Since the fourth quarter of last year, the demand for MLCC has been declining. At present, as the inventory digestion is coming to an end and the Chinese mobile phone factory starts to prepare components, the MLCC industry is expected to receive new orders in June.

The industry said that mainland China’s mobile phone manufacturers OPPO, VIVO, Xiaomi and other brands are expected to start a purchase in May-June, which will drive demand for electronic components; in addition, Apple recently cut prices by 6% for models including iPhone XR. The official website pre-order volume has tripled, which will also bring benefits to electronic component suppliers.

The industry also observed that in order to stimulate the domestic demand market, the Chinese Customs has lowered the value-added tax rate on imported goods since April 1 this year. The tax rate is reduced to 13%, and the 10% tax rate is reduced to 9%. The action helps to activate the market vitality, and helps the white goods manufacturers to start price reduction promotions, which will drive the sales volume of the electronic components supply chain.

Passive component channel dealers said that the OEM’s MLCC inventory has been rising since the fourth quarter of last year. After several months of digestion, OEM’s inventory is expected to be adjusted to normal in May, and new orders will be placed in June. The passive component factory will usher in the peak season in the third quarter.

The industry believes that the past two years due to high demand, low inventory and global shortages have blurred the concept of MLCC’s off-season and peak season, but this year will return to normal seasonal performance.