Passive Components

Passive components are basic parts that operate in electronic products without requiring an external power source, primarily capacitors, resistors and inductors. Rising demand from AI servers and electric vehicles has increased the use of high-end multilayer ceramic capacitors, or MLCCs, squeezing capacity, lengthening lead times and driving up spot prices. Manufacturers including Yageo and Walsin Technology have raised prices, while suppliers have reported growth in both revenue and orders. Key issues to watch include capacity expansion, the durability of price increases and whether demand can spread from AI infrastructure to other applications.