MLCC can’t be sold anymore? What are the trends of mainstream manufacturers?

According to forecasts from market research company TrendForce, MLCC shipments in the first quarter of 2024 will hit a third-quarter low. In the second quarter, AI server demand will continue to grow steadily, while other consumer electronics orders are lower than expected. Overall, AI server orders and stable demand for ICT products help stabilize capacity utilization. MLCC shipments are expected to increase by 6.8% in the second quarter to 1.2345 trillion units. In the United States, the ECIA trade association reported that sales across a broader range of categories improved in April from the previous month. The expectation in May is that market sentiment will continue to rise. TrendForce pointed out that consumer interest in AI-related products has not met expectations. For example, orders for U.S. commercial laptop brands have dropped significantly. In the Chinese smartphone market, except for Huawei, which maintains stable inventory due to the hot sales of its new Pura 70 series, the inventories of other brands have slowed down, resulting in a 5~7% month-on-month decline in MLCC orders. Due to stable demand in the ICT industry in the second quarter, OEM and ODM manufacturers are more conservative in planning MLCC orders. Therefore, MLCC suppliers are also more cautious in managing production capacity and inventory. TrendForce believes that if ODM manufacturers maintain the current stocking pace, the average order-to-bill ratio of MLCC suppliers will rise slightly to 0.92 in the second quarter, an increase of 2.2% from the previous quarter. As market demand growth continues to be sluggish in the first half of the year, suppliers have become increasingly cautious about traditional peak season demand in the second half of the year. MLCC suppliers are likely to continue adjusting prices every quarter to meet customer demand, keeping prices under pressure. Given the growing importance of the Chinese market, MLCC suppliers are facing increasing pressure to maintain their position in the Chinese market.