The wave of price increases in the passive component industry is widening. PULSE, a magnetic components brand under leading Taiwanese passive components maker Yageo, has notified customers of price hikes for some of its ferrite bead products, effective January 1, 2026. This move follows Yageo's earlier increase in tantalum capacitor prices, signaling that inflationary pressure is spreading across more component categories, with analysts expecting competitors like Walsin Technology to likely follow suit.
The primary reason cited for the price adjustment is the continued surge in raw material costs. The company's notice specifically points to the long-term high price of silver as a critical factor. The cost of silver paste, which can account for over 50% of the production cost for ferrite beads, has soared. The price of NYMEX silver futures has risen dramatically, recently hitting $73.02 per ounce with a yearly gain of 143%. These rising input costs are significantly squeezing manufacturer margins, making price adjustments a necessary step for cost recovery.
As Yageo's key brand for expanding in automotive and industrial markets, Pulse holds a formidable position. Yageo's magnetic components business contributes approximately 27%-28% of its revenue and holds top global market shares, including the number one position in network transformers and number three in inductors and automotive magnetics. This strong market presence gives the company considerable pricing authority.
Demand from key end markets like automotive electronics, AI servers, networking, and high-speed computing remains robust. Applications such as new energy vehicle 800V platforms and AI server power modules are driving demand for high-quality, high-frequency ferrite beads. With stable demand and persistent high material costs, the industry appears to be entering a new phase of price adjustments, which is expected to improve the revenue and profitability of major suppliers like Yageo and Walsin.
ICgoodFind's Insight
The expansion of price hikes from capacitors to magnetic components underscores the broad-based cost pressures and tight supply-demand balance in the passive electronics sector. This trend necessitates strategic sourcing and inventory planning for downstream manufacturers.
