Aluminum electrolytic capacitors makers in Taiwan and abroad have moved to raise their quotes to reflect increased costs for upstream materials such aluminum foil, aluminum shell and guide pin and counter ever-stronger market demand, according to industry sources.

Japan's three major vendors Nippon Chemi-con, Nichicon and Rubycon, which together command over 50% of global aluminum capacitors, have recently notified their downstream clients about price hikes to ease their cost pressure amid their optimism about sales prospects for the next few quarters, the sources said.

China's Aihua Group, dedicated to small-size aluminum capacitors for consumer applications, and Nantong Jianghai Capacitor, mainly engaged in large-size offerings, as well as Taiwan's Lelon Electronics and Kaimei Electronic have also raised quotes by 5-15% in response to cost increases, the sources continued.

Makers of aluminum capacitors usually sign supply contracts, ranging from one quarter to one year, with downstream clients, and therefore their price hikes will take effect usually months after notifications are issued to customers, who are spread in a wide variety of segments including power supplies, servers, graphic cards, industrial control systems, medical equipment, and 5G base stations, the sources noted.