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The Price Increase Of MLCC 2017 Is Coming
Aug 31, 2017

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Electronic industry into the busy season, the market is expected in the fourth quarter still passive components have higher prices, especially out of stock of giant, HuaXinKe, Jinpei,grain and passive components supplier countries hall, etc., the production of multilayer ceramic capacitors (MLCC) products are likely to three degrees of price increases.

The supply and demand of passive components is still very tight, so the market can expect another increase in the fourth quarter.However, analysts say, in order to stabilize the material sources, downstream systems factory as early as April 1 raise after wave began to consolidate the material sources, to avoid the lack of material can't shipment, therefore, even if the rise in price, also too won't big.If the increase is raised, the impact on the small factory will be greater.

In April, the company announced that it would increase the price of MLCC0603 and the chip resistance products, including about 8-10% of MLCC ampliation and about 5% increase in chip resistance.The second wave was announced at the end of June, with an average increase of 15-30%, while some products were extended to six months.The increase has been announced in three months.The demand for passive components has increased and supply and demand are out of balance, and the expected shortage of goods will indeed continue to the end of this year.

This year's surge in passive components has been triggered by a shortage of high-volume MLCC, allowing manufacturers to start expanding their production plans.Currently, HuaXinKe capacity has been gradually released, yageo are planning the next wave of expansion plans, chip resistors and MLCC respectively for 10-15% of the expansion, chip resistance capacity will reach 92 billion, MLCC capacity will reach 41 billion.

Yageo product items besides will continue expanding niche products such as mobile phone/industrial/automotive is given priority to, also will focus on some shortage of expansion has been more commonly applied MLCC, new capacity is expected to leave in season 1 next year for the entire quantity.

In addition, the expansion range of samsung and wind China also fell between 10 and 15 percent.Only the city, which has a 60% market share, has not seen the expansion plan.

Apple's biggest murata MLCC suppliers in Japan announced in 2015 the expansion of the two new factory, coincided with the apple iPhone6/6 s, MLCC agent said, MLCC in high-end phones, wear device, the Internet of things has established long-term trend, automotive applications, will not supply exceeds demand.Since 2015, the supply of MLCC has been tightening.

Passive components factory in Japan are mostly made in Japan, due to high labor costs, Japanese manufacturers have been relatively passive in the expansion action, even the shortage of the wave, Japanese manufacturers is also focuses on the adjustment of product mix, production capacity will be transferred to the higher added value and higher price of car, the high gauge field.

From the point of demand, the consumption of each iPhone8 MLCC expects 1000 jump, automobile electronic or electric consumption of MLCC is 3000 each jump, these two types of high-end application will consume a lot of Japanese production capacity, the rest of the mobile phone, tablet, NB and all kinds of electronic equipment market share by the supplier in Taiwan.

Recently, the supply chain has come out, and MLCC is going up again.However, the company said supply and demand are still tight, and the company is still looking at market conditions. There is no move to raise prices any more, and some of the products have been extended to six months.