[News] Global Passive Component Giants to Raise Prices by 20%, Benefiting Taiwanese Supply Chain

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According to a report from Economic Daily News, benefiting from the upcoming peak season for smartphones, a recovery in the PC market, and a more than 30% surge in silver prices this year, global giants such as Murata and TDK are planning to raise product prices. Targeted products include multilayer inductors and beads, with potential price hikes of up to 20%, marking a rare significant increase in the passive component industry in recent years.

Industry sources cited by the same report have noted that the passive components sector, after undergoing inventory adjustments for over one year, is now seeing inventory levels returning to healthy levels. This, coupled with customers replenishing stocks, the traditional peak season approaching, and significant cost increases, presents an opportunity for rare price hikes in products such as multilayer inductors and ferrite beads.

Industry sources cited by the report also highlight that silver accounts for up to 60% of the cost in manufacturing multilayer inductors and beads. With silver prices having surged nearly 40% at one point this year and still up 35% year-to-date despite a recent slight pullback, manufacturers are facing substantial cost pressures in mass-producing these components.

Leading global inductor manufacturers include Japanese companies like Murata, TDK, and Taiyo Yuden, as well as Taiwan’s Yageo and Walsin Technology groups. With major smartphone manufacturers launching new models in the second half of the year, the recovering PC market, and rising silver prices, industry sources indicate that top-tier companies like Murata and TDK may increase prices for multilayer inductors and beads. Large-size products are expected to see the first price hikes, ranging from 10% to 20%.

Industry sources further explain that multilayer inductors are characterized by magnetic shielding, which eliminates electromagnetic interference and effectively suppresses high-frequency oscillations in circuits. This makes them highly suitable for high-density circuit designs. Depending on their size, these inductors are widely used in consumer electronics and even servers.

On the other hand, ferrite beads are designed using ferrite materials and a multilayer manufacturing process. Their impedance varies with frequency, meaning they achieve high impedance at high frequencies, offering superior high-frequency filtering characteristics. This effectively suppresses noise interference, making them suitable for end products like smartphones, tablets, laptops, and power supplies.

Reportedly, the operations of passive component manufacturers have been gradually recovering. Leading passive component manufacturer Yageo is optimistic, noting that customer inventory levels are becoming healthier this quarter. The company expects its capacity utilization rate to continue increasing and holds an optimistic outlook for the market moving forward.

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(Photo credit: YAGEO)