Passive components manufacturer Yageo Corp (國巨) expects to see its revenue grow by 3.62 percent this year, benefiting from the company’s latest price hike on chip resistor products, First Capital Management Inc (第一金投顧) said on Thursday.
The company’s price increases of 15 to 20 percent on certain chip resistor products, announced on Wednesday, could increase revenue by NT$1.17 billion (US$39.53 million), while boosting its gross margin by between 3 and 4 percentage points and lifting its earnings per share by NT$0.9, First Capital said in a statement.
Yageo is one of the world’s major suppliers of resistors — an electronic component used to resist or reduce the amount of current flowing in an electronic circuit — controlling one-third of the global market share, with rivals including Taiwan’s Walsin Technology Corp (華新科) and Ralec Electronic Corp (旺詮), as well as Japan’s Rohm Co Ltd and KOA Corp, Taishin Securities Investment Advisory Co (台新投顧) said in a separate statement on Thursday.
Yageo reported total revenue of NT$32.26 billion last year, up 8.91 percent from 2016, as the company raised prices for its multilayer ceramic capacitor (MLCC) products four times throughout the year amid a supply crunch.
Chip resistor sales contributed NT$14.2 billion to Yageo last year, accounting for about 44 percent of its total revenue, with MLCCs making up 50 percent, Taishin said.
Viking Tech Corp (光頡科技), a supplier of resistors and inductors, also on Thursday announced that it would raise prices for several chip resistors by 10 percent, due to higher prices for raw materials such as packaging material, paste, electroplating material and ceramic substrate.
Yageo’s and Viking Tech’s price hikes came after Ralec announced on Jan. 2 that it would raise prices for some chip resistor products by up to 15 percent for greater China distributors and agents.
The shortage in chip resistor supplies began in the third quarter of last year and the situation is expected to persist into the first half of this year, as major manufacturers in Japan are moving to focus on high-end products amid a trend toward automotive electronics, analysts said, adding that increases in resistor supplies at Taiwanese suppliers have been limited, while raw material and labor costs continue to rise and the New Taiwan dollar struggles against the US dollar, analysts said.
Yageo’s stock price closed 2.98 percent lower at NT$375 in Taipei trading on Friday.
Over the past 12 months, the stock has surged more than 466 percent, compared with the main bourse’s 15.7 percent rise over the same period, Taiwan Stock Exchange data showed.
ASE Technology Holding Co (ASE, 日月光投控) yesterday launched its second testing facility in San Jose, California, to expand advanced chip testing capacity such as burn-in testing to satisfy customers’ rising engineering needs for emerging semiconductor applications, such as artificial intelligence (AI) and high-performance computing (HPC). ISE Labs Inc, a fully owned subsidiary of ASE, would operate the advanced testing facility. When added to its first facility in nearby Fremont, ISE would double its available research-and-development lab and business space to 150,000m2 in hopes of boosting the US semiconductor supply chain, the company said in a statement. “As the semiconductor manufacturing supply chain reshoring
VALUE: TSMC’s market capitalization far exceeds the combined size of all the Latin American companies on MSCI Inc’s benchmark for emerging markets Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$420 billion equity rally this year would get a valuation test this week when it reports earnings, with analysts expecting the chipmaker to raise full-year sales forecasts. The world’s biggest contract chipmaker would probably report a 29 percent increase in second-quarter net income on Thursday, according to the median estimate of analysts surveyed by Bloomberg. More importantly, analysts from JPMorgan Chase & Co to Morgan Stanley expect it to also raise its full-year sales guidance, justifying another round of valuation expansion. Just like Nvidia Corp, TSMC has become a favorite artificial intelligence (AI)-bet for investors with
The entry of chip giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) into the elite club of the world’s most valuable companies is further proof that the generative artificial intelligence (AI) revolution is shaking up Wall Street. TSMC, which is listed in Taipei and New York, on Monday briefly broke the US$1-trillion market capitalization barrier, putting it ahead of Tesla Inc as the seventh-most valuable technology giant on the stock market. Also on Monday, Alphabet Inc, Apple Inc and Meta Platforms Inc hit all-time highs. The top 10 of the world’s most valuable companies is headed by Microsoft Corp and Apple, closely followed by
ASSASSINATION ATTEMPT: The previous shooting targeting a US president or major party candidate was the 1981 incident targeting then-US president Ronald Reagan Saturday’s shooting at former US president Donald Trump’s election rally raises his odds of winning back the White House, and trades betting on his victory would increase this coming week, investors said yesterday. Trump was shot in the ear during the rally in Pennsylvania on Saturday in what the authorities were treating as an assassination attempt. Trump, his face spattered with blood, pumped his fist moments after the attack, and his campaign said he was fine after the incident. Before the shooting, markets had reacted to the prospect of a Trump presidency by pushing the US dollar higher and positioning for a