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According to today's news, according to the data of TrendForce, a semiconductor market research institute, due to the slowdown in demand for computers and smartphones, the price of consumer-grade MLCCs may drop again in the second half of the year.

TrendForce pointed out that mainland China's insistence on "dynamic clearing" is one of the reasons, and the production gap of the manufacturing industry in the second quarter of 2022 is getting bigger and bigger; in addition, continued global inflation keeps prices high, and this trend will suppress the peak season in the second half of the year surge in demand. The impact of inflationary pressures is particularly evident in demand for consumer electronics such as smartphones, laptops, and tablets.

And such a market affects the demand and inventory of the MLCC market. At present, the average inventory level of each size is more than 90 days, and it is estimated that the average price of consumer MLCC in the second half of the year may drop by another 3-6%.

On the other hand, demand in application areas such as high-performance computing solutions (including servers), networking equipment, industrial automation solutions and energy storage systems remains quite strong. In addition, as the consumer electronics market continues to slow down in 2H22, IDMs in the semiconductor industry will adjust capacity allocation.

Therefore, the undersupply situation of some ICs will be alleviated. In addition, the high-end segment of the MLCC market and other application areas such as automotive electronics and industrial equipment are still in relatively strong demand. All in all, thanks to the demand for automotive electronics, servers, network equipment, etc., TrendForce predicts that the total annual shipments of MLCCs in 2022 will increase by 2% year-on-year to about 2.58 trillion pieces.

According to research by TrendForce, the prices of consumer-grade MLCCs dropped by an average of 5-10% between 1Q21 and 1Q22. To further stimulate demand, MLCC suppliers cut prices by a further 3-5% in 2Q22. In fact, prices have dropped to the material cost levels of some low-end consumer-grade MLCCs.

In market cycles prior to MLCCs, inflection points in supply and demand dynamics tended to follow sustained climbs or declines in prices and shipments. For example, from 2H20 to 2021, prices and shipments are on an upward trend. So far, prices and shipments have declined for two consecutive quarters.

Going forward, downward pressure will not ease, so quotes for consumer-spec MLCCs are expected to decline by 3-6% during 2H22. As for industrial-scale MLCCs for niche applications, overall demand for these products will pick up as buyers loosen supply of some semiconductor chips.