Passive components, encompassing capacitors, resistors, inductors, and other fundamental elements, do not directly participate in signal processing but underpin the normal operation of all electronic devices—from smartphones to AI servers. In 2026, this foundational industry is undergoing a profound transformation from cyclical to growth characteristics, with three major trends intertwining: shortages of high-end models, price increases across all categories, and accelerated domestic substitution, collectively reshaping the global supply chain landscape.

Core Categories and Popular Models

MLCC (Multilayer Ceramic Capacitors) are the most widely used passive components, extensively applied in filtering, coupling, and energy storage. The current market exhibits a polarized pattern of "stable supply for conventional materials, tight supply for high-end materials." While standard 0603/0402 specifications remain adequately supplied, high-capacitance MLCCs above 100μF, high-voltage models above 100V, automotive-grade variants, and ultra-miniature 008004 types have seen lead times extend to 20–24 weeks, becoming essential materials for AI servers and new energy vehicles.

Resistors are categorized into thick-film, thin-film, and precision types. While ordinary thick-film resistors maintain adequate supply, automotive-grade, precision, and high-power resistors face severe shortages, with some models experiencing lead times exceeding 12 weeks. Industry leaders such as YAGEO and Walsin have initiated price increases of 15%–20% across full-size ranges from 0201 to 1206.

Inductors / Ferrite Beads are indispensable in power management and signal filtering. Demand for high-power inductors and molded inductors used in AI servers has surged explosively. Domestic manufacturers such as Sunlord Electronics have order backlogs extending into the second half of the year. Pulse, a subsidiary under YAGEO, has implemented price adjustments for ferrite beads in sizes above 1608.

Tantalum Capacitors, valued for their high volumetric efficiency and excellent stability, have long been employed in high-end equipment. Polymer tantalum capacitors and premium models have become scarce in spot markets due to raw material and capacity constraints. KEMET's T520, T521, and T530 series under YAGEO, along with 30–40 models from Panasonic, have seen price hikes of 15%–30%.

Passive Components Industry Trends

● Demand Side: Dual Engines of AI and New Energy. A single high-end AI server requires 200,000 to 300,000 MLCCs—ten times the amount used in ordinary servers. The proliferation of 800V high-voltage platforms has increased passive component usage per vehicle to 5–8 times that of conventional fuel vehicles, driving sustained structural demand expansion.

● Cost Side: Surging Precious Metal Prices. Silver, a core material for electrode pastes, surged over 140% in 2025. Prices of copper, tin, and other metals have also risen across the board, directly pushing production costs up by 20%–30%, becoming the most immediate catalyst for price increases.

● Supply Side: Collective Price Adjustments by Industry Leaders. In early 2026, international giants including YAGEO, Fenghua Advanced Technology, Murata, Panasonic, Samsung Electro-Mechanics, and TDK successively announced price increases ranging from 10% to 30% for resistors, MLCCs, tantalum capacitors, and inductors, with the wave of increases covering all product categories.

● Domestic Substitution: From Low-End Following to High-End Breakthrough. Domestic manufacturers have achieved comprehensive substitution in the mid-to-low-end segments. Fenghua Advanced Technology has entered the supply chains of NVIDIA and Huawei for AI servers, while Sunlord Electronics' high-power inductors have penetrated NVIDIA's industrial chain. The technological gap in high-end segments is narrowing at an accelerating pace.

Conclusion

In the first half of 2026, the passive components industry stands at a new starting point of structural growth. AI computing infrastructure and intelligent electric vehicles are not only reshaping demand structures but also propelling the industry from price-based competition toward value-based competition. For industry chain participants, grasping the three main themes of high-end advancement, domestic substitution, and supply chain security will be the key to navigating this cycle.

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