The markets for electronic ceramics in the 1990s
1
The Markets for Electronic Ceramics in the 1990s Thomas Abraham Author's Note: This article sununarizes infonnation com- piled for the Business Communications Company publica- tiDn Electronic Ceramics in the 199Os. Ceramic materials that serve electronic and electromechanical functions repre- sent the largest current market for ad- vanced ceramics. These electronic ce- ramics encompass materials ranging from simple oxides and nitrides to com- plex compounds. Applications vary from insulators and substrate materials to integrated circuits, piezoelectric ceramic components, and, more recently, high- critical-temperature superconductors. Electronic ceramics provide basic components to support such products as computers, industrial controls, consumer automotive devices, and digital switches. They can be used as active components (e.g., semiconductors to control voltage and electrical currents), as passive com- ponents (e.g., capacitors and resistors to moderate electrical current), and in me- chanical applications (e.g., ferrite mag- nets or piezoelectric devices). The mature markets for advanced electronic ceramics are insulators, sub- strates, capacitors, integrated-circuit packages, and ferrite magnets, with a new market opening for superconduct- ing ceramics. Ceramic insulators and substrates perform similar functions, such as acting as dielectrics or providing mechanical support. Materials commonly used for ceramic insulators include glass, porce- lain, oxide and nitride materials, and mica. The most commonly used ceramic substrate material is alumina. Advanced ceramics are being used increasingly in integrated-circuit packages, with the latest trend pointing to multilayered hybrid-circuit packages. Alumina is fre- quently used for integrated-circuit ap- plications, along with beryllium oxide. The two basic types of ceramic ca- pacitors, single- and multilayer, are composed primarily of barium or stron- tium titanate. Presently, multilayer ca- pacitors are replacing Single-layer ca- pacitors. Ceramic materials for piezo- electric ceramics include barium titan- ate, lead metaniobate, and lead zirconate titanate, with the latter two used in more applications. Ferrite ceramic magnets can be separated into hard ferrites, which can be permanently magnetized, and soft ferrites, which can become magnetic in response to electric fields. Commonly 46 used hard ceramic magnets are barium or strontium ferrites. Soft ferrites use manganese-zinc ferrites or nickel-zinc ferrites (nonmicrowave ferrites) and magnetic garnets (microwave ferrites). High-critical-temperature supercon- ducting materials consist of copper ox- ides as well as rare-earth and non-rare- earth oxides (e.g., yttrium-barium-cop- per oxide). The electronic ceramics industry in- terfaces directly with the electronics in- dustry through the widespread use of ceramic components in electronic de- vices and packages. The industry is characterized by rapid innovation and technological change. Composed of a wide variety of functionally different materials, the electronic ceramics in- dustry is still in the midst of strong ex- pansion and redirection. Although sev- eral market segments are mature, there continues to be steady growth. More than 100 U.S. companies pro- duce or supply electronic ceramics. Acute competition exists among U.S. pro- ducers, who must also contend with in- ternational competition, particularly from Japan and Pacific Rim countries, in capacitors, integrated circuits, ferrite magnets, and piezoelectric products. Ja- pan holds 90 percent of the world mar- ket in integrated circuits. Japanese com- panies in the United States also import large quantities of ceramic capacitors, piezoelectric ceramics, and ferrite mag- nets, supplying 20 to 30 percent of u.s. consumption. Total U.s. consumption of electronic ceramic components in 1990 was $2.86 billion; the market should reach $4.3 billion in 1995 and $6.42 billion by 2000. Insulators, substrates, and integrated- circuit packages constitute about two- thirds of the market. These products, along with capacitors, make up more than 85 percent of the total U.S. market, a market share that is likely to continue for the next ten years. Both market seg- ments will increase at yearly growth rates between 8 and 8.5 percent. Piezo- electric ceramics, ferrite magnets, and superconductors comprise the remain- ing 15 percent of the market segments, with ferrites currently carrying about two-thirds of that share. The piezoelectric ceramic market was valued at $105 million in 1990 and should reach $272 million in 2000 with a growth rate of ten percent per year. The mag- netic ferrites will show a modest growth in the next ten For 1990, U.S. con- sumption of ferrites was about $285 mil- lion; this figure is expected to increase to $585 million by 2000, having a yearly growth rate of 7.5 percent. The high-critical-temperature super- conductor markets, including powders, sputtering targets, and components, ac- counted for only about $4 million in 1990. However, with a large number of applications emerging, albeit in limited amounts, a market between $40 million and $50 million is feasible by 2000. Large- scale commercial markets for supercon- ductor applications are still to develop. Certain higher performance electronic ceramic components, particularly those manufactured for the U.5. Department of Defense, are supplied by U.S. compa- nies. Because of Japanese manufactur- ers' market dominance in the semicon- ductor, integrated-cirCUit, and consumer electronics industries, and because of their growing success in the personal computer market, Japan has an incentive to maintain a stronghold in the markets for ceramic packages, substrates, and complex ceramic circuits. U.S. manufacturers have strong rea- sons to continue to attack Japan's strong market position. New materials and fabrication technologies will ensure in- tense competition in electronic ceramics during the 1990s. The competition, how- ever, will continue to focus on cheaper, mass-produced components, which are becoming costlier to produce in the United States due to high labor costs. Japan has an edge in electronic ce- ramics worldwide, and this is expected to continue. However, several Pacific Rim countries (e.g., Singapore, South Korea, Malaysia, and Taiwan) are also becoming players in the international markets, because of cheaper labor. In technology, the United States still has an edge, and certain high-perfor- mance components are still manufac- tured only in the United States. Thomas Abraham is a senior industry analyst and editor of High Tech Ceramics News for Business Communi- cations Company in Norwalk, Connecticut. If you want more information on this subject, please circle reader service card number 57. JOM • September 1993
-
Upload
thomas-abraham -
Category
Documents
-
view
216 -
download
1
Transcript of The markets for electronic ceramics in the 1990s
The Markets for Electronic Ceramics in the 1990s Thomas Abraham
Author's Note: This article sununarizes infonnation compiled for the Business Communications Company publicatiDn Electronic Ceramics in the 199Os.
