, etc. With the successful entry of Apple's industrial chain, the company ushered in a period of stable performance growth, and the vigorous development of downstream smartphones has provided an excellent opportunity. In 2017, it achieved revenue of 1371.842 billion yen (US$12.886 billion), a year-on-year increase of 20.81%, and achieved net profit of 146.086 billion yen (US$1.372 billion).
passive component world overlord. The company's operating income in 2017 was US$12.886 billion, of which passive components accounted for about 52.3%, or US$6.74 billion, accounting for about 20% of the global market share. It is a well-deserved world overlord. In terms of product segmentation, the company has now become the world's largest manufacturer of MLCC and inductors.
Ceramic Capacitor and MLCC. The company was originally built in 1944 and was founded by Akira Murata (1921-2006) in Nakakyo, Kyoto, Japan. The initial part was just a small workshop of 150 square meters, mainly producing titanium oxide ceramic capacitors for superheterodyne radios. It is precisely because World War II has just ended and Japan is in a period of extreme chaos, and radio is the only source of entertainment and information. Compared with the previous super regeneration method, superheterodyne radios have been rapidly popularized with their outstanding performance. In 1955, with the help of transistor radio, the company's ceramic filters and ceramic capacitors had a huge market demand. By the 1990s, the antenna sharing device GIGAFIL developed by the company made great contributions to the miniaturization and versatility of digital mobile phones. In order to adapt to this growing demand, Murata Electronics (Thailand), a production and sales company, was established in Thailand in 1988, and the company embarked on the global production and sales path. In 1994, a production and sales company "Wuxi Cuntian Electronics Co., Ltd." was established in China. After entering this century, the company still controls the pulse of technology in the times. To this day, Murata Manufacturing has become a global company with tens of thousands of employees working for it, producing a variety of high-tech products and providing solutions to its customers.
Murata is the world's largest MLCC manufacturer and occupies an absolute leading position. Since the emergence of MLCC, the company has maintained its world number one position, with a global share of never less than 20%. In the high-end market, its share is higher. Since 2016, the company has begun to reduce the production capacity of ordinary MLCCs and shift its strategic focus to high-end MLCC markets such as automotive and IOT.
Ceramic Capacitors and MLCC Successful Exploration: The key to Murata's success MLCC lies in the continuous promotion of innovation, relying on R&D to achieve horizontal layout of materials, manufacturing, distribution and other industrial chains, and vertically improve the types of products.
- First, insist on innovating and promoting new products, including promoting new products in the existing market and opening up new markets, and regarding new products and new markets as key assessment indicators for medium- and long-term success.
- Second, the company's magic weapon for innovation comes from the vertical integration from upstream materials to products, involving material technology, pretreatment technology, product design technology and post-treatment technology. Good electronic components come from good materials. Murata does not blindly pursue scale, but pays more attention to mastering the source and core links of upstream materials.
- Third, improve your strategic layout through mergers and acquisitions and cooperative development. In the past five years, the company has also carried out a series of mergers and acquisitions around its core business to improve its technology and product lines, including capacitors, sensors, crystals, power amplifiers, communication modules and polymer materials, and continuously improve its industrial competitiveness.
3) Film Capacitance
Film Capacitance is a capacitor with a metal foil as an electrode, and it is overlapped with plastic films such as polyethyl ester, polypropylene, polystyrene or polycarbonate from both ends and wound into a cylindrical structure.According to statistics from the Information Center of the China Electronic Components Industry Association, the output value of my country's film capacitor market in 2017 was about US$1.3 billion, accounting for about 42% of the total global market output value, ranking first in the world. Nichicon from Japan, Wima from Germany, ICEL from Italy, CDE from the United States, etc. are the top film capacitor manufacturers. Among them, WIMA's products are mainly used for high-quality audio, Nichion is mainly used for electronic products, and CDE is a professional inverter film capacitor manufacturer. Others, such as Japan's NISSI, Netherlands' Philips , as well as Kaili, Yudian, Huarong, etc., are also world-renowned thin film capacitor manufacturers. In terms of production, Panasonic Electrician from Japan, EPCOS from Germany, and Kemet from the United States are the world's most important film capacitor manufacturers. The film capacitor market is a completely open and fully competitive market. In the international market, many manufacturers have gradually faded out of the traditional field, with only a few high-end suppliers such as Panasonic and TDK; the scale of traditional products has gradually shrunk, and the focus of competition has shifted to the development of power electronic capacitors such as photovoltaics, wind power and new energy vehicles; in the domestic market, various manufacturers of large, medium and small coexist, and the product quality levels are uneven, mainly supporting the traditional home appliances and lighting markets, and the market competition is fierce.
4) Aluminum electrolytic capacitor
Aluminum electrolytic capacitor is a capacitor made of an anode foil, a cathode foil, and an electrolytic paper between them, then impregnate the working electrolyte, and then sealed in an aluminum shell. The main functions of aluminum electrolytic capacitors are: AC and DC resistance, and have filtering, vibration elimination, resonance, bypass, coupling and fast charging and discharging. The global aluminum electrolytic capacitor application fields are distributed in consumer electronics, 45%, industry accounts for 23%, information accounts for 13%, communications accounts for 7%, automobiles 5%, and others 7%. At present, Japan, South Korea and China are the main producers of aluminum electrolytic capacitors in the world. Four of the world's top five aluminum electrolytic capacitor manufacturers are Japanese companies, namely: Nippon Chemi-con, Nichicon, Rubycon and Panasonic. Japanese manufacturers have a global market share of more than 60%. The aluminum electrolytic capacitor market is in an oligopoly period.
3 Inductor market competition pattern and Japanese manufacturers
1) Inductor market competition pattern
Inductor is a component that can convert electrical energy into magnetic energy and store it. Its main function is to filter signals, filter noise, stabilize current, and suppress electromagnetic shielding, etc. As a basic electronic component that is indispensable in electronic circuits, the inductance accounts for about 10% to 15% of the entire electronic component matching. The inductor has strong customization characteristics and has high requirements for the manufacturing capability and customized design capability of fine coils. At present, with the trend of becoming increasingly thinner and thinner electronic products, chip inductors have become the mainstream product of inductors due to their small size, high reliability and excellent electrical performance. According to Mordor Intelligence data, the global inductor market size was US$4.232 billion in 2017. As the single-machine usage of consumer electronics and communication modules increases, it is expected to reach US$5.157 billion in 2023.
