Global Passive Component Industry Sees New Round of Price Hikes with Up to 20% Increase

TapTechNews July 16th news, the Economic Daily reported that a new round of price hikes has emerged in the global passive component industry, and the price increase range far exceeds the previous rounds, with the highest increase forecast reaching 20%.

TapTechNews quoted the media report that the main driving factors of this increase are the upcoming peak season of smart phones, the recovery of the PC market, and the silver price soaring by more than 30% this year, leading global giants such as Murata and TDK Corporation to plan to increase the prices of their products.

Industry sources said that in the production of multilayer inductors and ferrite beads, silver accounts for up to 60% of the cost. Since the beginning of this year, the silver price has once soared by nearly 40%, although it has slightly dropped recently, it has still risen by 35% so far this year, so manufacturers are facing huge cost pressures when mass-producing these elements.

Three inductor manufacturers such as Murata, TDK and Taiyo Yuden, as well as Yageo and Walsin Technology Group, etc. all plan to increase the prices of multilayer inductors and ferrite beads. The report predicts that large-sized products will take the lead in price increases, with an increase range of 10% to 20%.

Passive Components

Passive components, also known as passive elements and passive devices, have different definitions in different fields. It can refer to electronic components that consume but do not generate energy, or electronic components that cannot generate gain.

Multilayer Inductors

The characteristic of multilayer inductors is magnetic shielding, which can eliminate electromagnetic interference and effectively suppress high-frequency oscillations in the circuit. Therefore, they are very suitable for high-density circuit designs. Depending on the size, these inductors are widely used in consumer electronic products and even servers.

Ferrite Beads

The design of ferrite beads uses ferrite materials and a multilayer manufacturing process. Their impedance changes with frequency, which means that they can achieve high impedance at high frequencies, thereby providing excellent high-frequency filtering characteristics.

Ferrite beads can effectively suppress noise interference, making them suitable for terminal products such as smart phones, tablets, laptops and power supplies.