According to the Taiwan media's "Economic Daily" report, Taiwan's two leading production bases, Suzhou and Dongguan, the leading passive component nations, resumed work on February 10.
On the day of resumption of work, the industry chain reported that Yageo plans to increase the prices of resistors and capacitors for channel vendors and EMS customers. The first wave of average increases was about 30%, and the new prices will take effect as soon as March 1. The reason for the price adjustment is that the inventory level is too low and the crop rate is not full.
After the resumption of production at the Suzhou and Dongguan plants, Yageo is working hard to increase capacity utilization to meet demand. Yageo said that the Suzhou and Dongguan plants were allowed to resume work gradually on February 10, but because the local government currently implements closed management and strict flow control, the recruitment process is very challenging, and will try its best to meet customer needs. As for the price, it is determined by market supply and demand.
The industry pointed out that since the end of last year, Yageo's inventory days have fallen to about 50 days. Compared with the first half of last year, the inventory level has fallen by more than half. Now the capacity utilization rate is not easy to pull up, and demand is greater than supply. The inventory days may be Reaching the alert water level for 45 days, and under tight conditions, the second quarter passive component prices continue to be bullish.
Previously, according to Jiwei.com, industry insiders surveyed the relevant supply chain and found that the current inventory level of channel vendors, electronic foundry service factories (EMS), and manufacturers is low. It is expected that the replenishment of inventory will continue to the second year this year Quarter. In addition, 5G smartphones have a strong pull force, and it is expected that the price of general-purpose MLCCs will increase by 30-50% this year.