MLCC prices to drop 3-5% in 4Q12, say sources

Patty Wang, Taipei; Steve Shen, DIGITIMES [Tuesday 25 September 2012]

Prices of MLCCs are expected to drop 3-5% sequentially in the fourth quarter of 2012 as passive component makers are conservative whether the pending launch of Windows 8 notebooks will be able to ignite replacement demand, according to industry sources.

Price competition in the molding choke market, initiated by large-scale Japan-based vendors and other newcomers in the industry since the beginning of 2012, has resulted in a steep drop in prices of standard molding chokes for notebooks, weighting down sentiment for MLCCs, the sources indicated.

While MLCC prices are expected to sink 3-5% in the fourth quarter, prices of standard chip resistors are expected to remain unchanged in the quarter, the sources asserted.

In addition, small resistors such as 01005 chips for iPhones and 0201 chips for other smartphones, as well as chokes in 2mm by 2mm and 3mm by 3mm sizes, will also remain stable in the fourth quarter due to strong demand from the smartphone sector, said the sources.