Fuse capacity failed to keep pace with strong demand growth

As people's appeal for green energy continues to rise and the security awareness for electronic products grows longer, engineers must not only ensure that the overall circuit design meets the requirements, but also pay more attention to product reliability and safety when designing products. This increasing safety awareness promotes and expands the share of fuses in low-end products, while miniaturization and multi-functionality are still favored by high-end markets. In addition, the diversified demands brought by the complexity of customer product design will also become fuse products. Planning considerations.

Although the market demand is strong, some of the fuse products are also facing sluggish growth. The reasons for restraint may exist in both cost and technology. As far as the fuse itself is concerned, raw material prices have been rising since January 2009 and this trend will continue in the short term, so the increase in fuse manufacturing costs is inevitable.

In fact, since the end of 2008, the price of tin and copper has soared. As a result, the cost of materials has continued to soar. These three materials must be used in the three key components of fuse fuses: end caps, solders, and wires. At the same time, the appreciation of the renminbi against the U.S. dollar also has an impact. The cost structure of the fuses, because raw materials are usually priced in renminbi, and finished products are often priced in dollars, which makes companies face the dual pressures of rising raw materials and appreciation of the renminbi.

Demand and production capacity are not in direct proportion, and the most direct result is that prices have risen. It is expected that the storm of price increase for fuses in the second half of 2011 will plague many electronic product companies.

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