Multilayer Ceramics Eyed to Replace Tantalum Caps - Murata Electronics North America Inc - Brief Article

Information Superhighways Newsletter, Oct, 2000

Murata Electronics North America, a supplier of ceramic capacitors, is now offering multi-layered devices that can serve as drop-in replacements for scarce high-value tantalum electrolytes. New-generation ceramic capacitors with 300-600 dielectric layers have capacitance and form factors similar to tantalums, which are now in short supply, and the spiraling prices of these electrolytics has made ceramic an attractive alternative, said John Denslinger, Murata's senior vice president.

Ceramic chip capacitors, whose "sweet spot" is in the 1 picofarad to 0.1 microfarad range, are primarily used for high-frequency filtering and power-supply decoupling applications. But micro-miniaturization has enabled Murata to build 1-10 [micro]F devices, Denslinger said. The company has delivered 100 [micro]F devices (in a 2220 type form factor), and believes it can make ceramic capacitors capable of 220 [micro]F storage. These high-value ceramics will replace or supplement tantalums as charge reservoirs and low-frequency ripple filters in power supplies and battery chargers.

The US capacitor market was roughly $10 billion in 1998, according to Murata's compilations. Ceramic capacitors had the lion's share of this market, with roughly 325 billion pieces shipped, resulting in $4.1 billion in product revenues. Aluminum electrolytics, with 43 billion pieces, accounted for $3 billion. Tantalums, with 14 billion pieces, accounted for $1.4 billion in shipments, while film capacitors accounted for another $1.4 billion (22 billion pieces).

The market for ceramic capacitors, relatively flat for much of the 90's, has dramatically spiraled in recent years, causing Murata's worldwide revenues (18 percent of which come from the US) to surge from $3.1 billion in 1999, to $4.3 billion in 2000. At its current run rate, Murata will gross approximately $5.2 billion in fiscal year 2001, Denslinger believes. While the use of ceramic capacitors shows a steady 25-30 percent yearly increase in volume, decreasing average selling prices made the market relatively flat until recently. A booming electronics industry, however, has dramatically raised both volumes and prices.

Demand for tantalum electrolytic capacitors is currently exceeding supplies. Spot market pricing has been as high as 10 times normal, and quoted lead times are close to one year in many cases (26-52 weeks). In this environment, ceramics are seen as more than a "make do" replacement. Murata has the capacity to churn out between 2 to 2.2 billion pieces per month, and is quoting 14-16 weeks delivery - "10 weeks on forecast," Denslinger says.

Murata sees tantalum replacement as a big market opportunity and is actively working with cellular phone manufacturers to consider ceramics not just as drop-in replacements, but also as design-ins for their next-generation products. Because the equivalent series resistance (ESR) of a ceramic will be lower than a tantalum at most frequencies, manufacturers can use a smaller capacitance and case size for their filters in many applications, Denslinger said.

Because of the enormous volumes involved, pricing remains sensitive. Under normal conditions, a high-valued ceramic may reflect a higher price than its tantalum counterpart. But under current market conditions, where a 22 [micro]F tantalum capacitor in a 1210 case might go for 50 cents, the ceramic is competitive in the 40- to 45-cent range. Further savings can be had where customers are flexible on form factors, Denslinger said.