TDK building ceramic capacitor plant

May 8, 2007 – TDK Corp. says it will build a new plant to produce ceramic capacitors, used in LCD TVs and mobile phone handsets, according to the Nikkei daily paper. Construction of the 50 billion yen (US $416.2 million) site in Yurihonjo, Akita Prefecture, will start in June and come online next spring, boosting TDK’s total output capacity for ceramic capacitors by 40%.

Demand for ceramic capacitors, which offer improved power efficiency in home appliances and communications equipment, is surging thanks to popularity of bigger LCD TVs, since more of them are needed for each set. Also, increasing complexity of cell-phone functionality also is cited as a cause for increasing ceramic capacitor demand, the paper noted.

TDK is one of a quartet of vendors (others are Murata, Taiyo Yuden, and Kyocera) who hold ~80% of the global market for the high-performance capacitors. Murata and Kyocera also have announced plans to invest several tens of billions of yen to boost their production of the components, the paper notes.


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