Japanese electronics giants Murata and TDK are poised to increase prices on their passive components, a move triggered by a resurgence in demand from the smartphone and PC sectors, the impending peak season, and a significant surge in silver prices, according to the Economic Daily.
The price hikes, which could reach up to 20%, will primarily affect multilayer inductors and ferrite beads, marking a rare occurrence in this industry. This decision comes as the sector emerges from over a year of inventory adjustments. With stock levels normalising and customers restocking ahead of the peak season, demand for passive components has seen a sharp uptick.
The escalating cost of silver, a key material constituting roughly 60% of the production cost of these components, has also been a major catalyst for the price increases. Despite a recent slight correction, silver prices have soared by nearly 35% since the beginning of the year, putting immense pressure on manufacturers.
Both multilayer inductors and ferrite beads are crucial components in various electronic devices. Multilayer inductors, renowned for their magnetic shielding and noise suppression properties, are indispensable in high-density circuit designs and are widely used in consumer electronics and servers. Ferrite beads, on the other hand, excel at high-frequency filtering and noise suppression, making them common in smartphones, tablets, laptops, and power supplies.
With a combined market share exceeding 30% in the chip ferrite bead market, and a dominant position in the global inductor industry, Murata and TDK’s decision to raise prices is expected to ripple across the industry, potentially influencing other manufacturers to follow suit. This includes Taiwanese inductor giants and Chinese passive component manufacturers, who could also benefit from this wave of price increases.
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