Thursday, October 14th 2021
Taiwan's Passive Component Makers Conservative About Supply and Demand for Q4
After all the reports of component shortages over the past few months, it now seems that the power related problems in China are having an effect on demand of passive components, such as MLCCs (Multilayer Ceramic Capacitor), various types of resistors and inductors among others. As such, manufacturers of said components in Taiwan are cautious about demand for the rest of this quarter, with even big players like Yageo - they're the third largest manufacturer in the world of passive components - being conservative, if somewhat positive about shipments this quarter, according to Digitimes.
As many of the Taiwanese makers of passive components have factories in China, the power cuts in several provinces are adversely affecting these companies. In the case of Yageo, they claim to be able to maintain their production at its largest facility in China, due to it not being located in one of the so far not affected provinces. Some of its competitors aren't as lucky and have already seen losses in production and aren't expecting things to improve. Besides the power outages, there are still issues with the logistics and shipping, which is further causing problems.
Walsin, another player in the passive components market, is focusing on manufacturing outside of China, with a new plant under construction in southern Taiwan's Kaohsiung as well as expansion of its factory in Malaysia. It's no doubt that the current situation in China is pushing manufacturers to reconsider where they're placing their production, which should be a good thing long term, as the reliance on China has clearly been too high, something the pandemic has shown and the current situation has further highlighted. We'll likely see more South East Asian countries like Malaysia and Vietnam take over some of the production from China, with at least some Taiwanese companies moving part of their production back to Taiwan as well.
Source:
Digitimes
As many of the Taiwanese makers of passive components have factories in China, the power cuts in several provinces are adversely affecting these companies. In the case of Yageo, they claim to be able to maintain their production at its largest facility in China, due to it not being located in one of the so far not affected provinces. Some of its competitors aren't as lucky and have already seen losses in production and aren't expecting things to improve. Besides the power outages, there are still issues with the logistics and shipping, which is further causing problems.
16 Comments on Taiwan's Passive Component Makers Conservative About Supply and Demand for Q4
PC segment is dead ;}.
If we don't have semiconductors, then obviously these are not needed also. Then who is the one using them? Gathering stockpiles?
mining problem
covid problem
supply chain problem
scalpers problem
energy problem
what's next?
It's not a shortage of most of these things, these concern is that a large proportion of them are made in the PRC, which is now having power supply issues in several provinces, which means factories there have had to shut down, even if it's temporarily. This will in turn lead to future shortages.
That said, if you'd read the article, you would also have seen that due to at least in part, to the semiconductor shortage, orders are also going down, which means the production will go down, which in turn might cancel out the loss of production.
This article from NPR might be embellished a bit to make things sound worse, so take it with some salt.
www.npr.org/2021/10/01/1042209223/why-covid-is-affecting-chinas-power-rations
www.theguardian.com/environment/2021/oct/12/china-coal-fired-plants-uk-cop26-climate-summit-global-phase-out
Nice map in the article showing the majorly affected provinces.
www.taiwannews.com.tw/en/news/4314936
Before you say anything i'm European, but this is the perfect irony when we used to look at all their smoke filled cities and commented how primitive they were.
i honestly dont care, i wont buy a thing
whenever the prices dip ill get everything i want
www.wired.com/story/china-is-still-building-an-insane-number-of-new-coal-plants/
I think its going to be a mess. Does Intel have contingency plans in place?
Seagate anyone ??? :laugh: