January 5, 2026 /SemiMedia/ — Pulse Electronics, the magnetic components unit of Yageo Corp, has notified customers of price increases on selected ferrite bead products, effective from Jan. 1, citing sustained pressure from rising raw material costs.

The adjustment applies to ferrite bead products in metric sizes of 1608 and above, while existing contracts and ongoing projects will not be affected, the company said. The move marks another pricing action within the Yageo group following earlier adjustments to tantalum capacitor products under its KEMET brand.

Rising raw material costs reshape pricing in passive components

Industry sources said the latest increase reflects mounting cost pressure across the passive component supply chain, driven largely by higher prices for key materials such as silver. Since 2025, silver prices have remained elevated, significantly impacting the cost structure of magnetic components that rely heavily on silver paste in their manufacturing processes.

With limited room to absorb costs internally, passive component makers have increasingly turned to selective price increases to protect margins, particularly for products tied to automotive, industrial and data centre applications, where supply continuity is critical.

Yageo said it continues to prioritise long-term partnerships with customers while maintaining stable supply, product quality and ongoing investment in capacity and technology. Magnetic components account for roughly 27% to 28% of the group’s revenue, spanning inductors, automotive-grade magnetic parts, network transformers and related products.

Market leaders hold greater pricing power in magnetic components

As one of the world’s leading passive component suppliers, Yageo holds strong market positions in several magnetic component categories. Analysts said its pricing move could prompt follow-on adjustments by second-tier suppliers, potentially extending pricing pressure across the broader magnetic components market.