Trade wars benefit Taiwan's passive component manufacturers
According to media reports, the United States will begin to impose a new round of tariffs on products originating in China in September, which has caused electronic manufacturers to purchase the electronic components in advance, accelerating the inventory consumption in the passive components market, causing the price of passive components to rebound.
In passive components, the price of chip resistors fell by about 25% to 30% in the first quarter of this year, and the industry expects prices to rise back to normal levels in the fourth quarter. The MLCC fell 30% at the beginning of this year, but the decline in the second quarter returned to 15% to 20%, and the third quarter was less than 10%. It is expected that the decline in the fourth quarter will rebound to only 5% compared with the beginning of the year.
From the stock market analysis, it is estimated that Yageo's third-quarter revenue performance is expected to be better than expected. At present, Yageo has raised its revenue forecast for this year to 2021 by 3%. Driven by Yageo, shares of passive component manufacturers Walsin, Chilisin, and HolyStone all rose more than 6%.