Yageo’s third wave: MLCC, resistors all channels take off 10%, 4.1 takes effect

It is understood that Yageo issued a price increase notice on the afternoon of March 8, mainly targeting its two major product lines, MLCC and chip resistors. Yageo agents disclosed that the increase rate was about 10-20%.

This is Yageo’s third increase in 2021 after tantalum capacitors and chip resistors. It is worth noting that, compared with the previous two that only targeted agents, this price increase is the first time that Yageo has raised prices this year. Contract customers are included in the range of increase, and it is also the first in the passive camp.

The increase has been confirmed by Yageo’s speech department, saying that Yageo is facing the pressure of rising costs, and indeed there are “different levels of price adjustment actions” on the client side. Yageo emphasized that the company’s cost structure is under pressure due to the rising labor costs and transportation costs, coupled with the rising prices of many raw materials such as ceramic substrates, but did not disclose the extent of the price increase.


Source: Business Times

Although each round of price increases is coerced by the upstream cost increase factor, the market feedback seems to be “the higher the price, the better the sales”, which can be seen from the monthly reports of various passive device manufacturers.

In February, despite the reduction in working days and the need to go home for the Chinese New Year, Yageo, Huaxinke, and Chilixin still achieved the strongest February performance in history. Giant is the best with a growth rate of 150.9%.

It is understood that the current prices of MLCCs and chip resistors in the spot market have risen by 25% to 30% compared with those before the Lunar New Year. On the one hand, the first wave of increases by the original factory is basically the agent, and it is quickly promoted after it is transmitted to the spot channel. Higher prices, on the other hand, terminal manufacturers take precautions, based on the original factory price increase expectations and stocking needs to go to the spot market to scan the goods.

Previously, the new prices of Chaozhou Sanhuan and Yageo Resistance Factory took effect from March 1, with an increase of between 7% and 15% and basically only for agent channels. Looking at it now, this may just be a tentative rise.


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