According to sources in the passive electronic components industry, the trade war between China and the United States has slowed the demand for electronic components in mainland China. It is expected that the demand for passive components in the first quarter of next year will remain sluggish, and it is expected that the price of MLCC and chip resistors will decline.

According to the passive component market in the fourth quarter of this year, industry insiders pointed out that the trade war has reduced the demand for consumer products in the mainland market, and is not optimistic about the terminal demand in the first quarter of next year. In the product price section, the price of MLCC and R-Chip may fall by 10% to 20% in the first quarter of next year.

In response to the impact of the trade war, Yageo pointed out that its passive component sales performance is affected by trade disputes between China and the United States, but the passive component industry structure is adjusting in a benign direction. At present, its main strategy is to continuously increase production capacity to meet the demand for products that Japanese manufacturers no longer produce. Walsin pointed out that the current price of passive components is relatively high, and the first quarter of each year is a low season. Therefore, there will be room for price adjustment in the first quarter of next year, but the specific price depends on the customer’s order quantity.