2017 has been filled with a lot of happenings in the electronic component production and supply sector. There has been a huge surge in demand which has led to a scarcity accompanied with hikes in the price of such components. There are also other issues such as the rising costs of materials and labor as well as some other factors has contributed to this. While it may not be a very good year for electronic component buyers, manufacturers are having a swell time and are smiling to the banks. The supply has failed to meet the demand and there is now a great disruption in the industry that will take a few more time to balance.
Yageo is one of those manufacturers in this myriad of events, it is now rumored to be waiting to raise the price of its MLCC (Multi-Layer Ceramic Capacitor, a SMD type of ceramic capacitor ) the fourth time within this year 2017. This is a perfect reflection of its current tight supply amidst a corresponding rise in the cost of labor and materials. There have been rumors spreading around, that the company is has informed customers of its plan to raise the prices of it MLCC chips majorly those in the middle range and entry level NPO (NEGATIVE-POSITIVE-ZERO) products for use in handset battery chargers as well as power supply. Products in this category are expected to be increased by about 20 to 39%.
The company has already increased the prices of MLCC in April, June as well as September. The company also declared that the delivery lead times for some MLCC products will extend to six months from one to 3 months. Yageo, a passive component vendor has seen clear order through to the end of the second quarter of 2018. The company disclosed a consolidated revenue increase of 16.6% against last year and 12.8% on the quarter to a high of NT$8.37 billion (US$278 million) in the third quarter of 2017. The second quarter’s gross margin climbed 7.3pp on year and 1.8pp to 30%. From some info flying around, the price of Yageo would probably continue to increase because of the recent scarcity.
Founded in 1977, the Yageo Corporation has become a world-class provider of passive components services with capabilities on a global scale, including production and sales facilities in Asia, Europe and the Americas.
Yageo currently ranks as the world No.1 in chip-resistors, No. 3 in MLCCs, with strong global presence – 27 sales offices, 7 production sites, 6 JIT logistic hubs and 2 R&D centers worldwide. Yageo’s broad product offerings are targeting at key vertical markets, including applications for mobile, tablet PC, industrial/power, alternative energy, medical and automotive. They serve diversified leading global customers, such as EMS, ODM, OEM and distributors.