July 1, 2026 /SemiMedia/ — Supply chain sources said Yageo has notified customers that it will raise prices across its full capacitor solutions portfolio from July 1, covering multilayer ceramic capacitors, aluminum electrolytic capacitors, tantalum capacitors, polymer aluminum capacitors, film capacitors and supercapacitors.

The move is viewed as one of Yageo’s broadest capacitor price adjustments in recent years.

Industry sources said the price increase mainly reflects continued growth in global manufacturing costs. Rising geopolitical risk, elevated energy prices and high prices for key materials such as metals and petrochemical products have increased cost pressure on passive component suppliers.

Yageo has previously absorbed part of the cost increase through process optimization, efficiency improvements and supply chain integration. However, continued tensions in the Middle East and volatility in international freight rates have increased supply chain uncertainty, prompting suppliers to adjust pricing.

Capacitor products account for about half of Yageo’s revenue. Analysts said the latest price increase could support the company’s revenue and profitability, while also benefiting other passive component suppliers in Taiwan’s supply chain.

MLCCs are widely used in AI servers, smartphones, PCs, automotive electronics and industrial equipment. Tantalum capacitors are used in servers, base stations and aerospace systems because of their reliability and stability.

Aluminum electrolytic capacitors and polymer aluminum capacitors are mainly used in power supplies, AI servers, electric vehicles and other high-power equipment. Film capacitors are used in renewable energy, industrial control and automotive markets, while supercapacitors are used in energy storage, smart grids and industrial control systems.

As demand grows from AI servers, high-performance computing and electric vehicles, both the number and specifications of high-end passive components are increasing. Demand is rising for capacitors with higher capacitance, higher voltage ratings and stronger reliability, further consuming industry capacity.

Yageo Chairman Pierre Chen has said the company will be “very busy” in the second half of the year and that the AI industry is still in an early stage of development. The company is expanding its presence in automotive and high-end markets while integrating active components, passive components and semiconductor businesses.