Passive component maker Chilisin Electronics is significantly ramping up shipments of its its LTCC (low temperature co-fired ceramic) components, having reached the company's target monthly range of 40-50 million units ahead of schedule, according to industry sources.

Chilisin originally expected its monthly LTCC shipments to grow from 20-30 million units to the target level by the end of fourth-quarter 2020, the sources said, adding the rapid shipment expansion was partly due to the company successfully cutting into handset applications and partly to new shipments for PS5 and Xbox game consoles. Its LTCC products were focused on networking applications.

To meet strong LTCC demand in the 5G era, Chilisin has doubled its monthly production capacity to 200 million units in 2020, and its LTCC capacity utilization and shipments are expected to grow further in 2021 thanks to rising penetration of 5G handsets and strong buying sentiment expected for new-generation game consoles, the sources continued.

Chilisin also has seen clear order visibility for various sizes of molding chokes for Chromebooks and handsets throughout first-quarter 2021, the sources said.

Another major LTCC maker Walsin Technology has enjoyed clear order visibility for the next four months, and is proceeding with capacity expansion. Its quarterly capacity is estimated to reach 900 million units in first-quarter 2021, the sources indicated.

The sources predicted that LTCC supply may fall short of demand in 2021 at the earliest, given that each 5G handset requires 10-18 units, sharply up from 3-5 units for 4G model.