According to industry insiders, in response to the trade war between China and the United States, Yageo plans to invest in Taiwan and plans to spend 10 billion yuan to set up a new plant in Kaohsiung.

Yageo is the world's largest chip resistor factory with a market share of approximately 34%. It is also ranked as the world's third largest MLCC producer with Taiyo Yuden, with a market share of approximately 13%. According to Yageo's plan, it is estimated that by the end of the year, the monthly capacity of its chip resistors is expected to reach 120 billion pieces, and the monthly capacity of MLCC will increase to 50 billion pieces. The monthly production capacity of 2019 and 2020 will increase by 10 billion pieces respectively, which means By the end of 2020, the monthly production capacity will reach 70 billion pieces.

The passive component industry believes that the trade war has disrupted the layout of the passive electronic components industry, and the end customers began to adjust their inventory. They originally prepared for two months of inventory, and now they are only stocking for one month or even lower inventory. Because the future is full of uncertainty, customers are holding a wait-and-see attitude. However, as long as the trade war is over, market demand will pick up sharply.