On June 5, Yageo, a large passive component manufacturer, held a shareholders' meeting. Looking forward to the future, Yageo Chairman Chen Taiming said that due to the impact of the COVID-19 epidemic, the current situation in the third quarter is uncertain, but for Yageo The United States is expected to merge into Guoju's earnings as soon as July, so the growth momentum can still be maintained.
Looking forward to this year's operating goals, Chen Taiming said that he will continue to expand investment in Taiwan, positioning Taiwan as a global R&D center and a high-end product production base to enhance the company's international competitiveness; in the future, Yageo will gradually break away from the previous business model of the prosperous cycle industry and transform Focus on the focus of future technology, including niche markets such as 5G, automotive electronics and industrial specifications.
Chen Taiming believes that even if Huawei is sanctioned, major manufacturers such as ZTE, Nokia and Ericsson will continue to deploy 5G. Although 5G infrastructure has been postponed due to the epidemic, governments will still lock 5G when the economy restarts. As the focus of the first wave of success, 5G infrastructure is imperative, and demand will not disappear.
This year, passive component factories did not issue price increase notices, which led to skyrocketing news of price increases in the first quarter. Distribution customers and EMS customers have seen mixed price increases. It seems that price increases have become the only melody of the industry. Huaxin Branch is the only manufacturer that has issued a declaration of no price increase, focusing on The strategy of attacking market share is also regarded as the key to weaken profitability.
In this regard, Chen Taiming emphasized that due to lack of work and rising labor costs in the first quarter, Yageo paid up to three times overtime during the Chinese New Year. Therefore, the specifications with high technical content, good demand and rising costs must reflect the price appropriately. The price of Juju is not particularly high, and it is competitive enough in many products, otherwise Guoju will not have a bright revenue figure.
Chen Taiming did not comment on the strategy of the industry to grab market share by not raising prices, saying that each company has a different strategy, there is no right or wrong, and Yageo has its own strategy and tone. As for the industry, has it won market share? The results can be seen from the figures.
For the next price trend, Chen Taiming pointed out that the price is determined by market supply and demand. In order to serve global customers, Yageo’s internal strategy must establish a safe inventory level. In the past, the healthy inventory turnover days were about 100 to 110 days. Yageo Distance There is still a period of healthy water level. The National Giant will continue to raise the inventory water level. Only when the inventory enters a healthy state and the demand comes up will it be able to respond to customer needs in real time.