Since the explosion of passive components shortage in the last year, the strength and endurance of its boom have exceeded expectations.
MLCC shortage has stepped into the fifth quarter, Yageo’s stock safety level declined for more than 1 year. Even Yageo went through inventory adjustment of Chinese mobile phone factory for three quarters, weak sales of iPhone X, and the traditional electronics’s slack season. The gap between supply and demand of MLCC did not improve.
The structure change of supply and demand have proved that a single downstream applications can’t influence the prospect of the passive components industry due to the countless production capacity flourishing.
Due to the MLCC of Yageo have play a role in the global, Japanese, Korean and EMS factories are highly concerned. Although there is no formal price growth notice from yageo, Mainland media reported Yageo will implement the new price from April 1, which domestic distributors also confirmed. Yageo will launch a new price growth adjustment from April 1,such as the 0201 ~ 1206 of the MLCC. The average growth degree will reach 40 ~ 50%.
Yageo estimated that the boom will continue until 2019. A Japanese company also privately estimated that the MLCC shortage will last more than 600 days, which is only based on the numerable demand.
Since this year, there are a large number of manufacturers to raise MLCC prices. As for the price raise notice from the application, HUAXINKE increased all series of MLCC’s prices
It was so tough to negotiate with the purchasing agents without a drop of 3 ~ 5% of the passive components before. The purchasing agents switch from being unable to accept the price to initiating a price raise to consolidate the material resources after only one year.
The same with MLCC. The demand for chip resistors has risen exponentially due to the increase in electronics content in Automotive, Industrial and Consumer applications and the warning comes days after manufacturer Chemigraphic said lead times for multilayer ceramic chip capacitors and surface-mount resistors were almost a year. With material prices are also on the rise driven by the increase in demand, chip resistors will remain in short supply and prices will continue increasing in the short to medium term.
This year, chip resistor will suffer from the resistance of the price raise slightly, which all means that it is a must to think highly of the passive components factories.
MLCC will continue to be shortage and price increases, we have established a discussion group on capacitors and resistor shortage. If you have the similar interests, you can join the group.
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