21 April 2004
Capacitors(HKTDC Electronic Components & Parts, Vol 02,2004)
Vol 2, 2004
Printed Circuit Boards
Wires & Cables
Xebor Co specialises in producing plastic film capacitors with high-quality materials from Korea, Japan and Germany
The upbeat outlook in the electronics sector has brought a smile to the faces of Hong Kong capacitor makers, whose ubiquitous products are essential components in an ever-increasing range of telecommunications and AV products.
Take, for instance, Xebor Co, which has built a two-decade long track record manufacturing plastic film capacitors. "The market for our plastic film capacitors was good last year," recalls business manager Jason Lai. "We expect it to be equally good, if not better in the next 1-2 years on the back of expansion in the manufacture of electronic devices on the Chinese mainland."
The company makes 30 million capacitors a month - including those produced under its Metronics brand name - and expects a marked increase in OEM production as well as "tailor-made capacitors for speciality customers".
Xebor's capacitors are made of components sourced from Korea, Japan and Germany at its 120-worker, 3,000-square-foot factory in Shenzhen on the mainland. "We currently have a significant customer base with our main markets being the mainland, Hong Kong and Europe," Lai says.
Xebor, which has an FOB Hong Kong unit price of about US$0.03-3.00 for its capacitors, has a minimum order value requirement of US$1,000 worth of models per shipment, which it delivers two weeks after order confirmation.
Another well-known maker of capacitors is Chun Kit Industrial Co, which offers a wide range of models that are mainly used in toys, including remote-controlled products.
"We expect better margins for our capacitors this year on higher market demand for toys globally," predicts general manager C.K. Lam, who says the company is confident the improved demand for toys will in turn fuel orders for capacitors from toy makers. "This can be expected to offset the adverse impact of the rise in prices of silver, one of our main raw materials."
The company, which was set up in 1989, sources its raw materials from Taiwan and the PRC for production at its ISO 9002-certified factory in Dongguan on the mainland. The 10,000-square-foot factory, which employs about 150 workers, makes 100,000 capacitors a month.
Chun Kit, which provides prices to its clients based on the complexity of their individual requests, has a minimum order requirement of 10,000 pieces. Delivery is made within 10-14 days of receiving a confirmed order to major clients on the mainland and in Japan and France.
KJ (HK) Electronics Co Ltd, which makes V-chip aluminium electrolytic capacitors, believes it has a growing client base thanks to its use of the latest technology and investment in top-notch R&D and production processes. It licenses the technology for its V-chip capacitors, which include six sizes from 04-010, from Matsushita Electric Industrial Co Ltd.
Manager of the international business department Christine Wong is optimistic that the business outlook is brighter. "Our capacitors will be more in demand for use in LCD display panels, audio and video systems, including DVD players, as these products are seeing increased sales."
She notes that the company imports a lot of high quality components, such as foils, terminals, chemicals, aluminium cases and base plates, from Japan. "As Hong Kong does not levy any tariff for importing these components from Japan, the company has based its factory in Hong Kong," Wong explains.
The 1,884-square-metre, ISO 9001-certified factory has a monthly production of 20 million units, which are mainly sold to clients in Germany, Israel, Singapore and the mainland.
KJ does not have any minimum order requirements and quotes prices based on client specifications. Shipments typically take from 7-45 days of a confirmed order.
A specialist in the distribution of SMD-chip capacitors is Katri Far East Co Ltd. The distributor, which was set up in 1988 by its Japanese parent, also reflects the general upbeat mood in the industry amid growing global demand.
"The demand for our SMD-chip capacitors has been steadily improving," notes marketing manager Henry Lo, adding, "our range includes some of the smallest-sized capacitors" that are sold under the Sincera brand name. "These capacitors are normally used in mobile and cordless phones, MP3 players, digital dictionaries, laptops and handheld devices."
Katri's major markets include Hong Kong, the mainland, Korea, India and Europe. "We do not have any minimum order sizes nor any set prices as these can vary depending on a customer's order," Lo adds. "Once an order is confirmed, we can source the capacitors from factories on the mainland and ship to the client within 2-3 weeks."
Thus the global surge in demand for capacitors has powered up the production and distribution lines of Hong Kong companies, who are always keen to meet market demand for high quality, competitively priced products.
WRITTEN BY ARAVIND VIDYADHARAN
Chun Kit Industrial Co
77 South Wall Rd
Kowloon City, Kowloon
Flat 10, 2/F, Kam Hon Ind Bldg
8 Wang Kwun Rd
Kowloon Bay, Kowloon