Professional Documents
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Table of Contents
EESTOR CAPACITOR TECHNOLOGY: MARKETS & OPPORTUNITIES: 2014 .............................................................................................................. 10
ABOUT THE AUTHOR: .............................................................................................................................................................................................. 11
EXECUTIVE SUMMARY: ............................................................................................................................................................................................ 11
PRODUCT ADVANTAGES THAT DICTATE WHERE EESTOR TECHNOLOGY WILL BE DISRUPTIVE: ............................................................................. 12
EESTOR SPECIFIC MARKET OPPORTUNITIES: .......................................................................................................................................................... 15
THE ATTRIBUTES OF THE EESTOR CAPACITOR TECHNOLOGY THAT WILL DRIVE MARKET DEMAND: ................................................................... 15
HOW TO GO TO MARKET WITH EESTOR CAPACITORS:............................................................................................................................................. 16
SPECIAL NOTE: THE IMPLANTABLE DEFIBRILLATOR CAPACITOR MARKET: 2014.................................................................................................. 17
GLOBAL CAPACITOR MARKET OVERVIEW AND SPECIFIC EESTOR ADVANTAGES WITHIN EACH MARKET OPPORTUNITY: 2014 ............................ 18
FIGURE 1: GLOBAL MARKET VALUE, VOLUME AND AVERAGE UNIT PRICING FOR CAPACITORS: FY 2007-2015 ................................................. 19
FIXED CAPACITORS AND THEIR RESPECTIVE SUB-CATEGORIES: FY 2014 ............................................................................................................. 20
FIGURE 2: GLOBAL FIXED CAPACITOR MARKET BREAKDOWN BY SUB-CATEGORY: FY 2014 ............................................................................ 20
VALUE SHIPMENT UPDATE: FY 2014 ....................................................................................................................................................................... 21
GLOBAL CONSUMPTION VALUE FOR CAPACITORS: FY 2007-2015: ........................................................................................................................ 21
FIGURE 3: GLOBAL CONSUMPTION VALUE FOR CAPACITORS: FY 2007-2014 ........................................................................................................ 22
GLOBAL CAPACITOR VALUE DEMAND BY TYPE (DIELECTRIC): FY 2014 AND HISTORICAL 10 YEAR MARKET GROWTH .................................... 23
FIGURE 4: CHANGES IN GLOBAL VALUE OF DEMAND FOR CAPACITORS BY DIELECTRIC:
FY 2003-FY 2014 AND PERCENT CHANGE IN DEMAND FOR FY 2014 .................................................................................................................... 23
Ceramic Capacitor Markets: FY 2014 .............................................................................................................................................................................................................. 24
EESTOR OPPORTUNITIES IN THE CERAMIC CAPACITOR MARKET: .......................................................................................................................... 24
Tantalum Capacitor Markets: FY 2014 ............................................................................................................................................................................................................ 24
EESTOR OPPORTUNITIES IN THE TANTALUM CAPACITOR MARKET: ....................................................................................................................... 25
Aluminum Electrolytic Capacitors: FY 2014 ................................................................................................................................................................................................... 25
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APPENDIX A....................................................................................................................................................................................................... 34
Global Value of Capacitor Consumption by World Region: FY 2014 ................................................................................................................. 34
EESTOR MARKET OPPORTUNITIES BY WORLD REGION: ......................................................................................................................................... 34
Capacitor Markets in China and SE Asia by Capacitor Type (Dielectric): FY 2014 .................................................................................................................................... 38
Capacitor Markets in Japan by Capacitor Type (Dielectric): FY 2014......................................................................................................................................................... 38
Capacitor Markets in Europe by Capacitor Type (Dielectric): FY 2014 ...................................................................................................................................................... 38
Capacitor Markets in the Americas by Capacitor Type (Dielectric): FY 2014............................................................................................................................................. 39
Benchmarking: Capacitor Revenues by Major Vendor and World Region: FY 2014 .......................................................................................... 41
FY 2015 Forecasts for Capacitor Consumption by World Region: ..................................................................................................................... 42
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APPENDIX C........................................................................................................................................................................................................... 46
REGIONAL DEMAND: CAPACITOR CONSUMPTION BY WORLD REGION: FY 2007-FY 2014 .................................................................................... 46
China and SE Asia: FY 2007-2014: Historical Shifts in Global Consumption ................................................................................................................................................. 46
Japan: FY 2007-2014: Historical Shifts in Global Consumption ...................................................................................................................................................................... 46
Europe: FY 2007-2014: Historical Shifts in Global Consumption ................................................................................................................................................................... 46
Americas: FY 2007-2014: Historical Shifts in Global Consumption................................................................................................................................................................ 47
APPENDIX D .......................................................................................................................................................................................................... 48
END-USE MARKET UPDATE: FY 2014 ..................................................................................................................................................................... 48
Capacitor Consumption by End-Use Market Segment: 2014 FY Ending March Forecast and Update ............................................................................................................ 48
EESTOR OPPORTUNITIES BY END-USE MARKET SEGMENT: ................................................................................................................................... 48
End-Use Market Segments & Capacitor Consumption Correlation: ................................................................................................................... 48
Capacitor Sales by End-Use Market Segment for the Top Vendors of Capacitors: FY 2014 .............................................................................. 51
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Telecommunications Markets: ....................................................................................................... 53
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Consumer AV Markets: ................................................................................................................. 53
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Computer Markets:......................................................................................................................... 53
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts to the Automotive Market ........................................................................................................................... 55
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts to the Power, Industrial and Infrastructure Markets .................................................................................... 55
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Specialty Markets: .......................................................................................................................... 55
Profitable End-Markets in the Capacitor Industry: 2014 .................................................................................................................................... 57
APPENDIX E ........................................................................................................................................................................................................... 59
HIGH VOLTAGE PLASTIC FILM CAPACITORS: TECHNOLOGY OVERVIEW ................................................................................................................ 59
AC Polypropylene Power Film Capacitors: ......................................................................................................................................................... 59
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APPENDIX F ........................................................................................................................................................................................................... 74
HIGH VOLTAGE CERAMIC CAPACITORS MARKETS .................................................................................................................................................. 74
Multilayered Ceramic Capacitors: ....................................................................................................................................................................... 74
Single Layered Ceramic Capacitors: ................................................................................................................................................................... 74
APPENDIX G .......................................................................................................................................................................................................... 76
HIGH VOLTAGE ALUMINUM ELECTROLYTIC CAPACITOR OVERVIEW ..................................................................................................................... 76
Snap-In/Snap-Mount Aluminum Capacitors: ................................................................................................................................................ 77
Computer Grade/Screw Terminal {Large Can} ............................................................................................................................................ 78
MOTOR START (LARGE CAN) ....................................................................................................................................................................... 78
APPENDIX H .......................................................................................................................................................................................................... 79
OTHER HIGH VOLTAGE CAPACITORS: TECHNOLOGY OVERVIEW ........................................................................................................................... 79
High Voltage Wet-Slug Tantalum Capacitors: ..................................................................................................................................................... 79
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High Voltage Reconstituted Mica Capacitors: Technology & Market Overview: ............................................................................................... 79
High Voltage Glass Capacitors: Technology & Market Overview: ..................................................................................................................... 80
High Voltage Diamond-Like (DLC) Capacitors: Technology & Market Overview:............................................................................................ 80
APPENDIX I ............................................................................................................................................................................................................ 83
CAPACITORS BY TYPE, SUB-CATEGORY AND VOLTAGE RATING: 2014 .................................................................................................................. 83
Global Consumption Value for High Voltage Capacitors by World Region: 2014.............................................................................................. 86
APPENDIX J ............................................................................................................................................................................................................ 88
GLOBAL CONSUMPTION VALUE FOR HIGH VOLTAGE CAPACITORS BY DIELECTRIC TYPE AND WORLD REGION .................................................. 88
High Voltage Capacitors: Demand by End-Use Market Segment: 2014 ............................................................................................................. 88
High Voltage Capacitors: Demand by Capacitor Dielectric and End-Use Market Segment: 2014 .................................................................... 90
Competitive Environment in High Voltage Capacitors: 2014 .............................................................................................................................. 91
Global Sales & Market Shares for High Voltage Ceramic Capacitors by Type: 2014 ........................................................................................ 93
APPENDIX K .......................................................................................................................................................................................................... 95
EESTOR COMPETITION AND POTENTIAL PARTNERS: 2014 ...................................................................................................................................... 95
CAPACITOR VENDORS: GLOBAL SALES & MARKET SHARES: FY 2013-2014 ......................................................................................................... 95
Capacitors: Overall Market Share Data and Vendor Strategy: FY 2014 .......................................................................................................................................................... 95
Forecasted Change in Capacitor Market Shares: FY 2013-FY 2014 ................................................................................................................ 100
COMPETITIVE ENVIRONMENT IN CERAMIC CAPACITORS: FY 2014....................................................................................................................... 103
CERAMIC CAPACITOR MANUFACTURERS: FY 2014 SALES & MARKET SHARES................................................................................................... 103
COMPETITIVE ENVIRONMENT IN TANTALUM CAPACITORS: FY 2014 ................................................................................................................... 105
TANTALUM CAPACITOR MANUFACTURERS: FY 2014 SALES & MARKET SHARES ............................................................................................... 105
COMPETITIVE ENVIRONMENT IN ALUMINUM CAPACITORS: FY 2014 ................................................................................................................... 107
ALUMINUM CAPACITOR MANUFACTURERS: FY 2014 SALES & MARKET SHARES ............................................................................................... 107
COMPETITIVE ENVIRONMENT IN PLASTIC FILM CAPACITORS: FY 2014 ............................................................................................................... 109
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PLASTIC FILM CAPACITOR MANUFACTURERS: FY 2014 SALES & MARKET SHARES ........................................................................................... 110
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The following report offers the reader a global market perspective on capacitors, and outlines the opportunities for the new EEStor
ceramic-based capacitor technology by various markets and world regions.
