The lead time for capacitors has been extended to over 18 weeks, with tantalum capacitors being the most in short supply 2

However, iSuppli also noted that due to the entirely different supply chain foundations of ceramic capacitors and tantalum capacitors, manufacturers are ramping up capital expenditures to expand production capacity in response to soaring demand. As manufacturers increase production capacity and customer demand for ceramic capacitors slows, the market is expected to restore supply-demand balance by the end of the fourth quarter this year.diode

However, the supply shortage of tantalum capacitors is unlikely to be resolved in the short term. iSuppli pointed out that since this component is already a mature product, manufacturers are conservative in expanding production capacity, and the lead time for tantalum capacitors has now extended to over 20 weeks. During the previous industry downturn, suppliers of tantalum capacitor raw materials significantly reduced production capacity. If capacitor manufacturers cannot guarantee long-term demand, raw material suppliers will not invest in additional capacity.diode

Therefore, iSuppli predicts that the capacitor supply shortage may persist until the end of this year, but it could improve in the first quarter of 2011 as the supply situation of raw materials eases.

Additionally, the organization believes that the issue of rising prices for such components will persist, depending on the considerations of capacitor manufacturers regarding product portfolios and strategic importance. While capacitor component prices are expected to remain stable in the first quarter of 2011, they may trend higher in the foreseeable future.diode