China Technology: Solid MLCC price hike, with limited impact on downstream cost: Takeaways from supply chain chat

Research evidence excerpt

China Technology: Solid MLCC price hike, with limited impact on downstream cost: Takeaways from supply chain chat

Asia Pacific Equity Research

16 June 2026

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China Technology

Solid MLCC price hike, with limited impact on

downstream cost: Takeaways from supply chain chat

We hosted an industry expert call and a fireside chat with Fenghua (000636 CH, Technology

Not Covered) to understand recent MLCC pricing and supply-demand dynamics AC Billy Feng

in the China market. The MLCC price hike is solid, especially for the spot market;

(86-21) 6106 6359

however, with much lower (2-3%) bill-of-material (BOM) exposure, the overall billy.feng@jpmorgan.com

MLCC cost impact is limited for downstream, in our view. However, we remain SAC Registration Number: S1730520030005

cautious on consumer electronic applications, especially the Android smartphone J.P. Morgan Securities (China) Company

supply chain, with weakening demand from 2Q26 onward; we prefer the iPhone Limited

supply chain, thanks to stronger-than-expected volume, a more favorable model Ri Xu

mix and a new iPhone debut. Luxshare and Cowell are our top picks in (86-21) 6106 6318

downstream. ri.xu@jpmchase.com

SAC Registration Number: S1730522100001

• Key takeaways: (1) MLCC suppliers are running at almost full utilization J.P. Morgan Securities (China) Company

(>90% for international and >80% for domestic suppliers) due to limited Limited

capacity additions since 2019; (2) spot market prices are up 250-300% YTD, Cherry Liu