According to the Industry and Commerce Times, on January 1, Guoju (YAGEO) officially issued a notice to suspend orders for thick film resistors, saying that due to the decline in inventory water level, orders continued to pour in, and the production capacity was not in time, the thick film resistors suspended orders from January 1, 2020.
Figure: Notification of Guoju Thick Film Resistor Stop Resistance to Receive Orders
At the same time, Guoju updated the resistance price in the first quarter of 2020 on the first day of the New Year, and small-sized thick film products have almost all 10% and above. Among them, 0603/0805/1206 and 4D02/4D03 (exclusion) rose by 15%, and 0402/0201 rose by 10%.
Figure: Guoju adjusts the resistance price of Q1 in 2020
In addition, according to people familiar with the matter, today Fenghua has issued a price increase notice today; Samsung has also suspended orders for .
It is reported that at the end of the year, orders of 5G equipment manufacturers and mobile phone manufacturers led by Huawei have increased sharply, and terminal factories need to prepare for the production after the New Year, resulting in full load of production capacity of first-tier factories represented by Fenghua and Yuyang in China ( is said to be unable to produce if they do not accept orders for three months). Since the middle of the fourth quarter, there have been many out-of-stock prices, but the delivery situation is still not ideal. As the world's largest supplier of thick film resistors, Guoju is the first to bear the brunt of it. Since December, in addition to delivery difficulties, the rumored front-row order cycle of price adjustment has reached June-July 2020.
In addition, MLCC has an inherent connection with this market of resistors. At the end of September 2019, there was a wave of MLCC price increase, but the supply chain feedback terminal orders were cold and lacked demand support. In November, due to the two-way impact of mainland demand consumption of inventory and insufficient production capacity, in order to quickly increase the productivity, Guoji once encouraged employees to work overtime, but mainland factories still faced a labor shortage. The MLCC prices of the three major domestic manufacturers have also risen to varying degrees.
Supply chain personnel believe that as most factories are about to enter the Spring Festival holiday, if agents arrive in January, they will still be nervous or even out of stock, and the bullwhip effect will be amplified, and the shortage of growth in February may be even more serious.
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