The device is designed to be stable using low equivalent series resistance (ESR) ceramic capacitors at the input and output. Multilayer ceramic capacitors have become the industry standard for these types of applications and are recommended, but must be used with good judgment. Ceramic capacitors that employ X7R-, X5R-, and C0G-rated dielectric materials provide relatively good capacitive stability across temperature, whereas the use of Y5V-rated capacitors is discouraged because of large variations in capacitance.

Regardless of the ceramic capacitor type selected, the effective capacitance varies with operating voltage and temperature. Generally, expect the effective capacitance to decrease by as much as 50%. The input and output capacitors recommended in the Recommended Operating Conditions table account for an effective capacitance of approximately 50% of the nominal value. For the legacy chip, Any capacitor (including ceramic and tantalum) greater than or equal to 0.47 μF properly stabilizes the output regulation loop.

Although not required, a 0.1-μF or larger input bypass capacitor, connected between IN and GND and located close to the device, improves transient response and noise rejection of the power supply as a whole. A higher-value input capacitor can be necessary if large, fast-rise-time load transients are anticipated and the device is located several inches from the power source.