Ceramic Dielectric Materials: World Markets, Technologies & Opportunities:

Transcription

1 Ceramic Dielectric Materials: World Markets, Technologies & Opportunities: Paumanok Publications, Inc. 502 Ballad Creek Court Cary, NC USA (919) (919) Fax Written by: Dennis M. Zogbi, CEO and Founder Pages; $ USD ISBN: (2012)

2 Ceramic Dielectric Materials: World Markets, Technologies & Opportunities: Published May 2012 Price: $ USD Pages: 223 ISBN ISBN: Paumanok Publications, Inc. Prior Versions: 1998, 2002,

3 Copyright 2012 Paumanok Publications, Inc. Published by: Paumanok Publications, Inc. Publication Date: May 2012 Paumanok Publications, Inc. 502 Ballad Creek Court Cary NC, USA Customer Service: (919) It is our mission to empower manufacturers, distributors, OEM, EMS, financial institutions and governments with unbiased market research to protect their assets, build their wealth and prosper in goods times and bad. All rights reserved. Permission to reprint materials is expressly prohibited without the prior written consent of Paumanok Publications, Inc.. The accuracy of the data used is deemed reliable but not guaranteed. There is no assurance that past performance will be repeated in the future. 2

4 Table Of Contents: ABOUT THE AUTHOR: RESEARCH METHODOLOGY EMPLOYED: THE PAUMANOK RESEARCH METHODOLOGY: GOVERNMENT DATA COLLECTION AND RESOURCES: SECONDARY PUBLISHED SOURCES: PRIMARY INTELLIGENCE GATHERING: THE PASSIVE COMPONENT SUPPLY CHAIN: MINING OF RAW MATERIALS: RAW MATERIALS PROCESSING: COMPONENT MANUFACTURING: COMPONENT DISTRIBUTION: END- MARKET CONSUMPTION: RECYCLING OF CRITICAL MATERIALS: TECHNICAL ECONOMIC MAXIMS RELATED TO PASSIVE ELECTRONIC COMPONENTS: THE TWO TECHNICAL ECONOMIC MAXIMS ASSOCIATED WITH PASSIVE COMPONENTS: UBIQUITOUS NATURE OF PASSIVE COMPONENTS: RELATIONSHIP BETWEEN CAPACITANCE AND AVAILABLE SURFACE AREA: FINANCIAL CONSIDERATIONS WITH RESPECT TO THIS REPORT: THE FISCAL YEAR ENDING MARCH 31, CURRENCY TRANSLATION VOLUME, VALUE AND PRICING DATA: SPECIFIC RESEARCH METHODOLOGY APPLIED TO DIELECTRIC MATERIALS: CERAMIC DIELECTRIC MATERIALS: INTRODUCTION HOW CERAMIC DIELECTRIC MATERIALS ARE USED: TECHNICAL ECONOMICS OF CERAMIC DIELECTRIC MATERIALS: Scientific Maxim #1: Capacitance & Surface Area: Why Ceramic Capacitors Are So Economical:

5 IMPORTANCE OF RAW MATERIALS (BARIUM CARBONATE AND TITANIUM DIOXIDE) INDUSTRY SNAPSHOT: UNDERSTANDING THE SUPPLY CHAIN FOR CERAMIC DIELECTRIC MATERIALS: Supply Chain Map Of The Ceramic Dielectric Materials Industry: 2012: Mining: Processing: Formulation: MERCHANT & CAPTIVE SUPPLY CHAIN MAPPING: BARIUM FEEDSTOCKS: BARITE MINING OPERATIONS & PRODUCTION OUTPUT: Introduction to Barites: Change In The Global Barite Markets: FY FY 2012: Applications for Barites: Global Shipment Volume For Barites: FY 2011 to FY 2012 (In 000 MT): Global Shipment Value For Barites: FY 2011 to FY 2012 (In MM USD) Average Global Price for Barites: FY FY 2012 Price per Kg in USD: Global Barite Mining Output Volume by Country: FY 2012: Global Barite Mining Output Value by Country of Origin: FY 2012: Average Unit Pricing For Barite By Country: FY 2012: Price Comparison for Barites by Country of Origin: FY Price Increases for Barite: FY FY 2012: Changes In The Fundamental Supply Structure for Barites: FY FY 2012: Top Barite Mining Operations By Country: FY 2012: Key Developments for Barite By Country: FY China: India: Morocco: USA: Turkey: Peru: Global Market Outlook for Barites: FY : TITANIUM FEEDSTOCKS: TITANIUM MINING OPERATIONS & PRODUCTION OUTPUT: Introduction to Titanium: Change In The Global Titanium Feedstock Markets: FY FY 2012:

6 Applications for Titanium Feedstock Materials: Global Shipment Volume For Titanium Feedstocks: FY 2011 to FY 2012 (In 000 MT): Global Shipment Value For Titanium Feedstocks: FY 2011 to FY 2012 (In MM USD) Average Global Price for Titanium Feedstocks: FY FY 2012 Price per Kg in USD: Global Titanium Mining Output Volume by Country: FY 2012: Global Titanium Mining Output Value by Country: FY 2012: Average Unit Pricing For Titanium Feedstocks By Country of Origin: FY 2012: Price Comparison for Titanium Feedstocks by Country of Origin: FY Changes In The Fundamental Supply Structure for Titanium Feedstocks: FY FY 2012: Top Titanium Feedstock Mining Operations By Country: FY 2012: Key Developments for Titanium Feedstocks By Country: FY Australia: South Africa: Canada: India: Mozambique: China: Vietnam: Global Market Shares in Titanium Feedstock Supply: FY 2012: Global Market Outlook for Titanium Feedstocks: FY : BARIUM CARBONATE AND TITANIUM DIOXIDE: ENGINEERED MATERIALS: Barium Carbonate Supply To The Global Market: FY Consolidation of Global Market Capacity: Top Vendors of Barium Carbonate To The Global Market: FY Barium Carbonate Vendors by Country of Origin: FY Barium, Titanium and Additive Powders Consumed In Barium Titanate By Weight: Barium Carbonate Consumption In Ceramic Dielectric Materials: Value, Volume: and Pricing High Purity Barium Carbonate For Electronics: World Markets: Titanium Dioxide Processing: Titanium Dioxide Market Size: FY Titanium Dioxide Market Shares: FY High Purity Titanium Dioxide Markets In Electronic Components: FY Merchant versus Captive Supply of High Purity Titanium Dioxide: FY

