report material shortage & price trend · 13 3) strong demand from cryptocurrency mining...

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


Price Increase ...................................................................................................................................................................... 15


Future Trend ........................................................................................................................................................................ 17

IV. Resistor ............................................................................................................................................................................ 18

Market Overview of Chip Resistor 2017............................................................................................................................... 18


Price Increase ...................................................................................................................................................................... 18


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


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.


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


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


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


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.


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.


9

InfoMine 6


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.


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


12


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.


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.


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


PCB manufacturing is concentrated in Asia with the majority of the top 30 (by revenue) located in Asian

countries.


15

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.


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


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.


18

IV. Resistor

Market Overview of Chip Resistor 2017

Yageo 13


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.


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


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.


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.


22

4) Currency appreciation of TWD and JPY.

XE 17


23

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


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


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


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


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


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


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


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


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


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


© 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

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