Kyocera AVX in El Salvador invests $20 million to expand production

Imagine that the cell phone that you carry contains approximately 400 electronic capacitors. These critical components guarantee that the device is adequately powered. High-tech parts such as this are in global demand.  They are manufactured at Kyocera AVX in El Salvador in a  plant located in the San Bartolo Free Zone in Ilopango.

AVX is a subsidiary of the Japanese firm Kyocera. The company began operations in El Salvador in 1977, 45 years ago. It is the only firm that manufactures electronic capacitors that are in high demand by the automotive, telecommunications, space, and even hospital infrastructure industries. “There is no electronic device that does not have one of these components,” stated  Alfredo Tovar, general manager of Kyocera AVX.

An electronic capacitor is a small battery and is very similar to that of a cell phone. However, it differs in its high capacity to deliver and store energy millions of times per second. Just as a smartphone requires about 400, the number used in a motor vehicle can reach 15,000 units.

High global demand for capacitors drives expansion

Taking advantage of the high demand for this technology, the firm has an investment portfolio of $20 million to expand its production capacity in El Salvador. This represents an expansion of between 5% and 8%, according to the Kyocera AVX spokesperson.

“A year ago, we started a new plant which we relocated from Japan. This year we are executing the expansion of the existing plants. The process is already underway, and we believe Kyocera can complete it between December and March (2023),” he indicated.

Currently, the firm has the world’s largest plant for tantalum capacitors, where ceramic and niobium capacitors are also manufactured.

Every week, the 4,500 employees who work for Kyocera AVX in El Salvador produce some 300 million units destined for export to the international market.

Leading exporter of technology.

The Central Reserve Bank (BCR) of El Salvador records that electrical capacitors, also known as capacitors or chips, are the sixth most exported product by manufacturers in El Salvador. Total sales reached $136.9 million in the first half of 2022.

This figure represents a year-on-year increase of 17.5% compared to the same period last year.

Tovar announced that “this year, we will export around $220 million worth of capacitors.” This number represents significant growth compared to the value of sales registered before the coronavirus pandemic when sales were around $190 million.

This rebound is because “the industry is growing, perhaps it is the one that is growing the most due to the demand for electronic equipment,” said the executive. However, Tovar acknowledged challenges for the sector, such as the supply chain crisis, which he described as “being very significant. “

The dynamics of Kyocera AVX’s investment in El Salvador secures its place as the leading technology exporter in the country. This is according to a ranking prepared by the Salvadoran Association of Industrialists (ASI).

Another significant exporter of electrical products in El Salvador is Yazaki Arnecom. The company manufactures harnesses and electrical systems for hybrid and electric vehicles and is located in Santa Ana. Kyocera AVX in El Salvador has been operating for ten years. The firm is a source of employment for some 2,700 Salvadorans.

Three facts you should know about Kyocera AVX in El Salvador

1.- Consumption by Asian countries

65% of Kyocera AVX’s production is destined for the Asian markets (China, Korea, Malaysia), from where it also sources raw materials.

2.- Production is voluminous

Kyocera AVX in El Salvador produces about 300 million units every week. It has the largest plant for tantalum capacitors in the world.

3.- Exports are strong

The firm expects to export $230 million in 2022. According to the BCR, $136.9 million worth of electronic capacitors has been shipped from El Salvador to global customers thus far this year.