China's turnout for resistors in 2009 estimated at 850 billion units

DUBLIN, IRELAND: Research and Markets has announced the addition of the "China Sourcing Report: Passive Components 2009" report to their offering.

China's passive components industry, which accounts for more than 30 percent of global supply, is securing its position as the largest production hub for this line worldwide.

Makers are boosting output and exports to match demand from the consumer electronics, communications and computer sectors. The automotive and industrial equipment segments are providing additional momentum as applications extend to these fields.

Across all product categories, manufacturers have a positive outlook for their overseas business despite the recent decline in export sales due to the global economic slowdown.

The turnout for resistors alone, which is the fastest-growing segment in terms of yield, is expected to climb at least 20 percent this year to hit 850 billion units.

This report covers the major types of passive components manufactured in China - capacitors, resistors, inductors, coils and transformers.

Executive Summary:
China's passive components industry, which accounts for more than 30 percent of global supply, is securing its position as the largest production hub for this line worldwide.

Makers are boosting output and exports to match demand from the consumer electronics, communications and computer sectors. The automotive and industrial equipment segments are providing additional momentum as applications.

Across all product categories, manufacturers have a positive outlook for their overseas business despite the recent decline in export sales due to the global economic slowdown. More than 30 percent of suppliers project foreign trade will expand by over 20 percent in coming months. As such, many are broadening both their selections and geographic reach to secure orders and bolster margins.

The following are some of the key trends in China's passive components industry:

* Export quotes will remain in a downturn as makers leverage their price advantage over international brands.
* To keep quotes low, companies are reducing production costs by improving operating efficiency and enhancing management systems. Many are automating processes to streamline manufacturing.
* The trend for miniaturization is speeding up the development of passive components with smaller form factor and lightweight designs. In the capacitors and resistors segments, for instance, more companies are emphasizing chip versions suitable for portable devices. In the former, multilayer ceramic capacitors will be increasingly adopted. These are applicable to small digital products requiring high capacitance such as mobile phones.
* Besides reducing the size, suppliers are looking to improve overall stability and performance. Makers of power transformers are adopting a planar structure to boost the efficiency rate to as much as 98 percent. They also emphasize enhanced no-load loss and heat dissipation capability.
* Companies are keen to expand their markets in the EU. The Asia-Pacific region is another key export destination.
* In addition to the tight price competition, the rising outlay for materials poses a challenge. To ensure a more stable supply and cost of manufacturing inputs, a growing number of companies are opting for locally sourced materials. In the capacitors segment, for instance, over 90 percent of inputs now come from domestic providers, with only those for chip and other high-end models using imported alternatives.

This report covers the major types of passive components manufactured in China, namely capacitors, resistors, inductors, coils and transformers. Each product category is discussed in a separate module that details common features and functions found in mainstream models. Price and R&D trends are also covered.

The Industry Overview positions China in the worldwide market and discusses growth opportunities in coming months. It identifies the factors shaping the segment, including challenges faced by makers and steps taken to overcome these hurdles and boost competitiveness further.

The majority of China's 4,000 manufacturers are based in the Pearl River and Yangtze River Delta regions. The Circum-Bohai Sea region is evolving into another key sourcing center.