Ceramic materials that serve electronic and electromechanical functions represent the largest current market for advanced ceramics. These electronic ceramics encompass materials ranging from simple oxides and nitrides to complex compounds. Applications vary from insulators and substrate materials to integrated circuits, piezoelectric ceramic components, and, more recently, highcritical-temperature superconductors.
Electronic ceramics provide basic components to support such products as computers, industrial controls, consumer automotive devices, and digital switches. They can be used as active components (e.g., semiconductors to control voltage and electrical currents), as passive components (e.g., capacitors and resistors to moderate electrical current), and in mechanical applications (e.g., ferrite magnets or piezoelectric devices).
The mature markets for advanced electronic ceramics are insulators, substrates, capacitors, integrated-circuit packages, and ferrite magnets, with a new market opening for superconducting ceramics.
Ceramic insulators and substrates perform similar functions, such as acting as dielectrics or providing mechanical support. Materials commonly used for ceramic insulators include glass, porcelain, oxide and nitride materials, and mica. The most commonly used ceramic substrate material is alumina. Advanced ceramics are being used increasingly in integrated-circuit packages, with the latest trend pointing to multilayered hybrid-circuit packages. Alumina is frequently used for integrated-circuit applications, along with beryllium oxide.
The two basic types of ceramic capacitors, single- and multilayer, are composed primarily of barium or strontium titanate. Presently, multilayer capacitors are replacing Single-layer capacitors. Ceramic materials for piezoelectric ceramics include barium titanate, lead metaniobate, and lead zirconate titanate, with the latter two used in more applications. Ferrite ceramic magnets can be separated into hard ferrites, which can be permanently magnetized, and soft ferrites, which can become magnetic in response to electric fields. Commonly
46
used hard ceramic magnets are barium or strontium ferrites. Soft ferrites use manganese-zinc ferrites or nickel-zinc ferrites (nonmicrowave ferrites) and magnetic garnets (microwave ferrites).
High-critical-temperature superconducting materials consist of copper oxides as well as rare-earth and non-rareearth oxides (e.g., yttrium-barium-copper oxide).
The electronic ceramics industry interfaces directly with the electronics industry through the widespread use of ceramic components in electronic devices and packages. The industry is characterized by rapid innovation and technological change. Composed of a wide variety of functionally different materials, the electronic ceramics industry is still in the midst of strong expansion and redirection. Although several market segments are mature, there continues to be steady growth.
More than 100 U.S. companies produce or supply electronic ceramics. Acute competition exists among U.S. producers, who must also contend with international competition, particularly from Japan and Pacific Rim countries, in capacitors, integrated circuits, ferrite magnets, and piezoelectric products. Japan holds 90 percent of the world market in integrated circuits. Japanese companies in the United States also import large quantities of ceramic capacitors, piezoelectric ceramics, and ferrite magnets, supplying 20 to 30 percent of u.s. consumption.
Total U.s. consumption of electronic ceramic components in 1990 was $2.86 billion; the market should reach $4.3 billion in 1995 and $6.42 billion by 2000.
Insulators, substrates, and integratedcircuit packages constitute about twothirds of the market. These products, along with capacitors, make up more than 85 percent of the total U.S. market, a market share that is likely to continue for the next ten years. Both market segments will increase at yearly growth rates between 8 and 8.5 percent. Piezoelectric ceramics, ferrite magnets, and superconductors comprise the remaining 15 percent of the market segments, with ferrites currently carrying about two-thirds of that share.
The piezoelectric ceramic market was valued at $105 million in 1990 and should reach $272 million in 2000 with a growth
rate of ten percent per year. The magnetic ferrites will show a modest growth in the next ten years~ For 1990, U.S. consumption of ferrites was about $285 million; this figure is expected to increase to $585 million by 2000, having a yearly growth rate of 7.5 percent.
The high-critical-temperature superconductor markets, including powders, sputtering targets, and components, accounted for only about $4 million in 1990. However, with a large number of applications emerging, albeit in limited amounts, a market between $40 million and $50 million is feasible by 2000. Largescale commercial markets for superconductor applications are still to develop.
Certain higher performance electronic ceramic components, particularly those manufactured for the U.5. Department of Defense, are supplied by U.S. companies. Because of Japanese manufacturers' market dominance in the semiconductor, integrated-cirCUit, and consumer electronics industries, and because of their growing success in the personal computer market, Japan has an incentive to maintain a stronghold in the markets for ceramic packages, substrates, and complex ceramic circuits.
U.S. manufacturers have strong reasons to continue to attack Japan's strong market position. New materials and fabrication technologies will ensure intense competition in electronic ceramics during the 1990s. The competition, however, will continue to focus on cheaper, mass-produced components, which are becoming costlier to produce in the United States due to high labor costs.
Japan has an edge in electronic ceramics worldwide, and this is expected to continue. However, several Pacific Rim countries (e.g., Singapore, South Korea, Malaysia, and Taiwan) are also becoming players in the international markets, because of cheaper labor.
In technology, the United States still has an edge, and certain high-performance components are still manufactured only in the United States.
Thomas Abraham is a senior industry analyst and editor of High Tech Ceramics News for Business Communications Company in Norwalk, Connecticut.
If you want more information on this subject, please circle reader service card number 57.
JOM • September 1993
