One Size Doesn’t Fit All – MLCC Market Trends

One Size Doesn’t Fit All – MLCC Market Trends

Capacitors have never been “one size fits all,” and as technology has advanced the market has further diversified and specialized. MLCCs (multi-layer ceramic capacitors), already a specialized product, are no exception. This year we’ve seen the somewhat unusual phenomenon of a number of major companies in one country, Japan, aggressively focusing on a few very limited segments at the same time. How does that affect you? It depends on your project.

A quick overview of current MLCC production: MLCC manufacturers can be loosely grouped into those in Japan; those in Taiwan, South Korea, and China; and those located elsewhere. Japan is the seat of MLCC technology and all major capacitor advancements in recent decades have come from manufacturers located in the Land of the Rising Sun.

The latest strides made by Japanese manufacturers have been in extreme miniaturization and increased capacitance levels while maintaining and even improving component reliability. Creating state of the art components on the cutting edge of technology, however, comes with a literal cost. Customers looking to take advantage of the latest and greatest will be paying for the privilege.

The Japanese manufacturers are – quite rightly – assuming that there’s a high demand for their small, high-capacitance MLCCs. The automotive industry is hungry for ever-more powerful and precise components and shrinking footprints, while the increasing proliferation of tech wearables, smart homes, and “internet of things” devices creates new customers and markets every day. In response, Japanese manufacturers are focusing their MLCC production almost entirely on very small sizes for maximum production capacity and market yield. Yes, even if that means turning away orders for other commodities.

So what do you do if you want a larger, cheaper, or lower-capacitance MLCC? Look west. Taiwan and South Korea are picking up the production slack. Taiwanese manufacturers in particular are ramping up their production capabilities for low- and medium-capacitance MLCCs destined for commodities that don’t require minimalization. But if you’re hoping for rock-bottom prices, you won’t find them. Demand is currently outstripping production and prices are rising accordingly for even the most basic MLCCs. Expect to pay 15-30% more than you did last year for the same part.

Which brings us back to how this affects you. Thanks to segmentation, it’s more important than ever to consider who and where you’ll be sourcing your parts from when specing your next project. Which factor is most important to you – size, capacitance, reliability, availability – will determine the geographic source and cost for most items on your BOM. Incompatible priorities will result in either multiple source countries or much higher prices to single source. This is one market trend that’s going to ripple up and down the supply chain for years to come.

Annual National Geographic Earth Day Run.

As part of our commitment to protecting the environment, Sourceability supports a broad spectrum of international initiatives. In April, our team in Asia excitedly joined 2,200 participants in the 2nd Annual National Geographic Earth Day Run.

This zero-waste initiative was Singapore’s first mass-run powered solely by renewable energy. An eco-carnival preceded the race, where participants took part in activities such as cycling to power kinetic energy, contributing to the 320,000 watts of renewable energy the event operated on.

“This was an amazing effort on the part of National Geographic”, said Christian Giereth, Global CFO of Sourceability, who completed the 10km run. “When I first heard about the run, I encouraged everyone on our team to sign up with me. Our focus was not on running competitively but instead to show our solidarity with organizations who were fighting to not only raise awareness, but take action for the same cause.”

Since our establishment, Sourceability has practiced sustainability by using energy efficient inspection tools, going paperless wherever possible, implementing company-wide recycling initiatives, and minimizing environmental effects. We are thrilled to be part of this historic moment in Singapore’s history and will continue to protect the environment in our daily activities.

#LIFTYOUREXPECTATIONS

Sourceability Receives 2017 Preferred Supplier Award from Flex

The Preferred Supplier Award was announced at this year’s Global Supplier Summit, hosted at the Flex Customer Innovation Center, located in Silicon Valley.

The Award recognizes outstanding performance, strategic value-add, excellent service, innovation and collaboration. Suppliers selected for the awards were nominated by Flex procurement and supply chain professionals and employees in the various Flex business groups.

“It is an honor to receive the Preferred Supplier Award from Flex. It is a testament to the hard work of all our Sourceability employees. Flex and Sourceability share a commitment to Innovation, and we look forward to contributing to their success.” says Brian Schmiedel, Director of Global EMS Business.

“Flex recognizes and applauds the contributions of our preferred suppliers for their unwavering dedication and commitment to providing operational excellence,” said Tom Linton, Chief Procurement and Supply Chain Officer at Flex. “We are pleased to honor these great companies with our 2017 Preferred Supplier Award.”

 

Click the link below to learn more about the award from the press release published by Flex.

https://investors.flex.com/company-news/press-release-details/2017/Flex-Announces-2017-Preferred-Supplier-Award-Recipients/default.aspx

 

 

Answering Supply Chain Top Concerns

According to a recent “Global Chief Supply Chain Officer Strategy Survey” by Eyefortransport the top concerns for supply chain professions are demand forecasting, cost reduction, and inventory optimization.  Minimum Order Quantity (MOQ) can single-handedly disrupt even the most judicious supply chain forecast due to its lack of flexibility, inability to cope with demand variability, and certainly doesn’t address cost reduction. What options do companies have when negotiating down the initial MOQ or when the Standard Package Quantity (SPQ) still doesn’t fall within their desired KPI?