The report is organized to provide the reader with a synopsis of the distinguishing characteristics of the EEStor technology, as
ascertained by the author following in-depth analysis of the Intertek Report dated December 16, 2014 and extensive discussions with
EEStor and ZENN personnel and advisors and a thorough tour of EEStor’s facilities in Cedar Park Texas.
The report then takes the reader through the specific “low hanging fruit” markets where the EEStor capacitor technology can have
immediate impact, and the value of those markets. In addition, an overview of the current global capacitor market follows and
highlights where the EEStor capacitor technology could have significant impact and provide for disruptive change within the many
specific capacitor types and markets globally.
Following the global capacitor overview section we focus on the specific global dielectric markets. EEStor’s dielectric powders
exhibit some extremely relevant qualities and benefits that are explored in detail in this section. We direct the reader to the X-ray
diffraction report provided by H&M Laboratories with an opinion provided by A. Safari PhD of Rutgers University.
Following the global overview, EEStor impact and dielectric sections we have provided additional reading in a series of appendices
that afford the reader a deeper insight and understanding of the specific nuances of the global capacitor market and industry.
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Dennis M. Zogbi is the CEO and Founder of Paumanok Publications, Inc. He is the author of more than 260 market research reports on
the worldwide electronic components industry. Specializing in capacitors, resistors, inductors and circuit protection component markets,
technologies & opportunities; electronic materials including tantalum, ceramics, aluminum, plastics; palladium, ruthenium, nickel,
copper, barium, titanium, activated carbon, conductive polymers. He is also an expert on the end-use markets into which components
are sold, including telecommunications, computers, consumer audio and video, automotive, power, industrial and lighting; medical
electronics, oil & gas electronics, mining electronics, defense electronics and renewable energy.
dennis@paumanokgroup.com
(919) 468-0384
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Executive Summary:
The basis of this report and recommendations is built upon the credibility of the testing conducted by Intertek.
The current status of EEStor’s technology indicates that the initial commercial targets, in order of priority, should be:
o High Voltage Aluminum Electrolytic and Tantalum capacitors (combined total 2014 market value of USD $6 billion.
See Figure 4 for all market segment values)
o The power film capacitor segment (combined total 2014 market value of USD $1.3 billion)
o The direct sale of the composition modified barium titanate powders manufactured at EEStor to a myriad of capacitor
manufacturer customers worldwide (total 2014 market value of USD $83 million)
The reader will note that this report suggests specific interest in the $2.8 billion high voltage segment of the market (part of the
USD $6 billion Aluminum Electrolytic and Tantalum capacitor market) which is perfect for EEStor capacitors to target for
growth and disruption. Throughout the report we continue to reiterate that the combination of high voltage and high capacitance
in a dry type design with low costs to produce are disruptive to the industry and that the electrochemical capacitor segment
should be targeted with emphasis upon segments of the market where the profitability is highest.
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Based upon the technical report provided by Intertek, coupled with discussions and technical data provided by the senior staff at EEStor,
and consultants working for ZENN Motor Company, the following is a list of advantages that current EEStor layers have over other
capacitors.
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The attributes of the EEStor Capacitor Technology that will Drive Market Demand:
While the above mentioned criteria are considered “Icing on the Cake” there are some key technical attributes to the technology that
will generate market “buzz” and are primary motivating factors behind EEStor’s “Technical Economics.” These are the unique
combination of high capacitance and high voltage performance characteristics in an electrostatic capacitor design; the lower comparable
costs to produce the EEStor capacitor when compared to aluminum electrolytic, tantalum electrolytic and power film capacitors; and
the captive production of raw materials by EEStor.
added and application specific ceramic capacitor market is also open for competition. The author includes this because the market is
very large and extremely profitable for those who currently compete in the space. Another area of interest is in the power film capacitor
market because this market is almost exclusively high voltage. Therefore, opportunities for the EEStor technology exist within each
dielectric segment of the global capacitor market, and the opportunity for the EEStor technology to be successful is based upon its
unique qualities that include low costs to produce, high voltage attributes, high capacitance attributes and quality performance with
respect to minor technical variations- such as ripple current and insulation resistance.
This report suggests that the $2.8 billion high voltage segment of the market is perfect for EEStor capacitors to target for growth and
disruption. We continue to reiterate that the combination of high voltage and high capacitance in a dry type design with low costs to
produce are disruptive to the industry and the electrochemical capacitor segment should be targeted with emphasis upon segments of
the market where the profitability is highest.
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We strongly recommend that EEStor, Inc. should proceed under the auspices that they intend on manufacturing implantable defibrillator
capacitors for the merchant market using the EEStor ceramic technology. This is because the process can be employed to manufacture
capacitors with the unique combination of both high voltage and high capacitance in a volumetrically efficient package. The EEStor
technology fits the unique parameters required for an implantable defibrillator (high voltage, and high capacitance) but also because the
process allows for asymmetrical capacitors to be produced from the technology. Moving forward to manufacturing the part will certainly
entice companies who make implantable defibrillators to take notice of EEStor, to take them seriously and to maximize potential return
on investment should they wish to pursue the opportunity to a licensing agreement.
Paumanok has determined that approximately 400,000 implantable defibrillators will be consumed worldwide with a market value of
approximately $10 billion USD (Paumanok estimate), and that the capacitors required will be 600,000 units with a market value of about
$75 million USD worldwide (but mostly in the USA). Average unit prices for implantable defibrillator capacitors are in the $125 USD
range per unit, with considerable margins. It is an excellent opportunity for EEStor.
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Global Capacitor Market Overview and specific EEStor advantages within each market opportunity: 2014
The overall capacitor market is broken down into two main sub-segments and multiple individual product lines. The two main sub-
segments are (1) Electrostatic, and (2) Electrolytic capacitors. Electrostatic capacitors include ceramic capacitors, including the
ubiquitous Multi-layered ceramic chip capacitors (MLCC) and plastic film capacitors; while electrolytic capacitors include both
aluminum electrolytic and tantalum electrolytic capacitors.
In FY 2014 we estimate the global capacitor market grew by 13% in value to $18,251 million USD, up from the estimated $16,170
million USD for the 2013 Fiscal Year. As we have noted, all the growth was consolidated in revenues reported by Japanese vendors,
which inflated when converted into US dollars because of the 20% year-over-year depreciation in the value of the yen. Unit shipments
of capacitors will total an estimated 1.589 trillion pieces worldwide in FY 2013, up 17.5% from the 1.352 trillion pieces shipped in FY
2013, the majority of which are MLCC going to the wireless handset segment, but also many end-customers taking advantage of the
yen depreciation to stockpile components. Global pricing for capacitors declined by an estimated 4% year-over-year in FY 2014 to
$0.011490. Capacitor pricing fluctuates based upon changes in product mix, and downward price pressure from customers.
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Figure 1: Global Market Value, Volume and Average Unit Pricing for Capacitors: FY 2007-2015
(In millions of USD. In millions of pieces. Average price per unit in USD.)
Table Note: All data presented in this report is on a Fiscal Year Basis Ending March 31 of the year. Therefore the annual measurement
of value, volume and pricing runs from April 1 to March 31 of each respective year. We report in this fashion because the majority of
the world’s capacitor manufacturers report on the same fiscal year basis. Capacitors Include Ceramic, Aluminum, Tantalum, DC
Film, AC Film, Niobium and Carbon Dielectrics.
