Raw material prices rise due to energy transition, geopolitics, tariffs, and AI demand, impacting electronic costs. AI infrastructure orders are strong, boosting high-end MLCC shipments, but ICT orders decline, facing supply chain price pressures. MLCC quotes remain stable with controllable costs, yet weak ICT market poses challenges. Global tech industry shows polarization, needing to address policy uncertainties.

Key Highlights

• Raw Material Surge: Driven by energy transition, geopolitics, tariffs, and AI demand effects, boosting prices of metals like silver and copper, affecting electronics supply chains.
• AI Impact: Steady infrastructure orders enhance high-end MLCC shipments, but crowd out ICT sectors, increasing material acquisition costs.
• Supply Chain Pressures: Passive components like beads and resistors see price hikes, pressuring OEMs/ODMs costs; end-user electronics prices rise, hurting sales.
• MLCC Market: Quotes stable, production costs controlled via inventory, mid-low capacity in reduced operation, no firm price increase basis, but ICT order drops challenge.
• Industry polarization with AI benefits on one side, capacity squeezes and policy uncertainties on the other; suppliers must mitigate risks for revenue and profits.

Table of Contents

1. Surging Prices of Raw Materials and Siphoning Effect of AI Boom Keep Prices of MLCCs Steady, but Risks Remain
2. Inflation Spreads in Supply Chain; OEMs and ODMs Face Mounting Cost Pressures
3. Downward Pressure on MLCC Prices Eases; Suppliers Based in Mainland China and Taiwan Face Headwinds from Slumping ICT Orders
4. Trendforce's View 

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