7 High Purity Titanium Dioxide Suppliers To The Electronic Component Industry: FY 2012 Market Shares THE GLOBAL MARKET FOR CERAMIC DIELECTRIC MATERIALS: DEFINITION OF CERAMIC DIELECTRIC MATERIALS INCLUDED IN THIS REPORT GLOBAL CONSUMPTION VOLUME FOR CERAMIC DIELECTRIC MATERIALS: Global Market Size and Five Year Forecasts: Global Market Volume For Ceramic Dielectric Materials: FY FY 2012 (In Millions of USD) Global Market Value For Ceramic Dielectric Materials: FY FY 2012 (In Millions of USD): Average Price Per Ton For Ceramic Dielectric Materials: FY FY 2012 (In USD): CAPTIVE VERSUS MERCHANT MARKETS: CAPTIVE VERSUS MERCHANT MARKET FOR CERAMIC DIELECTRIC MATERIALS: FY Captive Versus Merchant Markets: Description: Captive Market For Ceramic Dielectric Materials: Captive Market: A Description Of Ceramic Dielectric Materials Produced: Why Companies Produce Ceramic Dielectric Materials Captively: Captive Market: Barium Titanate: Captive Market: Formulations: Captive Market: Additives: Captive Market For Ceramic Dielectric Materials: Production Volumes: MERCHANT MARKET FOR CERAMIC DIELECTRIC MATERIALS: Merchant Market: A Description Of Ceramic Dielectric Materials Produced: Merchant Market: Barium Titanate: Merchant Market: Formulations: Merchant Market: Additives: Merchant Market Reliance; and Captive Production of Ceramic Dielectric Materials By Ceramic Component Manufacturer: 2012 FY Ceramic Dielectric Material Consumption By Capacitor Manufacturer: Merchant Versus Captive: FY 2012 Estimates Regional Consumption of Ceramic Dielectric Materials: FY 2012 (In Tons): GLOBAL CONSUMPTION VOLUME FOR CERAMIC DIELECTRIC MATERIALS: HISTORICAL (CAPTIVE VERSUS MERCHANT) BARIUM TITANATE, FORMULATIONS AND ADDITIVES OVERVIEW: GLOBAL MARKET VALUE FOR CERAMIC DIELECTRIC MATERIALS (MERCHANT VERSUS CAPTIVE): FY GLOBAL MERCHANT MARKET FOR CERAMIC DIELECTRIC MATERIALS BY TYPE (BARIUM TITANATE, FORMULATIONS AND ADDITIVES): FY Changes in The Value of Demand for Barium Titanate, Formulations and Additives: PROFITABILITY INDEX BY SEGMENT (BARIUM TITANATE, FORMULATIONS, ADDITIVES):

8 Additives Business Segment: Formulations Business Segment: Barium Titanate Business Segment: Competitive Environment in Ceramic Dielectric Materials: FY CERAMIC DIELECTRIC MATERIAL VENDORS: OVERALL 2012 SALES & MARKET SHARES Ceramic Dielectric Materials: Market Shares: BARIUM TITANATE MARKET: Global Barium Titanate Consumption Value By Type: 2012 (Oxalate, Hydrothermal, BCZT, Solid State and Sol- Gel) Merchant Market For Chemical Oxalate Materials: FY 2012 Estimates: Merchant Market For Hydrothermal Materials: FY 2012 Estimates Merchant Market For BCZT Process Materials: FY 2012: Merchant Market For Solid- State Materials: FY Merchant Market For Sol- Gel Derived Materials: FY World Market For Barium Titanate By Materials Development Process: FY Pricing For Barium Titanate In The Merchant Market By Type: 2008 (Solid State, Oxalate, BCZT, Hydrothermal and Sol- Gel): Merchant Market Volume of Barium Titanate Consumption By Type: FY Global Merchant Market Shares In Barium Titanate Supply To The Ceramic Capacitor Industry: COMPETITIVE INTELLIGENCE IN BARIUM TITANATE: FY Sakai Chemical Nippon Chemical Industrial: KCM Corporation: Fuji Titanium: Samsung Fine Chemical: Ferro Corporation: Sinocera: Prosperity Dielectrics: FORMULATION MARKET: CERAMIC DIELECTRIC FORMULATIONS: GLOBAL MARKET OVERVIEW: FY Definitions: Captive Consumption Of BT In Formulations: The X7R/X5R Formulations Market: The COG Formulations Market: FY The Y5V Formulations Market: FY

9 Ceramic Dielectric Formulation Suppliers To The Global Merchant Market: FY 2012 Estimated Market Shares Worldwide COMPETITIVE INTELLIGENCE ON FORMULATIONS VENDORS: FY Ferro Corporation: TOHO Titanium: Prosperity Dielectrics: Fuji Titanium: KCM Corporation: MRA Labs: Sinocera: Certronic TPL Industries ADDITIVES MARKET: THE GLOBAL ADDITIVES MARKET: FY Ceramic Dielectric Additivce Suppliers To The Global Merchant Market: FY 2012 Estimated Market Shares Worldwide CERAMIC CAPACITORS: COSTS TO PRODUCE: CERAMIC CAPACITORS: COSTS TO PRODUCE Ceramic Capacitors; Cost of Goods Sold Versus Operating Margin: FY Cost of Goods Sold: Raw Materials: Fixed Costs: Variable Overhead: Variable Labor: Variable Manufacturing Costs: Ceramic Capacitors: Raw Materials Breakdown: Ceramic Dielectric Materials: Electrode Materials: Termination Materials: Assembly Materials: Packaging Materials: Notes on Ceramic Capacitor Yield Ratios: High Cap Ceramics: Low Cap Ceramics:

