Thin film resistors account for a majority of the chip resistor market share. The increasing demand for compact size and high resistance power resistor for improving performance at low cost is accelerating the demand for these devices. Thin film resistors, like Microhm Electronics' NAP series and NR series, offer lower tolerances, noise, parasitic inductance, and resistor temperature coefficients and provide stability at much higher frequencies compared to thick film resistors. Moreover, due to their highly resistive material and small size of 0.1 micrometre, they are highly adopted in automotive, telecommunication, audio, precision controls, and instrumentation industrial applications, driving the industry growth.
Technological advancements in the healthcare industry are encouraging companies to implement modern solutions, such as Electronic Medical Data (EMR) technology and headend satellite TV systems, fueling the growth of the chip resistor market. The introduction of surface-mount resistors is helping healthcare professionals to have accurate and stable instrumentation and precise reading without error. The resistors are highly adopted in Magnetic-Resonance (MRI) and Computer Tomography (CT) equipment as they provide high-reliability and wide resistance range between 10 Ω to 22 MΩ. Microhm Electronics offers wide range of chip resistors for medical industry.
Growth in data center facilities owing to increasing digitalization is driving the Chip Resistor Market. The rising need for cloud storage and the adoption of online and mobile computing services with the growing usage of social media have led to a rise in the number of data centers globally. These data centers are exposed to harsh environments that have higher percentages of potentially corrosive gases, which can corrode silver terminals in sensitive electronic components. To prevent corrosion and provide superior resistance against sulfur-containing environments, the demand for ICs is increasing. Moreover, these resistors allow a smooth transmission of data, resulting in improved system performance, reliability, robustness, and reduction of downtime. Growth in the data center infrastructure market is expected to drive the chip resistor market over the coming years.
High manufacturing costs associated with the device is a major challenge affecting the growth of the chip resistor market. The production of electronic components requires mining and processing of certain raw materials, such as metal and ceramic, which need to be mined and processed into usable forms, resulting in increased reliability on labors for the efficient production process.
