Multiple Passive Component Stocks Hit Limit Up on Strong AI Demand, Tight Supply, and Price Hike Expectations
NQ Score
4/100
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5
AI Summary (NQ-processed)
On May 20, passive component stocks became a key pillar supporting the Taiwanese stock market, with multiple firms like Yageo, Walsin Technology, and Holy Stone hitting their daily trading limits. Analysts attribute the surge to soaring AI demand, which is causing supply shortages and expectations of price increases. Global manufacturers are prioritizing high-end MLCCs and tantalum capacitors for AI, leading to a supply crunch even for standard MLCCs, with lead times extending to 12-16 weeks. Taiwanese firms are benefiting from order shifts and are ramping up production to meet strong demand expected in the second half of the year.