10 Specialty Ceramics: Best Practices In Cost Savings For Ceramic Capacitors: CERAMIC CAPACITOR MARKET UPDATE AND FORECASTS: FY CERAMIC CAPACITOR MARKET OVERVIEW: Global Value, Volume and Pricing For Ceramic Capacitors: FY2012 Estimate Global Value of Ceramic Capacitor Consumption: FY 2012 and % Changes Impact of Recent Events On The Value of Ceramic Capacitor Shipments for FY Quarterly Ceramic Capacitor Shipment Data For FY 2012: Impact of Flooding in Thailand: Impact of Tohuku Japan Quake: Impact of The European Economic Crisis: Impact of Excess Distributor Inventory Levels: Year Analysis of Global Ceramic Capacitor Shipment Value: FY Revenue Forecasts for Ceramic Capacitors By Quarter: Forecasts for Ceramic Capacitor Consumption Based Upon Dollar Value: Global Volume of Ceramic Capacitor Consumption: FY 2012 and % Changes: Year Volume of Consumption For Ceramic Capacitors: Forecasts: Global Volume of Consumption for Ceramic Capacitors: : Global Average Unit Selling Price for Ceramic Capacitors: FY 2012 and % Changes Year Average Unit Price Trend for Ceramic Capacitors: : Forecasts: Average Unit Price Forecast for Ceramic Capacitors: CERAMIC CAPACITORS: GLOBAL MARKET SHARES: Ceramic Capacitor Vendors: Detailed Market Shares: FY Market Shares For The Top Four Ceramic Capacitor Manufacturers By Quarter: CERAMIC CAPACITOR VENDORS: CAPACITY EXPANSION PLANS: Global Capacity Expansion In Ceramic Capacitors: FY : Excess Capacity In The Global Ceramic Capacitor Business: : CERAMIC CAPACITORS: END- USE MARKET TRENDS & FORECASTS TO Ceramic Capacitor Consumption Volume By End- Use Market Segment: FY Wireless Handset Markets: 2011 Performance & 2012 Outlook: Computer & Peripherals: 2011 Performance & 2012 Outlook: TV Sets: 2011 Performance & 2012 Outlook: Automotive: 2011 Performance & 2012 Outlook:

11 Industrial & Specialty: 2011 Performance & 2012 Outlook: Other Consumer AV Markets: 2011 Performance & 2012 Outlook: Forecasts: Ceramic Capacitor Consumption Volume By Product Line: : Forecast: Projected Output of Key End- Products Consuming Ceramic Capacitors: Average Ceramic Capacitor Content By Key End- Product: CERAMIC CAPACITORS: DEMAND BY COMPONENT TYPE: Ceramic Capacitors: Demand By Type: High Capacitance Ceramic Capacitor Markets 1.0 to 100 Microfarad: Low Capacitance Ceramic Capacitor Markets: Picofarad Markets: Forecasts: Ceramic Capacitor Consumption By Type (High Capacitance Versus Low Capacitance): CERAMIC CAPACITORS: DEMAND BY COMPONENT CONFIGURATION TO Global Ceramic Capacitor Consumption Value by Configuration: Multilayered Ceramic Chip Markets: Single Layered Disc Markets: Multilayered Ceramic Radial Leaded Markets: Multilayered Ceramic Axial Leaded Markets: Multichip Capacitor Array Markets: Forecasts for Ceramic Capacitor Consumption By Configuration: CERAMIC CAPACITORS: DEMAND BY COMPONENT PERFORMANCE CRITERIA TO Performance Characteristic (X7R, X5R,Y5V, NPO, Additional Variations) X7R Capacitor Markets: X5R Capacitor Markets: Y5V Capacitor Markets: NPO Capacitor Markets: Other Capacitor Markets With Respect To Performance: Forecast: Ceramic Capacitor Consumption Forecasts by Performance Characteristics: MLCC: DEMAND BY CASE SIZE TO Ceramic Capacitor Demand By Case Size: Dielectrics In Motion: MLCC Consumption Forecasts By Case Size: MAJOR FACTORY LOCATIONS PRODUCING CERAMIC CAPACITORS & CONSUMING DIELECTRIC MATERIALS: FY Chinese Production of Ceramic Capacitors: Japanese Production of Ceramic Capacitors: USA Production of Ceramic Capacitors:

12 Korean Production of Ceramic Capacitors: Singapore Production of Ceramic Capacitors: Mexico Production of Ceramic Capacitors: Philippines Production of Ceramic Capacitors: Malaysia Production of Ceramic Capacitors: PTC THERMISTORS: GLOBAL MARKET UPDATE AND FORECASTS: FY Ceramic PTC Construction (Barium Titanate) HISTORICAL GLOBAL CONSUMPTION VOLUME FOR PTC THERMISTORS BY TYPE: (POLYMER VERSUS CERAMIC) Global PTC Thermistor Consumption Volume By Type (Polymer Versus Ceramic): Ten Year Market Summary: Global PTC Thermistor Consumption Volume, Value and Pricing By Type (Polymer Versus Ceramic): The PTC Thermistor Argument (Ceramic vs. Polymer) Global Markets For PTC Thermistors By Applications (Overcurrent, Switch, Sensing) Global Consumption Value for PTC Thermistors By Application: Applications for PTC Thermistors by End- Use Market Segment: Ceramic PTC Thermistor Vendors: 2010 Market Shares CERAMIC DIELECTRIC MATERIALS: TECHNOLOGY TRENDS AND DIRECTION: Technology Correlation With Thin Ceramic Layers: Dielectric Layer Thicknesses Achieved by Various Process Methods for Barium Titanate: Dielectric Layer Thicknesses Achieved by Various Process Methods for Barium Titanate: Technology Roadmap for MLCC Dielectric Layer Thickness: FY Correlation Between Dielectric Layer Thickness and Barium Titanate Particle Size and Outlook to 2017: Future Focus of Ceramic Dielectric Materials Technology Improvements Improving The Purity of Precursors: Improving Fired Dielectric Thickness Capabilities: Improving Particle Size Shape and Consistency: Reducing Agglomeration in BTO Powders (NanoOxalate Development) Developments in Micro- emulsion Synthesis of Barium Titanate: Improving Powder Dispersion In Slurry: Improving Electrode Matching & Leach Prevention: Improving Tape Yield Ratios: FORECASTS FOR CERAMIC DIELECTRIC MATERIAL CONSUMPTION: FY Forecast: Global VOLUME of Ceramic Dielectric Material Consumption: FY Forecast: Global VALUE of Ceramic Dielectric Material Consumption: FY Forecast: Global PRICE Per Ton of Ceramic Dielectric Material: FY :

