According to the supply chain, Suzhou Huake, a subsidiary of Walsin Technology, recently sent a letter to the customer to inform the MLCC price increase. The letter informs the customer that it will adjust the MLCC price from July 1, 2018. Any customer who does not agree with the price increase can cancel the order. No more orders for products of the same specification will be received within one month after cancellation. According to reports, this time the price increases as high as 50% -250%. In addition, the distribution supply chain also reported that Taiyo Yuden's 0201/104 will also increase its price by 300%. Samsung also plans to start escalating MLCC prices on July 1.

On June 28, Walsin’s chairman Yu-Heng Chiao said: “This year is a very special year. Walsin’s budget has been adjusted upwards every season. In the first half of the year, it is a traditional off-season, but supply and demand conditions are tense. It is expected that the supply and demand situation in the third quarter will be even more intense, Walsin will work hard to support its customers and prevent customers from experiencing supply disruptions and production line outages."

Yu-Heng Chiao also said: “Because the first half of the year is the traditional off-season of passive components, and the performance in the off-season is so tight, Walsin expects this year’s tight supply and demand situation to remain unresolved. The third quarter looks will be even tighter. ”

Few weeks ago, the distribution supply chain also reported that the Japanese MLCC manufacturer has begun negotiations with all customers for price increases and requested an increase of 20-30%. At present, the major MLCC manufacturers in the world have collectively increased their prices at this time, which means that the traditional peak season competition in the third quarter has started.

In the industry analysis, with the increase in the penetration rate of automotive electronics, passive components are moving toward high-end and refined directions. In addition, gaming machines, mining machines, display cards, industrial control, and LED lighting markets are all in high demand, all of these together will certainly makes the MLCC market more prosperous.