Recently, industry sources indicate that the leading passive component manufacturer, Kemet, has officially sent out a price increase notice to its customers. It plans to raise the prices of some consumer-grade resistance products starting from February 1st, with an increase range of 15% to 20%. Meanwhile, the prices of capacitor products will remain stable for the time being. This is another round of price adjustment by Kemet for passive components since the second half of 2025, reflecting the widespread cost pressure and supply-demand changes currently faced by the industry.
Rising prices continue: Multiple manufacturers have successively raised their prices, and the cost pressure continues to be passed on.
The price adjustment by Sunmi this time is not an isolated incident. Looking back at the second half of 2025, its subsidiary Kimei had already raised the prices of tantalum capacitor products twice in June and October, with the increase ranging from 10% to 30%. In December of the same year, Sunmi announced another 10% to 20% price increase for medium and high voltage, high capacitance automotive-grade MLCCs and thick film resistors. Additionally, Panasonic also raised the prices of some tantalum capacitors by 15% to 30% starting from February 1st this year.
The domestic A-share leader in passive components, Fenghua Gaoke, also recently informed institutions that the company has adjusted the prices of some products such as inductors and magnetic beads, and varistors, based on the actual situation of rising raw material prices. According to the price increase notice released by the company in November 2025, due to the overall increase in the prices of metals such as silver, tin, and copper, Fenghua Gaoke has raised the prices of multiple products by 5% to 30%.
Behind this series of price hikes lies the significant increase in the raw material market, especially the price of silver. Data shows that in mid-January 2026, the international spot silver price had exceeded $92 per ounce, reaching a record high, with an annual increase of over 28%. Domestic silver prices also rose significantly at the same time. As a key material for passive component electrodes and end plating, the rise in silver prices directly pushed up the production costs of resistors, capacitors, and other products.
Demand-side variables: AI and automotive electronics become key driving forces
Apart from cost factors, changes in the demand structure have also introduced new variables to the price trend of passive components. Currently, the industry demand is rapidly shifting from traditional consumer electronics to areas such as automotive electronics, AI servers, and edge AI devices. These applications have higher requirements for the reliability, precision, and miniaturization of components, and to some extent, have also squeezed out high-end production capacity.
A distributor's analysis indicates that if the AI application boom in 2026 occurs as expected and continues to absorb the high-end production capacity of major manufacturers such as Murata and Samsung, the passive components market may face a structural supply shortage, and the price increase trend may persist. Especially in the subcategories of high capacitance, automotive-grade MLCC, and high-performance inductors, the supply-demand relationship may be even tighter.
However, the inventory levels in the industry have entered a relatively stable phase. According to a research report by Guoyuan Securities, compared to the peak in 2022-2023, the inventory in the MLCC industry has significantly decreased, and has been at a reasonable level overall since 2024. This provides a certain market basis for price adjustments, but it also means that downstream manufacturers need to be more flexible in responding to supply fluctuations.
Supply chain response: Diversified procurement and collaboration with specialized platforms become a trend
In the face of continuous price fluctuations and delivery uncertainties, downstream electronic product manufacturers are actively adjusting their procurement strategies and strengthening supply chain resilience. An increasing number of enterprises are beginning to attach importance to diversified supplier arrangements, no longer overly relying on a single brand or channel. At the same time, they are strengthening collaboration with specialized component supply platforms to enhance their market response speed and cost control capabilities.
In this context, platforms like Baoneng Cloud Chip, which focus on providing supply chain services for electronic components, have even greater value. By integrating industry resources and offering real-time market information and inventory data, such platforms can help procurement personnel quickly compare prices, lock in orders, optimize the procurement process, and reduce operational risks caused by sudden changes in market prices. Especially during periods of price fluctuations, professional supply chain partners not only provide stable alternative solutions but also assist enterprises in predicting trends through data analysis and making more forward-looking inventory decisions.
Meanwhile, many enterprises are also alleviating the pressure caused by the rising cost of components through measures such as design optimization, material substitution, and refined inventory management. Strengthening long-term collaboration with original manufacturers and distribution channels, as well as establishing an elastic procurement mechanism, are becoming the consensus of the industry in responding to cyclical fluctuations.
Prospect: The industry is evolving towards higher-end levels, and the supply chain needs to be more resilient.
Overall, this round of passive component price hikes is driven by both the increase in raw material costs and the growth in high-end demand. It is expected that prices will remain in a high-level fluctuation for the short term. As industries such as 5G communication, new energy vehicles, and AI computing continue to develop, the market's requirements for the performance, reliability, and integration of passive components will continue to rise, driving the industry to further evolve towards a more advanced and specialized direction.
For the procurement aspect, building an agile, diverse and digital supply chain system is no longer an option but a necessity. By deepening cooperation with professional platforms like Beneng Cloud Chip, enterprises can not only complete component procurement more efficiently, but also obtain value-added services such as market insights and risk management, thereby maintaining competitiveness in the changing market.
In the future, the passive components industry will continue to grow through a complex interplay of cost, technology and demand. Only those enterprises that can quickly adapt to changes and optimize their supply chain collaboration mechanisms will be able to seize opportunities amid fluctuations and achieve stable operation and long-term development.
*Disclaimer: The article is from the internet. In case of any dispute, please contact customer service.
