Under inflation and warfare, global economy faces uncertainty; Middle East conflicts disrupt supply chains, high energy prices elevate living costs and inflation expectations. Consumer confidence is low, suppressing purchasing power. Electronics demand weakens, ODMs suffer key material shortages like CPUs, reducing output; yet AI demand surges, shifting capacity and triggering channel precautionary stockpiling, creating supply-demand mismatch. High-end MLCC pricing pressure forms.

Key Highlights

• Inflation intertwined with regional conflicts heightens global economic uncertainty; Middle East stalemate disrupts supply chains, keeping energy prices elevated and boosting living costs with rising inflation outlooks.
• Consumer sentiment remains pessimistic, eroding real purchasing power; Federal Reserve holds high interest rates, delaying cuts and curbing end-market electronics demand.
• ODMs encounter shortages in critical materials like CPUs, leading to reduced production shipments; suppliers prioritize AI sectors, squeezing consumer-grade capacity.
• Channels exhibit precautionary stockpiling trends, with distributors anxious over standard MLCC shortages, increasing orders and forming a cold demand-hot channel divergence.
• AI infrastructure orders stay robust, expanding high-end MLCC needs; Japanese-Korean firms tilt capacity, assessing pricing strategies that may compress consumer supply flexibility.

Table of Contents

1. Market Update
2. Trendforce's View 

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