In the early days, Yageo responded to the high cost pressure. It adjusted the price of large-size chip resistor products for urgent and short-order customers, and extended the product delivery time from the original three weeks to two months, but the market demand was still unable to be met.
After Yageo held its regular shareholder meeting yesterday, Chen Taiming said in an interview: After passive components entered the price increase cycle, Yageo Chairman Chen Taiming gave an interview for the first time and had a very optimistic attitude towards the industry.
Once it drops to 30 days, it will start a second wave of rise
Chen Taiming pointed out that the safety stock of the industry is about 2-3 months, but the industry is currently operating 24 hours a day, and Yageo's inventory still drops from 75-90 days to 45 Once the number of days drops to 30 days, the quantity must be controlled by price. Whether to start the second wave of price increases will depend on the market conditions from July to August.
Yageo launched the first wave of price adjustments in April this year when Yageo issued another price increase notice, adjusting the prices of chips resistors R-CHIP and chip capacitors MLCC. Due to the continued rise in the prices of raw materials and packaging materials for many projects, new The substantial appreciation of the Taiwan dollar has caused great pressure on costs. For more information about Yageo’s price increase, please click on the right ☞ [Breaking news] Yageo’s internal email notified that the prices of R-CHIP and MLCC products have increased!
In fact, last year, Yageo’s flagship RC series thick film resistors increased in price across the board: The price of 0201 increased by 5%, the price of 0603 increased by 5%, and the price of 0805-1206 increased by 3%, and the delivery time was generally extended to 8-10 weeks, nearly doubled. At the shareholders' meeting,
also said that the current supply cannot keep up with the order demand. The factory is in compliance with the regulations and has full production capacity 24 hours a day. The supply is still in short supply and the supply and demand are very unbalanced. As for how long this wave of prosperity will last? Expressed great optimism for the second half of the year. How big is the supply gap for
in this wave?
In fact, the second quarter is the traditional off-season for the passive component industry. However, because demand exceeds supply, all manufacturers are using existing inventory. In previous years, the normal safety stock days in the industry were about 2-3 months. Now it continues to drop. Yageo has been removed from the shelves from 75-90 days to 45 days. Once the inventory in this industry drops below 30 days, delivery will be very unsmooth. Manufacturers whose distribution is not accurate enough, even if they have 60 days Safety stock, still can't deliver the goods. If the inventory level of
continues to decline, price and quality will constitute the conditions for a second wave of increases. It is expected to become clearer from July to August.
It is important to have a good grasp of the customer system to avoid over-ordering.
As for the over-ordering situation caused by the shortage, Chen Taiming said that Yageo is one of the few passive component manufacturers with a global layout. It has a very high customer control system and relies on order cash. Judging from the current situation, there has been no over-ordering. Maintaining customer relationships is still the biggest consideration, and the price adjustment is mainly to reflect the cost of materials.
Yageo held its annual shareholders' meeting yesterday (7th), which was personally presided over by Chen Taiming. The meeting successfully approved last year's financial report and dividends. Shareholders will be allocated cash dividends of 3 yuan per share and cash capital reduction 3 yuan. The total shareholders will receive Return 6 yuan. Although Yageo's subsequent announcement adjusted the total amount of dividends due to changes in share capital, the impact was not significant.
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