According to Taiwan media quoted insiders in the passive component industry, the global passive component output value is expected to grow by about 11.1% annually in 2021, the capacity expansion will be about 10%, and the annual demand will grow by about 15%. At the same time, the price of MLCC and chip resistors may increase in the second and third quarters of next year.

Specifically, the passive component market in 2021 will benefit from the popularization of 5G smartphones and the rising demand for applications such as electric vehicles and automotive electronics. It is estimated that the global passive component output value in 2021 is expected to grow by approximately 11.1% annually.

Taking automotive electronics as an example,, due to the significant increase in demand for automotive entertainment systems, ADAS, Internet of Vehicles and other applications driven by electric vehicles, the proportion of automotive electronic components in automotive parts will increase significantly to 35% to 50%, and passive components such as MLCC and chip resistors are the most used.

In terms of prices, industry insiders expect that the growth of passive component demand in 2021 will slightly exceed the growth of supply, and the annual growth rate of demand is about 15%. The prices of MLCC and chip resistors may increase in the second and third quarters of 2021.