[News] World’s No. 2 Aluminum Capacitor Supplier Nichicon Hikes Prices; Taiwan Peers Set to Follow in June–July

Japan’s leading aluminum electrolytic capacitor suppliers are raising prices, potentially sparking a new wave of increases across the sector. According to Economic Daily News, Nichicon, the world’s second-largest aluminum electrolytic capacitor supplier, has notified customers of price hikes across its entire aluminum electrolytic capacitor product portfolio. The report adds that Taiwanese peers are likely to follow suit, providing a boost to profitability.

Sources cited by Liberty Times say that major aluminum electrolytic capacitor suppliers Nippon Chemi-Con and Nichicon have recently announced price increases. The report notes that planned hikes, initially estimated at 9%–12%, could ultimately reach 10%–15%.

MoneyDJ further notes that price adjustments by Taiwanese suppliers are set to take effect gradually in June and July, a move expected to support revenue growth in the coming months.

Aluminum electrolytic capacitors have become the latest passive component category to face price hikes, following MLCCs and tantalum capacitors. As Economic Daily News notes, Nichicon cited rising costs for aluminum foil, chemical materials, and electricity amid ongoing Middle East geopolitical tensions, as well as capacity constraints caused by strong demand, as reasons for raising prices.

Those cost pressures show little sign of easing. As noted by MoneyDJ, chemical-material costs have risen by roughly 30%–40% from previous levels, while metal raw-material prices have generally increased by around 10%. With raw-material inflation remaining elevated, the uptrend in pricing for both aluminum foil and aluminum electrolytic capacitors appears firmly established.

AI Demand Tightens Aluminum Capacitor Supply

Beyond rising costs, Nichicon’s decision to raise prices also suggests that industry supply-demand dynamics are gradually shifting toward tighter supply, a trend that could support broader price increases across the market, as Economic Daily News indicates.

A key driver is the rapid growth of AI servers, high-performance computing, and power systems, which continues to fuel demand for high-end aluminum electrolytic capacitors, as noted by Economic Daily News.

As noted by Commercial Times, world’s three largest aluminum electrolytic capacitor suppliers are Nippon Chemi-Con, Nichicon, and Rubycon. The report adds that these three Japanese suppliers have significant exposure to AI servers, with their products primarily used in AI power supply systems.

Against this backdrop, Commercial Times highlights that as NVIDIA’s next-generation Vera Rubin platform ramps in 2H26, Japanese passive-component suppliers may allocate even more capacity to AI-related applications. With non-AI capacity increasingly squeezed, Taiwanese manufacturers are expected to benefit from order transfers.

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(Photo credit: Nichicon)