Yageo has adjusted the price of chip resistors for distributors in Greater China by 15% to 25%, in accordance with the media reports citing authorized distributors.
The price quote by authorized distributors is usually an early indicator of the order price. Based on the current supply and demand of the industry, it is expected that the order price of the chip resistors will be increased by at least 10% to 20% in the second quarter. The main reasons for the increase are respectively by the rising price of the raw materials and the decline in production. The world’s second large chip resistors manufacturer suffered a sharp decline in output and still getting worse. With industry insiders pointing to a 50% drop in output following an internal organisational structure problem, which is equates to a monthly reduction of 30 billion chip resistors.
Yageo has expended its production capacity to 125 billion at the end of last year, while in this year, it plans to focus on tantalum capacitors with higher unit prices and higher gross margins.
About the increase of price, Yageo officially stated that the price will be determined based on the supply and demand of the market.