According to Taiwan media reports, Taiwan Guoju, an international manufacturer that supplies passive components (resistance, capacitor, inductor, etc.), is too low in inventory and the cost has been raised. It plans to increase the resistance and capacitor prices for channel vendors and EMS customers. It is expected that the average increase in the first wave of price increases will be around 30%, and will take effect on March 1.
passive components have huge market space
passive components, also known as passive devices, refer to circuit components that do not affect the basic characteristics of the signal, only allow signals to pass without changing. The most common ones are resistors, capacitors, inductors, etc. As the functions of consumer electronic terminals become stronger and stronger, the better the performance and more quantity of passive components required, the corresponding price will become more and more expensive.
As the product performance launched by consumer electronics giants represented by Huawei and Apple is becoming more and more advanced, many functions such as display performance, computing performance, fingerprint unlocking, and facial unlocking have greatly promoted the demand for passive components. From an incremental perspective, the booming development of latest technologies such as smart speakers and wireless headphones has also driven the growth of the passive component market. In terms of market size, the passive components market size reached US$24.24 billion in 2016, and is expected to reach US$328.9 billion in 2021, with a compound growth rate of 6.29%. With the gradual implementation of various avant-garde functions such as 5G, VR, and AI, the market space of passive components will increase by multiple orders in the future. 5G mobile phones use more than 1,000 passive components on average, an increase of 20% to 30% compared to 4G mobile phones.
passive component price increase may not stop
Guoju is currently the world's largest chip resistor supplier with a market share of 34%. At the end of last year, Guoju announced the acquisition of KEMET, a US passive component manufacturer, in addition to officially entering the high-end automotive and industrial specification markets, Guoju has also become the world's top three passive component suppliers.
Since the second half of last year, due to the rising demand for 5G and autonomous driving, MLCC capacitor manufacturers have been calling for news of MLCC out of stock and price increase. At the end of November, resistor manufacturer Dayi Technology took the lead in saying that it had completed price increase for its resistor products. Guoju closed the trading system, cleared orders that had not been completed and orders that had not yet been confirmed, and made a wave of fancy price increases. Samsung Electric raised the MLCC price for distributors in December last year, and locked it on commonly used material numbers such as 104 and 105, with an increase of about 5-10%.
As soon as 2020 began, Guoju Electronics began to increase its price, announcing that its two major products, MLCC capacitors and thick film resistors, had increased by at least 10%. Not only the price increase, Guoju, , Samsung and domestic company Fenghua Hi-Tech are said to have stopped taking orders, and the delivery of passive components may be extended to 6 months, making the market for passive electronic components more complicated.
According to industry insiders, since Guoju accounts for about 13% of the global MLCC production market and chip resistor market accounts for as high as 33%. With the general mentality of chasing the rise but not the decline in the market, Guoju's price increase this time may also set off a new wave of material-grabbing war in the market.
currently has no inventory in the upstream, middle and downstream. Therefore, in addition to the normal demand of the industry, the demand for replenishing inventory has indeed prompted the supply and demand of passive components to be even more tense, and there is no sign of price increase.
multiple shares benefit from the price increase of passive components
Fenghua Hi-Tech products include MLCC, chip resistor , chip inductors, ceramic filters and other passive components. They are the leading domestic MLCC manufacturer and acquire 40% of the equity of Taiwan Guangjie Technology. The company said that due to the tight supply of MLCC, its MLCC products also have expectations of price adjustments.
Jiemei Technology is the leader in the domestic MLCC thin-shaped carrier tape industry. Its products mainly include paper tape carrier tape, plastic carrier tape, tape, release film, etc. Customers include Samsung, Panasonic , Guoju and other well-known electronic components companies. (The demand for carrier tape is closely related to the electronic components industry)
Torch Electronics is a leading domestic MLCC supplier, a leading military MLCC, and many new products such as tantalum capacitors and SLC will form new performance growth points. We will fully benefit from the market demand driven by the renewal and replacement of weapons and equipment, the degree of informatization and localization of my country.
Yangjie Technology is one of the few domestic enterprises that integrates discrete device chip design and manufacturing, device packaging and testing, terminal sales and services, and its product line covers a full series of multi-special semiconductor discrete device products such as discrete device chips, power diodes, rectifier bridges, etc.
Shunluo Electronics is a world's leading chip inductor manufacturing company, and its main products are electronic passive components - inductors.
Sanhuan Group is a leading domestic ceramic components field and can mass-produce MLCC. The company's MLCC products have been widely used in home appliances, lighting, consumer electronics, industrial control, communication equipment, automotive electronics and other fields.
National porcelain material is the largest supplier of MLCC electronic ceramic materials in China, and the company's domestic market share reaches 80%.
Zhenhua Technology was born in the third-tier military electronics base and is an all-round leader in the field of military electronic components.
Hongyuan Electronics 's main business is the research, development, production and sales of electronic components mainly based on multi-layer porcelain dielectric capacitors (MLCCs).
Huilun Crystal is a leading enterprise in the domestic surface-mounted piezoelectric quartz crystal components, and is used in the mobile phone and other industrial chains.
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