Here at Sourceability, we have developed a proprietary and customizable program that directly combats all three of these supply chain stresses. Sourceability believes, through innovation and technology, we can enhance your supply chain. Why should you have to be forced to use a quantity dictated by a component manufacturer or distributor if it doesn’t match your business needs? Because each situation is unique, our program offers four different tailored solutions to meet your desired results. Our MOQ Management program reduces the quantity past the SPQ down to the exact production ready quantity forecasted. Reach out to your  Sourceability representative or email me here so we can show you how we create results that have a positive effect on your bottom line.

A little bit about Dev Rai, VP of Global Purchasing, Sourceability

Dearest Reader,

I’m Dev Rai, the VP of Global Purchasing here at Sourceability. Today, I want to tell you about why I joined Sourceability.

When Mr. Gamperl first approached me in 2015, he presented me with many ideas that he had. I believed in his vision, but I also believed that with over 16 years in the industry, I could further contribute my input to help get Sourceability on its way to achieving it. Fast forward to 2017; we have a fantastic pipeline of things to come. We will always innovate with technology and never settle for second best.

I’ve come to learn that the only way customers and suppliers were going to trust us is if we can put our best foot forward 110% of the time. That is why I ensure that I lead the team by becoming a role model they can follow. The best leaders I know have always led by example.

I was asked to end this with one piece of advice for anyone who might be asking to who or what I attribute the success of Sourceability. I would say that it’s a combination of determination and good leadership. Good leadership does not tell its staff what to do. They inspire their teams and managers to strive for the success of the organization. Thankfully we’re all on the same page here at Sourceability, and we will ensure that it stays that way for many years to come.

Dev Rai

Our Inspection Facility – The Machines – Part 1 of 6 – Memmert UF 260 Universal Oven

Memmet UF260

We use the Memmert oven to dry moisture that is absorbed by parts as this can compromise quality.

Vincent Low,

Quality Manager, Sourceability Singapore

Universal Oven UF260

Standard delivery Universal Oven

The universally applicable lab oven U is Memmert’s classic appliance for temperature control in science, research and material tests in industry. The technologically perfected masterpiece made of high-quality, hygienic, easy-to-clean stainless steel leaves nothing to be desired in terms of ventilation and control technology, overtemperature protection and precisely tuned heating technology.

Properties

Temperature

Set temperature range in °C min.10 above ambient up to +300
Temperature 1 Pt100 sensor DIN class A in 4-wire-circuit

Control technology

Language setting German, English, Spanish, French, Polish, Czech, Hungarian
ControlCOCKPIT adaptive multifunctional digital PID-microprocessor controller with high-definition TFT-colour display
Timer Digital backwards counter with target time setting, adjustable from 1 minute to 99 days
Function SetpointWAIT the process time does not start until the set temperature is reached
Calibration three freely selectable temperature values
adjustable parameters temperature (Celsius or Fahrenheit), fan speed, air flap position, programme time, time zones, summertime/wintertime

Ventilation

Fan forced air circulation by quiet air turbine, adjustable in 10 % steps
Fresh air admixture adjustment of pre-heated fresh air admixture by air flap control in 10 % steps
Vent vent connection with restrictor flap

 

Welcome To Sourceability

 

Welcome. My name is Jens Gamperl, and today I want to introduce you to Sourceability, a company I started in May of 2015.

Sourceability is an alternative to traditional electronics distribution. We develop technology which allows our customers to operate in and navigate the electronic component market, providing them with the best opportunity to find success. The backbone of Sourceability is quality and logistics. We have invested heavily in our global distribution centers in Singapore, Hong Kong, and Miami. Each distribution center is supported by regional offices to maintain an understanding of customer supply chain needs. Sourceability will continue to innovate, building upon their initial success by investing in their core beliefs that have made them successful: Innovation, Customer Empowerment, Integrity.

The main reason why I started Sourceability was my knowledge of our industry and their leaders. After leaving AMPT, I recognized that none of the existing distribution companies were willing to start a technological disruption in our industry. I identified several reasons why people were not willing to invest in a digital transition and thought that it was time for somebody to step up. In order to make sure that Sourceability could kick off a transition like this in our industry, I had to make sure that we understood the core basics of this business. I started the company as a traditional distributor with world class warehouses, inspection labs, strategic purchasing and sales teams, and of course an IT team that was willing to challenge a whole industry. Besides the technology, it is always human capital that drives a company to success.

I am convinced that the core team at Sourceability, a team hand-picked by myself, are the best, brightest, and most promising leaders in our industry. The team is well versed in my strategic vision and goals. However, a vision simply cannot succeed without partnerships. The partnerships are about our customers and suppliers, so everyone at Sourceability will strive to ensure that they deliver the best experience in any aspect of the business.

Eighteen months into the business, I find that my vision and strategy are working as intended, as we now have a presence in 9 markets globally with over 140 staff. My excitement grows daily by the progress I see throughout our organization, and I am convinced that Sourceability will be the company recognized for starting the shift of our industry into the digital age. This is what drives me every day, and I hope that it will inspire you to join us on this journey we are about to embark on. Let’s start a revolution.