June 18, 2026 /SemiMedia/ — Japanese passive component supplier Nichicon has reportedly issued a price increase notice to customers, raising prices across its full aluminum electrolytic capacitor lineup as material, energy and capacity pressures continue to rise.

According to industry sources, the notice did not specify the size of the increase, but cited continued geopolitical instability in the Middle East and rising costs for key inputs including aluminum foil, chemical materials and electricity.

Nichicon also said orders for some products have exceeded its production capacity. The company has been working to raise output through equipment expansion, additional equipment purchases, employee overtime and weekend shifts, but raw material procurement has become increasingly difficult.

To maintain stable supply, continue research and development investment and support equipment upgrades, the company said it has decided to adjust prices for aluminum electrolytic capacitors.

Aluminum capacitors are becoming another passive component category showing price increase momentum, following earlier price pressures in multilayer ceramic capacitors and tantalum capacitors. Industry analysts said the aluminum capacitor market has become more orderly after a period of demand correction and supply chain restructuring.

Demand from AI servers, high-performance computing, power systems and industrial applications is supporting stronger orders for high-end aluminum capacitors. AI server power supplies, UPS systems, power modules, industrial inverters and automotive electronics all require capacitors with high ripple current capability, long life and high reliability.

On the supply side, aluminum capacitor production depends on aluminum foil, electrolytes, chemical materials, electricity and specialized manufacturing equipment. If raw material and energy costs continue rising, suppliers may have limited ability to absorb cost increases internally, increasing the likelihood that price adjustments will pass through to downstream customers.

Taiwanese aluminum capacitor suppliers may also benefit from the pricing shift. Kaimei, part of Yageo Group, has expanded into higher-end aluminum capacitor products, including liquid aluminum electrolytic capacitors, polymer solid capacitors and polymer hybrid capacitors for industrial, automotive and power management applications.

As AI server demand strengthens and Japanese suppliers raise prices, analysts expect Kaimei could benefit from order transfers and improved pricing.

Lelon Electronics is also considered a key aluminum capacitor supplier and has been strengthening its position in automotive, industrial control and server markets. Analysts said tighter capacity and higher prices from Japanese competitors could help Lelon win additional customer orders and improve its product mix and margins.