September 2018 Passive Electronic Component Monthly Market Research Report

CRL Monthly Review: Passive Electronic Component: Monthly Report: SEPTEMBER 2018 Review

MARKET UPDATE:

• Weakness in ALL Resistors

• Weakness in microfarad MLCC (High Cap) Responding To Murata’s New Capacity Additions

• BUT Tightness in picofarad MLCC Remains (Where Yageo and Walsin Compete)

• Mid Cap MLCC in the 2.2 to 47 microfarad range Still In Short Supply****Yageo, Walsin Sweet Spot for December Quarter

• Ruthenium and tantalite prices continued to rise, but they will feel the weakness in resistors next month (October) and their process should stabilize and drop.

• Shortages in All Specialty Ceramic Capacitors- Axial Leaded MLC, Radial Leaded MLCC; SMPS Stacked Capacitors as equipment and materials are repurposed for higher profit business that is in short supply.

• It is as if the tide continues to recede as clearly some vendors will not be ready for this as high temperature, high voltage and high frequency ceramic capacitors, especially those engendered to fossil fuel related electronics will continue to lose support.

• ****The unique combination of the technology required and the massive economies of scale required to fix the problem continue to favor vendors like Yageo and Walsin.

MESSAGE: THE COMPONENT MARKETS PULLED BACK IN SEPTEMBER WHILE MATERIALS MARKETS GOT TIGHTER. WATCH OUT FOR THE OCTOBER surprise!!!!