Price Increasing for Multilayer Inductors and Beads

2024-07-27

According to the news, there was an anticipated price increase in the passive component market of Multilayer Inductors and Beads. This decision comes from leading Japanese manufacturers as they navigate the dual challenges of rising demand in the smartphone and PC markets and significant increases in silver prices. With a surge of over 30% in silver prices this year, companies are planning to raise product prices by around 20%, marking one of the largest price increases seen in recent years within the passive component industry.

Industry Background

The passive component sector, which includes essential components such as multilayer inductors and beads, has undergone a considerable inventory adjustment over the past year. As inventory levels return to a healthier state, demand has seen a resurgence, especially with the traditional peak season approaching. Customers are beginning to replenish their stocks, further driving demand for these essential components.

Rising Silver Prices and Their Impact

Silver is a critical raw material in the production of multilayer inductors and beads, accounting for up to 60% of their total costs. This year, the price of silver has risen dramatically—almost 40%. Even after a slight adjustment in recent months, it remains approximately 35% higher than at the beginning of the year. Such significant increases in raw material costs put immense pressure on manufacturers, necessitating a reevaluation of pricing strategies.

The Role of Inductors and Magnetic Beads

Inductors are fundamental components in electronic circuits, responsible for various functions, including filtering noise, stabilizing current, and suppressing electromagnetic interference. Multilayer inductors, in particular, are designed to minimize electromagnetic interference and are well-suited for high-density circuit designs. Their applications range from consumer electronics to server components.

Magnetic beads, constructed using ferrite materials, exhibit impedance that varies with frequency, providing excellent high-frequency filtering capabilities. These characteristics make them essential in devices such as smartphones, tablets, and laptops.

Anticipated Price Increases

With major mobile phone manufacturers set to launch new devices in the latter half of the year and the PC market gradually recovering, first-tier manufacturers plan to implement price increases for multilayer inductors and beads. These increases are expected to be particularly pronounced for larger components, with prices anticipated to rise by 10% to 20%.

The global inductor industry is highly concentrated, dominated by Japanese companies that account for 40%-50% of the market share. As leaders in this sector, their decision to raise prices may spur other manufacturers, both globally and domestically, to follow suit.

Implications for the Market

In light of these developments, world wide leading inductor manufacters  and many domestic manufacturers are likely to adjust their prices as well. This trend could benefit numerous players in the passive component space and may lead to a ripple effect throughout the supply chain, we Hongda Capacitors in order to make a smooth connection with our customer and giving more benefits to our valued customer, we absorb the costs internally.

The anticipated price hikes in the passive component industry reflect broader trends in demand recovery and raw material cost pressures. As major manufacturers strategically adjust their pricing in response to market conditions, stakeholders across the electronics sector should prepare for potential changes in component availability and costs. The coming months will be crucial for businesses navigating this evolving landscape, where adaptability and strategic sourcing will be key to maintaining competitiveness.

In the intricate world of electronics, ferrite beads stand out as silent protectors, shielding circuits from the disruptive forces of EMI and maintaining signal integrity. Their subtle presence belies their crucial role in keeping our devices functioning smoothly and reliably, making them indispensable components in modern electronics design.

Our chip inductors and beads are designed to meet the highest standards of quality, reliability, and performance. With excellent solderability and heat resistance, they offer unparalleled performance even in demanding environments.

We take pride in offering a wide variety of sizes to cater to your specific requirements. Whether you need compact components for space-constrained applications or larger ones for high-power systems, we have you covered.

By choosing our Inductors and Beads, you can enjoy the following benefits:

- High reliability for uninterrupted operation.

- Excellent solderability for easy and hassle-free installation.

- Exceptional heat resistance for enhanced longevity.

- Versatile size options to fit any application.

For more details, pls contact: smile@hongdacap.com.hk

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