According to reports, Walsin mentioned in an interview yesterday that the COVID-19 outbreak has driven demand for devices such as laptops, tablets and game consoles, as well as 5G base stations and smartphones. Therefore, Walsin is considering to advance the expansion plan originally scheduled for the second half of the year to this quarter.
Walsin said that the current supply of resistors is tight, and the demand for capacitors is also rising. Considering the strong market demand, Walsin is considering to advance the planned expansion plan for the second half of the year to the second quarter. Walsin pointed out that the current monthly shipments of resistors and capacitors are about 40 billion pieces, and the target after the expansion is 55 billion pieces per month, an increase of nearly 40%.
In terms of capacity utilization, Walsin has increased from 50% -60% in the first quarter to 80% -90%, and the inventory of finished products is about one month. However, the production cycle of capacitors generally takes one month, which also means that orders placed by customers now can only be delivered after three months.
As for the shutdown of Walsin’s factory in Malaysia, Walsin revealed that the production lines related to medical customers on the Malaysian production line have been approved to resume work. As for the production line that cannot be resumed, it has shipped semi-finished products to Taiwan for processing, and customers will not be affected by the shutdown of the Malaysian factory.