Global inductor competition pattern is relatively concentrated, with Japanese manufacturers Murata, TDK and Sunlight ranked in the top three, accounting for 40.42% of the total. Qilixin and domestic manufacturer Shunluo Electronic followed closely, accounting for 13.22% and 7.01% respectively. Shunluo Electronics is a leading chip inductor enterprise in my country, ranking in the top three inductor segments, among which power inductor and radio frequency inductor rank second. The market price of inductors is relatively stable. Inductor products have the characteristics of customized, and production capacity will change with changes in demand, and it is not easy to cause the conversion of production capacity to emerging fields and run through production capacity in traditional fields. Therefore, in recent years, the inductor market has been basically in a balance of supply and demand, and the prices are relatively stable.
2) Sun Yudian-Dual-Dual-Director-Dual-Wheel Driver
Company Profile: Sun Yudian is a leading Japanese passive component manufacturer, established in 1950. Starting from capacitors, we are constantly committed to the research, development, production and sales of various electronic components such as inductors, communication devices, circuit modules, and energy devices. The company's advantage lies in its commercialization activities starting from raw materials.
1. Overview of the passive components industry
1 passive components -The cornerstone of the electronics industry
passive components, different from active components. In China, it was previously called passive devices and active devices. The passive element does not require power drive inside, and it does not consume power itself. It only needs to input a signal to make amplification, oscillation, calculation and other responses, without the need for an external excitation unit. Various electronic products contain passive components, which is the cornerstone of the electronic circuit industry.
passive components are mainly divided into two categories: RCL (resistance, capacitor, inductance ) and RF components, among which RCL accounts for about 90% of the total output value of passive components. In RCL, resistors, capacitors, and inductors are three main types. The main functions of capacitors are bypass, decoupling, filtering and energy storage; resistors are generally used for voltage division, shunt, filtering and impedance matching; the main uses of inductors are filtering, stabilizing current and anti-electromagnetic interference.
2 downstream applications drive a new round of global price increase
Since 2017, the passive component market has continued to improve, opening a new wave of price increase. The products mainly involve MLCC (layered ceramic capacitor ) and R-Chip (chip resistor). The biggest increase is the high-end MLCC products with small size and large capacity. Some models have increased by more than ten times, and the R-Chip has increased slightly less than MLCC. On March 28, 2018, Qilixin, a subsidiary of Guoju, issued a notice of inductor price increase, adjusting the increase range between 45% and 68%. At this point, all three core passive components have started a new round of price increases.
From the history of the development of passive components, the changes and development of the downstream application market have dominated the development of the passive component market. In addition, capital expenditure and technological upgrades are also important driving forces for the development of passive components. Passive components are the cornerstone of the development of the electronics industry. In terms of market size, the passive components market size reached US$25 billion in 2017, and is expected to reach US$32.89 billion in 2021. The main application areas of passive components include consumer electronics, automotive electronics, home appliances, etc., among which consumer electronics accounts for more than 70% of the industry's application space.
2. The development path of Japan's passive components
1 The rise of Japan's passive components industry
Japan's electronics industry rose rapidly after World War II, in addition to the favorable factors and strategies such as the increase in demand for electronic products in Japan after the war, the strong innovation and technological strength of Japanese manufacturers, and the active expansion of overseas territory. There is also a deeper development logic behind it: the Japanese government's active economic policies, strategic trade incentive policies, and the international electronics industry environment are extremely beneficial to Japan. According to different domestic development stages and international environments, the Japanese government has reformed the import tariff structure and adopted a lower tariff level for raw materials (the cost of raw materials for upstream passive component manufacturers is therefore reduced). High tariffs on electronic products with higher production in the country have opened up enough space for local enterprises to grow, and it also opens up the development of passive component suppliers in the country. On the other hand, the government's support for its own oligarchs is also a very important factor, and it "turns a blind eye" to joint monopoly among enterprises, and even allows comprehensive trading companies to be not subject to the monopoly law in the form of law. It has promoted the rapid development of the entire electronics industry chain, including passive component manufacturers such as TDK and Murata, and improved their respective international competitiveness.
After its heyday in the 1990s, Japan's electronics industry was gradually replaced by countries such as South Korea. Traditional strong industries such as consumer electronics, semiconductors, , and home appliances have been greatly impacted. The acquisition of Toshiba's flash memory business marks the end of an era, but Japanese electronic components manufacturers have grown rapidly with the east wind of smartphones with their deep technical barriers, forming seven major industrial giants: Kyocera, TDK, Murata Production, Nippon Electric, Toktokeng , Alpine Electric and Rohm.
The reason why Japanese manufacturers are successful is that electronic components are different from other industries such as consumer electronics. They have very high requirements for materials, so that good materials can make good devices.Japan is unique in material technology, so Korean manufacturers are also clever and can only sigh; second, the production process of electronic components requires long-term exploration and accumulation of Know-How, which is highly consistent with the Japanese craftsman spirit and corporate culture, forming an insurmountable gap; third, the downstream support of high-end and sophisticated technology, Japan adopts a strategy of choice and concentration, and actively deploys high-end fields such as automotive electronics, robots, high-end manufacturing, industrial control, aerospace, etc., and the strong industrial demand makes it more high-end and more refined. The main functions of
2 capacitor market competition pattern and the Japanese manufacturer
capacitor are charge storage, alternating filtering or bypassing, cutting off or blocking DC voltage, providing tuning and oscillation, etc., and are widely used in circuits for direct-through transmission, coupling, bypass, filtering, tuning loop, energy conversion, control, etc. At present, Japan is the dominant player in the passive component market, while the United States, South Korea and China each have their own strengths. The industry leaders Murata and TDK, the two passive components revenue exceeded 10 billion US dollars last year, accounting for more than half of the market share. American manufacturers also actively developed passive components after World War II. The two passive leaders Weiss and Gigi-Mei have successfully gained positions in this field through multiple major mergers and acquisitions. South Korea's Samsung developed a super-small MLCC in 1988, and it was not until 2007 that it began to significantly expand production for MLCC. Although the domestic industry currently mainly focuses on medium and low-end products, a number of high-quality manufacturers have also emerged.
- Japan: Kyocera, Murata, Panasonic (Panasonic) TAIYO YUDEN, TDK, Fujitsu (FUJITSU), Hitachi (HITACHI), KOA United States: AVX, KEMET, Skywell, VISHAY.
