Between March 2017 and March 2018 the global market for multilayered ceramic chip capacitors (MLCC) saw increased lead times, parts shortages and price increases resulting in a round of capacity expansion to keep up with customer needs.This cycle of disruption has happened before and in the past the up-cycle seldom lasted more than 10 to 14 months, until real capacity expansion took hold of the market. It is also important to note that immediately following a significant amount of capacity coming on line the market does an “about-face” and drops off, and when the market begins its downturn, it usually happens quickly.
Copyright of Dennis M. Zogbi.
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