On April 15, amid robust and sustained demand from AI applications, leading passive component manufacturer Walsin Electronic stated at its legal and financial briefing that its operating performance in the second quarter is expected to outperform the first quarter, with the overall book-to-bill ratio (B/B ratio) remaining strong.
Walsin noted that the market is currently showing a clear divergence trend. Demand for AI applications continues to expand across AI servers, data centers, high-performance computing and other fields, driving steady growth in demand for high-end passive components, with order visibility extending into the second half of the year. The company’s revenue share from AI-related businesses has also continued to rise, reaching approximately 13% to 15% in the first quarter. With increasing penetration of AI applications, this figure is expected to climb further to above 15% for the full year, becoming a major engine driving operational growth.
In terms of product structure, Walsin added that tantalum capacitors, particularly polymer types, have become indispensable key components in AI applications due to their high capacitance density and stability. They are also among the product lines with the strongest order momentum and clearest visibility. These products not only boast a book-to-bill ratio above the average level but also enjoy relatively predictable demand in the second half of the year.
Walsin emphasized that the tantalum capacitor market features extremely high entry barriers, involving integrated capabilities spanning tantalum ore mining, chemical processing, packaging and manufacturing, as well as economies of scale and established sales networks. As a result, current competitors are mainly long-established industry players, with no significant new entrants emerging.
Notably, in early March this year, Walsin’s subsidiary Kemet once again issued a price increase notice to customers, announcing a price adjustment for its KO-CAP polymer tantalum capacitor T523 series, effective April 1.
Regarding the widely watched MLCC market, Walsin explained that market supply and demand have gradually returned to a healthy state. Sales momentum in distribution channels has strengthened, driving a recovery in restocking demand, while overall inventory levels have declined compared with the same period last year. There have been no signs of duplicate orders or panic buying typically seen in past industry cycles.
On price trends, Walsin pointed out that costs of raw materials including tantalum and silver, as well as energy and logistics expenses, have continued to rise since 2025. The company has implemented price adjustments for selected product lines starting from the fourth quarter of last year, covering high-end products for AI servers, general distribution items and SSD applications. Although some adjustments have not yet been fully reflected in revenue, the pricing benefits are expected to gradually materialize as new contracts take effect.
In addition, the company has recently adjusted prices for certain products facing cost-price imbalances, mainly in consumer electronics and selected automotive sectors. Given ongoing geopolitical and supply chain uncertainties, the upward price trend is unlikely to subside in the short term. Walsin will dynamically adjust its strategies according to market conditions.
Looking ahead, Walsin will continue to improve capacity utilization to meet structural demand growth driven by AI applications and strengthen its high-end product portfolio. The company remains optimistic that, amid the unchanged long-term AI trend, the expansion of related applications will continue to boost demand for passive components and provide steady growth momentum for its operations.
(Reprinted from https://news.eccn.com/）