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MLCC Inventories Hit Record Lows as Prices Rise; Analysts Bullish on Yageo
Electronic Technology · Electronic Components · economic_daily · 2026-08-31
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Driven by peak season demand and AI growth, MLCC channel inventories have reached record lows while prices climb, prompting analysts to upgrade Yageo.
What Happened
Industry Supply Dynamics: As the electronics sector enters its peak season, surging AI demand is causing a tightening in the supply of multi-layer ceramic capacitors (MLCCs). UBS reports that channel inventories have plummeted to historic lows, signaling a significant supply-demand imbalance across the broader market.
Price and Inventory Trends: While inventory volumes continue to decline, the total value of these inventories has risen, driven by a 7% increase in average selling prices. Year-over-year data confirms this trend, with volume down 22% while the price index has climbed 13%, indicating that pricing power is shifting back to manufacturers.
Key Manufacturer Performance: Leading players such as Yageo, Murata, and Samsung Electro-Mechanics are operating at 95% capacity utilization with book-to-bill ratios well above parity. Analysts suggest that as AI-related sales guidance is revised upward, the current supply constraints will likely intensify and spread throughout the entire industry.
Analyst Outlook: Major financial institutions, including Citi, Goldman Sachs, and HSBC, have issued 'Buy' ratings for Yageo, citing the positive impact of rising prices on profitability. Citi has set a target price of NT$1,450, reflecting strong confidence in the company's market leadership and potential for significant stock appreciation.