1. Capacitor: electronic components with excellent performance, continuous technological development, perfect industrial chain, and broad military and civilian application prospects
Capacitor, one of the four core capacitor products (MLCC/aluminum electrolytic/capacitor/film capacitor), the main feature of the structure is the use of metal tantalum as the medium. Tantalum capacitor have high energy density, high reliability, and stable electrical performance. The wide operating temperature range and other characteristics, especially the "self-healing", make it popular in the civilian (industrial) and military markets.
From the perspective of the industrial chain, the upstream of the capacitor manufacturing industry is raw materials such as tantalum powder and other raw materials, while high-end raw materials are still mainly supplied by overseas companies; the downstream application fields can be divided into military and civilian categories, and the demand is constantly expanding. Tantalum capacitor occupy the mainstream in the high-end capacitor market due to their excellent properties, and their market share continues to rise.
2. Military market: the future prosperity of military components will continue, and the capacitor industry will benefit
Favorable policies + increased military expenditures, the military industry’s prosperity can achieve a long-term leap: In the informationized military era, with multiple policy support, 2020 is the final year of the "13th Five-Year Plan", orders are released, and the military industry needs to improve; at the same time, Comparing the growth rate of military expenditure and GDP growth of China and the United States, we can find that in recent years, the growth rate of my country's defense expenditure has been stable, and the prosperity of the military industry can span the economic cycle, which is conducive to the stable development of related industries. Tantalum capacitor are commonly used components in military products. Can also benefit.
3. Civilian market: tens of billions of market, out of stock price increase + accelerated import substitution
(1) Demand side: With the promotion of new infrastructure, the demand for civilian tantalum capacitor is strong. The civil capacitor market has a scale of tens of billions. Tantalum capacitor are mainly used in industrial fields. 5G network commercialization is progressing smoothly. The development of the cloud computing industry drives demand for servers, and the strong demand for new infrastructure such as base stations and servers has brought development opportunities to the capacitor market. In addition, high-performance equipment will also bring more demand to the civilian tantalum capacitor market.
(2) On the supply side: the epidemic in Europe and the United States spread in Q2, and the production capacity of mainstream manufacturers was limited. In terms of civilian products, international capacitor manufacturers represented by the US companies VISHAY, KEMET, and AVX dominate the international tantalum capacitor market. In the second quarter, the epidemic spread in Europe and the United States, which affected the production capacity of overseas manufacturers.
Increased demand + insufficient supply, and related product price increases. In May, the original AVX factory will increase the price of some products ranging from 12% to 20%, and the upward price trend is expected to continue. At the same time, trade frictions have continued in recent years. Tantalum capacitor are mainly US suppliers, and localized substitution is imminent. We judge that civilian capacitor are expected to replicate the accelerated import substitution logic of the MLCC industry.