It is the traditional peak season of the electronics industry, when the downstream is rushing to stock up materials, the American resistance leader Vishay recently started its first price increase, raising the price by 10% to 20%, bring up the rising trend of passive component prices under this wave of COVID-19 outbreaks in Malaysia and Philippines.
In addition, major passive component manufacturer Murata and Samsung also have factories in the Philippines. Murata’s local factory mainly produces automotive MLCC components, with monthly production capacity accounting for about 18% of the automotive market. As orders in the automotive market increase, the capacity utilization rate remains high; Samsung’s factory mainly produces mid-to-low-end MLCC components, with output only less than Samsung's Tianjin plant, its monthly production capacity accounts for approximately 15% of the standard product market, and its capacity utilization rate also exceeds 90%.
TrendForce recently pointed out that although the two factories are currently not included in the control area, if the epidemic cannot be effectively controlled in the short term, the risk of uncertainty in production capacity and shipments will increase.
As for Malaysia, which has already announced the extension of the city closure, Taiyo Yuden’s Malaysian plant maintains 80%-85% production capacity, high-end MLCC supply is tight, and ODM plant Q3 stocking difficulties have increased.
Everbright Securities analyst Liu Kai predicts that the global demand for MLCC is 450-500 billion units/month, the global supply is about 440 billion units/month, and the capacity gap is about 10-50 billion units/month. The tight supply and demand and price increases are expected to continue until 2022 year.
Under the short supply, the transfer order effect was officially fermented.
Yageo has confirmed that customers are rushing in with orders and the capacity utilization rate remains high. It can only meet 50% of customer needs in the near future; Walsin also said that orders for automotive resistors and capacitors are improving, and the supply and demand of automotive MLCC is very tight. The orders visibility of product line has been more than three months. On the whole, the market tends to be optimistic in the second half of the year.