- Germany: EPCOS, WIMA.
- South Korea: Samsung Electric (SEM), Sanhe (SAMWHA), Sanying (SAMYOUNG)
- China: Huaxinke, Guoju, Jieshang, Shixin, Heshentang, Hemei Electric, Zhibao.
- China: Aihua Technology, Yuyang Technology, Torch Electronics, Warwick Electronics, Jinfukang, Fenghua Hi-Tech
In 2017, the global capacitor market size was US$20.9 billion and the domestic market size was 98.7 billion. Currently, the global capacitor industry structure is dominated by Japan, the United States and China, among which Japan is in a leading position, monopolizing high-end components, and has the strongest strength in electrolytic capacitors, ceramic capacitors, film capacitors, and other industries. capacitors can be divided into: ceramic capacitors, film capacitors, aluminum electrolytic capacitors, tantalum electrolytic capacitors, supercapacitors, etc. From the global market share in 2015, the output value of ceramic capacitors and aluminum electrolytic capacitors have a relatively high share, of which ceramic capacitors account for 54%, aluminum electrolytic capacitors are 23%, and film capacitors and tantalum capacitors account for 11% and 12% respectively.
1) Ceramic Capacitor
Ceramic Capacitor is better than traditional aluminum electrolytic capacitors in life, volume, ESR (Equivalent Series Resistance), and voltage range. With the advent of large-capacity ceramic capacitors, capacity below 100uF has been replaced with traditional aluminum electrolytic capacitors, and super-large-capacity ceramic capacitors above 300uF have been gradually developed and are expected to be used on a larger scale. Ceramic capacitors can be divided into single-layer ceramic capacitors, MLCC (chip multi-layer ceramic capacitors) and lead-type multi-layer ceramic capacitors. In addition to the characteristics of "direct-to-transit" capacitor compatibility, MLCC also has the characteristics of large capacity, long service life, high reliability, low ESR, high temperature and high voltage resistance, small size, wide capacity range, and suitable for surface installation. It has considerable advantages in cost and performance.
The world's major MLCC manufacturers include Japan's Murata, Sun Yudian, Kyocera, TDK, American Kimei, South Korea's Samsung Mechanical and Electrical, Guoju, Huaxinke, Hesundo, Xinchang, China's Yuyang, Fenghua Hi-Tech, Sanhuan, and Torch Electronics. Among them, the top five manufacturers are Murata, Samsung Electric, Guoju, Sunlight and TDK, which together account for 85% of the total market share. Domestic MLCC products are still in their infancy and have growth potential.
Japanese and Korean MLCC giants are moving towards miniaturization and large capacity.Japanese and Korean manufacturers have begun to adjust their strategies, and their production capacity has gradually shifted to automotive electronics, industrial miniaturization, high-capacity, high-quality products and RF components. Upgrading the product structure is also gradually abandoning the mid- and low-end market, creating a gap in the supply end of mid- and low-end passive components.
2) Murata Production Institute - Passive Components Giant
Company Profile Murata Production Institute is a world-leading electronic components manufacturer and was established in October 1944. The main product is ceramic capacitors, ranking first in the world. Other leading products include ceramic filters, high-frequency parts, sensors, etc. With the successful entry of Apple's industrial chain, the company ushered in a period of stable performance growth, and the vigorous development of downstream smartphones has provided an excellent opportunity. In 2017, it achieved revenue of 1371.842 billion yen (US$12.886 billion), a year-on-year increase of 20.81%, and achieved net profit of 146.086 billion yen (US$1.372 billion).
passive component world overlord. The company's operating income in 2017 was US$12.886 billion, of which passive components accounted for about 52.3%, or US$6.74 billion, accounting for about 20% of the global market share. It is a well-deserved world overlord. In terms of product segmentation, the company has now become the world's largest manufacturer of MLCC and inductors.
Ceramic Capacitor and MLCC. The company was originally built in 1944 and was founded by Akira Murata (1921-2006) in Nakakyo, Kyoto, Japan. The initial part was just a small workshop of 150 square meters, mainly producing titanium oxide ceramic capacitors for superheterodyne radios. It is precisely because World War II has just ended and Japan is in a period of extreme chaos, and radio is the only source of entertainment and information. Compared with the previous super regeneration method, superheterodyne radios have been rapidly popularized with their outstanding performance. In 1955, with the help of transistor radio, the company's ceramic filters and ceramic capacitors had a huge market demand. By the 1990s, the antenna sharing device GIGAFIL developed by the company made great contributions to the miniaturization and versatility of digital mobile phones. In order to adapt to this growing demand, Murata Electronics (Thailand), a production and sales company, was established in Thailand in 1988, and the company embarked on the global production and sales path. In 1994, a production and sales company "Wuxi Cuntian Electronics Co., Ltd." was established in China. After entering this century, the company still controls the pulse of technology in the times. To this day, Murata Manufacturing has become a global company with tens of thousands of employees working for it, producing a variety of high-tech products and providing solutions to its customers.
Murata is the world's largest MLCC manufacturer and occupies an absolute leading position. Since the emergence of MLCC, the company has maintained its world number one position, with a global share of never less than 20%. In the high-end market, its share is higher. Since 2016, the company has begun to reduce the production capacity of ordinary MLCCs and shift its strategic focus to high-end MLCC markets such as automotive and IOT.
Ceramic Capacitors and MLCC Successful Exploration: The key to Murata's success MLCC lies in the continuous promotion of innovation, relying on R&D to achieve horizontal layout of materials, manufacturing, distribution and other industrial chains, and vertically improve the types of products.
- First, insist on innovating and promoting new products, including promoting new products in the existing market and opening up new markets, and regarding new products and new markets as key assessment indicators for medium- and long-term success.
- Second, the company's magic weapon for innovation comes from the vertical integration from upstream materials to products, involving material technology, pretreatment technology, product design technology and post-treatment technology. Good electronic components come from good materials. Murata does not blindly pursue scale, but pays more attention to mastering the source and core links of upstream materials.
- Third, improve your strategic layout through mergers and acquisitions and cooperative development. In the past five years, the company has also carried out a series of mergers and acquisitions around its core business to improve its technology and product lines, including capacitors, sensors, crystals, power amplifiers, communication modules and polymer materials, and continuously improve its industrial competitiveness.
