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MLCC prices to rise 40-50% in 2Q18

27.3.2018
Reading Time: 2 mins read
A A

Source: Digitimes news

Bryan Chuang, Taipei; Jessie Shen, DIGITIMES, Monday 26 March 2018

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Major MLCC firms are set to raise their quotes by 40-50% with the new prices to be effective from April 1, according to industry sources. The price rally may have limited impact on EMS and ODM vendors, but will likely become a source of increasing pressure for second-tier device manufacturers such as Sercomm, the sources indicated.

Several downstream device manufacturers, countering the impact of MLCC spot price volatility, are reportedly engaged in the development of alternative products employing fewer MLCCs. Some companies have developed samples using six MLCCs instead of 12 without undermining the device performance, the sources said.

These downstream device makers are also considering sourcing MLCCs from China-based suppliers, which are able to offer cheaper quotes, the sources continued.

With MLCC providers giving priority to their EMS and ODM clients, their limited MLCC availability for second-tier device makers have prompted smaller-scale clients to buy MLCCs from channel distributors, the sources noted. Some distributors intend to take advantage of the rise in prices resulting in the component spot price volatility.

Meanwhile in China, many white-box wireless charger makers who are not Wireless Power Consortium (WPC)-certified have seen weakening demand for their products, the sources observed. Demand for MLCCs from these makers has also weakened, easing speculation on MLCCs in China, the sources added.

The market supply of multi-layer ceramic capacitors, particularly those for mass-market notebooks and smartphones, has been tight. The supply of MLCCs for fast wireless charging solutions also remains tight.

Major EMS and ODM manufacturers have reserved the majority of the available general-type MLCC supplies from their Taiwan-based providers, the sources noted. Nevertheless, these downstream vendors continue to source advanced, small-size and high-performance MLCCs mainly from Japan-based Murata and TDK.

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