A letter from Samsung been disclosed today, according to the letter content, Samsung informs customer a price adjustment and the new price will be applied immediately for new PO, Samsung didn’t mention the details about the price adjustments and the effected product range, but we believe that they are going to increase the price, seems MLCC’s market condition will get worse. Below is the content of this letter:
3rd April 2018
Dear our esteemed partners,
RE: Price Adjustment-MLCCs
As you are aware, current MLCCs supply is even getting more severe than last year, worsened by the fact that some major makers cut down production of non-strategic areas. Furthermore, we would not expect this situation to get any better throughout the whole of this year.
Thus, we. SEMCO(Samsung Electro-Mechanics Co Ltd), have to optimize our overall production capacity & allocation policy basing on the sustainability as well as profitability, which will also be vital to invest in our production capacity expansion plan.
With this, again, we seek your kind understanding in this price adjustment implementation, which will take immediate effect for new P.O. & shall start to be applied to the delivery of goods from 1 May 2018 onwards.
We always appreciated your tremendous support towards SEMCO and commit to continual co-work & excellent service to you & your esteemed company.