3) Film Capacitance
Film Capacitance is a capacitor with a metal foil as an electrode, and it is overlapped with plastic films such as polyethyl ester, polypropylene, polystyrene or polycarbonate from both ends and wound into a cylindrical structure.According to statistics from the Information Center of the China Electronic Components Industry Association, the output value of my country's film capacitor market in 2017 was about US$1.3 billion, accounting for about 42% of the total global market output value, ranking first in the world. Nichicon from Japan, Wima from Germany, ICEL from Italy, CDE from the United States, etc. are the top film capacitor manufacturers. Among them, WIMA's products are mainly used for high-quality audio, Nichion is mainly used for electronic products, and CDE is a professional inverter film capacitor manufacturer. Others, such as Japan's NISSI, Netherlands' Philips , as well as Kaili, Yudian, Huarong, etc., are also world-renowned thin film capacitor manufacturers. In terms of production, Panasonic Electrician from Japan, EPCOS from Germany, and Kemet from the United States are the world's most important film capacitor manufacturers. The film capacitor market is a completely open and fully competitive market. In the international market, many manufacturers have gradually faded out of the traditional field, with only a few high-end suppliers such as Panasonic and TDK; the scale of traditional products has gradually shrunk, and the focus of competition has shifted to the development of power electronic capacitors such as photovoltaics, wind power and new energy vehicles; in the domestic market, various manufacturers of large, medium and small coexist, and the product quality levels are uneven, mainly supporting the traditional home appliances and lighting markets, and the market competition is fierce.
4) Aluminum electrolytic capacitor
Aluminum electrolytic capacitor is a capacitor made of an anode foil, a cathode foil, and an electrolytic paper between them, then impregnate the working electrolyte, and then sealed in an aluminum shell. The main functions of aluminum electrolytic capacitors are: AC and DC resistance, and have filtering, vibration elimination, resonance, bypass, coupling and fast charging and discharging. The global aluminum electrolytic capacitor application fields are distributed in consumer electronics, 45%, industry accounts for 23%, information accounts for 13%, communications accounts for 7%, automobiles 5%, and others 7%. At present, Japan, South Korea and China are the main producers of aluminum electrolytic capacitors in the world. Four of the world's top five aluminum electrolytic capacitor manufacturers are Japanese companies, namely: Nippon Chemi-con, Nichicon, Rubycon and Panasonic. Japanese manufacturers have a global market share of more than 60%. The aluminum electrolytic capacitor market is in an oligopoly period.
3 Inductor market competition pattern and Japanese manufacturers
1) Inductor market competition pattern
Inductor is a component that can convert electrical energy into magnetic energy and store it. Its main function is to filter signals, filter noise, stabilize current, and suppress electromagnetic shielding, etc. As a basic electronic component that is indispensable in electronic circuits, the inductance accounts for about 10% to 15% of the entire electronic component matching. The inductor has strong customization characteristics and has high requirements for the manufacturing capability and customized design capability of fine coils. At present, with the trend of becoming increasingly thinner and thinner electronic products, chip inductors have become the mainstream product of inductors due to their small size, high reliability and excellent electrical performance. According to Mordor Intelligence data, the global inductor market size was US$4.232 billion in 2017. As the single-machine usage of consumer electronics and communication modules increases, it is expected to reach US$5.157 billion in 2023.
Global inductor competition pattern is relatively concentrated, with Japanese manufacturers Murata, TDK and Sunlight ranked in the top three, accounting for 40.42% of the total. Qilixin and domestic manufacturer Shunluo Electronic followed closely, accounting for 13.22% and 7.01% respectively. Shunluo Electronics is a leading chip inductor enterprise in my country, ranking in the top three inductor segments, among which power inductor and radio frequency inductor rank second. The market price of inductors is relatively stable. Inductor products have the characteristics of customized, and production capacity will change with changes in demand, and it is not easy to cause the conversion of production capacity to emerging fields and run through production capacity in traditional fields. Therefore, in recent years, the inductor market has been basically in a balance of supply and demand, and the prices are relatively stable.
2) Sun Yudian-Dual-Dual-Director-Dual-Wheel Driver
Company Profile: Sun Yudian is a leading Japanese passive component manufacturer, established in 1950. Starting from capacitors, we are constantly committed to the research, development, production and sales of various electronic components such as inductors, communication devices, circuit modules, and energy devices. The company's advantage lies in its commercialization activities starting from raw materials.In this aspect, the company adheres to fine manufacturing, continues to provide products that match customer needs in detail, and strives to continuously expand into the fields of consumer electronic equipment, automotive electronics, industrial equipment, healthcare and environmental energy. At present, the company has become the world's fifth largest capacitor manufacturer (accounting for 6%), the third largest MLCC manufacturer (accounting for 13%) and the third largest inductor supplier (accounting for 13%). In 2017, the company achieved operating income of 230.7 billion yen and net profit of 5.428 billion yen.
Innovative development, inductor capacitors have advanced in parallel since its establishment in 1950, the company has been constantly innovating products. In 2004, high-frequency and 0603-sized multi-layer chip inductors achieved the best inductance value in the world; in 2006, it pioneered the mass production of breakthrough EMOIN embedded multi-layer copper core substrates; in 2017, the world's smallest high-frequency multi-layer ceramic capacitor was successfully developed. Continuous breakthroughs in product innovation and breakthroughs have not only enhanced the company's core competitiveness, but also laid the foundation for the company to achieve great development.
"Fine" and "Extreme" create excellent quality: in the past 70 years, the company has inherited the fine and ultimate character of Japanese enterprises, and with a high share in the civil goods market as the result, it strives to commonize basic designs and processes to provide products with more reasonable costs. It not only achieves the popularization of high-reliability products, but also adheres to the corporate character of "fine" and "extreme". Product structure adjustment, focusing on the automotive electronics field: The company currently uses more products in the communications field, accounting for 24% of the automotive electronics field, but the fastest-growing field has an annual compound growth rate of up to 34% from 2013 to 2017. The company is also striving to develop high-end capacitor products suitable for this field. In the future, it will also use its technical development capabilities and production capabilities, and use the cultivated solution capabilities to carry out reliable and cost-effective product businesses for all aspects of the automotive industry, industrial machinery, and health care market.
