Silicon Capacitors: Growing Penetration through Diverse Industries
The role of capacitors in modern electronics ranges from filtering out unwanted signals and delaying voltage fluctuations, to storing electric charges. The dielectric material used in capacitors is the workhorse upon which their specific application in an electronic circuit is decided. Silicon is gaining immense popularity as a capacitor dielectric material, owing to its high temperature stability and low failure rates, in various electronic devices.
High-density capacitors with silicon-based dielectrics, such as silicon nitride and silicon dioxide, are witnessing high demand across broad-ranging industrial applications, underlining the positive prospects of the silicon capacitors market.
In addition, a mounting number of end-use industries have identified their potential in the miniaturization of electronic devices, and this has opened up new avenues of growth for silicon capacitors in diverse applications. A new study published by Transparency Market Research (TMR) dives deep into the changing business strategies of the leading manufacturers and distributors in this market, to divulge winning imperatives for stakeholders and investors in the silicon capacitors landscape.
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Silicon Capacitors to Get their Second Wind from the Multi-layer Ceramic Capacitor Shortage
Silicon capacitors hitherto have witnessed strong competition from multi-layer ceramic chip capacitors (MLCCs), especially in high-frequency applications. A rise of nearly 8% was recorded in the global sales of silicon capacitors; sales increased from around 1.6 billion units in 2017 to over 1.7 billion units in 2018. However, end-use industries are in a dither with a worldwide shortage of MLCCs, as they are an essential component in most electronic devices.
The underlying causes of MLCC shortage include the cost-down pressure on the production of large case size components. Another factor that is exacerbating the shortage is the limited number of companies that manufacture MLCCs, and though they are expanding their production capacities, this will only provide near-term relief, and not suffice the needs of tomorrow. The gap between supply and demand for MLCCs will only widen in the coming years, and this will reflect in an unprecedented rise in their lead times and prices as time goes by.
Eventually, manufacturers are likely to focus their upcoming strategies on smaller case sizes to capitalize on the growth of high-reliability end-use industries such as healthcare and automotive. Not only manufacturers, end users will also shift to cheaper and thinner-layer alternatives of MLCCs, i.e. silicon capacitors. With the increasing possibility of silicon capacitors replacing MLCCs, their global sales are likely to increase by over 8.5% in 2019, surpassing a market valuation of US$ 1.6 billion.
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Immense Potential for Miniaturization Triggers Scope in Versatile Applications
As the electronics industry is converging with a broad range of other industrial verticals, such as automotive, healthcare, and telecommunication, the miniaturization trend is becoming ubiquitous. The growing penetration of miniaturized electronic devices is expected to create high demand for capacitors with thinner dielectric film than ever, which is likely to rapidly multiply the sales of silicon capacitors in the coming years.
The market for miniaturized electronic devices is growing by leaps and bounds, and this is generating tremendous sales potential for silicon capacitors in a wide range of end-use industries, especially in the telecommunication industry. Nearly 4 out of the 10 silicon capacitors sold across the world are used in telecommunication devices.
The demand for miniaturized, thin-film transmission lines with high RF (radio frequency) performance has reached new heights, and thereby, the telecommunication industry is expected to account for a significant revenue share of the silicon capacitors market in the coming years.
The miniaturization trend has also spread across the healthcare sector, and advanced medical technologies are being incorporated to make implantable devices even smaller. Recent trends in the medical implantable electronics landscape are creating new growth avenues for the manufacturers of medical-grade silicon capacitors in the healthcare sector.
In 2018, at least one out of the three silicon capacitors that entered the market was used in medical devices and other healthcare applications, and this trend is likely to grow stronger in the coming decade.
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Threat from Alternatives as Limitations on Maximum Capacitance and Charge Leakage Persist
With high insulation resistance and temperature stability, silicon capacitors are creating a new place in the modern electronics industry. However, low capacitance range and high charge leakage issues in silicon capacitors continue to create challenges for manufacturers to maintain the standard of quality. Despite the use of deep trenches, the problem of charge leakage persists in silicon capacitors, which is driving end users to look for more efficient dielectrics in capacitors.
While the need to work on the shortcomings of the existing fabrication and implementation procedures persists, end users are likely to explore alternative dielectrics for silicon in capacitors, which may impact market growth in the future.
Analysis on the Competitive Landscape of the Silicon Capacitors Market
In a moderately consolidated space as the silicon capacitors market, leading companies such as Murata Manufacturing Co. Ltd. and Taiwan Semiconductor Manufacturing Company (TSMC) Limited account for nearly 60% revenue share. Market leaders are critically mapping their investment strategies in product innovation and production expansion.
For instance, after acquiring IPDiA – a leading manufacturer of 3-D silicon capacitors, Murata Manufacturing has been focusing on expanding its production capacity of ceramic capacitors to meet the overwhelming demand, especially in factory automation. In 2018, TSMC continued to invest in research & development (R&D), equaling its total R&D expenditures to around 8% of its revenue.
Meanwhile, other major competitors in the silicon capacitors landscape, including Vishay Intertechnology Inc. and MACOM Technology Solutions Holdings Inc., hold nearly 25% share in this market. Manufacturers are focusing on introducing innovative features in silicon capacitors in order to establish a stronger position in mainstream markets such as automotive and telecommunication. For instance, in November 2018, Vishay Intertechnology announced the launch of its new series of high voltage ENYCAP™ electrical double-layer energy storage capacitors that can be used in harsh environments for power backup and energy storage applications.
