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Low-capacitance MLCC prices begin to decline

SemiMediaEdit
November 1, 2018

According to passive component industry analysts, the low-capacitance MLCC for consumer electronics has recently seen a price decline in the fourth quarter, as smartphone shipments have been affected by trade wars and MLCC producers continue to expand production capacity, it is expected that the price of MLCC for consumer electronics will continue to decline in the next two years.

The analyst pointed out that the popularity of 5G mobile phones will drive the demand for MLCC, but it will be later than expected, and the demand will increase significantly by 2021, it is expected that the demand for MLCC will not increase much in the next two years. In addition, the configuration of mobile phones such as 5G, multi-lens and screen fingerprints will be upgraded in the next few years, but the increased demand will be dominated by the high-capacitance of Japanese and Korean manufacturers, and the demand for low-capacity MLCC will be limited.

The analyst stressed that the passive component supply and demand situation has gradually returned to balance, MLCC producers which rely on the bundled sales approach to maintain low-capacitance MLCC prices will no longer be effective. In addition, in the past year, the 0402 MLCC has caused many customers to change their designs and reduce their dependence on 0402 because of the high price increase.

Supply chain sources said that because some customers believe that consumer MLCC may be oversupply, they are now reluctant to sign long-term contracts with suppliers, and distributors are also eager to cut prices to clean up inventory. Various reasons will lead to the emergence of consumer MLCC prices decline.

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