4 resistor market competition pattern and Japanese manufacturer
1) Resistor market competition pattern
resistors (Resistors) are passive electronic components that limit the current magnitude in the circuit. There are many types of resistors on the market, among which chip resistors have the largest market demand and a market share of up to 90%. Chip resistors have the advantages of small size, light weight, stable electrical performance, high reliability, high accuracy, good high frequency performance and small resistance tolerance. Today, when electronic products are constantly iterating and updating, they are widely used in consumer electronics, automotive electronics and communication fields. According to Cision's report data, the global resistance market size was about US$4.4 billion in 2016, and with the pull of downstream demand, the market space is expected to continue to expand, and the market size is expected to reach US$5.7 billion in 2020.
global chip resistor competition landscape is concentrated, with the top five manufacturers accounting for 57%, and China's giant accounts for 34% of the market share, making it the largest chip resistor manufacturer. The second is the Japanese-funded Xingya, Rom and Panasonic, and the United States Viagra, which account for less than 10%. US and Japanese companies have leading technology and small market share for domestic manufacturers. Technically, American and Japanese companies have completely followed the thin film process route in terms of high precision. For example, Viagra has always been the largest manufacturer of ultra-high precision resistors, while Japanese manufacturers have the highest degree of industrialization of high precision chip resistance, and are currently the only country in the world that has achieved the industrialization of 01005 specification chip resistance. Manufacturers such as Guoju, Huaxinke, and Housheng are seeking development based on their scale advantages. They have a certain gap with American and Japanese companies in terms of miniaturization technology and product quality, and are in a technical position. Domestic resistor manufacturers mainly restructured joint-stock companies in state-owned enterprises, and the representative companies are Fenghua Hi-Tech, Northern Huachuang and Sichuan Yongxing, with a small market share.
Since 2018, there has been a shortage of supply and demand for chip resistors, coupled with the price increase of You Raw Materials ceramic substrates. The main reason for this is that the main reason for the increase in resistance prices is the change in the supply side. On the one hand, major manufacturers have not significantly expanded chip resistors in the past few years, which has caused a situation of supply and demand to be in short supply after demand rises. On the other hand, with the rapid growth of demand for automotive electronics, Japanese resistor manufacturers began to shift a large amount of production capacity to the automotive market in early 2018, which led to the rapid rise in chip resistor prices in 2018. At present, major manufacturers lack the momentum to expand production, and it is expected that the chip resistor market will maintain a high prosperity.
2)Rohm - craftsman spirit, focus on the main business
Company profile:Rohm is one of the world's well-known semiconductor and electronic parts manufacturers. Its headquarters is located in Kyoto, Japan. It started with the production of resistors in 1958. The company's name Rohm is spelled in English by resistors and resistor units Ohm . Later, the company gradually entered the transistor, diode and semiconductor fields in 1967 and 1969. Two years later, in 1971, Rohm, as the first Japanese company to enter the Silicon Valley in the United States, opened an IC design center in Silicon Valley. After more than half a century of development, the company's many high-quality products have been licensed and praised by the market. Automotive electronic ICs have jumped to the top ten in the world, resistors have third in the world, and power devices, sensors and transistors have excellent market performance. Rohm Semiconductor achieved operating income of 397.106 billion yen in fiscal year 2018, an increase of 12.81% year-on-year; net profit of 37.249 billion yen, an increase of 40.92% year-on-year, recovering the trend of decline in performance in previous years. In terms of gross profit margin, the company produces high added value, and the gross profit margin has remained at around 34% in the past decade. The company's net sales margin in fiscal year 2018 was 9.38%, an increase of 1.88% from fiscal year 2017, and its profitability increased.
craftsman spirit, focusing on deep cultivation of chip resistors: Rohm has maintained its leading R&D strength in the field of resistance. In terms of entrepreneurial product resistors, the company developed the world's earliest rectangular chip resistor in 1976, and then continuously made breakthroughs to develop high-voltage resistance, ultra-low resistance, surge resistance and high-power chip resistors, which are highly recognized by the market. In 2014, the company also used its original subtle technology to develop the world's smallest-level chip resistor in SMR003 (03015 size), and has achieved mass production, meeting the requirements of smart terminals for ultra-small components that can be installed at high density. At present, the company is developing towards smaller SMR002 (0201 size) chip resistors, in order to continuously innovate and lead the development of the resistor industry. Adhere to cutting-edge technology to lead the industry's development and the company has strong innovation capabilities. Rom has set up 12 design centers around the world to recruit top technicians to develop and design new products. In recent years, the company's products have made significant achievements in sensors, automotive electronics, mobile devices and simulation solutions. For example, in automotive electronics, the company developed the world's first dual-trench structure SiC-MOSFET to reduce energy consumption and achieved mass production, and the loss of the new generation of SiC-MOSFET switches is 73% lower than that of Sic-IGBT. In addition, the company has set up 10 QA centers around the world to implement the corporate policy of "quality first".
5 Kyocera—The King of Electronic Ceramics
Company Overview: Business blossomed in multiple points, and performance achieved steady growth. Kyocera Corporation (KYOCERA Corporation) was established on April 1, 1959. Its founder is the world's famous industrialist Kazuo Inamori . It is a world-leading high-tech product supplier, mainly engaged in precision ceramic parts, semiconductor parts and electronic components and other businesses. After about 60 years of growth, Kyocera has developed into one of the world's largest advanced ceramic suppliers. The 50 years of precision ceramics have been continuously improving day by day, making it the world's number one precision ceramic manufacturer. Kazuo Inamori once said that advanced materials will bring future breakthroughs to existing industrial technologies, and precision ceramics will become an important part of future development. Therefore, the company has been improving in this field. Since the development of large-scale ceramic multi-layer packaging for integrated circuits in 1972, it has been leading the new materials revolution. At present, the company can provide more than 200 ceramic materials, with high-purity, ultra-fine and high-performance ceramic powder manufacturing technology and processes, as well as large sintering kilns and advanced molding, processing and design technologies. The company's bioceramics, dielectric ceramics, electronic ceramics, metal cermets, microwave dielectric ceramics and sheet multi-layer ceramics have high strength, high biocompatibility and durability, which has greatly promoted the development of industries such as industrial, semiconductors, medical equipment, electronics and environmental protection.
