[Tianfeng Auto] MLCC Opinion Update: Taiyo Yuden Price Hike Content Is True, Bullish on Continued Price Increases Under AI Structural Shortage - 0727

English summary

Market concerns that Taiyo Yuden's price hike content is false; after our verification, it is true. Industry verification shows that the price hike content was sent to customers by Taiyo Yuden's entity in Japan. We understand that the document is not from Taiyo Yuden's official headquarters website, so the wording may not be rigorous. It mainly proves that Taiyo Yuden is indeed trying to further raise MLCC prices. High value-added part numbers have entered extreme shortage, bullish on price hike sustainability. 1. Currently, AI-related and high-capacity part numbers from Japanese and Korean manufacturers are in severe shortage. It is expected that the price hike cycle and magnitude may exceed those of 10 years ago, with major customers locking partial capacity through long-term agreements. 2. In a state of supply scarcity, price hikes have been ongoing continuously. In this round of price hikes, manufacturers generally do not officially issue price hike letters to raise prices. For example, Taiyo Yuden has actually already raised prices for agents and customers, but no price hike letter has been seen. Therefore, we remain bullish on manufacturers with AI-side progress and high-capacity share: [Sanchuan Group], [Fenghua Advanced Technology]. ——————————— Welcome to discuss: Sun Xiaoya / Li Junyang