MLCC Market Update. July 12, 2018

Transcription

1 MLCC Market Update July 12, 2018

2 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

3 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

4 Causal Factrs Strng Ecnmy + Technlgical Advancements MLCC market demand has risen dramatically ver the past 18 mnths largely due t simultaneus grwth in virtually all market segments Additinally, increased technlgy in the strng autmtive, industrial and telecm markets have pushed demand beynd all anticipatin Autmtive Pwertrain Safety & Cmfrt Bdy Electrnics Inftainment & Telematics Systems Data Smart Phnes Mbile Internet 5G

5 Raw Material Cst Trends Causal Factrs Direct materials like bnding wire, lead frame, lead wire, etc. are all affected by metals price increases. Fr mre infrmatin, please see TTI

6 Causal Factrs Supplier Reluctance t Add Capacity MLCC unit utput has increased every year while revenues remained flat Suppliers adding capacity with mre balanced and/r measured bjective Demand grwing 25%-35% while capacity grws 10%-25% Frecasted t require a cuple years t level ut Billins $10 $9 $8 $7 $6 Ceramic Capacitr Market Value ($B) and Vlume (T) ~50% vlume increase fr n value given investment required & verall lw ROI many suppliers have changed their strategy Trillins $5 2.0 $4 $3 $2 $ $ /12/ Wrld Value Wrld Vlumes

7 Causal Factrs Supplier Decisins t Cease Prductin Several larger suppliers have elected t end f life (EOL) less prfitable, cmmdity prducts MLCC Case Size Radmap Capacity and resurces are being redirected t smaller, mre ecnmical case sizes and market segments prmising mre reasnable returns Glbal Supplier Migratin frm Larger Case Lw Capacitance t Smaller Case Size High Capacitance ~1nF ~100nF ~220nF ~470nF 1μF 2.2μF 4.7μF 10μF 22μF 47μF 100μF 220/330μF Size(inch): ~102 ~ , >=1210 7/12/2018 7

8 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

9 Effect n Distributin Supplier Actin Plans Prduct Allcatin and Limiting f New Orders Distributin is allwed t purchase in levels equivalent t 2016/17 vlumes Nt able t handle the upside f new custmers r increased demand Increasing Manufacturing Capacity 30% capacity will nt satisfy current demand Capital equipment lead times running mnths Increasing Distributr Buy Prices Increasing pricing n new business Nt extending debit renewals Re-pricing pen backlg and cntract pricing Expiring Special Csts MPP vlume pricing increasing r being remved Affecting existing rders 7/12/2018 9

10 Supplier Actin Plans Cnstrained Suppliers n TTI s Linecard As f July 1, 2018 Cmmercial and autmtive ceramic capacitrs Select values in 0201 thrugh 2220 case sizes Lw CV and high CV in all dielectrics Cmmercial, autmtive and specialty (Flexterm, high temp, high vlt, fail safe) Series Cxxxx, all values in 0201 thrugh 2225 case sizes Lw CV and high CV Cmmercial and autmtive Lw CV and high CV GR*. GC* and ZR* series mnlithic ceramic capacitrs Limited values affected in 0201 and 0402 Mst values 0603 and greater All dielectrics Cmmercial and autmtive ceramic capacitrs Series Cxxxx and CGA Select values in case sizes Lw CV and igh CV in all dielectrics 7/12/ Cmmercial ceramic capacitrs Series CCxxxx Select values in case sizes Lw CV and high CV in all dielectrics

11 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

12 TTI Actin Plan TTI Allcatin is Currently Based n 2016/17 Receipts Increased On-hand and On-rder Inventry Levels Began increasing purchasing vlumes frm all suppliers in 3Q16 2H 16 began purchasing alternative part numbers fr back-up Current backlg exceeds $100M cmpared t $20M in May 2016 Created a special allcatin prduct team lead by industry and prduct experts t manage and assist ur sales teams, suppliers and custmers Began allcating cnstrained prduct and declining rders frm new custmers Supprting the custmers wh have supprted us Fairly dividing based n custmer histrical usage 7/12/

