• China's largest passive component maker, Fenghua Advanced Technology, has suspended order intake across all 0402/0603-size chip resistors and MLCC product lines in response to surging orders.

• The company said order volumes for its RC/RS series 0402/0603 resistors have spiked, with unfilled backlog now far exceeding current production capacity; utilization has already reached roughly 90%.

• The supply chain attributes the order concentration to expanded preemptive (pull-in) ordering aimed at securing inventory, amplified by fears of supply shortages.

• The industry reads the surge in forward orders as the product of shortage fears in high-spec passive components colliding with the need to rebuild inventory. An order suspension is typically interpreted as a signal of an oncoming price-hike cycle.

• With inventory levels drawing down on recovering Chinese-market and automotive demand, and chip-resistor costs pressured by rising silver prices, the high-spec passive component shortage is expected to widen further.

• Rising silver prices in particular are weighing on chip-resistor costs, and the high-spec MLCC shortage could intensify further in 2027.

• Major Asian MLCC makers have likewise entered full-capacity production: Murata's and Samsung Electro-Mechanics' utilization rates have surpassed 90%, with Samsung Electro-Mechanics' Tianjin plant already running flat out.

• Holy Stone and PDC are similarly seeing extended lead times and utilization approaching full capacity, led by high-voltage MLCCs for AI power.

• Once the Vera Rubin platform launches in the second half, the supply squeeze on non-AI products is expected to intensify, positioning high-voltage MLCC makers as the biggest beneficiaries of the GPU platform generational transition.

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