13 Forecast: Global Volume of Consumption For Ceramic Dielectric Materials (Merchant Versus Captive) FY : Forecast: Global Value of Consumption For Ceramic Dielectric Materials (Merchant Versus Captive) FY : Forecast: Global Merchant Market Value of Consumption For Ceramic Dielectric Materials By Type (Barium Titanate, Formulations and Additives) FY Forecast: Global Value of Consumption For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY : Forecast: Global Volume of Consumption For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY : Forecast: Global Pricing Forecast For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY Forecast: Global Value of Consumption For Formulations By Type (X7R/X5R, COG, Y5V, Other): FY : RESOURCES: Ado Mining Industry and Trade Co. (Barite Mining) Alfa Aesar (High Purity Barium Carbonate) A.P. Mineral Development Corp. Ltd. (Barite Mining) Baroid Drilling (Rossi Mine) {Haliburton} (Barite Mining) Baker- Hughes Inteq (Argenta Mine) (Barite Mining) Barit Maden Turk AS (Barite Mining) Bemax Resources Limited (Bemax) (Titanium Feedstock) Broychim s.a.r.l. (Barite Mining) Certronic Industria e Comercio Ltda. (Barium Titanate, Additives) Chongqing Forstar Chemical Co., Ltd. (High Purity Barium Carbonate, Additives) Chongqing Huaqi Fine Chemical Co., Ltd. (High Purity Barium Carbonate, Additives) Chongqing Southern Chemicals Co., Ltd. (Barium Carbonate, Titanium Dioxide, Barium Titanate) CPC Barium (Chemical Products Corporation) (High Purity Barium Carbonate) CRISTAL Global (Titanium Feedstock) DuPont Titanium Technologies (High Purity Titanium Dioxide) Ferro Corporation (Barium Titanate, Formulations, Additives) FoShan SongBao Electronic Functional Materials Co.,Ltd. (High Purity Barium Carbonate, Additives) Fuji Titanium Industry Co., Ltd. (ISK Group Subsidiary) (High Purity Titanium Dioxide, Formulations) Guizhou Redstar Development Co., Ltd. (High Purity Barium Carbonate) Hebei Xinji Chemical Group Co., Ltd. (High Purity Barium Carbonate, Additives) Hieu Giang Co. Ltd. (Titanium Feedstock) Hanwha Chemical Corporation (Barium Titanate, Formulations) Hubei Shihua Friendship Chemical Co., Ltd. (High Purity Barium Carbonate) Hutong Global Company Limited (High Purity Barioum Carbonate)

14 JiaRun Fine Chemicals Co., Ltd. (High Purity Titanium Dioxide, High Purity Barium Carbonate, Barium Titanate) HanHua Specialty Chemicals (Barium Titanate, Barium Carbonate, Titanium Dioxide) Hubei Shihu Tianyou Tech. (High Purity Barium Carbonate) Hunstman International LLC (High Purity Titanium Dioxide) Iluka Resources (Titanium Feedstocks) Indian Rare Earths Limited (IREL) (Titanium Feedstocks) KCM Corporation (Kyoritsu Ceramic Materials Co. Ltd.) (Barium Titanate, Formulations, Additives) Kenmare Resources plc. (Titanium Feedstocks) Kronos Worldwide, Inc. (High Purity Titanium Dioxide) Lorad Chemical Corporation (Barium Titanate) MRA Laboratories, Inc. (Formulations) MI- Swaco (Greystone Mine) (Barite Mining) NanoMaterials Company (Barite Mining) New Riverside Ochre (Barite Mining) Nippon Chemical Industrial (JCI) (High Purity Barium Carbonate, Formulations) Noah Technologies Corporation (Barium Titanate) Pangang Titanium Industry Company Limited (Titanium Feedstocks) Prosperity Dielectrics (PDC/Walsin) (Barium Titanate, Formulations) Rhodia (LiYang) Rare Earth New Materials Company Limited (Solvay Group) (Additives) Richards Bay Minerals (Rio Tinto) (Titanium Feedstocks) Sakai Chemical Industry Company Limited (High Purity Titanium Dioxide, Barium Carbonate, Barium Titanate) Samsung Fine Chemical (SFC) (Barium Titanate, Formulations) Shen Zhou Mining & Resources, Inc. (Barite Mining) Showa Titanium Co., Ltd. (Showa- Denko KK) (High Purity Titanium Dioxide) SinoCera (Shandong Sinocera Functional Material Co Ltd) (Barium Titanate, Formulations) Solvay Chemicals (High Purity Barium Carbonate, Additives) Standard Industrial Minerals (Barite Mining) Sukgyung AT Co., Ltd. (High Purity Barium Carbonate, High Purity Titanium Dioxide, Barium Titanate) Thermograde Process Technology Limited (Barium Titanate) TiWest PTY (Tronox/Exxaro) (High Purity Titanium Dioxide) Toho Titanium Company Limited (High Purity Titanium Dioxide) TPL Industries (Barium Titanate) Tronox Incorporated (High Purity Titanium Dioxide)

