According to supply chain news, Walsin will cut prices for MLCC and R-chip in the first quarter of next year, with a price cut of around 20%. According to the news, Walsin has already confirmed the price with the customer, and the price will remain stable from the second quarter of next year.
For the news, Walsin responded that the first quarter of each year is a low season, and because of the high price in the third quarter of this year, there is room for price adjustment, further more, the price is determined by the product and demand. At present, they are still negotiating with customers about the price of next year, and there is no official determination to cut the price by 20%.
In the third quarter of 2018, Walsin's regional sales accounted for 80% of the Greater China region, 12% for Asia, and 4% for Europe and the Americas. In terms of channel sales, direct sales accounted for 54%, distribution accounted for 43%, and brand OEMs accounted for 3%.
Walsin continues to be optimistic about connected cars, 5G connectivity, and the IoT market. Walsin believes that the supply of automotive-grade passive components will be tight, and the demand for 5G and peripheral derivative applications will grow rapidly. The supply of MLCC is still limited by equipment delivery, raw materials and limited industry talent. At the same time, it is believed that market demand may be affected by the impact of the short-term regional economy, but it is still tight in the long run.
