Delivery lead times for aluminum electrolytic capacitors have been prolonged to over 20 weeks, as demand continues to strengthen for applications ranging from power supply units, servers, automotive and GPU to industrial control equipment, healthcare equipment and wireless base stations, according to industry sources.

Capacitor makers in Japan, Taiwan and China have all seen highly clear order visibility whether for solid, liquid or mixed-type offerings, and are poised to embrace a strong third-quarter 2021, the sources said.

Despite a month-long lockdown in Malaysia, set to end on June 28, major Japanese vendors with manufacturing operations there have been well prepared to minimize possible impacts, as long as the lockdown is not extended for one more month, the sources noted. In case the extension becomes inevitable, their delivery lead times would be further prolonged, the sources said.

Taiwan-based capacitor maker Lelon Electronics has been running at full capacity to fulfill orders visible through the fourth quarter, with lead times already lengthening to 20-25 weeks from the usual 1-2 weeks.

Its revenues for the first five months of the year rose 26.85% on year to NT$3.75 billion (US$134.26 million), thanks to product mix improvement bolstered by increasing datacenter and 5G base station applications, the sources said.

Another Taiwanese vendor Kaimei Electronics saw its January-May revenues shoot up 87.8% on year to NT$3.118 billion, with May revenues rising 1.6% sequentially and 96.5% on year reaching NT$706 million. Its order visibility for aluminum capacitors is clear for over four months ahead.

Amid the increasingly tight capacity supply, capacitor makers have turned reluctant to take orders that offer lower-than-average gross margins, the sources said.