Taiwan-based aluminum electrolytic capacitor makers see sales bottom in Nov and Dec

Taiwan-based aluminum electrolytic capacitor makers have indicated that revenue declines will end in November and December as clients finished adjusting their inventory. Looking at the supply side, high-voltage aluminum capacitors are in tight supply due to a shortage of aluminum foil and steady demand.

With clients lowering inventory in the third quarter, which is historically the peak season, aluminum electrolytic capacitor makers said that the inventory adjustment process is almost complete and clients have gradually begun a new round of procurement. Taiwan-based Lelon Electronics and Taiwan Chinsan Electronic Industrial will see November revenues reach the level of October, and only single-digit-percentage declines for December, according to market watchers.

Despite lower demand for photovoltaic （PV） inverters in the fourth quarter, shipments of high-voltage aluminum capacitors for wind energy systems and LCD TV power supply had remained fairly strong. Lelon pointed out that it is currently developing large-size aluminum capacitor products to raise ASP.

In addition to steady demand, the makers also attributed a shortage of aluminum foil for the tight supply of high-voltage aluminum capacitors. Aluminum foil maker Liton Technology recently said that some of its production lines in Abazhou, China are now operational to fulfill customer demands but orders in excess of capacity will likely persist.

Low-voltage aluminum capacitor supply, however, is relatively more sufficient. Jaan Cherng Technological, which makes aluminum foil for low-voltage products, noted that demand is steady at the moment and would reopen idle product lines if needed.