Learn more about capacitor manufacturing and how it will be affected by the upcoming 5G iPhones.

As the world continues to embrace the digital age, the electronic components market faces significant disruptions. More so, as the capacitor manufacturing industry braces itself for the evolution of the 5G iPhone. Accordingly, some of the trends you’ll probably come across in the supply chain are due to the skewed demand for capacitors brought about by the adoption of this technology.

Even as the electronics and computer segments adopt new levels of development in the aspects of networking and services elsewhere, certain bottlenecks will most likely emerge. Hence, the automotive electronic components field is projecting shortages and limited supply concerns—especially touching on capacitors.

Let’s look at the pertinent issues that may cause turbulence.

Trends & Overview

Apple plans to roll out no less than three new iPhones before the fall of 2020, with each expected to integrate 5G technology. Consequently, this solution will provide a solid platform for the iPhone to take maximum advantage of 5G networks—besides enabling it to compete on a level playing field with Android smartphones.

5G technology demands more power from devices in comparison to 4G technology. This power drain concern, therefore, necessitates significantly larger batteries, and equally so, more efficient components.

The emergence of these digital-based services and networking calls for new electronic hardware technology capabilities. And accordingly, not only providing for high computing and data transfers but also enhanced storage.

On the whole, the adoption of 5G technologies en masse may drive capacitor manufacturing firms to scale up the capacities of electronic components and infrastructure to support the increased demands.

Impacts

Market Situation— you can expect increased demand for Multilayer Ceramic Chip Capacitors (MLCC) as a result of the 5G disruptions—potentially, this will lead to an increase in price. Owing to adjustments in the global market, pricing relief for miniature MLCC’s is feasible.

Even so, automotive electronic components, military electronic components grade, as well as high capacitance parts may often require long lead time—else demand controlled order entry. Equally so, obsolete items may remain constrained.

Also, anticipate the market demand for automotive and industrial applications (more so where larger case-size plus high reliability is key) to exhibit a level of stability. Automotive-grade capacitor manufacturing may continue to operate at full booking with projection in demand, continuing to push market capacity in the short run.

Downsizing Trends—according to industry leaders, the current capacitor market is expected to grow exponentially. As such, to accommodate future demand, capacitor manufacturing firms are redirecting production capacity to miniature and substantially economical case sizes.

Yet, on account of the developments in 5G technology, a couple of significantly larger capacitor manufacturing companies have set their sight on limiting the production of less profitable capacitor items. More so, because of subdued return on capacity investment. Despite the downsizing trend in the current capacitor market, demand for large size capacitors remains strong.

In a nutshell, miniaturization, relatively high-speed data communication demands, enhanced computing capabilities, energy generation, besides transmission, and storage attributes are the main benchmarks for next-generation electronic devices.

As an electronic component distributor, we understand the drastic effect assimilation of 5G technology will have on the capacitor manufacturing process. These changes will undoubtedly radically alter the longstanding legacy capacitor landscape.

Contact Broadline Components to Learn More About Capacitor Manufacturing

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We are your dependable partner with a commitment to quality when your firm’s objective is to source components for less to fit in with your cost down program.

Our trusted channels of Tier 1 EMS Companies and global distribution network enable us to offer 1-day deliveries, in most cases, to our customers who frequently have urgent just-in-time deliveries. Contact us now, and we can help you keep your production lines running.