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From 1th April, The price of the MLCC will increase by 50%

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%.

From 1th April, The price of the MLCC will increase by 50%
From 1th April, The price of the MLCC will increase by 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.

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.

By contextualizing the situation of the MLCC, ALLCHIPS can support global operations in realistic and immediate way to ensure continued supply as well as mitigating the risks of the fake.

Our worldwide team can help you understand the risks you now face and deal with it efficiently. Please contact us freely for more information.

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