Walsin Technology: Will not increase MLCC, chip resistor quotations before Q2 next year

According to the Taiwanese media Business Times, the supply of passive components is tightening, and when the relevant prices will increase has attracted much attention. In this regard, Huaxinke said that before the second quarter of next year, the company will not increase the quotations of MLCC and chip resistors.

The report pointed out that the demand for stocking before Christmas and the Spring Festival, coupled with the recovery of the auto market, made the passive component factories not slow in the off-season, but the prices of upstream raw materials continued to rise, and all factories were facing shortage of labor and unable to produce full production. At the same time, restricted by the number of compliant suppliers, expansion capacity, and limited supply of production equipment, the supply of passive components is tight, and which passive component factory will fire the "first shot" of price increases has attracted market attention.

Under market demand, the capacity utilization rate of Huaxinke in the third quarter has exceeded 90%. Although the price of passive components is about to change, Huaxinke emphasized that before the second quarter of next year, the company will not increase the price of MLCC and chip resistors.

At the same time, in response to market demand, Huaxin Technology continued to expand production. The establishment of a new factory in the Kaohsiung Export Processing Zone has increased the overall production capacity of MLCC by 10% (high-capacity and high-frequency multilayer ceramic capacitor products) in the second half of this year.

Looking to the future, Huaxinke said that 5G base stations, smart phones, home remote work and education-related computers and notebook computers, servers and game consoles will promote growth in the second half of 2020. The demand for components for automotive applications is gradually recovering, and it is expected to continue in the future. Starting from 2010, 5G infrastructure, cloud servers, HPC high-performance computers, IoT, autonomous driving, artificial intelligence, Tokyo Olympics and retaliatory purchases after the new crown pneumonia are expected to promote the continuous growth of industry demand.