15 Vishnu Chemicals Private Limited (Solvay JV) (High Purity Barium Carbonate) Wochem Industry Co., Limited (High Purity Barium Carbonate) Xin Ji Na Xin Electronic Material Co. Ltd. (High Purity Barium Carbonate) Zhanjiang Yasheya Refractories Co. Ltd. (Steinbock) (Barite Mining) Zhashui Heqi Barite Mining Company Limited (Barite Mining) Zhuangli Business Co., Ltd. (Barite Mining) Zibo Boshan Jiqing New Material Co., Ltd. (High Purity Barium Carbonate) LIST OF FIGURES: Figure 1: Supply Chain Map Of The Ceramic Dielectric Materials Industry: FY Figure 2: Mining, Engineering and Composition Supply to The Merchant and Captive Markets Figure 3: Barites: Value, Volume and Average Pricing Change for Barites: FY 2011-FY Figure 4: Global Shipment Volume for Barites: FY 2011-FY 2012 (In 000 MT) Figure 5: Global Shipment Value for Barites: FY 2011-FY 2012 (In MM of USD) Figure 6: Average Global Price Per Kilogram for Barites: FY 2011-FY 2012 (In USD per Kg) Figure 7: Global Mine Output Volume for Barite Materials: FY 2012 By Country of Origin Figure 8: Global Mine Output Value For Barite Materials By Country of Origin: FY Figure 9: Value, Volume and Pricing Summary for Barite By Country of Origin: FY Figure 10: Price Comparison for Barites by Country of Origin: FY Figure 11: Average Unit Price Change for Barite by Country of Origin: FY 2011-FY 2012 (In USD per Kg) Figure 12: Volume, Value and Pricing Increases in Barites Between FY 2011-FY Figure 13: Top Mining Operations Engaged in Barite Extraction by Country: FY Figure 14: Titanium Feedstock :Value, Volume and Average Pricing Change for Titanium: FY 2011-FY Figure 15: Global Shipment Volume for Titanium Feedstocks: FY 2011-FY 2012 (In 000 MT) Figure 16: Global Shipment Value for Titanium Feedstocks FY 2011-FY 2012 (In MM of USD): Figure 17: Average Global Price Per Kilogram for Titanium Feedstocks FY 2011-FY 2012 (In USD per Kg) Figure 18: Global Mine Output Volume for Barite Materials: FY 2012 By Country of Origin Figure 19: Global Mine Output Value For Titanium Feedstock Materials By Country of Origin: FY Figure 20: Value, Volume and Pricing Summary for Titanium Feedstocks By Country of Origin: FY Figure 21: Price Comparison for Barites by Country of Origin: FY

16 Figure 22: Volume, Value and Pricing Increases in Titanium Feedstocks Between FY 2011-FY Figure 23: Top Mining Operations Engaged in Titanium Extraction by Country: FY Figure 24: Top Vendors of Barium Carbonate To The Global Market: FY 2012 (In Tons) Figure 25: Top Vendors of Barium Carbonate By Location: FY Figure 26: Barium, Titanium and Rare Earth Additives in Barium Titanate by Weight: FY Figure 27: Top Vendors of High Purity Barium Carbonate To The Electronics Industry: FY 2012 Market Shares Figure 28: Titanium Dioxide Suppliers: FY 2012 Output in 000 Tons Figure 29: Top Titanium Dioxide Vendors To The Global Market: FY Figure 30: High Purity Titanium Dioxide Suppliers To The Electronic Component Industry: FY Figure 31: Global Market Volume For Ceramic Dielectric Materials: FY 1999-FY 2012 (In Tons) Figure 32: Global Market Value For Ceramic Dielectric Materials: FY 1999-FY 2012 (In Millions of USD) Figure 33Average Price Per Ton For Ceramic Dielectric Materials: FY 1999-FY 2012 (In Millions of USD) Figure 34: Merchant Versus Captive Market For Ceramic Dielectric Materials: FY Figure 35: Ceramic Dielectric Material Consumption By Capacitor Manufacturer: Merchant Versus Captive: FY 2012 (In Tons) Figure 36: Ceramic Dielectric Material Consumption By World Region: FY Figure 37: Historical Global Consumption Volume for Ceramic Dielectric Materials: FY 1999-FY 2012 (In Tons) Figure 38: Historical: Ceramic Dielectric Material Dollar Sales (Merchant Versus Captive): FY Figure 39: Merchant Market Supply of Ceramic Dielectric Mayterials By Type: (Barium Titanate, Formulations and Additives: FY Figure 40: Growth In The Ceramic Dielectric Materials Market By Type: FY (In Millions of USD) Figure 41: Competitive Environment in Ceramic Dielectric Materials by Type: FY Figure 42: Ceramic Dielectric Material Vendors: FY 2012 Global Market Shares (All Materials Combined) Figure 43: Global Average Price Per Pound for Barium Titanate By Precipiation Process: FY Figure 44: Merchant Market Sales Volumes, Price Per Ton and Revenues for Barium Titanate by Precipitation Method: FY 2012 (IN Tons, USD Per Ton and Millions of USD) Figure 45: Barium Titanate Suppliers To The Global Merchant Market: FY 2012 Estimated Market Shares Worldwide (Based Upon Revenues) Figure 46: Global Merchant Markets for Formulations By Type (COG, X7R/X5R, Y5V, Other): FY Figure 47: Ceramic Dielectric Formulation Suppliers To The Global Merchant Market: FY 2012 Estimated Market Shares Figure 48: Ceramic Dielectric Additive Suppliers To The Global Merchant Market: FY 2012 Estimated Market Shares Figure 49: Ceramic Capacitors: Cost of Goods Sold Versus Operating Margin: FY