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Capacitors=
$18.25 BB
USD
Ceramic = Aluminum:
$9.6 BB USD $4.1 BB USD
DC Film:
Tantalum: AC Film: $1.2
$0.85 BB
$1.9 BB USD BB USD
USD
Source: Paumanok Estimates- “Other Capacitors” Including Carbon, Niobium and Glass Capacitors account for an additional $620 MM USD in Global
Revenues in FY 2014.
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The global market for capacitors will total an estimated $18,251 million USD in FY 2014 (FY ending 3/11), up 13% from $16,170
million USD in revenues in FY 2013. After achieving the banner year revenues of $19,362 million USD in FY 2011, the market declined
by 4% in value in FY 2012, and again by 13% in FY 2013. Even though capacitor demand is relatively strong in smartphones, tablet
computers, automotive electronics and medical devices, it is being offset by poor demand from desktop computers, notebook computers,
consumer AV equipment and industrial electronics. The depreciation of the yen in FY 2014 caused all growth in the capacitor market
to be consolidated in Japan.
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$20,000
In Millions of US Dollars
$15,000
$10,000
$5,000
$0
2003 2004 2005 2006 2007 2008r 2009 2010 2011 2012 2013 2014 2015e
Total $12,873 $13,773 $15,616 $16,737 $17,473 $18,900 $15,897 $16,078 $19,362 $18,625 $16,170 $18,251 $18,814
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Global Capacitor Value Demand by Type (Dielectric): FY 2014 and Historical 10 Year Market Growth
The following table illustrates changes in the global capacitor markets by dielectric. For FY 2014 we show the global market for
capacitors up by 12.9% in value to $18,251 million USD lead by revenue increases in ceramic capacitors, which increased in overall
revenues by 20.3% for the year.
Figure 4: Changes in Global Value of Demand for Capacitors by Dielectric: FY 2003-FY 2014 and Percent Change in Demand for FY
2014
% Change: 2014 to 2015 Forecasts Source: Paumanok Publications, Inc. In Millions of USD
Ceramic Capacitors: 6.6%
Tantalum Capacitors: -1.6%
Aluminum Capacitors: 0.7%
DC Film Capacitors: -1.3%
AC Film Capacitors: 1.2%
EDLC & Other Capacitors: -10.1%
Grand Total: 3.1%
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making the market environment unique and the supply chain subject to rapid fluctuations in pricing and material availability. KEMET’s
acquisition of NEC-Tokin in FY 2014 will have a significant impact on vendor market shares in the tantalum dielectric, and AVX’s
acquisition of Nichicon’s tantalum operations in China and Japan will also adjust vendor market shares accordingly. Tantalum is under
pressure from ceramic chip capacitors, which continue to improve their performance and challenge tantalum capacitors in key end-
markets, especially computers and handsets. However, tantalum has known reliability and will continue to be used in electronic systems
because of its 40 years of operational data as a dielectric. Market growth will be limited due to encroachment, but it will remain a multi-
billion market. The strategy of western vendors is to increase share of this valuable product line through acquisition as other vendors
look at tantalum as a liability. Tantalum remains an opportunity for those who understand the nature of challenges in global markets.
market remains the molded chip conductive polymer aluminum capacitor for surface mount applications designed to compete against
tantalum chips, and large can aluminum capacitors for use in power inverter smoothing for renewable energy systems. The long-term
goals of multiple nations regarding the future reliance on wind, solar and geothermal energy suggests excellent growth rates for large
can electrolytic (screw terminal and snap-mount) aluminum capacitors.
5mm PET film capacitors consumed in power supplies, DC/DC converters and lighting ballasts worldwide. EEStor can benefit from
this trend as well.
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EEStor Opportunities in the Global Ceramic Dielectric Materials Market: (See Appendix L for a full breakdown of the existing
global dielectric market)
It should be noted that the EEStor plant, as it exists right now, could venture into production of NPO type HTBT powders for the
merchant market almost immediately (NPO ceramic dielectric compositions are defined as “Negative Positive Zero” or no change of
capacitance with temperature ceramic powders which are in turn used to manufacture NPO type ceramic capacitors.) This market
segment represents $83 MM USD in global market value with respect to merchant market sales of ceramic dielectric materials. NPO
ceramic capacitors are extremely precise capacitors used in clock circuits in telecommunications equipment, computers and a variety of
other professional electronic devices. HTBT is defined as Hydrothermal Barium Titanate, which is the process used to produce the
powders at EEStor. Basically, it could be viable to sell the composition modified barium titanate powders manufactured at EEStor to a
myriad of customers worldwide, including, but not limited to: Murata, TDK, Taiyo Yuden, Kyocera, AVX, KEMET, Vishay, and
Samsung. So the reader should consider that this is a possible (and immediate) path for the company to begin its movement into
commercialization
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Most companies that Paumanok visits, especially throughout Asia, who manufacture capacitors from titanate ceramics do so from
merchant powders purchased from companies such as Ferro and MRA and pay a premium for those powders because they cannot
manufacture the powders themselves. In the case of EEStor, the powder factory has been constructed first, and the capacitor factory is
now scaling up. In fact we would argue that the difficult portion of the process has been completed (i.e. powder production) and the
easier portion of the task (capacitor production) is now just taking shape.
The EEStor factory also had a significant quantity of advanced “batch” equipment and the method by which each segment was
compartmentalized with an eye on safety was noted by the author and considered excellent.
The EEStor Composition Modified Barium Titanate (CMBT) powders are unique in the industry in that they have been shown to be in
the paraelectric cubic phase. This is very significant in the manufacturing of capacitors in that these CMBT powders allow for the
manufacturing of capacitors with the following qualities, as verified in the Intertek report:
higher resistance
constant capacitance over wide voltage and frequency ranges
very fast charge and discharge cycles (milliseconds)
completely reversible polarity
performance stability when sealed in polypropylene
The final takeaway from the factory tour was that the scene was reminiscent of other barium titanate factories that Paumanok has toured,
but significantly cleaner; however in terms of scale, the EEStor factory was similar in size to the $20 million MRA Labs facility in North
Adams MA.
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Specific Segments of the Capacitor Market Where EEStor Technology should prosper:
As we have noted, the higher voltage range of the existing capacitor markets, where the value-added and application specific capacitor
markets are situated, is where we recommend that EEStor pursue their market and sales channels. This section summarizes the
opportunities in the $2.8 billion high voltage segment of the global capacitor market
considered offshoots of the power film capacitor market and includes the AC & Pulse Capacitor markets, for applications in CRT TV
set degaussing circuits and in power supplies. Another product of note is the PTFE plastic film capacitor which is consumed in 200
degree C applications and also at high voltage from 300 volts to 1 kV.
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Glass Capacitors:
AVX produces specialty glass capacitors to military specifications- Qualified to MIL-C-11272. These glass capacitors are
rated at 500 volts and are used in both defense applications and for downhole pump applications.
Diamond Like Capacitors:
Diamond Like Capacitors are produced by K Systems (WPAFB) and offer the end-use high energy density at high voltages to
1.2 kV. Applications are almost exclusively defense related.
Figure 5: High Voltage Capacitor by Dielectric and Applicable Voltage Range: 2014
Author’s Note: EEStor technology would be applicable at its current tested levels up to 1500 Volts, but it is believed that it can
extend this voltage handling capability to much higher voltage levels in the future, as indicted by Intertek hi-pot test results.
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Other
1%
$30 MM USD
Ceramic
18%
$510 MM USD
Plastic Film
56%
Aluminum $1,585 MM USD
25%
$687 MM USD
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APPENDIX A
Global Value of Capacitor Consumption by World Region: FY 2014
The data in the regional market section below illustrates how the majority of capacitor demand on a global basis (74%) is in the Asia-
Pacific region; while the remaining 26% is in the West. This is especially true for aluminum electrolytic capacitors, which are consumed
in consumer audio and video imaging devices, computers and power supplies in large quantities and these devices are largely
manufactured in Asia and likewise, their consumption of capacitors follows suit and is also in Asia. Still, however, demand for aluminum
capacitors in the West is also a large market, but more in tune with end-use markets in the automotive, telecommunications infrastructure,
power & industrial, lighting ballast, medical, oil & gas, mining and defense end-use segments. It is also important to note that the
aluminum capacitor market is dominated by Asian based vendors- Nippon Chemi-Con, Nichicon, Rubycon and Panasonic.
