Jinjiang News Network July 16th Recently, due to the tight supply capacity and increased demand, the passive components of integrated circuits represented by MLCC (chip multilayer ceramic capacitors) have ushered in a new wave of price increases. The industry believes that the rapid increase in application demand, coupled with the expansion of production effects in the short term is difficult to reflect, will lead to high-profile MLCC field of integrated circuit components at least until 2019.
This is the third quarter since 2016. After the third quarter of 2017, the passive components represented by MLCC were affected by the tight supply capacity, and the price once again rose sharply. In the first half of 2018, the industry also continued to increase prices. The manufacturers Guoju and Huaxinke repeatedly raised the price of medium and high-end MLCC products, and Fenghua Hi-Tech also increased the price of products in the near future.
It is reported that the main reason for the price increase of this round of MLCC is the change in the global supply pattern. Leading manufacturers in Japan and South Korea have gradually faded out of the meager MLCC market with a margin of profit, turning to the ultra-small and high-capacity MLCC market, resulting in a shortage of supply.
In recent years, the rise of smart phones, automotive electronics, and the Internet of Things has led to a surge in demand for integrated circuit components. Taking communication applications as an example, a large increase in communication frequency bands will lead to an increase in demand for ultra-small MLCCs. Compared with the current LTE-compliant mobile phones, 300 to 500 MLCCs are required, and 550 to 900 mobile phones are required to meet the high-end LTE-advanced standard. The MLCC usage of a single mobile phone is increased by more than 80%. With the advent of the next 5G era, large-scale replacement tides and intelligence will bring huge demand to MLCC.
In addition, on the cost side, the prices of upstream materials such as ceramic powder, motor metal and packaging materials have all increased, and the rising cost of various raw materials has driven passive component manufacturers to transfer costs downstream.
In this regard, CITIC Securities believes that it continues to be optimistic about the price increase cycle of the passive components industry, optimistic that the recovery of the industry boom driven by tight production capacity will continue until 2018 throughout the year, through the theme of price increases, MLCC demand will increase by 20% in the next three years, 20%, 15%, the supply and demand gap is still large in 2018, and there is no downward trend in 2019.
With the overseas production capacity to withdraw from the market of some integrated circuit components and the continuous improvement of domestic technology, domestic enterprises will use production cost advantages to expand production and speed up, and quickly seize market share. The passive device field will also take a domestic alternative path and have the opportunity to become the next investment entrant.
Post time: Aug-08-2018