Quartz component suppliers are raising prices as higher raw material costs from gold wire and ceramic bases squeeze margins. Industry sources said ceramic base prices could climb by double-digit percentages, in some cases even doubling, pushing makers to pass on some of the increases.
The main suppliers of ceramic bases used in quartz oscillator packaging are in China and Japan, with ceramic bases accounting for about 30% of total costs. Prices for other key materials, such as gold wire, have also climbed sharply, lifting overall quartz component costs by about 5% to 10% or more.
Leading makers signal a sector-wide trend
TXC, Taiwan's leading quartz component maker, ranks alongside Japan's NDK, Epson, and Kyocera among the world's top four quartz component suppliers, with each holding about 10% market share. TXC has already announced a price increase for April 2026 and said recently that it will raise quotes again for its quartz frequency component products starting July 1.
Industry sources said repeated price hikes from leading makers show that quartz component price increases are becoming a sector trend, driven by significant upstream material inflation in 2025 and rising power and labor costs. Manufacturers said they now have more leverage to reflect costs, but the final increase still depends on product applications and customer response, as not all clients are willing to accept higher prices immediately.
Recovering margins after years of pressure
With raw material prices surging, suppliers said they previously had to absorb rising costs themselves, while low-cost competition from China has squeezed gross margins. Now that market pricing has stabilized, the immediate priority is to recover lost profit and offset continued material cost inflation, though the process still depends heavily on sales teams' communication and negotiation with customers.
Revenue performance across major quartz makers
Benefiting from stronger demand in AI and automotive markets, TXC posted a June 2026 revenue of NT$1.2 billion (US$37.1 million), up 20.0% year on year. Cumulative revenue for the first half of 2026 reached NT$7.0 billion, up 7.7%, and growth is expected to accelerate further in the second half as peak-season orders arrive.
Harmony Electronics reported a June 2026 consolidated revenue of about NT$249 million, up 5.6% year on year, while revenue for the first half of 2026 totaled NT$1.4 billion, up 1.6% annually. Tai-Saw Technology posted a June 2026 revenue of NT$226 million, up 26.6%, and a first-half 2026 revenue of about NT$1.2 billion, up 8.9% year on year.
Siward Crystal Technology reported a June 2026 revenue of about NT$207 million, down 1.4% year on year, and a first-half 2026 revenue of NT$1.2 billion, down 2.7% from a year earlier. Taitien Electronics posted a June 2026 revenue of NT$185 million, up 29.9%, and a first-half 2026 revenue of NT$954 million, up 4.9% annually.
Diversification offers a buffer, but pressure remains
Quartz makers have diversified product portfolios. While the consumer market may face pressure from memory shortages, demand for AI, networking, and optical communications products remains strong, making it a key issue in the second half of the year, whether companies can successfully pass upstream cost increases on to customers.
Article translated by Lily Hess and edited by Jerry Chen
