Fenghua Hi-Tech accelerates its layout in the field of high-end capacitors, investing 7.505 billion yuan!

On March 12, Fenghua High-Tech announced that in order to continuously increase the company's MLCC production capacity, optimize product structure and enhance market competitiveness, the company plans to invest 750,516 million yuan to build the Xianghe Industrial Park high-end capacitor base project (hereinafter referred to as the "Xianghe Industrial Park Project" or "this Project"). 

The funds required for the investment of this project are self-raised, including own funds and applying for medium- and long-term loans from financial institutions. The project investment will be invested in three phases, including: 206,031.46 million yuan in the first phase, 328,636.52 million yuan in the second phase, and 192,818.02 million yuan in the third phase. Working capital will be invested year by year according to production needs. After the project reaches full production, it will increase the monthly output of 45 billion high-end MLCCs, and the annual additional operating income is expected to be about 4.9 billion yuan.

Tianfeng Securities Research Report stated that due to production and material reasons, domestic companies have little say in high-end MLCC, and the high-end market is still controlled by overseas companies, especially Japanese companies. Ordinary MLCC has achieved independence from materials to production in China, but there are still deficiencies in high-end product technology. The upstream high-end ceramic powder technology is mainly in the hands of overseas companies represented by Japanese companies, but international trade frictions have brought opportunities for upgrading the domestic MLCC industry.

Fenghua Hi-Tech pointed out that in the past two years, my country's semiconductor industry has maintained rapid growth. The electronic components industry has been driven by the growth of applications in the 5G communication field, new energy vehicles, and the increase in localization demand. The market demand is strong, and some peers have actively expanded production. Although the company's production capacity has been continuously expanding, the gap between its production capacity and that of international advanced peers is still large, especially since the capacity of Fenghua Electronic Industrial Park, where the company's main business is currently located, has reached its upper limit. The company urgently needs to build a new industrial park to accelerate the expansion of production capacity and the improvement of technology to meet the needs of market development.