The market reported that MLCC will have a new round of price increment. The relevant ethnic group goes strong. Yageo intraday rise 6.2%, Walsin has set a new record, Holy Stone intraday rise 5.5%.
Yageo intraday goes strong, and the highest points of 1195 RMB, rise 6.2%. Walsin has a high record, 448 RMB and rise 7.4%. Holy Stone, the highest points of 258.5 RMB, rise 5.5%.
Mainland China media quoted supply chain sources as saying that South Korean passive component factories and Taiwan manufacturers were interested in raising the price of MLCC in July.
The Yageo has previously said that MLCC supply constraints will last for a long time, the company’s MLCC order delivery ratio is more than 2 times. The delivery lead times for MLCC production equipment have been extended to as long as 18 months and the new capacity cannot catch up with the market demand. Besides, the order delivery ratio of the chip resistor is more than 3 times, the estimated overall supply and demand gap for passive components will remain unsolved by 2019.
Walsin said, the third quarter market situation is tight, it seems to be the peak season performance, do their best not to let customers stop the line or cannot find the goods.Demand was still strong in the third and fourth quarters.
Holy Stone previously said, include MLCC passive device will have the good prospects. Japanese manufacturers layout high – order products will be better. It is expected that if passive component manufacturers layout high – order products, it can be optimistic about the next 5 to 10 years, if in low – and medium-level products, it will extend to 2019.
In terms of production capacity layout, Holy Stone has continued to expand its production capacity. The company points out that new equipment of MLCC will be introduced after June. It is estimated that by the third quarter of this year, the capacity of MLCC will be expanded by 20% to 30%.
Observe the layout of Global laminated ceramic capacitor industry, major factories include: Murata Manufacturing(Japan),SEMCO(South Korea),Yageo(Taiwan,China), Walsin(Taiwan,China), Taiyo Yuden(Japan), KEMET(US), AVX(Hong Kong, China), TDK(Japan) and so on.
Among several types of capacitors, ceramic capacitors, especially multilayer ceramic chip capacitors (MLCC), are the most produced and used in electronic equipment. The annual production is estimated to be one trillion pieces. MLCC has been the “workhorse of the Electronic Component Industry” for more than 25 years. By stacking advanced dielectric materials and nickel electron powders, MLCCs come with an extremely high capacitance that can fit well into the higher priced electrolytic range. Additionally, the stability of ceramics, lower cost, and robust performance provide design engineers with attractive solutions.
On the supply side, after years of development, the manufacturing of MLCC has somewhat become a monopoly where a small number of large factories control the market. Instead of expanding market share with broad product lines, these manufacturers are seeking higher margins and sustainable development. They are switching their focus from low and medium priced products to auto-rated and industry-rated products with high margins.
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