According to China Taiwan's Economic Daily News, citing industry insiders, MLCC and chip resistor standard products may reheat in the first quarter of 2023.
The report points out that at this stage, the MLCC, chip resistor standard products are in the inventory de-stocking stage, the manufacturer's order visibility is poor, may have to wait until the first quarter of 2023 is expected to warm up, but high-end applications such as automotive, industrial control, medical, low-orbit satellite and other niche products demand is still solid.
The passive component material vendors are judged to have more than three months of finished inventory of passive components, plus the manufacturer's inventory, which may total more than six months.
According to the report, due to the pile of inventory to be digested, MLCC and chip resistor standard products are expected to the second half of the peak season will not be prosperous. From the point of view of shipments, it is estimated that the third quarter will be reduced by 5% to 10% quarterly, and in the fourth quarter, if the inventory de-stocking continues, shipments may continue to dip.
The industry believes that MLCC and chip resistor standard products began to step into inventory adjustment in the fourth quarter of last year, 2022, facing inflation, rising interest rates, the Russian-Ukrainian conflict, the new crown epidemic, etc., terminal demand is low, smart phones, consumer electronics pulling goods continue to be sluggish, resulting in the second half of the standard MLCC, chip resistor demand is still weak.