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The industry recently revealed that the shortage of LTCC (low temperature co-fired ceramic) radio frequency components is very serious under the trend of slow factory expansion and increasing demand for 5G smartphones and Wi-Fi 6E applications.
According to DIGITIMES reports, industry sources said that the delivery period of LTCC components produced by Jingde Electronics (ACX) and Huaxinke for customers in Taiwan, China has been extended from 12 to 16 weeks to 18 to 20 weeks or even longer, while for mainland China Customers, due to different product specifications, will be shipped in about 18-28 weeks.
According to reports, the factories of Jingde Electronics and Huaxinke have been operating at full capacity since the second half of 2020. However, due to the limited production capacity of major Japanese equipment suppliers, the delivery time has been extended to more than 6 months, which ultimately caused most LTCC suppliers to be unable to Rapid expansion.
According to DIGITIMES reports, industry sources said that the delivery period of LTCC components produced by Jingde Electronics (ACX) and Huaxinke for customers in Taiwan, China has been extended from 12 to 16 weeks to 18 to 20 weeks or even longer, while for mainland China Customers, due to different product specifications, will be shipped in about 18-28 weeks.
According to reports, the factories of Jingde Electronics and Huaxinke have been operating at full capacity since the second half of 2020. However, due to the limited production capacity of major Japanese equipment suppliers, the delivery time has been extended to more than 6 months, which ultimately caused most LTCC suppliers to be unable to Rapid expansion.
The source further stated that the rising prices of metals such as silver, copper, tin and nickel required for LTCC filters and other components have further prompted suppliers to increase their quotations.
It is reported that metal prices on the London Metal Exchange have risen by 47-63% in the past year.
According to sources, Huaxinke took the lead in raising LTCC's quotations at the end of 2020, and further adjusted the quotations for different products and customers in January based on changes in material costs and foreign exchange rate fluctuations. Nonetheless, the company has enough orders on hand to keep it busy for at least five months.
In addition, the source also said that Jingde Electronics disclosed plans to increase the price of some distributed products by 30-40% from April to cope with the 63% increase in silver paste prices and the increase in labor costs.
It is said that the company's order visibility will be in the third quarter of 2021, and it is expected to achieve a 40% capacity expansion plan at that time.
It is reported that metal prices on the London Metal Exchange have risen by 47-63% in the past year.
According to sources, Huaxinke took the lead in raising LTCC's quotations at the end of 2020, and further adjusted the quotations for different products and customers in January based on changes in material costs and foreign exchange rate fluctuations. Nonetheless, the company has enough orders on hand to keep it busy for at least five months.
In addition, the source also said that Jingde Electronics disclosed plans to increase the price of some distributed products by 30-40% from April to cope with the 63% increase in silver paste prices and the increase in labor costs.
It is said that the company's order visibility will be in the third quarter of 2021, and it is expected to achieve a 40% capacity expansion plan at that time.