Recently, media reported that Yageo's MLCC factory in Suzhou, China has begun to reduce production due to weak demand and large inventory. After the production cut, the capacity utilization rate is only 50%, and it is expected to decline further to 3~4% in December. In addition, some industry insiders predict that due to market uncertainty, demand decline, supply chain inventory adjustment, it is expected that the fourth quarter of this year, MLCC and chip resistor shipments will be reduced by about 25% to 35% compared with the third quarter.
In response to the media coverage, Yageo issued a notice stating that its Suzhou plant is the main production base of MLCC. The capacity adjustment and manpower deployment are due to the company's equipment maintenance, and all operations are now normal.
In addition, Yageo said that the current production capacity adjustment is mainly for the production of medium and large size high-frequency products, as well as automobile specifications and special products. Although it is affected by the trade war, the passive component industry structure is developing in a benign direction and It will continue to open new production capacity and increase market share for products discontinued by Japanese manufacturers.