Electronics

Buyers Get Price Cuts with Consumer MLCCs: TrendForce

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Buyers expect to cut consumer device prices by 3-6% in the second half of this year as demand for computers and smartphones is easing and MLCC inventories are rising, according to market research firm TrendForce. increase.

China is sticking to the “Zero Corona Policy,” the company said, taking time to lift the blockade of cities recently affected by the outbreak of the disease. Manufacturing in major cities in China is facing delays in normal resumption of operations, creating a production gap in the second quarter of 2010.

For electronics ODM, it is difficult to fill this production gap with 2H22.In addition, ongoing global inflation Keeps commodity prices at very high levels, and this trend will curb the surge in demand during peak seasons in the second half of the year. The effects of inflationary pressure are particularly pronounced in the demand for home appliances such as smartphones, notebook computers and tablet computers.

It is also impacting the MLCC market in terms of demand and inventories. Currently, MLCCs of all sizes have a typical inventory level of over 90 days. therefore, TrendForce Consumer MLCC prices are expected to fall another 3-6% on average in the second half of 2010.

On the other hand, there is still significant demand in application segments such as high performance computing solutions (including servers), network equipment, industrial automation solutions and energy storage systems. In addition, IDM in the semiconductor industry will adjust its capacity allocation as the consumer electronics market continues to slow to 2H22.

As a result, the situation of supply shortage of a specific IC is alleviated. In addition, demand is supported by the high-end and other application segments of the MLCC market, such as automotive electronics and industrial equipment. Overall, thanks to demand related to automotive electronics, servers, networking equipment, etc., TrendForce predicts that total annual shipments of MLCCs in 2022 will increase by 2% year-on-year to approximately 2.58 trillion units. ..

MLCC estimates for automotive and industrial specifications remain strong

According to a TrendForce study, consumer MLCC prices fell by an average of 5-10 percent between the first quarter of 2009 and the first quarter of 2010. To further drive demand, MLCC suppliers reduced prices by another 3-5 percent in the second quarter of 2010. In fact, prices have fallen to the level of material costs for some low-end consumer MLCCs.

In MLCC’s previous market cycle, the inflection in supply and demand dynamics tended to follow a continuous rise or fall in both prices and shipments. For example, prices and shipments were on the rise from 2H20 to 2021. And now, prices and shipments have been on a downtrend for the second straight quarter. Consumer MLCCs are expected to fall 3-6% in the second half of 2010, as downward pressures will not ease in the future.

For industrial MLCCs for niche applications, overall demand for these products will recover as buyers experience a slack in the supply of some semiconductor chips. TrendForce currently predicts that prices for industrial MLCCs will either record a gradual 1-2% decline in the second half of 2010, or stay almost flat during this period. Looking at the automotive MLCC, pricing and shipping are stable as we provide quotes and negotiate contracts for this product category each year.

Expanded offerings by MLCC suppliers in Japan, South Korea and Taiwan

Currently, Japanese MLCC suppliers Murata and TDK manage an almost 80% market share of automotive MLCCs. These two suppliers are not only increasing the capacity of their automotive products, but also providing services for a variety of related applications. For example, through product design collaboration, we are increasing customer engagement and advancing service delivery development to a modular level. In the field of automotive drivetrain systems and ADAS, Murata TDK has started offering solutions and services such as image sensor modules and intelligent parking assist (IPA) modules.

Graphic showing MLCC production

Samsung in South Korea has successfully completed the automotive product certification process this year. Samsung will move to the third quarter of 2010 and gradually increase the production capacity of automobile products at its Tianjin plant. For YAGEO in Taiwan, a new production line based in Kaohsiung is scheduled to start pilot production in the fourth quarter of 2010. Much of the additional production capacity YAGEO undertakes is for high voltage MLCCs and large 22u automotive MLCCs (eg 0805 and 1210 products).

The new production line will enter mass production near the end of the first quarter of 2011, with an initial total production capacity of 80-100 billion pieces per month. YAGEO is also diversifying its services and solutions to expand into high-end application segments such as military technology, network equipment, automotive electronics and medical equipment. Examples other than MLCCs include resistors, inductors, and antenna modules.

Manufacturing in eastern China is beginning to recover, according to TrendForce’s latest research on the blockade of Covid-19 in China. Especially in Shanghai, the transportation of goods from ports and airports is gradually returning to normal.

Therefore, ODM production bases in the region can increase the shipment of finished products again. In addition, the entire logistics system returns to normal operation, greatly mitigating the problem of component mismatches. Therefore, improved logistics will give growth momentum to finished goods shipments in the third quarter of 2010.

On the other hand, some key variables will affect the MLCC market during 2H22. These include geopolitical tensions, the maintenance of the Chinese government’s zero-corona policy, and the potential for inflation to turn into stagflation.



https://epsnews.com/2022/06/14/buyers-to-get-price-break-on-consumer-spec-mlccs/ Buyers Get Price Cuts with Consumer MLCCs: TrendForce

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