Base on the previous market reviews, it is easy to see that the electronic component market is facing a price hike after shortage, including MLCC, Chip-Resistor, MOSFET and MCU…etc, the reasons are varied, mainly are the market demand and raw materials.

Since Fleming invented the rectifier in 1904, electronic products been developed for 114 years, now we can see variety of electronic products. Benefit from the large numbers of consumers, China now is the world’s largest electronic product producer and consumer. Talk about smart phone, China produced 1.3 billion sets in 2017, besides, we have IoT, which included many devices, the numbers of electronic product keep increasing, further more, the demands from the self-driving technology and the intelligentization of vehicle takes the shares.

What shown above are the reason from the demand end, another one is raw material. Since a set of regulation for environment protection been executed from 1st Aug. 2016 in China, lots of raw material factory stops production for inner adjustment to adapt to the standard.

By reviewing the market demands and raw material, the price hike will continue definitely, the highest possibility will be MCU, may be ST’s 32 bit MCU? We will see.