Recently, the passive component market has experienced instability and price increases. In response to the supply and demand issue, Walsin, a passive component manufacturer, recently mentioned in an interview with the media that the Novel coronavirus epidemic will affect the global economy in the first half of this year. In addition, trade frictions have also shifted the supply chain. Affected by customer shutdowns, demand in mainland China has declined in the past few weeks, but has begun to rebound last week. However, although the supply of MLCCs and chip resistors is tight now, the shortage has not yet arrived.
In response to the problem of price increases, Walsin said that it depends on the balance between customer demand and future supply.
In addition, Walsin stated that it is optimistic about the future market. Driven by the Internet of Things, automotive and 5G applications, the demand for passive components will continue to rise. To this end, Walsin will continue to maintain its plan to expand production by 15% to 20% per year.