Core Viewpoint - The latest MLCC research report from TrendForce indicates that the supply-demand rhythm for MLCCs will be disrupted in the first half of 2025, with an increased risk of a "weak peak season" in the second half due to rising caution and wait-and-see attitudes among companies and end markets [1] Supply Chain Dynamics - OEM and ODM have moved North American Chromebook and some consumer laptop orders to the first quarter, leading to unexpectedly weak inventory buildup for the traditional education laptop peak season starting in April [1] - The average forecast order volume for Dell and HP education laptops from MLCC suppliers in the second quarter has decreased by 20% to 25% quarter-over-quarter [1] Future Outlook - The decision of OEMs to potentially advance some North American orders from the third quarter to the second quarter will be a key observation point, as it may impact the strength of shipments in the second half of the year [1]

Core Insights - The MLCC supply-demand rhythm is disrupted in the first half of 2025, with increased risks of a "weak peak season" in the second half due to rising caution and wait-and-see attitudes among companies and end markets [1] - OEMs and ODMs have moved North American Chromebook and some consumer laptop orders to the first quarter, leading to unexpectedly weak stocking momentum for the traditional education laptop peak season starting in April [1] - The average forecast order volume for Dell and HP education laptops from MLCC suppliers is expected to decrease by 20% to 25% in the second quarter [1] Group 1: Market Demand and Supply Challenges - The decline in end-market demand and soaring sales costs present two major challenges for MLCC suppliers, including the risk of OEMs reducing orders and potential price reductions [2] - The Japanese yen has become a favored safe-haven currency, appreciating from 150 to 141 yen against the dollar since April, impacting MLCC pricing [2] - Current pricing for mid-capacity and automotive-grade MLCC products is below the levels seen in Q4 2019, indicating a significant market shift [2] Group 2: AI Server Segment - The order and material preparation momentum for AI servers remains robust, with ODMs in Mexico benefiting from the USMCA agreement, allowing for normal shipments [1] - However, future international situation changes could still pose risks to this segment [1] - High-end standard products commonly used in AI servers have seen significant profit declines due to competitive bidding in 2024, leading to low visibility in end-order demand [2]

Core Insights - The demand for electronic components in data centers is significantly driven by the growth of artificial intelligence, with a notable increase in shipments of inductors and capacitors [1][2] - The total shipment value of electronic components in Japan for 2024 is projected to be 4.4844 trillion yen, reflecting a year-on-year growth of 3% [1] - The electronic components industry is expected to achieve positive growth due to the recovery of the industrial equipment market and steady demand from AI applications [1] Summary by Sections Shipment Growth - In 2024, 7 out of 11 categories of electronic components saw an increase in shipment value compared to the previous year, with inductors and capacitors growing by 14% and 7% respectively [1] - The December shipment value for electronic components was 367.3 billion yen, marking a year-on-year increase of 6% [2] Component Breakdown - Capacitor shipments reached 124.8 billion yen, while inductor shipments totaled 33.4 billion yen, with respective year-on-year growth rates of 10% and 14% [2] - Connectors also experienced a year-on-year growth of 7%, reaching 50.3 billion yen [2] Future Projections - The Japan Electronics and Information Technology Industries Association forecasts that the value of electronic components produced by Japanese companies will reach 11.2142 trillion yen by 2025, representing a 6% increase year-on-year [1] - The electronic components sector is expected to maintain competitiveness, accounting for approximately 30% of global production value [1]