Recently, a new wave of price hikes has hit the passive component market, driven by surging demand from AI applications. According to a pricing notice circulating online, Yageo Group announced that its subsidiary KEMET will raise prices on tantalum capacitors by more than 10% starting June 1.

In the notice, KEMET stated that over the past three years, demand for polymer tantalum capacitors has significantly increased across multiple key markets. Meanwhile, labor, material, and equipment costs have also continued to rise. These factors have made it increasingly difficult to maintain the profitability of certain older models—particularly B-case products.

To ensure continued high standards in quality and delivery, KEMET plans to adjust the pricing for selected 2.5V to 10V B-case products with capacitance values between 47μF and 330μF. The company also emphasized its ongoing commitment to expanding production capacity to support growing market demand.

Currently, the supply shortage of tantalum capacitors that began in Q4 of last year shows no signs of easing. The supply gap has widened to over 10%, and major global suppliers—including KEMET, Panasonic, and AVX—have shown little intention of increasing capacity. Industry insiders predict that the shortage could last until the end of this year.

Historically, Apple has been the largest consumer of tantalum capacitors, accounting for approximately 30% of total demand in consumer electronics. However, the rise of AI servers has created a new and powerful source of demand. Operating in high-speed, high-voltage, and high-power environments, AI GPUs require large quantities of tantalum capacitors. As a result, suppliers are prioritizing production of the most in-demand specifications, limiting availability of other models.

Yageo, the world’s largest manufacturer of resistors and tantalum capacitors—and the third-largest producer of MLCCs and inductors—commands significant influence in the market. Its subsidiary KEMET holds over 40% of the global tantalum capacitor market share.

Even before KEMET's announcement, China's leading tantalum capacitor manufacturer Xiangyi Electronics raised prices by 20% in December 2023. Vishay has also reported a supply shortage due to high demand for its polymer tantalum capacitors used in GB200. Its products are already facing tight supply conditions for 2025.

Reports from Future Electronics confirm that lead times for polymer tantalum capacitors from Vishay, AVX, and Panasonic have all been increasing. With KEMET initiating the first price hike of 2024, industry watchers are keeping a close eye on whether Panasonic, AVX, and other suppliers will follow suit, potentially triggering a broader wave of price increases.