Taiwan-based passive component suppliers will be considering a new round of price hikes in third-quarter 2021, given that their order visibility has extended through the second half of the year thanks to strong demand for 5G handset, notebook, networking and automotive applications, according to industry sources.
Apart from strong demand seen since second-quarter 2020, limited capacity expansion and rising materials and shipping costs have prompted passive components makers to raise their quotes since the start of 2021, the sources said.
Chip resistor maker Ralec, affiliated with Chilisin Electronics, took the lead to raise quotes by 15% for sales to distributors in the Greater China region, effective February 17.
Leading vendor Yageo also announced in mid-March that its second-quarter quotes would be hiked by 10-20% on MLCCs and chip resistors shipped to channel distributors, EMS and OEM clients. Walsin Technology followed suit soon, yet with its price hikes, higher than industry average, applicable to distributors only, the sources continued.
Yageo has said it will ramp up its capacity utilization to over 90% for MLCCs and to over 80% for chip resistors; and Walsin has been running at full capacity for both products with new capacity also fully booked by clients soon after becoming available for commercial runs.
It remains to be seen whether the vendors will further raise quotes for the third quarter in response to stronger peak-season demand, the sources said, adding that chances will be high for them to do so if tight supply worsens into shortages.
Article translated by Willis Ke
