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Taiwan passive component firms bracing for seasonal demand pickup

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Taiwan passive component firms bracing for seasonal demand pickup

1.9.2017
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source? Digitimes news

Julian Ho, Taipei; Jessie Shen, DIGITIMES [Wednesday 30 August 2017]
Taiwan-based suppliers of capacitors, chip resistors, MLCCs and power inductors, as well as suppliers of materials for manufacturing these passive components, are bracing for a seasonal pick-up in demand from mainly the smartphone market segment, according to industry sources, which also expressed optimism about the firms’ revenue outlook for the second half of 2017.

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MLCC specialists Yageo and Walsin Technology have already raised their quotes, as their supply to the entry-level and mid-range market segments have fallen short of demand, said the sources. With Japan-based vendors focusing more on high-end market segments such as industrial-use and car electronics, MLCC demand for consumer electronics and other traditional applications has squeezed the supply from Yageo and Walsin, the sources indicated.

The ongoing tight supply could prompt Yageo and Walsin to raise their MLCC prices again, or expand production capacity, the sources said.

Prosperity Dielectrics Company (PDC), which provides Taiwan-based MLCC firms with powder materials, is also expected to benefit from strong MLCC demand and post brisk sales results in the second half of 2017, the sources said.

Inductor makers including Chilisin Electronics, Mag.Layers Scientific-Industrial and Magic Technology will enjoy a strong second half of 2017 thanks to robust graphics card demand and a rebound in orders for notebook and PC applications, the sources said. In particular, revenues at Chilisin will increase substantially starting August when the company started recognizing sales generated by Ferroxcube.

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