The same is true for the tantalum capacitor market; however, higher comparable percentages of demand exist in the West for tantalum
capacitors, and the tantalum capacitor market is controlled by Western vendors (i.e. Kemet, AVX and Vishay). Tantalum capacitors are
consumed in automotive electronics, medical devices, telecommunications infrastructure equipment, defense electronics (and in Asia
tantalum capacitors are consumed in computers and wireless handsets).
The primary message for the reader with respect to EEStor’s regional opportunities is that specific markets for these capacitors exist in
the West, but the larger opportunity is in Asia, with emphasis upon China, Japan, and Korea and any plans for priority market execution
should take the regional demand aspects for the EEStor products into account.
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Americas &
ROW
12%
Europe
15%
Graph Note: The majority of capacitor consumption continues to be in the Far East. The Far East will continue to be a growth region to 2019. China,
Taiwan and Korea will be the major areas of continued growth for handset, TV set and computer.
√ The Reader Needs to Know… Asia has traditionally been the largest market for capacitors, but since 2000 the Asian markets, with emphasis upon
China, have grown at the expense of consumption in the Americas and Europe. This trend will continue.
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Figure 8: Capacitor Consumption Value Trend By World Region and Percentage Change for FY 2007-2013 and FY 2014
Estimates
(In Millions of USD)
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Figure 9: Historical Shifts in Capacitor Consumption Value by World Region over time: FY 2007-2014
120%
100%
80%
60%
40%
20%
0%
FY FY FY FY FY FY FY FY
2007 2008 2009 2010 2011 2012 2013 2014
Americas & ROW 15% 13% 12% 12% 14% 12% 12% 12%
Europe 18% 17% 15% 15% 16% 16% 16% 15%
Japan 18% 17% 16% 16% 13% 13% 15% 14%
China & SE Asia 49% 53% 57% 57% 57% 59% 57% 60%
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The chart below illustrates the value of capacitor consumption by dielectric type and world region for FY 2014. The reader will note
that regardless of dielectric, that the overwhelming majority of demand for capacitors is centered in SE Asia, with emphasis upon Greater
China (PRC, Hong Kong, Taiwan); however, the smaller Asian countries, including Korea, Philippines, Singapore, Malaysia and
Thailand are also considerable markets. Europe, the Americas and Japan are smaller markets when compared to China and the SE Asia
Region.
Capacitor Markets in China and SE Asia by Capacitor Type (Dielectric): FY 2014
As we have noted, the China and SE Asian markets for capacitors is estimated at $10,860 million USD for FY 2014. About 56% of
consumption value is for ceramic capacitors; 23% is for aluminum capacitors, 9% is for tantalum; 9% is for plastic film and 3% is for
EDLC and other capacitors. Murata, Samsung and TDK dominate the capacitor markets in China and SE Asia, primarily through sales
of MLCC; however, other vendors, such as Taiyo Yuden, Kyocera/AVX, NCC, Nichicon, KEMET, Yageo and Walsin are major players
in the region as well.
Capacitor Markets in Japan by Capacitor Type (Dielectric): FY 2014
The Japanese market for capacitors is estimated at $2,519 million USD for FY 2014. About 50% of consumption value is for ceramic
capacitors; 23% is for aluminum capacitors, 13% is for tantalum; 10% is for plastic film and 4% is for EDLC and other capacitors.
Murata, Kyocera and Nichicon count Japan as a major end-market for their capacitors, while Taiyo Yuden, Nichicon and TDK also
count Japan as important source of revenue.
Capacitor Markets in Europe by Capacitor Type (Dielectric): FY 2014
The European market for capacitors is estimated at $2,719 million USD for FY 2014. About 43% of consumption value is for ceramic
capacitors; 25% is for aluminum capacitors, 11% is for tantalum; 15% is for plastic film and 5% is for EDLC and other capacitors.
Murata, Kyocera and KEMET count Europe as a major end-market for their capacitors, while Samsung, TDK and Vishay also are
extremely active in the region.
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Figure 10: Global Capacitor Consumption by Dielectric Type and World Region: FY 2014 (In Millions of US Dollars)
Source: Paumanok Estimates; In Millions of USD: Please note that the data in the chart above is for FY 2014, the latest date that this granular data is
available.
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Source: Paumanok Publications, Inc. Estimates Based Upon Public Financial Data and Corporate Presentations. (In Millions of US Dollars)
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Figure 12: Global Consumption Value for Capacitors by World Region: FY 2015 Outlook
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Figure 13: Capacitor Consumption Value Forecasts by World Region for FY 2020
$30,000
$25,000
$2,585
$20,000 $3,381
$2,153 $2,214
$3,115
$15,000 $1,908 $2,719 $2,724
$2,385 $2,519 $2,610
$10,000 $2,543
$15,070
$5,000 $10,860 $11,266
$9,061
$-
FY 2009 FY 2014 FY 2015 FY 2020
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APPENDIX B
Clearly in the chart below it is apparent that the major growth area in capacitors continues to be in ceramic capacitors, with emphasis
upon the high capacitance MLCC, which is the capacitor of choice for rapid growth products such as smartphones, tablets and automotive
electronic subassemblies, and is also experiencing design wins against alternative dielectrics such as molded tantalum chip capacitors
in increasingly higher capacitance values.
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FOR 26 YEARS OF CONTINUOUS RESEARCH WE NOTE THAT NONE OF THE PRIMARY DIELECTRICS HAS CHANGED; BASICALLY, THERE
HAS BEEN NO INNOVATIVE TECHNOLOGY THAT HAS DETHRONED ANY OF THE KEY CAPACITOR DIELECTRICS . T HIS IS IMPORTANT AS
IT SUPPORTS THE CONTENTION THAT THIS WILL NOT CHANGE OVER THE NEXT 20 YEARS EITHER . T HE ONLY CONSTANT IS THAT
CERAMIC CAPACITORS HAVE OBTAINED A LARGER OVERALL PERCENTAGE OF THE DOLLARS ASSOCIATED WITH CAPACITOR SPENDING
WORLDWIDE , RISING FROM 38% IN 1988 TO 52% IN 2014.
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APPENDIX C
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15% of global consumption value for capacitors in FY 2014. Germany is half the market in Europe, while smaller markets include
Holland, UK, France and Italy. There is also an active Eastern European market.
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APPENDIX D
Capacitor Consumption by End-Use Market Segment: 2014 FY Ending March Forecast and Update
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Figure 15: Capacitor Consumption by Type and End-Use Market Segment (Strengths and Weaknesses by Dielectric)
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Figure 16: Global Consumption Value for Capacitors by End-Use Market Segment: FY 2014
Consumer AV
17% Computers
$3.1 Billion USD 20%
$3.65 Billion USD
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Figure 17: Competitive Environment for Capacitors by End-Use Market Segment: FY 2014
Capacitor Sales by End-Use Market Segment for the Top Vendors of Capacitors: FY 2014
The following table illustrates revenues for the top vendors of capacitors by end-use market segment. We only use vendor data that has
been supplied to us via presentations, 10-K or annual reports, or through primary data provided by the company. This chart largely
justifies our estimates for capacitor consumption by end-use market segment. This methodology also supports the decade long trend of
telecom becoming more important, at the expense of consumer AV and computers.
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Figure 18: Revenues by End-Use Market Segment for the World's Top Capacitor Manufacturers: FY 2014 Estimates
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FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Telecommunications Markets:
The short term outlook for capacitor sales to the telecommunications segment are solid, and expected to grow by 16.1% in FY 2015 to
$6.99 Billion USD, up from $6.0 billion USD in FY 2013. The long-term outlook for handsets to 2019 remains robust, although we
expect the value of shipments to slow down post 2016. This is because the transition from traditional handsets to smartphones will be
almost completely encompassing during this time period, and elevate demand for MLCC and ultra-small case size tantalum chip
capacitors to satisfy the resulting demand. Simply put, the content of capacitors in smartphones far exceeds that of traditional handsets.
However, over the next five years smartphone production will dwarf legacy phone production and eventually unit demand for capacitors
will begin to slow down and level off. We anticipate that by FY 2019 that capacitor shipments to the telecommunications segment will
increase by 38% over FY 2014 shipments and reach $8,340 million USD, the majority of which will go to the ceramic capacitor market.
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Consumer AV Markets:
For FY 2015 we expect that capacitor demand for the consumer AV markets will continue to decline by an estimated 1.6% to $3.0
billion USD. For the long-term outlook to 2019 we anticipate a recovery in the flat panel display markets. The primary reason for the
slide in TV set demand in FY 2012, FY 2013 and FY 2014 has been the European economic crisis, which has severely impacted new
TV set sales in that region, and related production revenue in China and the Far East. Once this crisis subsides, we expect a surge in
TV set demand; and a revival in demand from emerging economies (Brazil, Russia, India and China; Malaysia, Indonesia, Nigeria and
Turkey) whose primary electronic gadgets of first choice are handsets, TV sets, refrigerators, air conditioners and automobiles.
