capacitor

Excess inventories and weaker than expected demand in the normally strong final quarter of the year has resulted in earlier forecasts being revised down, with the global capacitor market now forecast to increase by 8.6％ in 2004 to US$12.4 billion. With evidence of renewed pricing pressure and the impact of the inventory correction extending into the first half of 2005, growth in value terms outside of the Asia Pacific is expected to be subdued for the full year but is then expected to show further modest growth in 2006 before accelerating in 2007 and 2008. The market is forecast to slow in 2009 as part of the next cyclical downturn. The Rest of the World will experience the fastest growth, with China the main driver. With the influx of overseas manufacturers and a growing indigenous industry, China is one of the world's most important countries in terms of production, in particular, for commodity products as well as being the fastest growing market. Production is also expanding for chip capacitors as manufacturers increase output to meet rising domestic demand and exports. Exports of capacitors however, are expected to remain stable in the short-term unless manufacturers significantly improve product quality to enable them to compete in the global market.