According to the supply chain, as the inventory level drops to a normal level of 70 days, the price of MLCC gradually rises in the fourth quarter of 2019, and it is expected that the price of MLCC will increase by 5-10% in the first quarter of 2020.
In terms of demand, the demand for MLCC is mainly driven by 5G and electric vehicles. In terms of 5G, 5G mobile phones will require 20% more MLCCs than 4G. In addition, there will be a large number of new applications in the 5G era, and new applications will occupy a portion of MLCC output. In terms of automobiles, the number of MLCC devices required for a pure electric vehicle is about six times that of an ordinary internal combustion engine automobile.
Insiders pointed out that the main buyers of MLCCs are from mainland China. Driven by the peak season, mainland China's demand for MLCCs with 0402 and 0201 specifications has increased. At present, the lead time of MLCC in the fourth quarter has been extended from 4 weeks to about 8 weeks.
In terms of price, the current MLCC offer in the supply chain is about 10% -30% higher than in October. As for the quotations from MLCC manufacturers, industry insiders estimate that the quotations will remain stable in the fourth quarter and the first quarter of next year.