Since the focus of semiconductor industry shifting from PC area to the field of wireless communications and portable digital products, smaller SMD crystal oscillators have already taken the place of leaded crystal oscillators, and become the mainstream of market. In addition, owing to economic crisis in 2008 and tight inventory, SMD crystal oscillators are in short supply during this transition period.

Exactly because of promising prospects of the market, recently, major crystal oscillator suppliers in China all began to expand their production for SMD crystal oscillators, and focus on such hot markets as mobile phones and middle and high-end digital products, which have been monopolized by foreign crystal oscillator suppliers over a long period of time.

SMD crystal oscillators are mainly applied in wireless communications, portable digital products and automotive electronics, particularly, in mobile phones and digital products. However, continuous boom of the above related markets has caused remarkably fierce competition of supply in current SMD crystal oscillator market. In order to reduce cost, Chinese mobile phone manufacturers are transforming from origin entrusted manufacture and cards purchase to components purchase, which will undoubtedly promote localized purchase of SMD crystal oscillators. It is based on such bright prospects of the market that large-scale production capacity enhancement of local SMD crystal oscillator suppliers will probably cause oversupply, thus lead to product prices reduction. Although domestic manufacturers have already adopted mass production, local supply is still low relative to demand for SMD crystal oscillators. Moreover, investment and technology thresholds still exist in manufacturing of SMD crystal oscillators, so supply-demand relationship will not change dramatically within a short period of time.

Fairly high production costs of SMD crystal oscillators remain requirements for significant drop in price unsatisfied. Costs of SMD crystal oscillators mainly come from raw materials and depreciation of IC and equipment, but main raw materials, IC and equipment are still monopolized by few Japanese enterprises. Therefore, substantial cost reduction is still hard to achieve. Wireless communications and portable digital products are the major markets of SMD crystal oscillators, as well as the motive force for miniaturization of SMD crystal oscillators.

In the present market, SMD crystal oscillators, whose specification is 3.2*2.5, used for mobile phones, are in greatest demand. And in the future, demand for miniaturized products will continue to increase.