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Taiwan Passive Components Makers Report Impressive May Results

5.6.2020
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Passive components makers have reported significant sales results for May despite the long Labor Day holiday in China cutting work hours, with Yageo’s revenues of NT$4.486 billion (US$149.53 million) for the month rising 1% sequentially and almost 40% on year, according to industry sources.

Yageo’s impressive on-year revenue increases for May helped push up its revenues for the first five months of 2020 by 5.9% to NT$18.947 billion.

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Despite fewer work days in May due to a long Labor Day holiday in China, Yageo still managed to maintain normal shipments to clients due to improving capacity utilization at its plants there and downward adjustment of its inventory levels, the sources said.

Demand for MLCCs for IT and networking applications is expected to stay strong in the months ahead in line with lingering remote work and study activities stoked by pandemic-induced lockdowns. MLCC demand for handsets is likely to rebound in the second half of the year as Chinese vendors are poised to promote their 5G models to domestic consumers, the sources noted.

Meanwhile, Chilisin Electronics, a power inductor and resistor maker, and its affiliates have reported their combined revenues for May and the first five months of the year surged 7.7% and 4.53% on year to NT$1.473 billion and NT$6.667 billion, respectively. The revenue increases were driven by strong shipments for notebook, server and networking applications.

Chilisin is expected to enjoy a ramp-up in shipments of magnetic materials for automotive and 5G terminal devices in the second half of the year.

Walsin Technology has yet to release its May results, but similar growth performance can be well expected. The company is stepping up development of 5G RF devices, antenna and automotive chip resistors seeking to better benefit from ever-expanding 5G applications.

Source: DigiTimes

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