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title: Passive Component Production Cuts, Potential MLCC Shortages
description: Passive Component Production Cuts, Potential MLCC Shortages
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## [Passive Component Production Cuts, Potential MLCC Shortages](https://pages.supplyframe.com/ciq/passive-component-production-cuts-potential-mlcc-shortages)

 Jan 23, 2024, 3:24:42 PM / by [Supplyframe](https://pages.supplyframe.com/ciq/author/supplyframe)

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Focusing mainly on multilayer chip capacitors, passive makers, including Yageo Vishay, are reducing passive component production, causing some large EMS providers to indicate the building of MLCC safety stocks ahead of potential shortages this year. Additionally, film capacitors are currently the most limited supply of all capacitors. The Commodity IQ Lead Times Index for capacitors rose 4% from November to December 2023. After dipping below the Commodity IQ Demand Index baseline in Q3 2023 (signaling declining sourcing activities), the capacitors' index is forecast to inflate each month of Q1, exceeding the baseline by the end of the calendar quarter.  

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