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Yageo raises the price of chip resistors

SemiMediaEdit
February 26, 2021

According to media reports citing authorized distributors, Yageo has adjusted the price of chip resistors for distributors in Greater China by 15% to 25%. The new price will take effect on March 1.

There are two reasons for Yageo's price increase. The first is the increase in the price of raw materials, and the second is the continuous deterioration of the sharp decline in the output of the world's second largest chip resistor manufacturer. The manufacturer's monthly output of chip resistors reaches 60 billion pieces, ranking second in the world in terms of production capacity, and has expanded its production capacity of 0201 small-size resistors in recent years. The industry insider pointed out that after the manufacturer's internal organizational structure problems, the output dropped by 50%, which is equivalent to a monthly reduction of 30 billion chip resistors.

Generally speaking, the price quoted by authorized distributors is usually an early indicator of the order price. Judging from the current supply and demand status of the industry, the order price of chip resistors in the second quarter is expected to rise by at least 10-20%.

According to the supply chain, Yageo expanded its production capacity to 125 billion pieces at the end of last year, and this year it will focus on tantalum capacitors with higher unit prices and higher gross profit. As the demand for mobile phones begins to rise, and the demand for automotive electronics continues to rise, industry insiders are optimistic about the prospects of chip resistors.

Regarding price increases, Yageo officially stated that prices will still be determined according to market supply and demand and will not comment on price trends.

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