Silicon Capacitor: Definition/Overview
- Silicon capacitors are passive devices that are used in specific applications related to medical, radio frequency, aerospace, circuit decoupling, automotive, and electrostatic discharge protection. These capacitors are used across a wide variety of products, ranging from smartphones to tablets and medical devices. The rising demand for different types of silicon capacitors in telecommunication, healthcare, and automotive industries is expected to drive the global silicon capacitors market during the forecast period.
- Growth of the global silicon capacitors market is attributable to incessant efforts by manufacturers and suppliers to deliver inexpensive components. The telecommunication, healthcare, and military & defense industries are likely to greatly benefit from the use of silicon capacitors in the near future.
- Moreover, the rising need for the miniaturization of electronic devices and growing requirement for high-power telecommunication devices are projected to propel the demand for silicon capacitors in the next few years.
Global Silicon Capacitors Market: Regional Overview
- North America is expected to hold a substantial share of the global silicon capacitors market during the forecast period, due to the early adoption of silicon capacitors in the region. South America and MEA hold minor market shares each. However, these regions are projected to provide lucrative opportunities to the silicon capacitors market during the forecast period.
- On the other hand, developing countries in Asia Pacific, which are undergoing modernization and adopting advanced telecommunication devices with new technology, are also witnessing an increase in the demand for silicon capacitors. This, in turn, is driving the global silicon capacitors market.
Global Silicon Capacitors Market: Trends
- GaN semiconductor devices are widely being recognized by different industries as a green technology. In a specific range of applications, this technology is gaining popularity in game controllers, tablets, laptops, mobile phones, electric vehicles, and other commodity products. This, in turn, is expected to boost the global silicon capacitors market during the forecast period.
- Moreover, increasing elderly population and growing demand for silicon device-based automotive equipment are the key factors expected to boost the global silicon capacitors market in the next few years.
Global Silicon Capacitors Market: Drivers, Opportunities, and Restraints
- Silicon capacitors reduce the dimensions of electronic boards. Modern trends show that, aerospace and defense component manufacturers are showing inclination toward the miniaturization of components. This factor is expected to increase the adoption of silicon capacitors in the next few years. Growth of the aerospace & defense sector in emerging markets is likely to drive the silicon capacitors market in the next few years.
- Rising attention toward high-energy and compact-size capacitors for use in implantable cardioverter defibrillator applications is the latest trend in the market. Thus, the increasing demand for silicon capacitors by major manufacturers of medical devices is projected to drive the market for silicon capacitors during the forecast period.
- Moreover, key players are also developing energy-efficient and compact-sized silicon capacitor solutions that can be effectively used in consumer electronic devices, wherein, space is a primary constraint and efficient power utilization is pivotal. This can lead to the introduction of advanced silicon capacitor solutions in the market. This is expected to fuel the global silicon capacitors market during the forecast period.
- On the flip side, complexity of the manufacturing process and the rising cost of raw materials are factors expected to hinder the global silicon capacitors market during the forecast period.
Global Silicon Capacitors Market: Key Segments
The global silicon capacitors market has been segmented based on structure, sales channel, end-use industry, and region.
- Structure
- In terms of structure, the global silicon capacitor market has been segregated into deep-trench capacitors, MNOS capacitors, and MIS capacitors.
- The deep-trench capacitors segment was the dominant segment of the global silicon capacitor market in 2018.
- Rising investments and growing use in DC-DC converter and RF-based GaN applications are key factors expected to drive the global silicon capacitors market during the forecast period.
- Sales Channel
- Based on sales channel, the global silicon capacitors market has been bifurcated into online and offline.
- Original equipment manufacturers (OEMs) are preferring the offline sales channel. However, there exists an opportunity for retailers, both, online and offline, to address the needs of customers from different end-use industries. This factor is expected to boost the offline sales channel segment in the next few years.
- End-use industry
- In terms of end-user industry, the silicon capacitors market has been classified into automotive, telecommunication, healthcare, aerospace & defense, and others.
- The telecommunication segment dominates the global silicon capacitors market, and is projected to continue its dominance throughout the forecast period.
- The growing need for silicon-capacitor-based telecommunication equipment is adding to the potential consumer base for silicon capacitors. This factor is expected to drive the global silicon capacitors market during the forecast period.
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Global Silicon Capacitors Market: Competition Dynamics
- Attracted by the growth of the global silicon capacitors market and the underlying latent demand for silicon capacitors, several competitors operating in the global silicon capacitors market are expanding their businesses by means of new product development, strategic mergers and acquisitions, and partnerships.
- In October 2016, Murata Manufacturing Co., Ltd. Acquired IPDiA, a leading player in the field of high-performance silicon capacitors. The move is expected to create opportunities for Murata to develop a new consumer base across different parts of the globe.
Some of the well-known players operating in the global silicon capacitors market are
- Arrow Electronics, Inc.
- Murata Manufacturing Co., Ltd.
- MACOM Technologies
- Microsemi Corporation
- Skyworks Solutions, Inc.
- Taiwan Semiconductor Manufacturing Company
- Vishay
- AVX Corporation.
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