Paumanok expects the market in 2019 to have grown by 10% in value from the FY 2014 estimates.
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Computer Markets:
For FY 2015 we estimate that demand from the computer market for capacitors will grow by only 2.7% to $3,750 million USD. The
longer-term outlook for capacitor consumption in computers continues to remain strong. Tablets will continue to grow to 2019 and
beyond, and demand for notebooks and desktops will also grow in accordance with improvements in the European and global economies.
Many businesses worldwide have held back on upgrading their computers, and the added boost expected with new versions of Windows
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did not come about, so we expect a recovery in the traditional desktop and notebook computers markets over time. By 2019 we expect
the value of capacitor shipments to the computer market segment to have increased by 18% to $4,300 million USD.
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FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts to the Automotive Market
The largest increase in the value of demand will come from the DC link capacitor used in the hybrid electric vehicle. Additionally, a
large portion of demand over the next five years for automobiles will come from emerging economies, especially in China, India, Russia
and Brazil. Many of these new cars will be small and lack much of the high end electronic content found on the Mercedes, BMW,
Cadillac, Lexus and Acura models. Truly high-end cars that require the largest electronic content and the greatest quantity of supporting
capacitors will remain in the 3.2 to 3.5 million-unit range worldwide between 2014 and 2019. For FY 2015 we expect the capacitor
shipments to the computer market to grow by 6.5% to $2,920 million USD and by 2019 we expect the market to grow by a combined
17% to $3,200 million USD.
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts to the Power, Industrial and Infrastructure Markets
The long-term outlook for capacitor consumption value in the power, industrial and infrastructure markets is for the market to grow.
Most of the growth will be for smart grid development and renewable energy systems; as well as for new motor and drive technology
and power film capacitors for AC filtering and burst power. The key areas of growth will be in the inverters for both wind and solar
power for emerging markets in the USA and China. For FY 2015 we expect demand for capacitors from the industrial segment to grow
4.6% to $2,100 Million USD and by 2019 to grow to $2,300 million USD or a collective 15%.
FY 2015 and FY 2019 Long Term Capacitor Demand Forecasts To The Specialty Markets:
The outlook in this segment for FY 2014 to 2019 is forecasted by Paumanok to show continued growth, primarily for medical electronics
and oilwell electronics. Demand from the defense sector is uncertain. While cuts in the US defense budget seem imminent, they will
most certainly involve personnel and overhead, and probably be overcome through investments in technology. Still however, certain
key defense platforms slated for the future will be cut, so the overall affect on component demand may be one of stagnation.
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The following graph illustrates the high profit margin end-use segments compared to the low margin segments.
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Figure 20: Operating Margins and Value-Added Ceramic Capacitor Markets: FY 2014
Higher Margins
Medical Implants
Oil & Gas Electronics
Defense Electronics
Aerospace
Telecom Infrastructure
Mining Electronics
Rail Electronics
Renewable Energy
Power Infrastructure
Auto Under The Hood
Lower Margins
TV Sets
Stereos
Wireless Handsets
Computers
Other Consumer Electronics
Auto Beyond The Firewall
APPENDIX E
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Our detailed analysis has revealed that AC Film capacitors fall into two basic categories-
Within each of these categories there are multiple sub-categories, which we now illustrate:
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AC film capacitors used for power T&D applications are generally employed in circuits from between 3 kV to 1000 kV. Distribution
class capacitors are generally pole-mounted, outside plant applications from 3 to 15 kilovolts, while transmission class capacitors operate
in both series and parallel to be used in power transmission systems to 1,000 kilovolts.
Global Trends in the Power Factor Correction Transmission and Distribution Capacitor Market Sector:
Market demand from public utilities is dependent upon a nation’s need for power and energy, therefore, from 2000 to 2014 China
remained the dominant area of new growth for vendors of power generation, transmission and distribution equipment.
However, demand for power related equipment and devices, including capacitors, remains robust in developing nations as well,
including Brazil, India and Russia; but also in new emerging economies- Viet Nam, Turkey, Paraguay and The Middle East.
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Global Market Value for Power Factor Correction Transmission and Distribution Capacitors
Global demand for high voltage power factor correction capacitors in 2014 will be an estimated $490 million USD worldwide, or 35%
of total AC capacitor consumption value globally.
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Applications:
Motor run capacitors are consumed in the global AC electric motor markets worldwide. The types of motors that consume motor run
capacitors are called split-capacitor motors, and the application of the capacitor is for power factor correction of the motor.
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Pricing Pressure on Vendors in the Motor Run Capacitor Market Segment: 2014
The motor run capacitor market has been susceptible globally to price competition; which has been driven into the space by low price
competition from South Korea, and more recently - India, where costs for raw materials - with emphasis upon metallized polypropylene
film is about $1.00 per kilogram lower in price than vendors in the West.
Lawsuits in Europe and the United States involving accusations of price “dumping” against Korean firms has been well documented
over the past decade.
In more recent years, vendors in India, have also begun to expand their production of OPP Film Capacitors for global consumption in
the United States, Europe and Asia. This has placed even greater pressure on price. The bottom line here is that the motor run capacitor
market is crowded with vendors worldwide; and this places great pressure on pricing and represents a segment of the market that
demonstrates increasingly smaller profit margins for vendors.
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Motor run capacitor technology is as old as the motor, and operations such as Aerovox for example would have been operational for
more than 100 years. The leaders in this market segment represent the old school capacitor companies that began production of
polypropylene film capacitors in the early 1900s for DC motors. These capacitor operations also became vital to the development of
AM radios, building both capacitors and vacuum tubes at many of the older plants worldwide (Aerovox, GE, Arcotronics, Shizuki,
EPCOS).
Thus, the general perception is that equipment used to produce OPP Motor Run film capacitors is old, and modernization could lend
itself to lower cost production of these high dollar per unit OPP cans. This makes the market susceptible to encroachment by
modernization, especially in emerging markets, such as China, India and Vietnam where personal business relationships will not stand
in the way of lower pricing.
Other major motor producers include Baldor Electric, U.S. Electric Motors (a division of Emerson Electric Co.), Reliance Electric
Company (a division of Rockwell International), A. O. Smith Corporation and Newage (a division of Cummins, Inc). Major
foreign DC Motor vendors include Siemens AG, Toshiba Corporation, Weg S.A., Leroy-Somer, Inc. and ABB Ltd
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This segment of the AC film capacitor market was hit hard by the global economic downturn in 2009 as capital spending for industrial
capacity expansion declined substantially, resulting in a substantial decline in global requirements for correcting the industrial power
factor. However, in 2011 the market has rebounded nicely- mostly for retrofit operations (not new construction).
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The HID ballasts are considered to be a safe haven for AC lighting capacitors because their displacement in the ballast will take longer
than traditional magnetic ballasts.
Paumanok tends to include the microwave oven capacitors in the power capacitor segment; however many suppliers view the microwave
oven capacitor market as a market by itself due to its distribution channel into residential home appliance markets. The capacitor
application in a microwave oven, however, is pulse discharge in nature and extremely high voltage, which qualifies it as a traditional
pulse discharge capacitor.
Galanz of China
Sharp of Japan,
Samsung of Korea,
Matsushita of Japan, and
LG Electronics of Korea
We note that many of the microwave ovens consume AC film capacitors from Kum Kang in Korea (formerly a Samsung capacitor
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operation), although Aerovox (Buckingham) has also historically competed here as well.
The Microwave oven capacitor market accounted for an estimated $55 million in capacitor sales in 2014, or 4% of global consumption
value for all AC film capacitors for FY 2014.
This is the fastest growth businesses for AC film capacitors over the next five years, and has exhibited the largest amount of growth by
end-use market segment over the former five years. It is generally considered a basket category for a variety of AC film capacitor
products that are finding good growth opportunities, primarily in external defibrillators, variable speed drives for wind generation,
welding capacitors, furnace capacitors, and traction capacitors for electric rail.
Outside of microwave oven pulse discharge applications, the major market here is for variable speed drives, which are consumed in
wind generation equipment and in electric trains- two growth markets worldwide.
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Pulse capacitors find their niche in various forms of research & development for generating string magnetic fields; for high energy light
flashes; high temperature and high pulses of electrical energy.
