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How Long Will The MLCC Price Increase Last
Jun 12, 2018

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The core driving factor of this round of MLCC price increase is the imbalance between supply and demand, which is mainly caused by:(2) MLCC was suspended for three months after the explosion of samsung Note7, and subsequent capacity release was slow.(3) capacity adjustment of leading MLCC enterprises such as murata, samsung electromechanical machinery, TDK and solar inductor, giving up the middle-and-low-end market and switching to advanced applications such as automobiles, industrial control and ICT.


Since 2000, MLCC experienced three sections of boom: 2003-2005, 2006-2008 and 2009-2010200-3-2005 and 2009-2010 increase in the price of these two are greatly influenced by the macro environment, MLCC prices in 2003-2005 is mainly brought about by the economic recovery after the dotcom bubble in the United States, while prices in 2009-2010 is driven by the global economic recovery after the financial crisis.This wave of price increases in 2006-2008 was brought by the miniaturization and lightening of the end consumer electronics market, mainly including mobile phones, tablet computers, digital cameras and game controllers.Consumer electronics market trend of miniaturization, light and the demand for small high capacitance MLCC products, caused the price of high-end products, and manufacturers, at the same time in the expansion of low capacity to small high capacitance products, resulting in low - and price increases.


The current boom in MLCC prices is similar to that of 2006-2008.Automotive, industrial control, ICT and other high-end application demand, and products are in short supply caused the price of high-end products, the main production companies such as Japan and South Korea to cut mid-range capacity to high-end products, caused the price of low-end products.


This round of MLCC price increases will last longer than the 2006-2008 round from the middle of 2017, for the following reasons:


(1), 2006-2008, MLCC price trend was interrupted by the financial crisis, from the point of the follow-up MLCC further rises in costs, 2009-2010, if there is no financial crisis, driven by consumer electronics miniaturization, lightweight, 2006-2008 boom last time will be longer.


(2) in this price range, manufacturers are more cautious in expanding production than last time.The price increases of MLCC in 2006-2008 and 2009-2010 led to a large expansion of the production of murata, samsung electronics, solar power and TDK. As a result, the price of MLCC continued to fall, which damaged its profitability.This price surge has come, manufacturers did not sell a large expansion plan, this will be extended this long price cycle.