Phycomp, the Yageo subsidiary that took on Philips Components' interests in surface-mount resistors and multilayer ceramic capacitors (MLCCs), is spending more than $200m to double production capacity by the end of next year.
The company is expanding production at its facility in Roermond, the Netherlands, which is already the largest source of MLCCs in Europe.
Remko Rosman, CEO of Phycomp, said: "We are filling more buildings at Roermond. In Kaohsiung, Taiwan, we will have an extra factory about 10 minutes away from our existing facility. In both cases, that means we can use existing logistics networks.
"We have also ordered the equipment early. sometimes the wait for equipment is six months or longer."
Like other MLCC manufacturers, the company builds some production equipment itself. "We make the screen-printing equipment entirely in-house," said Rosman.
Phycomp is trying to boost its position in the passive components market. Rosman said the company was already number one in surface-mounts resistors but wanted to get into the top three for MLCCs by 2003.
The company has concentrated on the smaller package sizes, aimed at telecom and electronic data processing designs, claiming to be number two in 0201 after Murata.
"The market is always moving to smaller sizes," said Rosman.
Phycomp is now working on high-capacitance designs to make it easier to move to the smaller packages and on high-capacitance arrays.
Deciding to focus on high-volume manufacturers and on the contract manufacturing (CEM) sector, Rosman said the company was delivering on shorter lead times than competitors.
"Shorter lead times are the key to winning CEMs. It depends on the type of product, but we currently have three- to seven-week lead times," said Rosman.
Rosman added that the company was looking at a move into integrated passives for high-density designs.
"There will be a trend to integrated passives in this industry and we will follow it," he said.