KEMET Market Outlook 2008

Slide 1 :Welcome to the 2008 Passive Market Outlook Thank you for joining us! Listen in as Dennis Zogbi and experts from KEMET, Littelfuse, and Vishay provide a detailed market overview of the passive industry. Sit back, relax and learn what to look for in 2008!


TTI Marketing Outlook Webcast :TTI Marketing Outlook Webcast Capacitors March 2008


Capacitor Overview :Capacitor Overview Industry Trends Consumption Price Lead Time Material Trends Supply Chain Technology Trends Drivers


Industry Trends :Industry Trends Consumption, Price, Lead Time


Global Semiconductor Industry :Global Semiconductor Industry Source: Henderson Electronic Market Forecast (February 2008)


Global Capacitor Units to IC Units Ratio :Global Capacitor Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data


Global MLCC Units to IC Units Ratio :Global MLCC Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data


Global Tantalum Units to IC Units Ratio :Global Tantalum Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data


Global Aluminum Units to IC Units Ratio :Global Aluminum Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data


Global Paper & Film Units to IC Units Ratio :Global Paper & Film Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data


Global MLCC Capacitor Industry Shipments :Global MLCC Capacitor Industry Shipments Source: Based on World Cap data 3 yr. CAGR ’05 to ’07: 17.6% 5 yr. CAGR ’03 to ’07: 21.6% 10 yr. CAGR ’98 to ’07: 19.4% 3 yr. CAGR ’05 to ’07: 18.1% 5 yr. CAGR ’03 to ’07: 8.5% 10 yr. CAGR ’98 to ’07: 8.3%


Global Tantalum CapacitorIndustry Shipments :Global Tantalum CapacitorIndustry Shipments 3 yr. CAGR ’05 to ’07: 1.6% 5 yr. CAGR ’03 to ’07: 4.4% 10 yr. CAGR ’98 to ’07: 3.4% 3 yr. CAGR ’05 to ’07: -0.6% 5 yr. CAGR ’03 to ’07: -2.2% 10 yr. CAGR ’98 to ’07: 0.1% Source: Based on World Cap data


Global Aluminum CapacitorIndustry Shipments :Global Aluminum CapacitorIndustry Shipments 3 yr. CAGR ’05 to ’07: -0.9% 5 yr. CAGR ’03 to ’07: 2.7% 10 yr. CAGR ’98 to ’07: 2.8% 3 yr. CAGR ’05 to ’07: 9.1% 5 yr. CAGR ’03 to ’07: -0.5% 10 yr. CAGR ’98 to ’07: 0.2% Source: Based on World Cap data


Global Paper and Film CapacitorIndustry Shipments :Global Paper and Film CapacitorIndustry Shipments 3 yr. CAGR ’05 to ’07: -2.6% 5 yr. CAGR ’03 to ’07: -1.6% 10 yr. CAGR ’98 to ’07: -1.6% 3 yr. CAGR ’05 to ’07: 6.9% 5 yr. CAGR ’03 to ’07: -6.6% 10 yr. CAGR ’98 to ’07: -5.0% Source: Based on World Cap data


Global MLCC Capacitor Industry ASP :Global MLCC Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 9.3%


Global Tantalum Capacitor Industry ASP :Global Tantalum Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 4.9%


Global Aluminum Capacitor Industry ASP :Global Aluminum Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 3.4%


Global Paper & Film Capacitor Industry ASP :Global Paper & Film Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 4.8%


U.S. Passive Component Industry :U.S. Passive Component Industry Source: Henderson Electronic Market Forecast (February 2008)


Passive Component Lead Times :Passive Component Lead Times Source: www.TTI.com


Material Trends :Material Trends Supply Chain


Supply Chain Issues :Supply Chain Issues Tantalum Raw Material √ Powder Processing Capacity √ Lead-Frame Material √ Epoxy √ Ceramic Barium Titanate √ Metals, Nickel Powder ? Carrier Film √ Aluminum Raw Material √ Energy ?


Technology :Technology Trends and Drivers


Technology Trends :Technology Trends Mobility & Connectivity Smaller, More Portable Products Wireless Applications Reduced Operating Voltages Increased Frequencies Converged Functionalities Working Environments Higher Temperatures Reduced Number of Circuit Connections Increased Reliability Demands Failure Mode Concerns Environmental Issues Declining TCO Lower System Costs


Technology Drivers :Technology Drivers Increased Volumetric Efficiency Capacitance Extension Miniaturization & Modularization Lower Parasitics (ESR/ESL) Improved performance Fewer discretes Embedded discretes Alternative Materials Cost Reduction All This Without Compromising: Reliability Robustness


TTI Marketing Outlook Webcast :TTI Marketing Outlook Webcast Capacitors March 2008


Slide 27 :Thank you! Please visit www.ttiinc.com/marketeye for more information