17 Figure 50: Ceramic Capacitors: Costs Of Goods Sold Breakdown: FY Figure 51: Raw Materials Consumed In The Production of Ceramic Capacitors Based Upon Costs in USD Figure 52: Ceramic Capacitors: Global Value, Volume and Pricing: Actual and Forecasts Figure 53: Ceramic Capacitors: Global Value of Consumption: Figure 54: Global Shipment Value for Ceramic Capacitors: (20 Year Analysis) Figure 55: Global Ceramic Capacitor Revenues by Quarter: Actual and Forecasts Figure 56: Global Forecasted Consumption Value for Ceramic Capacitors: Figure 57: Ceramic Capacitors: Global Volume of Consumption: Figure 58: 20-Year Analysis: Ceramic Capacitors: Global Consumption Volume: (In Billions of Pieces) Figure 59: Global Volume of Shipments Forecast For Ceramic Capacitors: Figure 60: Ceramic Capacitor Pricing: (In USD Per Thousand Pieces) Figure 61: 20 Year Pricing Analysis For Ceramic Capacitors: Figure 62: Average Unit Pricing Forecast for Ceramic Capacitors: (In USD Per Thousand Pieces) Figure 63: Ceramic Capacitor Vendors: Global Revenues and Market Shares: FY 2008 to FY Figure 64: Market Shares In The Global Ceramic Capacitor Industry for Fiscal Year Figure 65: Top Four Ceramic Capacitor Manufacturers: Sales Trend By Quarter: (In Millions of USD) Figure 66: Top Four Vendors of Ceramic Capacitors: Pure Play in Quarterly Revenues: Figure 67: Global Capacitor To Produce Ceramic Capacitors: (In Billions of Pieces) Figure 68: Trends in Excess Capacity in The Ceramic Capacitor Industry: Figure 69: Global Ceramic Capacitor Consumption Value By End-Use Market Segment: FY Figure 70: Summary of Forecasts for Growth for Ceramic Capacitors By End-Use Market Segment and Sub-Category: Figure 71: Ceramic Capacitor Consumption Volume By Key End-Product: Figure 72: Projected Production Volume for Key End-Products Consuming Ceramic Capacitors (Top 18 end products): Figure 73: Ceramic Capacitor Units Per Black Box By Type: Figure 74: Ceramic Capacitor Consumption Value By Type (High Capacitance Versus Picofarad): Figure 75: Change in Demand For Ceramic Capacitors By Type (High Cap Versus Low Cap): 2009,2010, Figure 76: Ceramic Capacitor Consumption By Type (High Capacitance Versus Low Capacitance): Forecasts Figure 77: Global Ceramic Capacitor Consumption Value By Configuration (MLCC, SLC, Radial, Axial, Array): Figure 78: MLCC Markets Versus Other Configurations of Ceramic Capacitor: Figure 79: Ceramic Capacitor Consumption Value Forecasts By Configuration: Figure 80: Global Ceramic Capacitor Consumption Value By Performance Characteristic (X7R, X5R, Y5V, NPO, Other):

18 Figure 81: Forecast: Global Ceramic Capacitor Consumption Value by Performance Characteristic: Figure 82: MLCC Consumption Volume By Case Size: (20 Year Assessment of Case Sizes) Figure 83: Unit Demand By MLCC Case Size: 2011 Worldwide Estimates Figure 84: MLCC Consumption Forecast Volumes by Case Size (01005 to 1210+): Figure 85: The Top 36 Factories Producing Ceramic Capacitors in China: Figure 86: Top 15 Factories Producing Ceramic Capacitors in Japan: Figure 87: Top 20 Factories Producing Ceramic Capacitors in The USA: Figure 88: Top 4 Factories Producing Ceramic Capacitors in Korea: Figure 89: Top Factories Producing Ceramic Capacitors In Singapore: Figure 90: Top Factories Producing Ceramic Capacitors in Mexico: Figure 91: Top Factories Producing Ceramic Capacitors in The Philippines: Figure 92: Top Factories Producing Ceramic Capacitors In Malaysia: Figure 93: Correlation of Dielectric Layer Thickness Achieved by Various Process Methods for Barium Titanate (In Microns) Figure 94: MLCC Dielectric Thickness Layer Trend in Microns Figure 95: Correlation Between MLCC Case Size; Ceramic Dielectric Thickness and Barium Titanate Particle Size: Figure 96: FORECAST: Global Volume of Ceramic Dielectric Material Consumption: FY (IN TONS) Figure 97: FORECAST: Global Value of Ceramic Dielectric Material Consumption: FY (IN TONS) Figure 98: FORECAST: Global Price Per Ton of Ceramic Dielectric Material Consumption: FY (IN USD) Figure 99: FORECAST: Global Volume of Consumption For Ceramic Dielectric Materials (Merchant Versus Captive Markets): FY (IN Tons) Figure 100: FORECAST: Global Value of Consumption For Ceramic Dielectric Materials (Merchant Versus Captive Markets): FY (IN Millions of USD) Figure 101: FORECAST: Global Merchant Market Value of Consumption For Ceramic Dielectric Materials By Type (Barium Titanate, Formulations, Additives) FY (IN Millions of USD) Figure 102: FORECAST: Global Value of Consumption For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY (In Millions of USD) Figure 103: FORECAST: Global Volume of Consumption For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY (In Tons) Figure 104: FORECAST: Global Pricing Forecast For Barium Titanate By Type (Oxalate, HTBT, BCZT, Solid State): FY (In USD)

19 Figure 105: FORECAST: Global Value of Consumption for Formulations By Type (X7R/X5R, COG, Y5V, Other): FY (In Millions of USD)

20 Introduction: About the Author: Mr. Zogbi is president and CEO of Paumanok Publications, Inc., a market research company located in Cary, North Carolina specializing in market research studies, consulting, mergers and acquisitions, conferences and seminars with emphasis upon passive electronic components. Mr. Zogbi has 300 customers worldwide in the field of market research on capacitors, resistors, inductors, circuit protection and LTCC components and modules. Mr. Zogbi also owns Passive Component Industry Magazine with global circulation of 14,000. Mr. Zogbi engages in single client research related to new product development, due diligence for mergers and acquisitions and for establishing business growth for passive component companies worldwide. Dennis M. Zogbi Paumanok Publications, Inc. 502 Ballad Creek Court Cary, NC USA (919) (919) Fax dennis@paumanokgroup.com 19

21 Research Methodology Employed: The methodology employed to do this study combines secondary and primary data sources, including government data; company financial data and primary human intelligence resources to draw conclusions. This is called a legacy of data that is designed to make sure that all pieces of the market puzzle fit together. Also we have the unique capability to benchmark the markets we study with previous studies under the same title produced in the past two decades. This enables us to establish the Delphi Method which suggests that the trend of sales over time will support a similar rate of growth in the future. We caveat this approach by also employing Box-Jenkins methods of market research which adjusts forecasts based upon our knowledge of current events and their impact on the supply chain, and how that might impact future forecasts. 20

