Passive Components - MLCC
A recent comment from Taiwan based MLCC supplier Yageo (2327.TT) has indicated that its inventory levels are low and will likely remain so until after the Chinese New Year break, as it has been finding it difficult to hire new employees pre-holiday. Personnel has been an issue for the MLCC space for much of this year as COVID-19 has hampered travel and production levels, despite an increase in MLCC capacity in 2019. As demand has increased this year, primarily from 5G smartphones and to a lesser degree from automotive, inventory levels at some suppliers have been reduced.
Current inventory levels are ~8 weeks at Yageo, which is below normal. We have seen lead times for a variety of MLCC increase starting at the end of October, and with MLCC utilization rates at 90%+ in Taiwan, the MLCC market continues to tighten as we head into 2021. Given the vast number of different MLCC types and sizes, it is difficult to average out the lead times, but none that we have checked have seen a decrease in lead times over the last 60 days. The chart below shows monthly operating revenue for Taiwanese MLCC producers Yageo and Walsin (2492.TT). As Walsin has been at nearly full utilization since June, they have been unable to increase sales while Yageo was able to increase utilization at its China plant. Both companies are expected to increase capacity in 2021 but projects could be slowed by COVID-19 early in the New Year. Yageo’s new capacity is greenfield while Walsin is expected to add to existing lines, at least as of its recent commentary.
Current inventory levels are ~8 weeks at Yageo, which is below normal. We have seen lead times for a variety of MLCC increase starting at the end of October, and with MLCC utilization rates at 90%+ in Taiwan, the MLCC market continues to tighten as we head into 2021. Given the vast number of different MLCC types and sizes, it is difficult to average out the lead times, but none that we have checked have seen a decrease in lead times over the last 60 days. The chart below shows monthly operating revenue for Taiwanese MLCC producers Yageo and Walsin (2492.TT). As Walsin has been at nearly full utilization since June, they have been unable to increase sales while Yageo was able to increase utilization at its China plant. Both companies are expected to increase capacity in 2021 but projects could be slowed by COVID-19 early in the New Year. Yageo’s new capacity is greenfield while Walsin is expected to add to existing lines, at least as of its recent commentary.
Operating Revenue 2019 - 2020 - Yageo - Walsin - Source: SCMR LLC, Company Data
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