The impact of the new crown pneumonia epidemic on passive supply chains seems to have made a comeback. According to the Business Times, it is reported that employees of the Malaysian factory under Ergehua Xinke were infected with the epidemic, and the factory was suspended for three weeks. In addition, the "ruthenium" materials required for the upstream of chip resistors have soared prices due to the suspension of work in the mining area, which impacts the material cost of chip resistor plants. As the Lunar New Year Festival approaches, chip resistors may be short of early.
It is reported that the downstream EMS customer of received a notice from Huaxinke that Malaysian factory has suspended for three weeks since the 23rd. Before that, Huaxinke had shipped some of the semi-finished products of the pre-process process back to Taiwan, China in advance, but the quantity was not large. Huaxinke is a major passive component manufacturer under Huaxin Lihua Group. It ranks second largest in the world in the chip resistance industry, second only to Guoju Group, and the third largest manufacturer is Dayi, which is 100% produced in Taiwan. Industry insiders believe that with the continued business opportunities in the home economy, the supply and demand of chip resistors have been relatively tight. The shutdown of the Malaysian factory in Huaxin Technology will make the market supply even worse, and the downstream order turnover is about to begin.
For the Malaysian factory employees who were infected with the epidemic for three weeks, Huaxinke said that the factory will be inspected at present, and the results are expected to be available in as early as three days. At that time, as long as the results are normal, we will apply for a resumption of work permit from the local government as soon as possible, and operations and shipments will not be affected.
It is reported that Huaxinke Malaysian factory was obtained by merging Japan's Kawa Motor. The product line covers resistors such as automotive and consumer electronics, accounting for about 30% of the company's overall production capacity. It is a major resistance production center for Huaxinke. The product categories that have the greatest impact this time include small-size resistors such as automotive industry-specific resistors, 0402, 0201 and 01005, and high-power resistors .
Huaxinke chip resistance production line production line is about 90% . The final expansion target at the end of this year is 145 billion . Since Huaxinke's current finished product inventory water level is relatively low, as production in Malaysian factories is shut down, the inventory water level may further decline. Huaxinke emphasized that it will resume work as soon as possible in accordance with regulations and make every effort to meet the needs of customers.
Industry insiders analyzed that as the home economy continues business opportunities, demand for smart phones, laptops, , PC-related applications remains stable, and the auto market is gradually recovering, and the New Year is approaching, the client is actively preparing materials, and demand is strong.
However, as the Lunar New Year Festival approaches, manufacturers are facing difficulties in recruiting workers, and the capacity utilization rate is difficult to increase immediately. Various factors have made the supply and demand of chip resistance tight in the past . At this time, the shutdown of Huaxin Technology Malaysian factory will have an impact on the supply of resistance and create a new market gap. It is expected that domestic related manufacturers include Guoju, Dayi and Qilixin, etc., and are expected to usher in the benefits of order transfer.
Affected by relevant news, the stock prices of Guoju, Dayi and Qilixin both closed against the trend yesterday (24th). Guoju and Dayi both rose by more than 4%. Huaxinke rushed to the bottom and closed at the lowest price of 191.5 yuan on the day, down 2 yuan.
Guoju believes that it is worry-free to look at orders until before the Lunar New Year, and demand is strong, and inventory is still low. Although the long-term prosperity in the second half of next year is still unclear, the trend of decoupling between the US and China remains unchanged, which is a long-term long for Guoju. Speaking of chip resistance layout, Guoju pointed out that it continues to be committed to the product development of miniaturization (01005), exclusion (0201*4) and precision low-resistance current sensing resistors. Related new products are areas of rapid growth in electronic products.
Qilixin represents . At present, it is not easy to recruit workers in the chip resistance production line. Although the capacity utilization rate has gradually increased, it cannot be greatly increased immediately. As demand for smartphones and home economy business opportunities (including laptops, PC-related applications, etc.) continues, and the New Year Festival is approaching, the client will start the stocking wave in the first quarter of next year. The current visibility of chip resistance orders in has increased from about one to two months before to three months, and the delivery time has also increased from six to eight weeks, to eight to ten weeks.
Dayi believes that , although the fourth season is the traditional off-season, the visibility of orders can still last for two to three weeks, and there are customers who will trade every month, and the overall capacity utilization rate is about 80%. industry analysis shows that Dayi's production capacity is in Taiwan, and it is still expected to benefit from the order transfer effect when the Huawei Xinke Malaysia factory plans to shut down for three weeks.
In addition, recently, the resistance supply chain has also been reported that the COVID-19 epidemic has affected mining in mining in Africa. The price of "ruthenium" used in the ink required for chip resistance soared, impacting the cost structure of chip resistance, especially resistors below 1 ohm. Due to the rising cost, some spot prices have begun to rise in . Although the overall ratio is extremely low, major resistor factories have had the dilemma of holding work before the Lunar New Year, with rising costs and unbalanced supply and demand, and all factories have already taken orders to produce.