Power Supplies/Inverters/Converters/UPS
Telecom Infrastructure
Battery Chargers (auto, industrial, railroad)
Ignition Speed Controllers
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Amplifiers
Magnetizing Equipment
Motor Drives
Inverters
Electric Vehicle Power Conversion (DC Link)
Windmill Conversion (DC Link)
Class 7 and 8 Mining and Framing Machines (DC Link for EV versions)
Wave Water Power Generation Equipment (DC Link)
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APPENDIX F
There are two basic constructions for ceramic capacitors- multilayered and single layered. Multilayered capacitors are produced using
an alternate stack process, which builds layers of ceramic dielectric material on top of layers of metallized electrode.
In a tubular ceramic capacitor, the inner and outer surfaces of a ceramic tube are painted with silver ink or palladium ink, leaded and
coated; and the tube acts as the single ceramic layer. These tubes replaced discs to conserve PC board space and for the purpose of
automated PC board mounting; however, with the overwhelming acceptance of the multilayered chip form, all multilayered ceramic
capacitors, other than chips, will now dwindle to small, niche and replacement markets over the next decade. Tubular ceramics have
now shrunk to specialty markets; however they are still produced, and in fact, we are told, consume great quantities of both silver and
palladium for electrodes according to primary suppliers.
There are also specialty single layered ceramic capacitor markets that extend the ceramic capacitor market to 100,000 volts. The disc
market is usually applicable to 40 kV, but the doorknob capacitor market is applicable to 100 kV.
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APPENDIX G
Aluminum electrolytic capacitors are constructed from two conducting aluminum foils, one of which is coated with an insulating
oxide layer, and a paper spacer soaked in electrolyte. The foil insulated by the oxide layer is the anode while the liquid electrolyte and
the second foil acts as the cathode. This stack is then rolled up, fitted with pin connectors and placed in a cylindrical aluminum casing.
The two most popular geometries are axial leads coming from the center of each circular face of the cylinder, or two radial leads or
lugs on one of the circular faces. The electrolyte is usually boric acid or sodium borate in aqueous solution, together with various
sugars or ethylene glycol which are added to retard evaporation.
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These designs are physically large, have large amounts of capacitance, and high voltages. They are used in the output filters of power
supplies. The snap-in models are easy to mount and are replacing older, screw terminal products. This sector faces some encroachment
by SMT designs, but their large size and application specific nature makes them somewhat immune to encroachment. Thus, these
markets will continue to play an important role going forward.
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These large cans are also used in DC-to-DC converters and switch mode power supplies. Their large designs also find a way into a
variety of additional industrial electronic applications. The screw terminals are considered older technology because they are
cumbersome to mount. These devices are being replaced by plug-in type aluminum capacitors, although like the axial leaded devices,
there are still companies that use these designs.
APPENDIX H
Sprague Electric, the Vishay Intertechnology subsidiary, and their sister company, Sprague-France, maintain market leadership on the
$85 million wet/foil and wet/slug market worldwide. Vishay’s purchase of Kemet’s Tantalum Wet facility in 2008 further solidified
Vishay’s leadership position in wet-slug tantalum capacitors. Only a very small portion of the market is high voltage, and is
dominated by Wilson Greatbatch and their wet electrolytic design for implantable defibrillators.
ceramic and plastic film capacitors. They have low capacitance values in the picofarad range to the low microfarad range and are
available in high voltage designs to 15 kV. Paumanok estimates that the total market for high temperature capacitors manufactured
from reconstituted mica dielectric at about $6 million USD. The two major vendors are Eurofarad (Exxelia) and Custom Electronics,
Inc.
high energy density capabilities of these will enable electrically driven aircraft accessories, such as engine mounted actuators, sensors
and mounted flight control for the Air Force's more electronic aircraft. High energy density capacitors are also greatly needed for Air
Force, Army and Navy pulse power applications, and for NASA filter applications. According to K Systems, a need exists for high
energy density capacitors that can tolerate high voltage excursions under prolonged high temperature conditions. Many of the current
avionic aerospace and high performance power conditioning systems used in the distribution, control, sensor and actuation applications
require high performance capacitors which can operate at elevated temperatures. Diamond-like carbon (DLC) possesses the unique
properties of high dielectric strength, high resistivity, low loss, high decomposition temperature, and chemical inertness. The developed
DLC films are one of the best known dielectric materials to date, with material energy densities of >19.2 J/cc, dielectric constant of 4.6,
breakdown strength of >970V/μm, and an operating temperature range of -65°C to 300°C. A new prototype manufacturing technology
for high energy density and high temperature DLC capacitors has been demonstrated. This work investigates two different capacitor
designs manufactured by direct ion beam deposition of high quality DLC dielectrics: (1) Packaged rolled capacitors, and (2) Stacked
multilayer capacitors. Several packaged DLC capacitors were successfully manufactured by rolling a pair of the DLC coated double-
metallized polymer films, and several multilayer DLC capacitors were also manufactured by depositing alternating layers of DLC and
aluminum films on a rigid silicon substrate.
For oil-impregnated DLC capacitors, the capacitance value (25°C) was found to increase from 7.7 μF (dry DLC capacitor) to 12.3 μF
(oil impregnated DLC capacitor); a 60.5% increase. This increase is due to removal of the air gap inside the wound capacitor by using
oil. This air gap may also be further reduced by using tighter winding tension in the future.
Also, It is clearly demonstrated that the capacitance of DLC stacked capacitors do not change with temperature from -65 degrees C to
200 degrees C to within ± 3%. The dissipation factor is lower at low temperature, and increases with temperature. This may be due to
the current packaging technique as well as the oxidation of the aluminum wire connector at high temperatures.
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One of the best dielectric materials known to date is high quality diamond-like carbon films: high energy density 19.2 J/cc materials
only, dielectric constant of 4.6, breakdown strength of >970 V/μm, operating temperature range of -65°C to 300°C, dissipation factor
of 0.1%, ∆C/C vs. frequency of <8 % .
DLC films are amorphous and excellent adhesion on metals and polymer film, self- healing, and flexible for wound capacitor or can be
stacked in multiple layers construction.
Stacked DLC capacitors provide very high energy density, and can be operated over a wide temperature range of -65 degrees C to +200
degrees C.
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APPENDIX I
Author’s Note: EEStor technology would be applicable at its current tested levels up to 1500 Volts, but it is believed that it can extend this voltage
handling capability to much higher voltage levels in the future, as demonstrated in Intertek’s hi-pot testing.
The following chart breaks down the individual capacitor sub-markets by the dielectric type and the voltage range in which they perform.
Polypropylene capacitors have the largest breadth of product offering at high voltages, and ceramics also have impressive coverage.
Aluminum capacitors max out at 500 Vdc, but represent large markets in their screw terminal and snap-in configurations. High voltage
ceramic capacitors, especially the MLCC and the MLC axial and radial designs are also large markets in their high voltage iterations.
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Figure 21: Global High Voltage Capacitor Consumption Value By Dielectric and Voltage Rating: 2014
Author’s Note: EEStor technology would be applicable at its current tested levels up to 1500 Volts, but it is believed that it can extend this voltage
handling capability to much higher voltage levels in the future, as demonstrated in Intertek’s hi-pot testing.
Source: Paumanok Estimates- In Millions of USD also see figure next page.
Figure 22: Global High Voltage Capacitor Consumption Value By Sub-Category (Type and Configuration): 2014
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Global Consumption Value for High Voltage Capacitors by World Region: 2014
The following chart illustrates the high voltage capacitor market by world region for 2014. According to our estimates, the market is
48% in favor of the Asia-Pacific region; 29% in favor of Europe and 23% in favor of The Americas.
Figure 23: Global Consumption Value for High Voltage Capacitors by World Region: 2014
AMERICAS
23%
ASIA-PAC $658 MM USD
48%
$1,351 MM
USD EUROPE
29%
$803 MM USD
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The reader will note that the high voltage segment of the market, where we suggest that EEStor should enter, has a much higher market
opportunity in the West when compared to the capacitor market as a whole. Significant market opportunities exist in the high voltage
segment of the global capacitor market in the West, as is shown in the chart above.
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APPENDIX J
Global Consumption Value for High Voltage Capacitors by Dielectric Type and World Region
The following chart further breaks out the market for high voltage capacitors not only by world region, but by dielectric as well. The
American region (NAFTA) is known for its high voltage capacitor markets for power transmission and distribution; motor run; as well
as for specialty end-markets in defense, medical and oil & gas electronics. Europe is known for its industrial segment, including key
markets for power film capacitors and large can electrolytic capacitors for inverter and drive assemblies for windmills and other
renewable energy systems. The Asia-Pac region is known primarily for consumption of high voltage plastic film capacitors for
applications in TV degaussing circuits; in motors, in power supplies (Taiwan), in microwave ovens; and in power transmission and
distribution systems.
