(Central News Agency reporter Zhong Rongfeng, Taipei 31st) The market situation of passive components has attracted much attention. The Asian foreign-funded legal person analyzed in the report on the 30th that the current multilayer ceramic capacitor (MLCC) industry is at the bottom of the cycle, and the price decline of various applications continues to converge.The cycle has come to an end, and the industry has a chance to bottom out.

Fenghua High-Tech, a major Chinese MLCC manufacturer, responded to investors’ questions in January, saying that the market demand for products has picked up compared with the third quarter of last year, and the capacity utilization rate has also increased compared with the third quarter of last year. The legal person pointed out that the inventory level of China Fenghua Hi-Tech and Sanhuan Group has declined compared with the same period last year, indicating that the digestion of spot inventory by Chinese MLCC manufacturers is nearing completion.

American foreign-funded legal persons reported and analyzed in early January that the MLCC industry is bottoming out, mainly because the inventory levels of Electronic Manufacturing Services (EMS) and Original Design and Manufacturing (ODM) manufacturers have returned to 2 to 4 weeks. At the normal level, the end market demand has also begun to recover, and the demand of direct customers for early delivery of orders has also begun to pick up.

In terms of distributors, according to the analysis of American foreign-funded legal persons, the inventory level of MLCC components is still in the range of 3 to 4 months, but it is expected to return to normal levels before the end of the first quarter.

In terms of capacity utilization, the US-based foreign-funded legal person expects that the utilization rate of MLCC manufacturers in the first quarter may be lower than that in the third quarter of last year when the utilization rate declined, in order to cope with inventory depletion.

Yageo, a major passive component manufacturer, recently pointed out that the momentum of orders for niche products with a high proportion of revenue is stable, and the inventory of standard products and terminal demand continue to adjust; Uncertainty factors such as inflation and the international situation are still high, and we will pay close attention to the market supply and demand situation.

Source：yahoo!News