Kyocera has been deeply engaged in its main business for many years and has adopted a strategy of diversified expansion and global expansion. Revenue and net profit have shown a steady growth trend. Since fiscal year 2018, the company's operating income has been US$14.234 billion and its net profit attributable to shareholders is US$738 million.In addition, the company was listed on the Tokyo Stock Exchange and the New York Stock Exchange in 1972 and 1980.
The company's main business includes three categories: parts business, equipment and system business and other businesses, of which parts account for the largest proportion of 53.9%, and the parts business mainly includes electronic components, semiconductor parts, etc.; the company attaches great importance to R&D, and in recent years, it has developed new products such as ceramic packaging for MEMS sensors, LTCC packaging shells for RF modules, optical communication connectors, ceramic multi-layer substrates for ECUs in automobiles and millimeter-wave radar antenna substrates. As the earliest manufacturer to install LCDs in automobiles, the company's products are constantly iterative and upgraded, and are expected to seize more market share in the consumer, automotive electronics and 5G fields.
The rise of Kyocera can be attributed to two aspects, one is the company's technical moat and its diversified expansion business strategy. The company began to produce precision ceramics in the 1960s, mastered the core technology of ceramics early, and completed the vertical integrated layout from materials to devices, forming the company's core competitiveness. In addition, the company is actively making arrangements, continuously integrating industrial chain technology and customer resources through external mergers and acquisitions to expand its business, and conducting a global market layout, and its performance has been continuously improved. In addition, the company's original Amoeba business model has cultivated countless "cleans" of managers, solving problems such as inefficiency and high management costs under the top-down hierarchical structure of traditional enterprises, and greatly improving the operating efficiency of enterprises. On the other hand, Japan's domestic policy support and international market environment also bring major development opportunities to enterprises. Japan's trade policy support for the domestic electronics industry is an important factor in the rise of the company. In the 1960s and 1970s, the Japanese government reformed the import tariff structure and adopted a lower tariff level on raw materials, while high tariffs on electronic products with higher production in the country, setting up import trade barriers, and protecting domestic enterprises to promote growth. The company was in its early stages of development at that time and rose rapidly with the rapid development of the industry. Moreover, Europe suffered severe damage after World War II, and its electronics industry could hardly pose a threat to Japanese manufacturers. However, in the face of the huge demand in the US market, strong purchasing power, and high product demand, which also brought huge opportunities for the company's development.
3. Learn from Japan, domestic passive components break through
1 domestic passive components independent controllable
China's electronics industry started late and had weak foundations. Passive components are mainly low-end products, with limited market share, and they cannot directly compete with foreign giants. After the 2008 financial crisis, all regions around the world suffered varying degrees of impact. In addition, with the rise of smartphones and 4G networks, China's electronic consumer market has become the main force in the world, and the passive component industry has grown rapidly. Due to the consideration of labor costs and proximity to the downstream consumer market, major giants have chosen to build factories in China. The shift in global focus has brought about a large migration of production capacity, and has also brought about technological innovation and the introduction of talents. With the rise of emerging markets such as domestic smartphones, 5G, and artificial intelligence, a new round of adjustments and optimization and upgrading of the electronics industry chain has been triggered. To this day, China has become the world's largest electronic equipment manufacturing center and the most consumerized region, and the demand for upstream passive components is relatively optimistic. Drawing on the three factors of Japan's success, domestic passive component manufacturers must focus on their main business, accumulate and continuously explore and accumulate more in terms of materials and processes. High-quality technology-led enterprises are worth paying attention to. The domestic electronics industry will surely upgrade from consumer electronics to high-end fields such as automotive electronics, robotics and aerospace, and also provides a good development opportunity for passive component manufacturers.
2 Sanhuan Group (ceramic capacitor)
was founded in 1992. It is one of the largest production bases for advanced technology ceramics and electronic components in the country. Based on advanced ceramic technology, its products cover optical communications, electronics, machinery, electrical engineering, energy conservation and environmental protection, and new energy applications. The company integrates the research and development and manufacturing of materials, products and equipment, and has strong vertical integrated operation competitiveness. The company has established a research and development system with the research institute as the core and combining technical courses of various business departments, and its R&D strength is in the leading position in the industry. After 40 years of deep-rooted work, the company has been selected as one of the top 100 electronic components companies in China for 29 consecutive years.In 2017, the company's operating income was 3.13 billion yuan, and the net profit attributable to shareholders was 1.003 billion yuan after deducting non-operating items. In Q1 2018, it returned to growth, with a growth rate of up to 19%. The company's gross profit margin has increased year by year, exceeding 50% in Q1 2018, at the leading level in the industry, with a net profit margin of about 31%.
3 Fara Electronics (film capacitor)
Fara Electronics was founded in 1955 and began to manufacture film capacitors in 1967. For more than 50 years, it has been focusing on the research and development, production and sales of film capacitors, and has strong technical strength and is at the top level in the industry. The company is currently the largest and top five thin film capacitor manufacturer in China. In 2017, the company's operating income was 1.698 billion yuan, an increase of 11.06% year-on-year, and the net profit attributable to shareholders after deducting non-operating items was 394 million yuan, an increase of 4.18% year-on-year. In 201, its revenue share in the three major areas of traditional home appliances and lighting market, new energy vehicles, wind power and photovoltaic power generation was 69%, 11%, and 20% respectively. Film capacitors are widely used in batteries, motors and electronic controls of electric vehicles, and the application of film capacitors in new energy vehicles will become a trend. The company's R&D is extremely forward-looking and original, and is in sync with international leadership. According to market demand and industry development forecasts, at least 3 new products are successfully launched on the market every year. At present, film capacitors for new energy are its most important research and development direction.
4 Shunluo Electronics (Inductor)
was established in 2000. It is a national high-tech enterprise, a national key "Torch" plan and a national "863" plan project undertaking enterprise. The company specializes in the research, development, production and sales of various chip electronic components, and its main products include stacked chip inductors, winding chip inductors, wireless charging coil components and other electronic components. The products are widely used in communications, consumer electronics, and automotive electronics fields. In 2017, the operating income was 1.988 billion yuan, and the net profit attributable to shareholders was 246 million yuan after deducting non-operating items. Adhering to the dual driving mechanism of product development and market development, the company takes two steps to help its development. In terms of products, the company began to advance the development of new products such as ultra-micro RF inductors, various ultra-thin wireless charging coils, automotive transformers, microwave dielectric filters, etc., and acquired Dongguan Xinbo, which produces high-performance ceramic materials, to integrate upstream resources and promote modular integration between products. In terms of application fields, the company plans to continue to expand from communications and consumer electronics to automotive electronics, wireless charging, 5G and fine ceramics. At present, the company has obtained the world's top three automotive electronics manufacturer system certification and product certification, and has obtained qualified supplier qualifications.