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23 The Paumanok Research Methodology: Government Data Global Production Data, Global Trade Data, Global Geological Surveys Secondary Data Sources Financial data from public company's, corporate hinancial presentations., Private company presentations at trade gatherings Primary Data Sources Human resources- primary contact with top executives in the supply chain, inlcuding miners, materials processors, component manufacturers, distributors, OEM and EMS customers; as well as hinanciers and peripehral intelligence gatherers 2012 Paumanok Publications, Inc. All Rights Reserved 22

24 Government Data Collection and Resources: There are many government resources that we apply to research on the electronic components industry. Our primary use of government data is to establish component production in specific countries, as well as imports and exports by country of destination and country of origin respectively. Government data can also be used to establish OEM pricing because of the availability in some instances of both value and volume data. We also will employ government statistics as they relate to the geology of countries to establish links to raw material trade. Secondary Published Sources: We employ many secondary resources in our market research, including financial data from public companies, and technical data from both public and private companies that is found in trade journals and from conference proceedings. We also employ analyst data from financial institutions as well as a variety of paid intelligence subscriptions Primary Intelligence Gathering: Paumanok maintains a database of 10,000 subscribers that can provide intelligence on a variety of subjects related to passive electronic components. These contacts are global in nature, but are largely centered in Japan, China, Korea, USA. Germany, France, UK, Italy, Czech Republic, Brazil, Canada, Mexico and Australia. 23

25 The Passive Component Supply Chain: Mining End- Market Consumption Raw Materials Processing Distribution Component Manufacturing 2012 Paumanok Publications, Inc. All Rights Reserved An understanding of the passive component supply chain is important to establishing a clear picture of the sub-sets of the global components markets. It is important for the reader to know that the supply chain begins in the ground as mined materials and ends in the recycling bin or the landfill. 24

26 Mining of Raw Materials: The supply chain for passive components begins in the ground. Certain materials are critical to their production and must be mined. These are all considered rare earths or rare metals to some degree, and there is always considerable competition for materials among industries and nations. In passive components the key raw materials that are mined include tantalum, barium, titanium, palladium, silver, ruthenium, platinum, gold, nickel, copper, bauxite, neodymium, zinc and yttrium. Crude oil is also considered here because it is used to make plastics. The entire component supply chain is sensitive to the costs of mined materials because they make up a substantial percentage of the costs to produce. Raw Materials Processing: Mined materials must be processed into usable forms to be processed into electronic components. Therefore, in all instances there is a chemical processing company that bridges the gap between the mine and the component manufacturer. In some instances, certain cost competitive component manufacturers have materials processing capabilities in-house. Engineering of raw materials requires an expertise in nanotechnology, or the ability to create consistent ultra-small shapes and patterns upon which an electric charge can be manipulated. One of the primary maxims in component production is that the performance of the finished components is directly proportional to its size, or to its available surface area. This statement places great emphasis upon the importance of engineered raw materials. In passive components, it also means that raw materials will have the largest price related to costs of goods sold. Component Manufacturing: Component manufacturing of passive electronic components can come in many forms and requires multiple disciplines. However it can be said that four basic forms of manufacturing are employed- stacking of materials; winding of materials, pressing of materials and screenprinting of materials. In many instances there is the combination, or matching of materials in one element, and usually this is the combination of ceramic and metal, or metal and metal. Component production can also be viewed based upon configuration. Most passive components are surface mount in configuration, however, a sizeable percentage of components are radial leaded, axial leaded or a multichip array or network design. 25

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28 Component Distribution: Once a component is manufactured by a vendor it must be distributed to the customer. Sales are either direct to an OEM (Original Equipment Manufacturer, otherwise known as a brand company- e.g. Nokia, Samsung, Sony), or direct to an EMS (Electronic Manufacturing Services Company, e.g. SCI/Sanmina, Jabil, Foxxcon) or through an authorized distributor to serve the masses (TTI, Digi-Key, Future, Arrow, Avnet, WPG). For direct sales to an OEM or EMS customer, the volumes must be of such massive proportions as to justify a dedicated sales channel. There are also cultural and regional differences. In the Americas and Europe, distributors now account for slightly more than half of regional sales, however, in the Asia-Pacific region, more sales are direct to OEM and EMS customers, regardless of size. However, even this is now changing to favor distributors. End-Market Consumption: End-Market consumption of passive components can be viewed based upon the end-market into which the component is sold, and the region or country into which it is sold. The traditional product based end-markets into which components are sold include Consumer Audio and Video, Telecommunications, Computers and Peripherals, Automotive, Industrial and Specialty market segments. Within each category, specific products stand out- TV sets, wireless handsets, notebook computers and tablet computers, automobiles and power supplies each stand out as electronic intensive products that consume large quantities of passive components per box. Automotive markets can be further broken down based upon Under-The-Hood applications, and Passenger Compartment applications. The industrial market segment can be further broken down into power supplies, DC/DC converters, renewable energy systems, motors, fans and blowers, switchgear and switchboard applications, lighting and other line voltage equipment. Specialty markets can be broken down into defense and aerospace, medical electronics, undersea cable, mining electronics, railroad electronics, instrumentation and control equipment; seabourne electronics, and oil and gas services electronics (downhole pump). Based upon world region, the Asia-Pacific region accounts for between 70% and 80% of all components consumed, with China and Japan the two largest consuming countries, but Korea, Singapore, Philippines, Thailand, Malaysia and Indonesia each being key countries that build larger assemblies that require components to operate. The Americas and Europe account for between 10% and 15% of consumption of components each; and key consuming countries are Germany, The USA, Mexico, Brazil, the Czech Republic, Hungary, UK, France and Italy. Recycling of Critical Materials: The final part of the supply chain for components is recycling. Many products are recycled to reclaim their precious and rare metals, and recycling also occurs at various stages of the supply chain. The primary products that are reclaims include ceramic capacitors, tantalum capacitors and resistors, and the primary targeted metals for recycling include palladium, gold, ruthenium, silver and tantalum. Other materials such as nickel, copper, aluminum and plastic are not recycled to any great degree because they have limited value. 27

