Fenghua Advanced Technology plans to invest $1.07 billion to build a high-end MLCC production base, giving the MLCC supply chain a much needed boost, reports SemiMedia.
After the completion of the high-end MLCC base project, Fenghua’s overall production capacity will rise from eighth to fifth in the global ranking. The project is planned to be completed in three phases, with a total construction period of 28 months.
SemiMedia reports, “Wang Jinquan, chairman of Fenghua, recently pointed out that in recent years, the global supply and demand of MLCC has undergone tremendous changes, and supply has not kept pace with the increase in demand. Although Fenghua Technology is in a leading position in the field of passive electronic components in mainland China and its production has been fully loaded, the current monthly output of MLCC is about 13 billion pieces, which cannot even meet 10% of a 5G company’s demand.”
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