Why the Price of TCXO has been Rising?

The market rule that the relationship between supply and demand determines the price is best reflected in today's temperature crystal oscillator prices. In just two months, the price of TCXO series products has increased several times. There is only one reason: the Japanese IC factory is on fire, and most of the TCXO are produced by the company's IC! The cruel reality is that with less IC, the number of temperature compensated crystal oscillators manufactured by crystal crystal manufacturers will decrease precipitously. The relationship of "demand is far greater than supply" has gradually formed and rapidly intensified.

At present, the reality in the field of TCXO has a chain reaction: Japanese IC factory fire – > TCXO IC out of stock – > TCXO out of stock – > TCXO price rise. Price rise and delivery time extension are always like twins holding hands. In contrast, the market demand for crystal oscillator is more and more strong, and the shortage and price increase are more and more intense. Looking back at the current global crystal oscillator market pattern, 50% of the global crystal oscillator production capacity is concentrated in Japan, and the rest are Taiwan and the mainland, of which Taiwan is mainly high-end. The speed and willingness of Japanese companies to expand production are relatively slow and weak. Now the companies with the strongest willingness to expand production are domestic companies. However, the vast majority of domestic crystal crystal manufacturers that need to expand production still face the constraints of materials and technology from Japan. Under the epidemic situation, the configuration of supporting equipment for production expansion also encountered difficulties. In fact, the main raw material IC of crystal oscillator is made by Japanese crystal crystal manufacturers. 

Under the epidemic situation, trade problems lead to a serious shortage of raw materials, which aggravates the shortage of production capacity, which is also one of the important reasons for the price rise and shortage of crystal oscillators. It is predicted that in the first half of 2021, the crystal oscillator industry is likely to be in a state of insufficient production capacity and rising prices, and it may take 4-6 months for TCXO to return to normal supply. 

In the face of huge market demand in 5G, automotive electronics, intelligent wearable devices, Internet of things and other fields, the demand for high-end crystal oscillator series similar to temperature compensated crystal oscillator is increasingly strong. On the other hand, this may mean that domestic crystal crystal manufacturers are facing a rare opportunity in the field of high-end crystal oscillator R & D and manufacturing.