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Multilayer ceramic capacitor (MLCC) prices are declining in the second quarter. The reason for the decline can be explained by slight deceleration in MLCC demand after the COVID-19 pandemic.

According to TrendForce, a global market research firm, MLCC prices fell by 3-6% in the second quarter. The decline in MLCC prices for business-to-consumer (B2C) IT devices was even bigger, decreasing by 5-10% between the first and second quarters.

MLCC suppliers have reduced their selling prices slightly to boost demand. For some low-end MLCCs, prices have dropped significantly even to the level of material costs.

TrendForce analyzed that MLCC prices declined as demand for B2C IT equipment slowed down due to the rise in U.S. inflation and the coronavirus pandemic. It is explained that the growth of the MLCC market has been decelerated as the finished product manufacturing industry has increased the level of MLCC inventory.

On the other hand, the demand for MLCCs for high-performance computing solutions, servers, network equipment, industrial automation solutions, and energy storage devices continued to increase. Year-on-year growth of MLCC for B2B equipment is expected.

The global MLCC market is led by Japan and South Korea. The report predicted that the growth of MLCC performance in major industries such as Murata and TDK will be slightly hampered.

By Staff Reporter So-ra Park