Taiwan-based aluminium capacitor manufacturers may witness strong Q1 in 2022

According to industry insiders, Taiwan-based aluminium electrolytic capacitors manufacturers (such as Apaq Technology, Lelon Electronics, and Taiwan Chinsan Electronic) are poised to have a very successful first quarter of 2022 despite constrained availability of upstream materials.

The three companies' sales all set new monthly highs in December 2021, and they're likely to keep growing in the first quarter of 2022, according to the sources, as supply of aluminium electrolytic capacitors falls short of demand in the first half of the year.

According to the sources, starting the second half of 2021, the world's main aluminium electrolytic capacitor providers Chemi-con, Nichicon, Rubycon, and Panasonic, all located in Japan, have all increased their delivery lead times for shipments to clients to over 20 weeks. Many orders have been shifted to large suppliers in Taiwan and China since the situation has not changed.

Capacitor producers in Taiwan and China continue to see robust demand for server, automotive, high-end graphics card, display card, and energy applications, according to the sources, while demand for TV and laptop power applications has slowed.

The producers will have the opportunity to boost their pricing to reflect increased manufacturing costs resulting from growing Chinese electricity rates, international aluminium prices remaining high at US$2,800-3,200 per metric tonne, and ever-increasing shipping and labour expenses, according to the sources.