5 Aihua Group (Aluminum Electrolytic Capacitor)
Aihua Group was established in 1985. It is a technology-based enterprise integrating the design, development, manufacturing and sales of aluminum electrolytic capacitors, and collector foil and equipment manufacturing. The company has a complete industrial chain of "corrosion foil + chemical foil + electrolyte + special equipment + aluminum electrolytic capacitors", among which corrosion foil + chemical foil is the core technology of electrode foil manufacturing. Electrode foil is a key basic material for producing aluminum electrolytic capacitors. It is used to carry charges and accounts for 30%-60% of the production cost. Therefore, the quality of the electrode foil process determines the performance and technical capabilities of the aluminum electrolytic capacitors. The company's products are used in energy-saving lighting, industrial equipment, inverters, and consumer electronics fields. The company's market share in the global mid-to-high-end energy-saving lighting field has exceeded 60%.
2)Rohm - craftsman spirit, focus on the main business
Company profile:Rohm is one of the world's well-known semiconductor and electronic parts manufacturers. Its headquarters is located in Kyoto, Japan. It started with the production of resistors in 1958. The company's name Rohm is spelled in English by resistors and resistor units Ohm . Later, the company gradually entered the transistor, diode and semiconductor fields in 1967 and 1969. Two years later, in 1971, Rohm, as the first Japanese company to enter the Silicon Valley in the United States, opened an IC design center in Silicon Valley. After more than half a century of development, the company's many high-quality products have been licensed and praised by the market. Automotive electronic ICs have jumped to the top ten in the world, resistors have third in the world, and power devices, sensors and transistors have excellent market performance. Rohm Semiconductor achieved operating income of 397.106 billion yen in fiscal year 2018, an increase of 12.81% year-on-year; net profit of 37.249 billion yen, an increase of 40.92% year-on-year, recovering the trend of decline in performance in previous years. In terms of gross profit margin, the company produces high added value, and the gross profit margin has remained at around 34% in the past decade. The company's net sales margin in fiscal year 2018 was 9.38%, an increase of 1.88% from fiscal year 2017, and its profitability increased.
craftsman spirit, focusing on deep cultivation of chip resistors: Rohm has maintained its leading R&D strength in the field of resistance. In terms of entrepreneurial product resistors, the company developed the world's earliest rectangular chip resistor in 1976, and then continuously made breakthroughs to develop high-voltage resistance, ultra-low resistance, surge resistance and high-power chip resistors, which are highly recognized by the market. In 2014, the company also used its original subtle technology to develop the world's smallest-level chip resistor in SMR003 (03015 size), and has achieved mass production, meeting the requirements of smart terminals for ultra-small components that can be installed at high density. At present, the company is developing towards smaller SMR002 (0201 size) chip resistors, in order to continuously innovate and lead the development of the resistor industry. Adhere to cutting-edge technology to lead the industry's development and the company has strong innovation capabilities. Rom has set up 12 design centers around the world to recruit top technicians to develop and design new products. In recent years, the company's products have made significant achievements in sensors, automotive electronics, mobile devices and simulation solutions. For example, in automotive electronics, the company developed the world's first dual-trench structure SiC-MOSFET to reduce energy consumption and achieved mass production, and the loss of the new generation of SiC-MOSFET switches is 73% lower than that of Sic-IGBT. In addition, the company has set up 10 QA centers around the world to implement the corporate policy of "quality first".
5 Kyocera—The King of Electronic Ceramics
Company Overview: Business blossomed in multiple points, and performance achieved steady growth. Kyocera Corporation (KYOCERA Corporation) was established on April 1, 1959. Its founder is the world's famous industrialist Kazuo Inamori . It is a world-leading high-tech product supplier, mainly engaged in precision ceramic parts, semiconductor parts and electronic components and other businesses. After about 60 years of growth, Kyocera has developed into one of the world's largest advanced ceramic suppliers. The 50 years of precision ceramics have been continuously improving day by day, making it the world's number one precision ceramic manufacturer. Kazuo Inamori once said that advanced materials will bring future breakthroughs to existing industrial technologies, and precision ceramics will become an important part of future development. Therefore, the company has been improving in this field. Since the development of large-scale ceramic multi-layer packaging for integrated circuits in 1972, it has been leading the new materials revolution. At present, the company can provide more than 200 ceramic materials, with high-purity, ultra-fine and high-performance ceramic powder manufacturing technology and processes, as well as large sintering kilns and advanced molding, processing and design technologies. The company's bioceramics, dielectric ceramics, electronic ceramics, metal cermets, microwave dielectric ceramics and sheet multi-layer ceramics have high strength, high biocompatibility and durability, which has greatly promoted the development of industries such as industrial, semiconductors, medical equipment, electronics and environmental protection.
Kyocera has been deeply engaged in its main business for many years and has adopted a strategy of diversified expansion and global expansion. Revenue and net profit have shown a steady growth trend. Since fiscal year 2018, the company's operating income has been US$14.234 billion and its net profit attributable to shareholders is US$738 million.In addition, the company was listed on the Tokyo Stock Exchange and the New York Stock Exchange in 1972 and 1980.
The company's main business includes three categories: parts business, equipment and system business and other businesses, of which parts account for the largest proportion of 53.9%, and the parts business mainly includes electronic components, semiconductor parts, etc.; the company attaches great importance to R&D, and in recent years, it has developed new products such as ceramic packaging for MEMS sensors, LTCC packaging shells for RF modules, optical communication connectors, ceramic multi-layer substrates for ECUs in automobiles and millimeter-wave radar antenna substrates. As the earliest manufacturer to install LCDs in automobiles, the company's products are constantly iterative and upgraded, and are expected to seize more market share in the consumer, automotive electronics and 5G fields.
