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Heavy! Samsung Electro-Mechanics adjusts the price of MLCC, implemented from May 1st

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On April 3, 2018, Samsung Electro-Mechanics issued a price adjustment notice...


   On April 3, 2018, Samsung Electro-Mechanics issued a notice that due to this year's MLCC supply situation is more severe than last year, some major manufacturers have cut production in non-strategic areas. Therefore, we expect that the MLCC supply situation may not be improved throughout this year.


  We optimize the overall production capacity and distribution policy on the basis of sustainability and profitability. This is essential for investing in our production capacity.


   We also hope to get your understanding in the implementation of this price adjustment. The new price will be implemented from May 1, 2018.

 

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Not long ago, on March 2, Murata, a major MLCC manufacturer, issued a notice stating that the demand for high-performance multilayer ceramic capacitors in the communications and automotive markets has increased significantly in recent years, but MLCC manufacturers including Murata have been unable to meet the overall demand. demand.


Murata said that due to the large increase in overall demand, Murata must focus its production increase resources on small-sized advanced products and high-performance products with high market demand and difficult production. For the "old product group" that already has miniaturized alternatives, it has to Reduce production capacity to 50% in 2017, and will continue to reduce its production capacity in the future.


   In addition, because other MLCC manufacturers continue to raise prices, "old product groups" such as: "0603/0805 size high dielectric constant type, electrostatic capacitance less than 1uF" orders continue to concentrate on Murata, making it difficult to adjust the production capacity of Murata.


   Therefore, Murata plans to pass miniaturization, multiple supplier certifications, and transfer orders to Taiwan and other MLCC manufacturers, in order to achieve the reduction of orders for the "old product group".


   In order to strengthen the control of the excessive concentration of orders for the "old product group", as of today, Murata will implement initial price adjustments for the following products, and the new order prices will take effect on March 2, 2018.


Subsequently, Huaxinke increased the prices of the full range of MLCCs, and Yageo increased the prices of the full range of MLCCs (Multilayer Ceramic Capacitors) starting from April 1. It is reported that the average increase range is 40-50%, which is higher than the 10% in February. ~20%, which is equivalent to an increase of 2 to 2.5 times the rate of increase compared to February. From the current point of view, MLCC production capacity and price adjustments intensified in 2018, which may bring great uncertainty to downstream customers in the supply chain.