EDITORIAL & OPINION – COMMENTARY — Gizmos boost tantalum demand

Over the past few decades, tantalum has transformed from a minor byproduct of tin mining to a valuable resource in itself. New markets for tantalum in military and portable electronics applications have led to a 10% increase in demand per year since 1992, according to a report from Roskill Information Services.

The surge in popularity of mobile phones, laptop computers and video cameras has helped boost the production of tantalum capacitors to 15 billion units in 1997 from 5 billion units in 1988. Demand is expected to increase to 25 billion units by 2000.

The Asian economic crisis has had little effect on the market for tantalum transistors, and while it is likely to slow growth in the region, it is unlikely to cause a downturn. In the longer term, demand for tantalum in capacitors will be limited as the components get smaller and require less of the metal per unit. Also, manufacturers will come under pressure from ceramic and electrolytic capacitor technology.

However, new markets will maintain demand. The most important of these emerging markets will be in “under-hood” applications in cars.

Recently, several new uses for tantalum have been developed: tantalum oxides are used in new electronics applications, including memory chips and processors. These uses have the potential to become major consumers of the metal in the future. However, capacitors are expected to remain the largest application for tantalum in the foreseeable future and will be the main impetus for growth.