Report
Material Shortage &
Price Trend Author: Di Han
February 14, 2018
Silecta Inc.
206-308 Legget Drive
Kanata, Ontario, Canada
K2K 1Y6
+1-613-270-0567
www.silecta.com
Material Shortage & Price Trend
2
Executive Summary ................................................................................................................................................................. 3
I. Multilayer Ceramic Capacitors (MLCC) .............................................................................................................................. 4
Market Overview of MLCC 2017 ............................................................................................................................................ 4
Overview of Current Manufacturers ....................................................................................................................................... 4
Price Increase ........................................................................................................................................................................ 5
Reason for Increase............................................................................................................................................................... 6
Future Trend ........................................................................................................................................................................ 10
II. DRAM ................................................................................................................................................................................. 11
Market Overview of DRAM 2017 ......................................................................................................................................... 11
Overview of Current Manufacturers ..................................................................................................................................... 12
Price Increase ...................................................................................................................................................................... 12
Reason for Increase............................................................................................................................................................. 12
Future Trend ........................................................................................................................................................................ 13
III. PCB .................................................................................................................................................................................... 14
Market Overview of PCB 2017 ............................................................................................................................................. 14
Overview of Current Manufacturers ..................................................................................................................................... 14
Price Increase ...................................................................................................................................................................... 15
Reason for Increase............................................................................................................................................................. 15
Future Trend ........................................................................................................................................................................ 17
IV. Resistor ............................................................................................................................................................................ 18
Market Overview of Chip Resistor 2017............................................................................................................................... 18
Overview of Current Manufacturers ..................................................................................................................................... 18
Price Increase ...................................................................................................................................................................... 18
Reason for Increase............................................................................................................................................................. 19
Future Trend ........................................................................................................................................................................ 20
V. Business Cycle of the Electronics Industry ................................................................................................................... 21
APPENDIX ............................................................................................................................................................................... 23
MLCC Demand: Automotive Industry................................................................................................................................... 23
Top PCB Manufacturers ...................................................................................................................................................... 24
Price Increase Notifications ................................................................................................................................................. 25
SOURCES ............................................................................................................................................................................... 33
Material Shortage & Price Trend
3
Executive Summary
Since last year, price increases and extended lead times have been witnessed across many electronic
component manufacturing segments. This report provides a preview and analysis of some heated segments
such as MLCC, DRAM, PCB and resistor. A preliminary market overview was performed, and major players
were analyzed in every segment to provide a whole picture.
Though MLCC, DRAM, PCB and resistor prices have been increasing over the last two years, the reasons
behind this price surge phenomenon are not all the same.
MLCC price increase is majorly driven by the significant demand from the automotive and smartphone
industries. The current capacity is unable to keep up with a substantially higher demand. Adding to this, key
players such as TDK and Kyocera exited the general MLCC market to focus on the more profitable electric
automotive industry, further exacerbating the situation. Prices of raw materials such as nickel, copper and
palladium have also been climbing since the end of 2015, putting more cost pressure on MLCC manufacturers.
Fortunately, Murata, Taiyo Yuden, Samsung Electro-Mechanics, Yageo and Fenghua Advanced Technology are
all going to expand their capacity. The supply and demand imbalance should get better by the end of this year.
The DRAM market is an oligopolistic market. The “Big Three” - Samsung, Hynix and Micron - want to maximize
their profitability. They are all conservative in expanding their capacity. The frantic heat from the cryptocurrency
mining sector contributed to the strong demand for DRAM in addition to the high demand from server and smart
device platforms. Samsung is expanding its DRAM capacity in South Korea which will generate an improvement
in material availability and pricing in Q3, 2018.
At the end of 2017, the Chinese government launched an environmental protection law and emission limits
regulations to protect the environment. PCB, an industry creating heavy pollution, has been severely impacted
by the new policy changes. Many factories have been shut down, resulting in a shortage of supply and price
increase. Additionally, electrolytic copper foil manufacturers have allocated more production capacity to produce
PCBs for electric cars instead of commercial electronic products. Though Zhen Ding Tech, Uniflex and Flexium
will expand their capacity, the trend will not be mitigated until the end of this year.
In January 2018, at least 7 resistor manufacturers have announced price increases. The overall price of
ruthenium, whose primary use is as a thick film paste in thick film chip resistors, has increased in value by
487.5% since February 2017. On a month-to-month basis, the price of ruthenium metal has skyrocketed to $195
USD per Troy ounce in February 2018. Current major manufacturers are very wary of expanding their capacity.
The price increases and lead time extensions happening in the resistor manufacturing segment show no sign of
turning around this year.
The largest manufacturers in these segments are Japanese, South Korean and Taiwanese companies and the
depreciation of the U.S. dollar hurts their revenue, leading to growing pressure in costing.
Last but not the least, this report also includes a business cycle of the electronic industry. Between 2009 and
2011, the industry experienced a similar situation of serious material shortage with significant price increase
which lasted for two years. Hopefully the current shortage and price increase conditions will taper off by the end
of this year.
Material Shortage & Price Trend
4
I. Multilayer Ceramic Capacitors (MLCC)
Beginning last year, the signs of a solid upturn (extended lead times and more robust demand) for multilayer-
ceramic became increasingly evident and the situation has grown in severity over the past year.
Market Overview of MLCC 2017
Passive electronic components: World Market Outlook 2017-2022 1
Overview of Current Manufacturers
As far as competition is concerned, major global MLCC manufacturers are mainly from Japan, South Korea, and
Taiwan and include Japan's Murata, TDK, Taiyo Yuden and KYOCERA/AVX, South Korea's Samsung Electro-
Mechanics and SAMWHA, and Taiwan's Yageo and Walsin.
Tier 1: Murata, Kyocera, TDK, Samsung
Tier 2: Walsin, Yageo, Holy Stone
Tier 3: Guangdong Fenghua Advanced Technology, Eyang Technology Development, Chaozhou Three-Circle
Group
Material Shortage & Price Trend
5
Price Increase
MLCC pricing has increased significantly in the past year. Yageo, as an example, increased its MLCC prices
approximately 50% in 2017 alone. The momentum continues into this year.
YAGEO’S 2017 MLCC PRICE INCREASES
Price Increase Notice Products Price increase Lead Time
April 19th MLCC 10% N/A
June 19th MLCC 15%~30% From 1 month to 6 months
September 7th MLCC 15%~30% From 1 month to 6 months
November 14th NPO MLCC 20%~30% or more From 1~3 month to 6 months
Lytica’s Freebenchmarking price points also show the same trend. The Freebenchmarking.com database
collects the real prices of electronic components paid by various EMS and OEM companies. This data enables
the creation of price distributions to identify cost saving opportunities and recommend security of supply for
clients.
Lytica Inc. 2
Material Shortage & Price Trend
6
Reason for Increase
The widening imbalance between supply and demand over the past year has driven prices higher; some
contributing factors are:
1) TDK faded out of the general MLCC market mid-last year, which has worsened the imbalance. In 2018,
Kyocera decided to stop production of some size 0402 and 0603 MLCCs.
2) Top tier manufacturers have allocated resources to the more profitable automotive industry; Tier 1
manufacturers have shifted focus to this small size, high capacitance, high-end market. It is estimated
that each car needs 3000 MLCCs compared to the 700 required for a smartphone.
3) High demand driven by smartphones, including those from Samsung and Apple, increases the gap
between need and availability.
Statista 3
4) Strong demand from automotive industry.
Zhiyan Consulting 4
Material Shortage & Price Trend
7
5) Since the majority of MLCC manufacturers consist of Japanese, Taiwanese and Chinese companies,
there is an added pressure from currency appreciation. The exchange rate of these local currencies to
USD has been climbing since last year. When revenues in USD are converted back to local currencies,
the manufacturers end up with far less. In turn, they have less local currencies to cover their
manufacturing expense.
Currency exchange TWD to USD
Currency exchange JPY to USD
XE 5
6) By the end of last year, China had shut down up to 40% of its factories in an unprecedented stand
against pollution. The raw material suppliers of MLCC are also impacted by this initiative of
environmental policy enforcement, leading to tighter supply in the upstream.
Material Shortage & Price Trend
8
7) The price of key metals used for MLCC production also drives up MLCC price. Raw materials pricing for
all key metals consumed in the MLCC increased in 2017 and continue to do so in 2018; nickel, copper
and palladium show the greatest increase in price and impact on MLCC.
Material Shortage & Price Trend
10
Future Trend
The good news is that all major MLCC manufacturers have started to expand their production capacity however
the construction period is very long. The huge supply and demand imbalance will only start to get better by the
end of 2018.
2017-2018 MLCC Manufacturer Capacity Expansion Plan
Murata
Murata Manufacturing (Murata) will invest 10 billion yen to build new MLCC
production lines, in response to the current market demand for MLCC. The
new MLCC plant is expected to be located in the Japanese city of Okayama,
Okayama prefecture, and is expected to be completed in the fourth quarter
of 2018.
Taiyo Yuden
TOKYO, November 8, 2017 - NIIGATA TAIYO YUDEN CO., LTD, a
subsidiary of TAIYO YUDEN CO., LTD., announced that it will construct a
new plant, Building No. 3, at their Niigata site. The plant will be completed in
December 2018 and will meet increasing demand for multilayer ceramic
capacitors.
Samsung Electro-Mechanics
Samsung Electro-Mechanics will concentrate on expanding manufacturing
capacity for MLCC for automobiles and industrial use. It will also expand
MLCC production lines in Tiajin, China and the Philippines for the consumer
electronic industry.
Yageo Yageo will invest US$170,550,000 to expand 10% capacity. Monthly MLCC
output will be 41B pieces.
Fenghua Advanced Tech
Fenghua invested US$8,830,150 to expand its production capacity for
MLCC0201. Construction period is from Oct 2017 to Jun 2018.
Fenghua invested US$29,519,976 to expand production for multilayer chip
inductor. Construction period is from Aug 2017 to Dec 2018.
Material Shortage & Price Trend
11
II. DRAM
Market Overview of DRAM 2017
The oligopolistic market situation continued with no plan for capacity expansion.
Nanya Technology Corp. 4
Strong sales in the last two years:
DRAMeXchange 8
Material Shortage & Price Trend
12
Overview of Current Manufacturers
As shown the chart below, 3 top manufacturers dominate the whole DRAM market, taking up 93% of total global
market share.
Global Revenue Ranking of Branded DRAM Manufacturers (Million US$)
Ranking Company
Revenue Market Share
3Q17 2Q17 QoQ 3Q17 2Q17
1 Samsung 8,790 7,633 15.2% 45.8% 46.2%
2 SK Hynix 5,514 4,501 22.5% 28.7% 27.3%
3 Micron Group 4,023 3,559 13.0% 21.0% 21.6%
4 Nanya 439 417 5.3% 2.3% 2.5%
5 Winbond 177 163 8.6% 0.9% 1.0%
6 Powerchip 103 107 -3.7% 0.5% 0.6%
Others 135 135 0.0% 0.7% 0.8%
TOTAL 19,181 16,515 16.1% 100.0% 100.0% DRAMeXchange 9
Price Increase
IC Insights 10
Reason for Increase
1) These three companies want to maximize their profitability by maintaining the current situation rather
than aggressively competing for market share through price reduction or capacity expansion. Into the 2nd
half 2017, the top 3 did not have any plans to expand their capacity.
2) As the largest supplier in the DRAM market, Samsung wants to increase its profits from DRAM in order
to compensate for the huge loss incurred from the Galaxy Note 7 faulty battery event.
Material Shortage & Price Trend
13
3) Strong demand from cryptocurrency mining industry and server.
Digital currency has become a favorable factor for DRAM chips as well. Song Myeong-seop, an analyst
at Hi Investment & Securities, said, “According to dealers at the spot market, the current demand of
DRAM chips for PCs is very low. However, it has gone up to the similar level of the sales of DRAM chips
for PCs as the sales of DRAMs for cryptocurrency diggers have recently surged.” He also said, “The
rapid increase in the demand of DRAMs for cryptocurrency diggers on the spot market correlates with
the recent sharp rise in bitcoin prices. The spot price of DRAM chips is expected to be greatly influenced
by the price trend of digital currency in the future.” As the strong drive from digital currency tapers off,
the gap between demand and supply will be better.
Future Trend
According to market watcher DRAMeXchange, the average selling price (ASP) of DRAM chips is projected to
increase by 5% from the second quarter to the end of the third quarter as tight supply persists.
Samsung is expanding its DRAM capacity in Hwasung and Pyeongtaek. The shortage and price increase will
improve in Q3, 2018.
Material Shortage & Price Trend
14
III. PCB
Market Overview of PCB 2017
The Global PCB market is expanding every year. It is estimated that the total output value will be 75.7 Billion
dollars in 2022 at a CAGR of 4.8% since 2009.
Zhiyan Consulting 11
Overview of Current Manufacturers
PCB manufacturing is concentrated in Asia with the majority of the top 30 (by revenue) located in Asian
countries.
Material Shortage & Price Trend
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Price Increase
Relative to its upstream and downstream industries, the concentration characteristic in the PCB industry is not
high therefore the competition is very fierce among all players. In a highly competitive market environment, only
those with good market positioning and operating efficiency are equipped with long-term competitiveness. A
common PCB production line needs $3.5M USD, a multi-layer board production line requires an investment
around $8.5M USD and High-Density Interconnect PCB needs an investment around $35M USD. HDI and other
high-end PCBs are capital, labor-intensive industries; the management and technical requirements are relatively
high, often becoming the bottleneck of capacity expansion.
CCL (Copper Clad Laminate) is the direct raw material for PCB manufacturing. CCL manufacturers have a
strong bargaining power over the PCB companies as long as the downstream demand is strong, making it easy
to pass the cost pressure downstream as well. Generally, CCL manufacturers don’t have bargaining power over
their upstream glass fiber cloth, copper and other raw material providers.
Reason for Increase
1) Raw Material Price Increase
Since July 2017, many CCL manufacturers increased their prices; Kingboard Chemical, Guangdong
Shengyi Sci.Tech, ITEQ, Nanya and Elite material, to name a few. In order to release the pressure of the
increase cost from raw material suppliers, PCB manufacturers decided to increase their prices as well.
2) Chinese Government launched an environment protection tax law and emission limits
Since last year, the State Environmental Protection Administration of China implemented an
environment protection credit rating system to all manufacturing enterprise. This stricter environmental
regulation will lead to the shutdown of some small and medium PCB enterprises because they lack
experience with and funds for environmental protection facilities. The exit of many small and medium
size PCB companies will result in an imbalance between supply and demand.
On January 1, 2018, the environmental protection tax law of China was formally implemented. Tax
burdens on PCB manufacturers push up the cost of manufacturing. They must increase the selling price
to compensate for the extra tax.
Material Shortage & Price Trend
16
3) Production capacity has switched to lithium battery copper foil
The global electrolytic copper foil production capability is limited. Total global production capacity of
copper foil is approximately 40,150 tons/month which is slightly lower than the total demand of 43,050
tons/month. With the development of, and increasing demand for, new energy vehicles, more and more
copper foils are being used to produce lithium batteries for that vertical.
Over the past 10 years, PCB enterprises have cut their prices to rock-bottom, foregoing profit in order to
sustain their foothold in the market. Many factories have decreased their production capacity. Out of the
40,150 tons/month global capacity of electrolytic copper foil, only 32,000 tons of production is active.
With 8,600 tons of this capacity shifting to the more profitable lithium battery copper foil, the actual
capacity for Copper Clad Laminate(CCL)and PCB becomes merely 24,000 tons/month, falling well
below the total demand of approximately 34,000 tons/month.
Taiwanese manufacturers Nanya, Chang Chun Group and Co-Tech Development Corporation,
Japanese manufacturers Mitsui Kinzoku and Fumkawa, South Korean manufacturers ILJIN
Semiconductor Co., Ltd and LSM and Chinese manufacturers Anhui Tongguan Copper Foil Co., Ltd,
Lingbao Wason Copper-Foil Co., Ltd, Qinghai Electron Material, United Copper Foils and Jiangxi Copper
Corporation all have plans to switch to the production of lithium cell copper foil (refer to the table below).
Headquarters Manufacturer Factory Location CapacityCapacity Shift to
Lithium Battery
Taiwan 2400
Kunshan, China 4200 400
Taiwan 5000
Changshu, China 1500
Co-Tech Taiwan 1500 200
LCY Techonology Taiwan 1000
Taiwan 1500
Malaysia 2000 500
Fukuda Metal Suzhou 1200
Nikko Metals Phillippines 800
Furukawa Japan 1300 200
ILJIN South Korea 1600 1200
LSM South Korea 1200 1000
Tongguan Copper Foil Anhui 2200 500
Lingbao Wason Anhui 1400 800
Qinghai Electron Material Qianghai 1500 1250
Jiangxi Copper Jiangxi 1100 300
Zhaoyuan Jinbao Electronics Shandong 1100
United Copper Foils Guangdong 800 400
Luxembourg Circuit Foil Luxembourg 850
6000
40150 8600
China
Japan
Mitsui Kinzoku
Others
GLOBAL CAPACITY
Global Capacity of Electrolytic Copper Foil
1850
Nanya
Chang Chun GroupTaiwan
South Korea
PCB Door 12
Material Shortage & Price Trend
17
Increasing demand and a higher profit for lithium cell copper foil leads to a higher copper price and PCB
shortage.
Future Trend
Some companies have started to expand production capacity to keep up with the strong demand in recent years.
For example, Tripod-Tech, the 2nd largest Taiwan PCB company next to Zhen Ding Tech, will invest US$1.705B
to build new plants and production lines. Uniflex and Flexium will also increase capacity in 2018. The price
increase and shortage trend won’t be mitigated until the end of 2018.
Material Shortage & Price Trend
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IV. Resistor
Market Overview of Chip Resistor 2017
Yageo 13
Overview of Current Manufacturers
As shown above, Yageo is the leader in the chip resistor market.
Price Increase
January 2, 2018: Ralec Electronic Corp announced a price increase. Prices of chip resistor in sizes 0402, 0603,
0805 and 1206 will increase 15%, effective immediately.
January 4, 2018: Viking Tech decided to increase 10% of its product price on CR0603, 0805 and 1206 SMD
resistors.
January 9, 2018: LIZ Electronics lifted its selling price by 15% and the price adjustment took effect immediately.
January 10, 2018: Yageo increased the price of its RC series by 15% to 20%. Price increases apply to general
thick film resistors (RC series) with sizes 0402, 0603, 0805 and 1206, as well as large size thick film resistors
(RC series) with sizes 1210, 1218, 2010and 2512. Price increases take effect immediately.
January 15, 2018: Walsin decided to increase price on its thick film resistors (sizes 0402, 0603, 0805 and
1206) by 10% to 15%.
January 18, 2018: RoyalOhm issued a public notice stating that due to the environmental protection
requirements, the price of raw materials and the continually increasing operating cost of the company, product
prices will be adjusted effective February 1, 2018. Prices of 0402 - 2512 chip resistors and Array chip resistors
will be increased by 15-20% on the current selling price.
January 22, 2018: Guang Dong Fenghua Advanced Technology announced that the price of RC / RS series
resistors with sizes of 0402, 0603, 0805 and 1206 will increase by 7% to 13%. Price increases take effect on
February 5, 2018.
February 1, 2018: Yageo increased the price of its thick film resistors (sizes 0402-2512) and array chip resistors
(YC/TC122-164) by 20% to 30%, or even higher. Price increases take effect on February 5, 2018.
Material Shortage & Price Trend
19
Reason for Increase
1) Raw material price increase
The price of ruthenium metal skyrocketed to $195 USD per Troy ounce in February on a month-to-month
basis. The overall price of ruthenium, whose primary use is as a thick film paste in thick film chip
resistors, has increased in value by 487.5% since February 2017.
InfoMine 14
2) Chinese Government launched environment protection tax law
On January 1, 2018, the environmental protection tax law of China was formally implemented. The tax
burden on electronic component manufacturers pushes up the cost of manufacturing. They must
increase the selling price to compensate for the extra tax.
3) Currency appreciation
In the past year, the US dollar has appreciated almost 5%. The resistor manufacturing industry is a low-
margin industry and this 5% currency appreciation impacts the business bottom line significantly.
XE 15
Material Shortage & Price Trend
20
Future Trend
There has been no capacity expansion news from resistor manufacturers or their upstream ceramic substrate
manufacturers. The price increase, long lead time and shortage will continue to the end of this year at least.
Material Shortage & Price Trend
21
V. Business Cycle of the Electronics Industry
From 2009 to 2011, the electronic manufacturing industry experienced a comparable situation of component
price increase and serious shortage. Some of the reasons behind that occurrence are similar to the reasons
driving the current situation.
1) Significant demand after the 2008 financial crisis.
2) Demand skyrocketed due to the revolutionary changes in smartphones.
IDC 16
3) Supply chain crisis caused by an earthquake in Japan and a flood in Thailand
The March 2011 Great Tohoku Earthquake and Tsunami devastated the northeast coast of Japan; the
most powerful natural disaster in Japan’s modern history. Japan’s earthquake caused logistical
disruptions, component supply shortages and a price surge in the consumer electronic and automotive
electronic industries.
Severe flooding occurred during the 2011 monsoon season in Thailand. In the electronics industry, the
global hard disk supply chain suffered the most damage. Thailand is the world's largest hard drive
accessories and drive production base boasting the world's four largest hard drive manufacturers.
Western Digital, Seagate, Hitachi and Toshiba all have factories in Thailand. 60% of Western Digital’s
capacity and 50% of Toshiba’s are from their factories in Thailand. In addition, hard disk motor
manufacturer Nippon Electric, magnetic head manufacturer TDK and other hard disk accessory
manufacturers have main factories located in Thailand. Flooding stopped the production of most hard
disk drive manufacturers, resulting in shortage and price increase.
Material Shortage & Price Trend
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APPENDIX
MLCC Demand: Automotive Industry
Electric
Hybrid/
Plug in
Hybrid
Mild
Hybrid
Fuel-
efficient
ICE
(Internal
combustion
engine)
Car
Output46 368 1474 737 6585
MLCC
usage
(10B PC)
83 442 707 287 1976
Total
Car
Output94 514 1683 842 6218
MLCC
usage
(10B PC)
168 617 808 328 1865
Total
Car
Output118 788 2363 1280 4922
MLCC
usage
(10B PC)
212 945 1134 499 1477
Total
Car
Output187 935 2619 1403 4396
MLCC
usage
(10B PC)
337 1122 1257 547 1319
Total
2018
Annual
Usage
4267
2019
Annual
Usage
4582
2016
Annual
Usage
3495
2017
Annual
Usage
3787
MLCC Demand: Automotive Industry
Zhiyan Consulting 18
Material Shortage & Price Trend
24
Top PCB Manufacturers
Rank Company Country 2016 Revenue
1 Nippon Mektron Japan 3307
2 Zhen Ding Technology Taiwan 2558
3 TTM Technologies USA 2533
4 UMTC Taiwan 2026
5 Compeq Taiwan 1401
6 Tripod Taiwan 1351
7 Young Poong Group S. Korea 1201
8 Samsung E-M S. Korea 1140
9 Sumitomo Electric Industry (SEI) Japan 1136
10 KBC PCB Group China 980
11 Ibiden Japan 954
12 Nanya PCB Taiwan 906
13 AT&S Austria 877
14 HannStar Taiwan 828
15 Daeduck Group S. Korea 808
16 Meiko Japan 804
17 Fujikura Japan 786
18 Chin Poon Taiwan 743
19 Kinsus Taiwan 719
20 Multek -Flex USA 700
21 Shennan Circuit China 695
22 LG Innotek S. Korea 689
23 Simmtech S. Korea 682
24 T.P.T. Taiwan 681
25 CMK Japan 675
26 Wus Group Taiwan 668
27 Gold Circuits Taiwan 605
28 Flexium Taiwan 595
29 Shinko Japan 580
30 MFLEX-acquired by Suzhou Dongshan Precision mfg China 522
Top 30 PCB Manufacturers (By USD Revenue in Millions)
Printed Circuit Design & Fab 19
Material Shortage & Price Trend
25
Price Increase Notifications
RALEC
Translation:
Notice about price increase on R-Chip
To my respectful partners,
Thanks for your long-term support and trust on RALEC, which establishes a mutual-beneficial cooperation
relationship.
We are facing tremendous cost pressure from the increasing cost from raw material and packaging material. In
order to provide better service to our customers, we decide to adjust the selling price of below products:
1) SMD resistors with the size of 0402 0603 0805 and 1206, price increases 10%.
2) New price takes effect immediately
Jan 02nd, 2018
Material Shortage & Price Trend
26
VIKING TECH CORPORATION
Translation:
Notice about price increase on thick film resistors
To my respectful partners and customers,
Due to the continuous significant price increase on material (packaging, resistor paste, plating material, ceramic substrate), we decide to adjust the selling price as follows, Product: CR0603 0805 1206 SMD resistors
Price adjustment: 10% increase
Jan 04th, 2018
Material Shortage & Price Trend
27
LIZ ELECTRONICS (KUNSHAN) CO., LTD
Translation:
To my respectful customers,
Thanks very much for your long-term support and trust on LIZ. We are dedicated to providing excellent quality and service to you in return. Due to the continuous significant price increase on material, the operating cost has been increased substantially. Thus, we decide to adjust the selling price as follows, Price adjustment: 15% increase
Effective date: immediately
We really appreciate your understanding and support. Millions of thanks!
Jan, 09th, 2018
Material Shortage & Price Trend
28
YAGEO
Translation:
To respectful customers and distributors,
Due to the appreciation of US dollar, cost increase on raw material and labor, we decided to adjust the price for
below products, effective immediately.
General thick film resistor(RC series), 0402, 0603, 0805, 1206
Large size thick film resistor (RC series),1210, 1218, 2010, 2512
Price of above-mentioned products will increase 15% to 20%.
We really appreciate your understanding and continuous support.
Jan 10th, 2018
Material Shortage & Price Trend
29
WALSIN
Translation:
Price adjustment of Walsin SMD resistors
To every important partner:
Because of the continuous increase of raw material and labor cost, we decide to adjust prices of below products.
Their prices will increase by 10% to 15%, effective on Jan 22nd, 2018.
Thick film product series
1. 0402 and Array
2. 0603 and Array
3. 0805
4. 1208
Thanks for your understanding.
Jan 12th, 2018
Material Shortage & Price Trend
30
UNIROYAL
Translation:
To my respectful partners and end users,
Thanks for your long-term support and trust. The stricter environment protection regulation leads to raw material
cost increase. And, our operating cost continues to rise. We decide to adjust our product price.
Price increase applied to: 0402~2512 chip resistors and all Array chip resistors
The price will increase 105~20%
New price takes effect on 1st, February 2018
Brand impacted: ROYALHOM, UniOhm
Thanks. Jan 18th, 2018
Material Shortage & Price Trend
31
GUANGDONG FENGHUA
Translation:
To my respectful partners and customers,
Due to the climbing price of previous metals, high pressure from environment protection regulation, raw material
and labor cost continues to rise, the operating cost keeps going up. Therefore, we decide to adjust the prices of
chip resistors as follows,
Product: RC/RS series (size 0402, 0603, 0805, 1206)
Price adjustment: increase by 7% to 13%
New price takes effect on 5th, February 2018
Jan 22nd, 2018
Material Shortage & Price Trend
32
YAGEO
Translation:
To respectful customers and distributors,
Because of the continuous increase of raw material and labor cost, shortage of substrate, and stricter
environment protection regulation, we decided to adjust the price for below products, effective on 5th February.
Thick film resistor(RC series), 0402~2512
Array chip resistor (YC/TC122~164)
Price of above-mentioned products will increase 20% to 30% or higher.
We really appreciate your understanding and continuous support.
Feb 1st, 2018
Material Shortage & Price Trend
© 2018 Silecta Inc. All rights reserved. Silecta and Silecta logo are registered trademarks of Silecta Inc. All other products are trademarks of their respective owners.
Silecta Inc. Suite 206 - 308 Legget Drive Kanata, Ontario, Canada K2K 1Y6
SOURCES
1. Passive Electronic Components: World Market Outlook: 2017-2022. Cary, NC: Paumanok Publications,
Inc., 2017.
2. Lytica Inc. https://www.freebenchmarking.com.
3. Statista (2017). Global smartphone shipments forecast from 2010 to 2021 (in million units). Retrieved from Statista database.
4. Zhiyan Consulting. MLCC Demand Report, http://www.zhiyan.org.
5. XE: The World's Trusted Currency Authority. Retrieved February 14, 2018, from www.xe.com.
6. InfoMine: Commodity and Metal Prices. Retrieved February 14, 2018, from http://www.infomine.com/investment/metal-prices.
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