Fun With Data - CE Components – Metals
Basic electrical components are often ignored in lieu of silicon based devices such as microprocessors, memory, and LEDs, but resistor, capacitors, inductors, and similar basic devices such as circuit boards and wiring are such an integral part of consumer electronics that the sum total value of such components can be a substantial part of the BOM of CE devices. That said, looking at a typical PC would reveal that ~50% of such a device, including components, would be made up of various metals, some of which have been in high demand and seen unusually large price increases in 2021.
As to the components themselves, our focus has been on MLCCs (Multi-layer Ceramic Capacitors),a physically small component that is essential to a number of CE devices, particularly 5G smartphones and electric vehicles. Growth rates for MLCCs vary from ~5% to ~8% over a 5 year period and the extended lead times seen in 2021 seem to be continuing into 2022, although as those MLCC producers that have such expertise have shifted production away from large size MLCC that are used in heavier equipment, such as MRIs or industrial power supplies, to smaller sizes used in smartphones or similar mobile devices. While the market remains tight and lead times long, this has kept the industry from falling into a more severe shortage, although prices have risen as those with low inventory levels are forced to pay up and order higher levels to gain traction with producers. While the char below shows PPI for a number of basic passive components through mid-2020, the trend has changed little since then.
[1] Prices are based on OTC and CFD financial instruments and are for reference only
PPI - Capacitor, Resistor, Coil, Transformer & Other Inductor Manufacturing - Source: St. Louis Fed
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