Figure 24: Global Consumption Value for High Voltage Capacitors by Dielectric Type and World Region: 2014
than one type of high voltage capacitor. The key end markets are power supplies; utility grade power transmission and distribution;
industrial drives and inverters, motors, defense electronics, industrial PFC and other line voltage markets.
Figure 25: High Voltage Capacitor Consumption Value by End-Use Market Segment: 2014
Motors
13%
Drives & Inverters
17%
Source: Paumanok Estimates- As previously noted, many of these end market segments are ideal for EEStor to compete
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High Voltage Capacitors: Demand by Capacitor Dielectric and End-Use Market Segment: 2014
The following chart further breaks out global consumption for high voltage capacitors by dielectric (capacitor type) and end-use market
segment. The reader will not how various forms of high voltage power supplies require multiple dielectrics to operate for the input and
output filters. Other large markets include the polypropylene film capacitor consumption in power transmission and distribution systems
for power factor correction; the large market for both polypropylene film capacitors and large can electrolytic capacitors in drives and
inverters; and the large motor run capacitor markets.
Figure 26: Global Consumption Value for High Voltage Capacitors by Capacitor Type and End-Use Market Segment: 2014
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NIPPON CHEMICON
TDK-EPC 6%
7%
OTHER AVX
33% 6%
NICHICON
5%
SHIZUKI
5%
PANASONIC
5%
TAIYO-YUDEN
2% VISHAY
CORNELL DUBILIER/YORK 5%
2% REGAL BELOIT
2% KEMET
GE INDUSTRIAL 4%
3% MURATA ABB CAPACITOR DOVER RUBYCON NISSIN
3% 3% 3% 3% 3%
Dover has spun off their capacitor division into “Knowles Capacitor Group”
Source: Paumanok Estimates
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Global Sales & Market Shares for High Voltage Ceramic Capacitors by Type: 2014
The following chart illustrates our estimates for market shares in high voltage capacitors by vendor and individual dielectric for 2014
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Figure 28: Global Sales & Market Share Estimates for High Voltage Capacitors by Type: 2014
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APPENDIX K
The following section of the report illustrates the global competitive environment in the capacitor industry. The reader should note
that capacitor vendors can be large entities with considerable resources. This section is included to provide the reader with guidance
related to prioritizing potential licensing and manufacturing partners for EEStor.
Also, the reader will note that ceramic and aluminum capacitor production is based primarily in the Far East. Plastic film capacitor
production is a Japanese and European phenomenon, and tantalum production is primarily in the USA, Europe and Israel.
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Due to the large number of capacitor vendors worldwide (300) the top suppliers market shares hover around 10% to 15%.
The two top suppliers are Murata and Samsung EMCO, both involved in ceramic capacitor production.
TDK and their purchase of EPCOS AG expanding their capacitor product line into plastic film capacitors and aluminum
capacitors.
Panasonic, which has an odd position in the capacitor market, as they had begun to divest themselves of their tantalum and
MLCC lines (sold to Nichicon and Murata respectively), but then expanded their capacitor line through their purchase of Sanyo
(back into tantalum). Now Panasonic has major share position in plastic film capacitors, aluminum electrolytic capacitors and
tantalum capacitors, with technology leadership positions in cutting edge conductive polymer capacitor technology and DC film
chip capacitor technology.
Vishay, with lead market share positions in tantalum (Sprague, Tansitor, Mallory brands), aluminum (BCC Brand), DC film
(Roederstein and BCC brands) and minor positioning in ceramics (Vitramon, Ceramite brands).
Nippon Chemi-Con, which has the largest global share position in aluminum electrolytic capacitors.
KEMET, with the number one position in tantalum capacitors and a minor position in ceramics, aluminum and plastic film. In
March 2012, Kemet announced the purchase of NEC –Tokin, which will increase their capacitor revenues by $200-300 million
when the deal is complete in FY 2014, and expand their presence into electromagnetic compatibility components (EMC) and
PZT Components (Piezoelectric) and EDLC supercapacitors, as well as other components and devices.
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Figure and Graph 29: Top 13 Vendors of Capacitors: FY 2014 Capacitor Revenues & Market Shares
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Murata Capacitors
Others 14%
29%
SEMCO Capacitors
10%
TDK-EPC Capacitors
7%
Walsin Capacitors
1%
Yageo Capacitors
2%
Kyocera/AVX
Vishay Capacitors Capacitors
2% 6%
Rubycon
Taiyo Yuden
Panasonic/Sanyo Capacitors
Capacitors
4% 4% Nichicon Capacitors
KEMET Capacitors 6%
NCC Capacitors
5% 5% 5%
Source: Paumanok Publications, Inc. In Millions of USD
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Figure and Graph 30: Forecasted Change in Capacitor Market Shares by Vendor: FY 2012-FY 2013
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Source: Paumanok Publications, Inc. March 2014; Yen depreciation impacts market shares
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KEMET Vishay
2% 2%
Walsin
Others
Yageo 3% 10% Murata
4% 29%
Kyocera/AVX
7%
Taiyo Yuden
11% Samsung
TDK 18%
14%
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Chinsan
3%
Elna
Lelon Capxcon 3%
3% Others
3%
8% Nippon Chemi-
Jianghai Con
4% 19%
Aihua Nichicon
(Aishi) 16%
4%
SamYoung Rubycon
SamWha Panasonic
7% 13%
4% 8%
ManYue
5%
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The AC film capacitor market is diverse and fragmented with many global suppliers of small and large can AC film capacitors. The
largest suppliers are involved in power transmission and distribution capacitors for power utility applications and industrial
manufacturing applications for power factor correction. The major suppliers include ABB Capacitor, GE Capacitor and Nissin Electric.
Other important suppliers include Shizuki Electric (Japan), Aerovox, Iskra from Slovenia, Kemet-Arcotronics from Italy, TDK-EPCOS
and Nichicon. Other Major suppliers include Wuxi Power, Zuzhou Power, Frako, Electronicon, Commonwealth-Sprague, Seika Electric,
Franke, Samwha, Myron Zucker, ICAR, Han Sung and many more. A diverse and fragmented market with a substantial amount of
private label agreements between brandname companies and offshore production in India.
For 2013 we combined our market share data for DC and AC film capacitors for this report as is shown below.
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Figure 34: Plastic Film Capacitor Manufacturers: FY 2014 Market Shares (Includes both AC and DC film capacitors)
KEMET
8%
Panasonic
9% TDK-EPC
7%
Vishay
Others 5%
56%
ABB
Capacitor
4%
Shizuki
AVX Electric
3% 3%
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APPENDIX L
Ceramic dielectric materials are used primarily in ceramic capacitors, including multi-layered ceramic chip capacitors (MLCC), radial
leaded ceramic capacitors, axial leaded ceramic capacitors and single layered disc ceramic capacitors. Additional ceramic dielectric
material markets include ceramic PTC thermistors, high frequency ceramic filters and LTCC components and substrates.
Ceramic dielectrics encompass the dielectric layer that forms capacitance in a ceramic chip capacitor. The dielectric layer is either
stacked (MLCC), rolled (MLC Leaded), or pressed (Single layered ceramic), but 90% of all ceramic dielectric materials go into the
1500 billion piece global MLCC market (1.5 Trillion Pieces).
account for about 93% of all capacitor units produced worldwide by type: and this massive volume is one of the largest piecework
projects known to man, rivaled only by medicine (i.e. pills) and nails, nuts and bolts combined. All capacitor types other than ceramic
are considered niche.
Thus, demand for barium titanate ceramic is enormous and is sourced from either the merchant market, or produced captively by the
ceramic capacitor manufacturers from barium compounds and titanium dioxide, or similarly low cost ceramic precursors and additives
such as calcium, zirconium, yttrium and neodymium.
Thus any increases in capacitor technology will come in the form of a change in the manipulation or engineering of the respective
ceramic, tantalum, aluminum or film dielectrics. In terms of technology spending and research and development in the industry, the
largest amounts of dollars being expended are in ceramic dielectric materials. The driving force is the value added global market for
capacitors between 1 and 1,000 µF, where there are fewer components on the board, but represent the components with the greatest
average unit pricing, and the best profit margins (ceramic capacitors are applicable up to 100 microfarads, although ceramic capacitor
manufacturers in Japan have suggested that higher capacitance products in the 220 microfarad, 330, microfarad and even 470 microfarad
are possible in the future).
The financial attraction of the technical advancement of capacitance is as follows-As the capacitor manufacturer excels in technology
by increasing capacitance value per cm3 of dielectric material, it limits the initial competition and can reap huge benefits for a company
over an extended period of time.