13 Causal Factrs Ptential Gaps in Supply Cmparative Data TTI Nrth America s percentage f MLCC sales by case size and value. TTI Nrth America Percentage f Units Shipped 2017 and 1H 2018 ~1nF ~100nF ~220nF ~470nF 1μF 2.2μF 4.7μF 10μF 22μF 47μF 100μF 220/330μF Size(inch): ~102 ~ , % 3.68% 0.31% 0.04% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% % 19.17% 0.94% 0.61% 4.37% 0.68% 0.47% 0.17% 0.00% 0.00% 0.00% 0.00% % 18.96% 1.34% 0.48% 3.11% 0.97% 0.73% 1.30% 0.33% 0.00% 0.00% 0.00% % 6.78% 0.93% 0.57% 2.82% 0.58% 1.37% 5.31% 0.53% 0.22% 0.00% 0.00% % 1.61% 0.23% 0.60% 0.83% 0.49% 0.68% 1.50% 0.40% 0.18% 0.20% 0.00% >= % 0.09% 0.12% 0.09% 0.77% 0.65% 0.63% 1.01% 0.50% 0.24% 0.18% 0.00% Highlighted Square Cde: Green = Capacitance ratings and case sizes where additinal capacity is being added. Yellw = Reduced capacity levels by majr MLCC suppliers but lesser supply chain impact due t percentages f verall business levels. Red = Reduced capacity levels by majr MLCC suppliers AND high supply chain impact due t percentage f verall business levels TTI Suppliers t cnsider fr these affected values: µF µF µF Near Term Lng Term

14 TTI Actin Plan TTI Allcatin is Currently Based n 2016/17 Receipts Created New Reprts and Crss Reference Tls t Share with Custmers Prvide best insight f ptential supply issues Prvide alternates fr 95% f allcated prduct lines TTI has #1 Market Share in these Prducts Largest custmer t the manufacturer We are in this fr lng-term grwth and partnership, nt shrt term gain TTI remains cmmitted t assured supply f highly cnstrained and allcated prducts t ur existing custmers. It is ur bjective t ensure ur existing custmers cntinue t have access at previus year cnsumptin levels. 7/12/

15 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

16 Assess Yur Optins Is Yur Design Affected by the MLCC Shrtage? Y Be prepared fr pssible price and lead time increases Can yu accept an Alternate Supplier r a Prduct Upgrade? N Y Qualify Alternate Suppliers Immediately. Evaluate Upgrades: Can yu use a higher vltage part? Can yu use a tighter tlerance part? Is AECQ200 a requirement r an ptin? Is a Flexible terminatin prduct required? Can yu accept a Smaller Package? N Y Determine if yur pad layut will accmmdate 0402 r smaller Can yu Re Design? N Y First ptin smaller pads Secnd ptin alternative technlgy Strategically align with a strng distributin partner, dn t inflate yur requirements

17 What are Yur Alternatives Alternative Capacitr Technlgies Tantalum (MnO2) Cst effective when de-rated prperly (50% vltage) A-case generally fits 1206 pads Hybrid Plymer Tantalum Lw ESR N ignitin High capacitance (10%-20% V de-rating) Aluminum Plymer Very lw ESR Gd fr lw vltage applicatins Film Gd fr higher vltages Rbust with lng life Ceramic Capacitrs SMT Aluminum Electrlytic Gd fr bulk decupling and higher vltages MLCC Pwer Capacitrs Affected Vltage and Capacitance Range fr Cnstrained and Allcated MLCCs 7/12/

18 MLCC Market Update Causal Factrs Supplier Actin Plan TTI Actin Plan Existing Alternatives Final Thughts

19 Final Thughts TTI is #1 Distributr f MLCC prducts in Nrth America and Glbally TTI is very imprtant t each supplier We are getting ur unfair share, unfrtunately smetimes that is nt enugh please explre yur ptins with yur TTI sales team Generate Awareness Infrm peple within yur rganizatin Share the market cnditins with yur end custmers Wrk with TTI n Slutins Yur success is ur success 7/12/

20 Thank Yu CALL.TTI