29 Technical Economic Maxims Related To Passive Electronic Components: Passives Are Ubiquitous Passive Electronic Components are required to produce a circuit. Importance of Raw Materials Passive Component performance is equivalent to the physical size of the component or its available surface area 28

30 The Two Technical Economic Maxims Associated with Passive Components: There are two primary technical factors that impact the economics of passive components- 1) capacitance and resistance are required for almost all electronic circuits (inductance is not always required); and 2) capacitance, resistance and inductance are equivalent to the physical size or available surface area of the finished component, which makes raw materials used in the production of passive components key to cost, price and technical advancement. Summary: Passive Components are used in almost every electronic device. Passive Component performance equivalent to the physical size of the finished product, or the available surface area Ubiquitous Nature of Passive Components: The first scientific maxim that is associated with the passive electronic component industry is that capacitance and resistance are required for almost every electronic circuit in the world. To satisfy the demand for capacitance and resistance the primary components consumed are the multilayered ceramic chip capacitor, and the thick film chip resistor. All other passive components, including tantalum, aluminum plastic film capacitors; nichrome, wirewound carbon and tin oxide resistors; and ferrite beads, leaded inductors and ferrite cores are considered niche to these two products. Inductors are also a niche market, but are considered the MLCC and the thick film chip resistors. Summary: Ceramic Capacitors, especially the MLCC, and the thick film chip resistor are used in large volumes to solve the requirement of capacitance and resistance in digital circuits. All other capacitor products are considered niche when compared to the MLCC and the thick film chip resistor. Relationship Between Capacitance and Available Surface Area: The other technical-economic maxim that is important for the reader to understand is that capacitance is equivalent to the finished size of the finished component, or more to the point, capacitance is directly proportional to the available surface area contained in the finished capacitor (similar parameters apply to resistors and inductors as well). The technology applied for capacitors (all types) to achieve the maximum surface area in the smallest footprint is either (1) rolling up a raw material (film, aluminum and carbon capacitors), (2) creating a porous anode (tantalum and niobium capacitors), (3) pressing a high dielectric constant material into a desired shape (single layered ceramic capacitors), or (4) stacking up layers of dielectric materials to form a small cube (MLCC- although solid polymer aluminum capacitors and DC film chip capacitors also employ stacking to achieve maximum capacitance in the smallest case size). Thick film chip resistors are produced by (5) screen printing, and inductors are produced by either stacking or (6) extruding ferrite materials. 29

31 Summary: The primary method of making a passive component include either stacking, winding, pressing, screen-printing or extruding engineered materials. In each of the above examples of capacitance technology, the similarity is that the solution of capacitance is ultimately reliant upon the raw material, but most importantly, it is the ability for that raw material to be manipulated into a format that can be used by the customer. Since MLCC represent the largest market with respect to capacitors by type, the technology with the largest amount of research and development dollars (as a percentage of total revenues) is in stacking of ceramic dielectric materials. Subsequently, the technology innovation in ceramic chip capacitors has been absolutely revolutionary from 1993 to Moreover, it has been the true application of nanotechnology as it applies to both ceramic dielectric materials and to electrode powders and pastes that has enabled the advancement of available surface area in MLCC. In fact, it has been the ability for engineered materials producers and the captive in-house capabilities of MLCC manufacturers to process ultra-fine nano-sized titanium and barium powders (for the dielectric) and nickel (for the electrode) into increasingly small, spherical particle sizes that has been the building block for advancements in available surface area. The consistency of particle sizes, as well as the ability for the capacitor manufacturer to cast these materials into ceramic tapes and to apply consistent layers of electrode pastes; and to effectively stack these interposing layers (in some instances- more than 1000 layers), which has enabled the MLCC industry to grow at a rate that exceeds other capacitor types. The reader should understand that the importance of raw material innovation, as well as the application of raw materials in the global ceramic capacitor industry has been instrumental in its success as a dielectric, and will continue to be the basis for innovation in the MLCC industry for years to come. Summary: Raw materials are critical in the development and advancement passive electronic components and most developments occur at the engineered materials segment of the supply chain. Financial Considerations With Respect To This Report: The Fiscal Year Ending March 31, 2012 This report s financial information is based upon the fiscal year which ends on March 31, of each year represented in this report. We use the fiscal year because many of the top manufacturers of passive components report their financial results on a fiscal year basis. 30

32 Currency Translation The following currency translation is used for this report. It converts Japanese Yen, Korean Won and New Taiwan Dollars into United States Dollars. Paumanok has reported its findings in US Dollars for the past 23 years. For 2011 and 2012 this has caused us to revise certain data in this report to better reflect market conditions. The decline I the yen to US dollar has had a major impact on two of the capacitor dielectrics which are controlled largely by Japanese companies. This is primarily prevalent in aluminum electrolytic capacitors, where Nippon Chemi-Con, Nichicon, Rubycon and Panasonic dominate the global market. This drop in yen value has inflated the market size in US dollars to a point where we have restated the valuation associated with aluminum electrolytic capacitors. This currency translation has also impacted the valuation of the ceramic capacitor industry, which is also largely controlled by Japanese vendors (Murata, TDK, Taiyo Yuden, Kyocera), and these numbers are also inflated in US dollars as a result of the decline in the valuation of the yen to dollar. The following chart is what we used for currency translation into US dollars for this report. Volume, Value and Pricing Data: The volume of consumption of passive components in this report is measured in trillions of pieces (TRILLIONS). US dollars are discussed in the millions or billions. Average unit pricing (also listed as Average Selling Price, or ASP) is discussed in terms of either US dollars per unit, or US dollars per thousand pieces. Specific Research Methodology Applied to Dielectric Materials: 2012 The methodology employed by myself is based on a Box-Jenkins method of market research. To engage in this methodology requires both a focused approach on a specific category, in this instance it is passive components; and a vertical research model that has information resources at each level of the supply chain- mining, materials production, component production; component distribution and component consumption. This creates a legacy of data, whereby each segment of the supply chain must balance itself out compared to the other compartments in the supply chain. This methodology also provides the best short-term and long term forecasting model. 31

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