According to the global investment, reports indicate that MLCC supply will be tight in the first quarter of 2020, and the price of some MLCC products will increase within 10%. Most chinese MLCC manufacturers and channel vendors believe that this year's general-purpose MLCC prices may increase by 30% to 50%.

It universally pointed out that the original industry estimates that MLLC market conditions will be tight and need to wait until the third quarter of 2020, and now advance to the first quarter of 2020, showing the impact of 5G smartphones on the industry.

After the resumption of work in mid.Feb. 2020, Yageo informed customers that from March 1st, the prices of MLCC would officially increase. The first wave of average price increases was as high as 30%. According to Taiwan media reports, the increase in prices is mainly due to inventory being too low, coupled with the lack of full production rate, leading to higher production costs.

Before the Spring Festival this year, driven by the urgent orders of smartphones and the effect of pulling goods during the Spring Festival, passive component manufacturers had to stop accepting orders because of difficulty in recruiting and the capacity could not be fully opened. Under the influence of the novel coronavirus, the problem of difficult recruitment will further trouble major manufacturers, and both the original factory and the customer's inventory will continue to decrease sharply. Starting in the fourth quarter of 2019, some MLCC suppliers' inventory has bottomed, and the inventory days have been lower than one month. The shortage of MLCC led to a tight supply in the market, and a surge in price was triggered.

On the demand side, the growth of 5G mobile phones and automotive electronics has greatly driven MLCC demand. The demand for MLCCs for 5G mobile phones is expected to increase by 20% over 4G mobile phones. In terms of automotive electronics, with the rise of new energy vehicles, the demand for MLCCs will increase significantly. Downstream demand has increased, while upstream supply has been affected by the current novel coronavirus and the volcanic eruption in Philippines in January. MLCC supply is in short supply, which has led to frequent price increases.

Kt Kingtronics MLCC price increase is less while Yageo and other MLCC brands increase 30%-50% in Q1 2020, consult details with our sales, let’s join efforts to overcome difficulties.