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The price of resistors will increase across the board, and Huaxinke’s new orders will increase by 10-15%.

Published :3/3/2021 7:07:37 AM

Click Count:2103

During the Spring Festival, a snowstorm occurred in Texas in the United States. Several semiconductor companies including Samsung, NXP, and Infineon partially suspended production. A magnitude 7.3 earthquake occurred in Japan, which caused the shutdown of semiconductor manufacturing and raw material factories including Renesas Electronics. The shortage of goods will further intensify.

In view of the increase in raw material prices, production restrictions and cost increases caused by the new crown pneumonia epidemic, new orders from Huaxinke will increase by 10-15%. The price of resistors under UNIROYAL, the world’s second largest resistor manufacturer, will increase by as much as 20%.


Regarding the news of price increases, Huaxin Technology only responded that the price will be determined based on market supply and demand. Huaxinke also emphasized that the market for chip resistors is very good. Except for some semi-finished products, there is no inventory of finished products. However, the company has no plans to expand production on chip resistors in 2021.

According to the notice of price increase received by the agent, Huaxinke increased 15% in large-size specifications such as 0603, 0805, and 1206, and increased 10% in small-size specifications such as 0201 and 0402 for mobile phones. New orders apply to new prices.

The report pointed out that, based on past experience, Huaxin Technology usually lags behind Yageo's price adjustments by a quarter, but the recent wave of price adjustments has been faster than before. The industry believes that Chaozhou Sanhuan’s quotations for second-line resistor manufacturers have risen across the board, which has accelerated other resistor manufacturers’ price increases.

The market believes that as business opportunities in the home economy continue, demand for related applications such as smartphones, PCs/notebooks, etc. will remain stable, coupled with the continued recovery of the auto market, and the approaching of the new year, clients are actively preparing materials and demand is strong. However, the manufacturer's expansion plan does not seem to go smoothly. Yageo pointed out that the group's utilization rate is about 80%, but it is still not easy to expand production and recruit workers. The current utilization rate continues to slowly climb.

The industry believes that when large factories are not easy to recruit and the capacity utilization rate is difficult to increase immediately, the chip resistor market is already tight, and the price increase is obvious. It is expected that Taiwan-based land-based manufacturers are expected to usher in the benefits of transfer orders.