No increase for Japan-sourced aluminum capacitor prices during 1Q09, says Nichidenbo

Nichidenbo, a distributor of Nippon Chemi-con in Taiwan, has indicated that the price of aluminum capacitors will not be increased during the first quarter of 2009 unless material companies increase their prices. Nichidenbo increased prices for aluminum capacitors in July 2008, impacting customers in Taiwan. As the Japanese yen has continued to appreciate since October 2008, Taiwan-based companies have been concerned about the possibility of another price increase. But the quality of Taiwan-sourced passive components has caught up with products made in Japan, while their more competitive pricing has begun to put pressure on Japan-based players, according to industry sources. On the other hand, Nichidenbo is confident about its business prospects since most branded vendors chose to use Japan-sourced materials, and Japan's passive components are mainly used in high-end applications, marking a line of differentiation from similar products made in Taiwan or China. Nichidenbo recently reported January sales of NT$102 million (US$3 million), slightly down 6.6% from December 2008 thanks to short-term orders for power supply applications.