As electronics factories in mainland China resume production, the demand for passive components has gradually increased over the past two weeks and the price of chip resistors is rising, a industry insider said.

Chip resistor maker Ralec has reportedly increased resistor prices for its distributors and EMS customers by more than 60% last week. In fact, Ralec's price increase this time is the second adjustment this year. The first price adjustment in January was for distributors only, and this time EMS customers were also affected.

According to industry insiders, As electronics factories in mainland China resume production, the backlog of demand is suddenly released. Ralec received orders for more than 10 billion chip resistors in two days last week, which is five times the previous order volume. According to last week's report, Yageo has already adjusted the chip resistor price for distributors by a range of 60 to 100%. In addition, Walsin has also increased the price for distributors by 10%.

The industry said that Yageo currently has less than 30 days of MLCC and chip resistor inventories, and some resistors have been increased in price by more than 100%. Therefore, some EMS customers have transferred orders to manufacturers such as Ralec and Walsin. However, these orders will return to Yageo once Ralec and Walsin's capacity is fully loaded.

The passive component industry believes that as China's EMS manufacturers continue to increase production capacity in the next few weeks, the demand for MLCCs and chip resistors will continue to increase.