TAIPEI (Taiwan News) — Rising artificial intelligence demand is tightening supply across the global passive components market, leading major suppliers to raise prices again and creating potential gains for Taiwanese manufacturers.
Japan’s Panasonic Holdings Corp. and US-based Kemet Corp. will introduce new pricing for surface-mount solid capacitors and tantalum capacitors starting in June. Price increases are expected to range from 5% to 65%, depending on product type, according to CTEE.
Industry sources said the adjustment reflects full utilization of production capacity among major global suppliers. Additional demand from next-generation AI platforms such as Nvidia’s Vera Rubin architecture has further constrained supply of high-end passive components.
The imbalance between strong demand and limited output has led to higher prices and tighter availability across segments, prompting customers to shift orders to alternative suppliers. In Taiwan, passive component makers and distributors are expected to benefit from repricing and supply reallocation, with 16 related stocks hitting the daily limit-up Wednesday.
Institutional investors pointed to Yageo Corp., Walsin Technology Corp., and Holy Stone Enterprise Co. as key beneficiaries. Companies within Nvidia’s supply chain, including Lelon Electronics Corp. and Apaq Technology Co., are also expected to see gains.
Distributors such as Podak Co. and Nichidenbo Corp. are also seen as potential winners, supported by lower-cost inventory positions and higher selling prices.
Podak derives about 25% of its revenue from Panasonic-related products, including tantalum capacitors. The company reported earnings per share of NT$1.28 in the first quarter, its third-highest quarterly result on record.
Nichidenbo, which distributes a wide range of high-end passive components, is considered more broadly exposed to AI-related demand than single-product manufacturers. The company posted first-quarter earnings per share of NT$1.70, also near its historical peak.
Passive components refer to electronic components that do not actively amplify electrical current or voltage signals, unlike active components. They act as stabilizers in circuits, with the most common including resistors, capacitors, and inductors, according to Business Weekly.