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Average Price per Ton for Ceramic Dielectric Materials: FY 1999-FY 2012 (In USD):
Pricing for ceramic dielectric materials was in the $20,000 per ton range from 1999 to 2005 as erosion of price in the solid state dielectric
materials business was offset by higher priced materials for high capacitance ceramic chip capacitors which were manufactured using
expensive oxalate, hydrothermal or sol-gel processes. However, the advances in oxalate technology enabled this process to be more
readily used in higher capacitance applications, which eroded price. Also, the ability to create consistent nano-particles became easier
and the yields improved, further driving down prices. The price per ton in 2014 is an average of $22,060.
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high capacitance ceramic chip capacitors, many capacitor manufacturers source such companies as Sakai or Nippon Chemical Industrial
who employ the Hydrothermal, Oxalate or sol-gel processes when producing their powder.
other captive producers employ a solid state process for low picofarad type ceramic capacitors, while purchasing their nano-particle
barium titanate from the merchant market for their high capacitance ceramic chip capacitors, which require greater surface area and
therefore smaller, more precisely controlled particle sizes. The corresponding merchant market value of this material is approximately
$335 million USD, so the cost savings can be significant.
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Figure 35: Merchant versus Captive Market For Ceramic Dielectric Materials: FY 2012
Captive
Market
30%
14,180 Tons
Merchant
Market
70%
33,185 Tons
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Merchant Market Reliance; and Captive Production of Ceramic Dielectric Materials by Ceramic Component Manufacturer:
2012 FY
The following table illustrates the major customers for ceramic dielectric materials and the respective outsourcing to the merchant
market. Primarily the materials purchased from the merchant market are for advanced barium titanate, formulations and additives.
Products produced captively include barium titanate (mostly solid state materials, except in the case of Murata, who produces their own
advanced BT powders in-house (captive).
Ceramic Dielectric Material Consumption by Capacitor Manufacturer: Merchant versus Captive: FY 2014 Estimates
The following table is an estimation based upon primary research of ceramic dielectric material consumption by major ceramic
capacitor producer in both the merchant and captive markets.
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Figure 36: Ceramic Dielectric Material Consumption by Capacitor Manufacturer: Merchant versus Captive: FY 2012 (In
Tons)
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Global Merchant Market for Ceramic Dielectric Materials by Type (Barium Titanate, Formulations and Additives): FY 2014
The global merchant market for ceramic dielectric materials in FY 2014 was worth an estimated $710 million USD, with barium titanate
material sales accounting for $374 million, or 53% of consumption, formulations (X7R, NPO, Y5V, Z5U, etc.,) accounting for $277
million USD worldwide, or 39% of consumption value, and additives, with a market value of $59 million, or 8% of total consumption
value in FY 2014.
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Figure 38: Merchant Market Supply of Ceramic Dielectric Materials by Type: (Barium Titanate, Formulations and Additives:
FY 2014
Additives
8%
$59 MM USD
Barium
Titanate
Formulations
53%
(COG, X7R,
$374 MM USD
X5R, Y5V*)
39%
$277 MM USD
*Formulations are also called Compositions in this report and include “ready-to-go” ceramic dielectric materials in many various types of dielectrics
depending on the purpose and application of the components. NPO (Precision/Telecom); X7R (General Purpose Professional); Y5V (Consumer); and
then variations, such as X5R for high capacitance; and X8 series for high temperature (Auto).
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ceramics. Other barium titanate vendors are small in comparison and include KCM Corporation, Fuji Titanium, Ferro Corporation,
SinoCera, PDC and Others.
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Source: Paumanok
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Ceramic Dielectric Material Vendors: Overall 2014 Sales & Market Shares
Ceramic Dielectric Materials: Market Shares: 2014
The three primary vendors of ceramic dielectric materials to the global electronics industry in terms of dollar value revenues are Sakai
Chemical (27% share); Ferro Corporation (17% share), TOHO Titanium (12% share) Nippon Chemical Industrial (10%) share and KCM
Corp (Kyoritsu-10% Share). The other major vendors include Fuji Titanium, Prosperity Dielectrics, SinoCera, MRA Labs and
Sukygung AT.
These manufacturers supply ceramic dielectric materials for the ceramic capacitor and PTC thermistor markets and operate in the
merchant market sector only. The reader will note that the market is disjointed. Sakai and JCI largely supply barium titanate which is
mixed into formulations at the capacitor manufacturer. Ferro Corp. largely supplies formulations to the ceramic capacitor market from
captively produced barium titanate. TOHO Titanium is the odd man out because they supply a unique titanium formulation for use with
high capacitance MLCC. Prosperity supplies barium titanate to the merchant market but also consumes their own barium titanate to
make formulations. SinoCera also follows the same business model. MRA on the other hand only produced formulations. The market
is highly fragmented and there is overlap between tiers.
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Figure 40: Ceramic Dielectric Material Vendors: FY 2014 Global Market Shares (All Materials Combined)
Sukgyung AT
Sinocera
MRA Labs 1%
3%
2%
Prosperity Others
Dielectrics 5%
6%
Sakai Chemical
27%
Fuji Titanium
7%
KCM
Corporation
(Kyoritsu)
10% Ferro Corp.
Nippon 17%
Chemical
Industrial
10%
TOHO Titanium
12%
Source: Paumanok Publications, Inc. Based upon company reports and Paumanok’s internal estimates. (Based upon Revenues in Millions of USD}
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Definitions:
Formulations, or “compositions” of ceramic dielectric material are the final step in the conversion of barium titanate into a usable
product for the capacitor and thermistor manufacturers to consume. Formulations are available in a myriad of chemical recipes, but
the most popular are the X7R, X5R, COG, Y5V, Z5U and X8R. These terms also comply with the terminology for the finished
capacitor and ultimately determine the capacitor performance level with respect to capacitance change with temperature.
Barium-titanate is manufactured in the merchant market (Ferro) for consumption internally in formulated NPO, X7R, Z5U and Y5V
dielectric materials and variations thereof (such as X5R and X8R for example). Ferro Corporation dominates the global merchant market
for formulated dielectric materials, and is also the world’s largest supplier of additives to their MLCC customers who wish to produce
their own formulations in house.
Ferro manufacturers its own barium titanate, of which, about 85% is consumed captively in their production of formulations. Thus,
Ferro has been successful at converting their barium titanate into formulations and selling the formulations to major MLCC
manufacturers across the globe. In each instance an MLCC manufacturer views the Ferro formulated dielectric material as either
superior to their own, or that provides an added benefit not found in the dielectric materials produced captively by the MLCC company.
Other major producers of formulations include Fuji Titanium, KCM Corp., Toho Titanium and Nippon Chemical Industrial. But
Ferro dominates the merchant market for formulations. It is not uncommon for Ferro Corporation to supply 100% of all formulation
material requirements to smaller MLCC customers in Taiwan and China who have limited access to quality materials, or the captive
capability to manufacture their own materials to produce MLCC with required specifications for the local high-tech economy in Asia.
Throughout Taiwan, Korea and China there are symbols of Ferro materials in almost every single MLCC manufacturer, and Ferro is
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credited with building the South East Asian MLCC business. Formulations have a 100% to 150% mark-up over solid-state barium
titanate, which is a good rule of thumb for mark-ups within the raw material sector.
of many MLCC suppliers, with emphasis upon Vishay-Vitramon; AVX Corporation, ATC. and Johanson, among others. ULF NPO
materials is a growth business, and will respond to increases in palladium prices, which are historically valuable metal with respect to
price per Toz.
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Figure 41: Global Merchant Markets for Formulations by Type (COG, X7R/X5R, Y5V, Other): FY 2014
X7R/X5R
Formulations
44%
$122 MM USD
Ceramic Dielectric Formulation Suppliers to the Global Merchant Market: FY 2014 Estimated Market Shares Worldwide
Paumanok estimates that the major vendors of formulations include Ferro Corporation with 33% market share, followed by TOHO
Titanium with 27% share; Prosperity Dielectrics with 13% share, KCM Corp with 10% share, Fuji Titanium with 7% share, MRA Labs
with 5% share, SinoCera with 3% share and other Chinese vendors with 2% share. Between 2008 and 2014 primary sources reported
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that Ferro Corporation discontinued some of the dielectric product lines to focus specifically on those lines that were profitable for the
company. This gave other vendors the opportunity to increase share in the formulations space.
Figure 42: Ceramic Dielectric Formulation Suppliers to the Global Merchant Market: FY 2012 Estimated Market Shares
Sinocera Others
MRA Labs 3% 2%
5%
Fuji Titanium
7%
Ferro Corp.
33%
KCM Corp.
10%
Prosperity
Dielectrics
13%
TOHO Titanium
27%
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