The rise of Kyocera can be attributed to two aspects, one is the company's technical moat and its diversified expansion business strategy. The company began to produce precision ceramics in the 1960s, mastered the core technology of ceramics early, and completed the vertical integrated layout from materials to devices, forming the company's core competitiveness. In addition, the company is actively making arrangements, continuously integrating industrial chain technology and customer resources through external mergers and acquisitions to expand its business, and conducting a global market layout, and its performance has been continuously improved. In addition, the company's original Amoeba business model has cultivated countless "cleans" of managers, solving problems such as inefficiency and high management costs under the top-down hierarchical structure of traditional enterprises, and greatly improving the operating efficiency of enterprises. On the other hand, Japan's domestic policy support and international market environment also bring major development opportunities to enterprises. Japan's trade policy support for the domestic electronics industry is an important factor in the rise of the company. In the 1960s and 1970s, the Japanese government reformed the import tariff structure and adopted a lower tariff level on raw materials, while high tariffs on electronic products with higher production in the country, setting up import trade barriers, and protecting domestic enterprises to promote growth. The company was in its early stages of development at that time and rose rapidly with the rapid development of the industry. Moreover, Europe suffered severe damage after World War II, and its electronics industry could hardly pose a threat to Japanese manufacturers. However, in the face of the huge demand in the US market, strong purchasing power, and high product demand, which also brought huge opportunities for the company's development.
3. Learn from Japan, domestic passive components break through
1 domestic passive components independent controllable
China's electronics industry started late and had weak foundations. Passive components are mainly low-end products, with limited market share, and they cannot directly compete with foreign giants. After the 2008 financial crisis, all regions around the world suffered varying degrees of impact. In addition, with the rise of smartphones and 4G networks, China's electronic consumer market has become the main force in the world, and the passive component industry has grown rapidly. Due to the consideration of labor costs and proximity to the downstream consumer market, major giants have chosen to build factories in China. The shift in global focus has brought about a large migration of production capacity, and has also brought about technological innovation and the introduction of talents. With the rise of emerging markets such as domestic smartphones, 5G, and artificial intelligence, a new round of adjustments and optimization and upgrading of the electronics industry chain has been triggered. To this day, China has become the world's largest electronic equipment manufacturing center and the most consumerized region, and the demand for upstream passive components is relatively optimistic. Drawing on the three factors of Japan's success, domestic passive component manufacturers must focus on their main business, accumulate and continuously explore and accumulate more in terms of materials and processes. High-quality technology-led enterprises are worth paying attention to. The domestic electronics industry will surely upgrade from consumer electronics to high-end fields such as automotive electronics, robotics and aerospace, and also provides a good development opportunity for passive component manufacturers.
2 Sanhuan Group (ceramic capacitor)
was founded in 1992. It is one of the largest production bases for advanced technology ceramics and electronic components in the country. Based on advanced ceramic technology, its products cover optical communications, electronics, machinery, electrical engineering, energy conservation and environmental protection, and new energy applications. The company integrates the research and development and manufacturing of materials, products and equipment, and has strong vertical integrated operation competitiveness. The company has established a research and development system with the research institute as the core and combining technical courses of various business departments, and its R&D strength is in the leading position in the industry. After 40 years of deep-rooted work, the company has been selected as one of the top 100 electronic components companies in China for 29 consecutive years.In 2017, the company's operating income was 3.13 billion yuan, and the net profit attributable to shareholders was 1.003 billion yuan after deducting non-operating items. In Q1 2018, it returned to growth, with a growth rate of up to 19%. The company's gross profit margin has increased year by year, exceeding 50% in Q1 2018, at the leading level in the industry, with a net profit margin of about 31%.
3 Fara Electronics (film capacitor)
Fara Electronics was founded in 1955 and began to manufacture film capacitors in 1967. For more than 50 years, it has been focusing on the research and development, production and sales of film capacitors, and has strong technical strength and is at the top level in the industry. The company is currently the largest and top five thin film capacitor manufacturer in China. In 2017, the company's operating income was 1.698 billion yuan, an increase of 11.06% year-on-year, and the net profit attributable to shareholders after deducting non-operating items was 394 million yuan, an increase of 4.18% year-on-year. In 201, its revenue share in the three major areas of traditional home appliances and lighting market, new energy vehicles, wind power and photovoltaic power generation was 69%, 11%, and 20% respectively. Film capacitors are widely used in batteries, motors and electronic controls of electric vehicles, and the application of film capacitors in new energy vehicles will become a trend. The company's R&D is extremely forward-looking and original, and is in sync with international leadership. According to market demand and industry development forecasts, at least 3 new products are successfully launched on the market every year. At present, film capacitors for new energy are its most important research and development direction.
4 Shunluo Electronics (Inductor)
was established in 2000. It is a national high-tech enterprise, a national key "Torch" plan and a national "863" plan project undertaking enterprise. The company specializes in the research, development, production and sales of various chip electronic components, and its main products include stacked chip inductors, winding chip inductors, wireless charging coil components and other electronic components. The products are widely used in communications, consumer electronics, and automotive electronics fields. In 2017, the operating income was 1.988 billion yuan, and the net profit attributable to shareholders was 246 million yuan after deducting non-operating items. Adhering to the dual driving mechanism of product development and market development, the company takes two steps to help its development. In terms of products, the company began to advance the development of new products such as ultra-micro RF inductors, various ultra-thin wireless charging coils, automotive transformers, microwave dielectric filters, etc., and acquired Dongguan Xinbo, which produces high-performance ceramic materials, to integrate upstream resources and promote modular integration between products. In terms of application fields, the company plans to continue to expand from communications and consumer electronics to automotive electronics, wireless charging, 5G and fine ceramics. At present, the company has obtained the world's top three automotive electronics manufacturer system certification and product certification, and has obtained qualified supplier qualifications.
5 Aihua Group (Aluminum Electrolytic Capacitor)
Aihua Group was established in 1985. It is a technology-based enterprise integrating the design, development, manufacturing and sales of aluminum electrolytic capacitors, and collector foil and equipment manufacturing. The company has a complete industrial chain of "corrosion foil + chemical foil + electrolyte + special equipment + aluminum electrolytic capacitors", among which corrosion foil + chemical foil is the core technology of electrode foil manufacturing. Electrode foil is a key basic material for producing aluminum electrolytic capacitors. It is used to carry charges and accounts for 30%-60% of the production cost. Therefore, the quality of the electrode foil process determines the performance and technical capabilities of the aluminum electrolytic capacitors. The company's products are used in energy-saving lighting, industrial equipment, inverters, and consumer electronics fields. The company's market share in the global mid-to-high-end energy-saving lighting field has exceeded 60%.
