Walsin sees passive component crunch stretching into 2028 as memory shortages weigh

The passive component crunch extending into 2028 stems from structural demand surges in AI infrastructure and automotive electronics for high-capacitance MLCCs and AEC-Q200-compliant passives. Memory shortages are throttling end-device shipments, forcing ODMs to lock in upstream capacity early—intensifying allocation pressure on suppliers. Technically, this accelerates IC design toward higher integration to minimize external components, while spurring Taiwan, China and Japanese/Korean firms to fast-track high-temp, vibration-resistant materials. Regulatory risks loom large: EU/US carbon border rules and export controls have already inflated cross-border procurement costs by over 15%, making localized dual-sourcing essential. Murata and TDK may raise prices and expand fabs, whereas Yageo and Walsin could cement moats via exclusive deals with NVIDIA or Tesla. Over the next 24 months, smaller module makers face existential 'orders without parts' bottlenecks—consolidation is inevitable, and only vertically integrated players will endure.