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
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16 Comments on Taiwan's Passive Component Makers Conservative About Supply and Demand for Q4

#1
ixi
How about just shut down everything for 3 months and lets see how world is going to burn down from pc master race :D.

PC segment is dead ;}.
Posted on Reply
#2
TheLostSwede
ixiHow about just shut down everything for 3 months and lets see how world is going to burn down from pc master race :D.

PC segment is dead ;}.
This doesn't just affect PCs, this affects all types of electronics. Maybe we should shut down the manufacturing of all nonsense, novelty products for six months, that should help a lot.
Posted on Reply
#3
lZKoce
Situation in Taiwan is really tight. Restrictions are real and there is a supply bottleneck. I think the situation will get worse at the end of the year, beginning of next year, as right now there are still parts in circulation ( in warehouses, in containers, in resellers), but after these dry out....it's gonna get a whole lot more difficult.
Posted on Reply
#4
Ferrum Master
Kinda strange...


If we don't have semiconductors, then obviously these are not needed also. Then who is the one using them? Gathering stockpiles?
Posted on Reply
#5
Bomby569
let's see:

mining problem
covid problem
supply chain problem
scalpers problem
energy problem

what's next?
Posted on Reply
#6
TheLostSwede
Ferrum MasterKinda strange...


If we don't have semiconductors, then obviously these are not needed also. Then who is the one using them? Gathering stockpiles?
Obviously not quite true, since you need these even for very basic electronics that doesn't need complex semiconductors.
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.
Posted on Reply
#7
DeathtoGnomes
TheLostSwedeObviously not quite true, since you need these even for very basic electronics that doesn't need complex semiconductors.
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.
I had heard that China is trying to permanently shut down its coal burning power plants. Another article states that is that they had to shut down 1000 coal mines due to heavy rains and flooding.

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
Posted on Reply
#8
TheLostSwede
DeathtoGnomesI had heard that China is trying to permanently shut down its coal burning power plants. Another article states that is that they had to shut down 1000 coal mines due to heavy rains and flooding.

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
Well, that's what they say, while at the same time saying it's ok to build new coal power plants when needed.

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
Posted on Reply
#9
Chaitanya
DeathtoGnomesI had heard that China is trying to permanently shut down its coal burning power plants. Another article states that is that they had to shut down 1000 coal mines due to heavy rains and flooding.

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
There is also apparently flooding in region where coal mines are located leading to mines shutting down.
Posted on Reply
#10
Bomby569
They want to shift to gas, that's why they bought all avaiable and create a shortage and price spike in Europe.
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.
Posted on Reply
#11
noel_fs
everyone is getting on the train jesus christ

i honestly dont care, i wont buy a thing

whenever the prices dip ill get everything i want
Posted on Reply
#12
Why_Me
DeathtoGnomesI had heard that China is trying to permanently shut down its coal burning power plants. Another article states that is that they had to shut down 1000 coal mines due to heavy rains and flooding.

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.mining.com/chinese-companies-build-700-coal-plants-outside-china/

www.wired.com/story/china-is-still-building-an-insane-number-of-new-coal-plants/
Posted on Reply
#13
AlwaysHope
All these supply chain issues when Alder lake is just around the corner....
I think its going to be a mess. Does Intel have contingency plans in place?
Posted on Reply
#14
seth1911
Bomby569let's see:

mining problem
covid problem
supply chain problem
scalpers problem
energy problem

what's next?
Maybe a flood?

Seagate anyone ??? :laugh:
Posted on Reply
#15
Bomby569
AlwaysHopeAll these supply chain issues when Alder lake is just around the corner....
I think its going to be a mess. Does Intel have contingency plans in place?
they have their own fabs in America, so they are the ones with the less problems for sure.
Posted on Reply
#16
AlwaysHope
Bomby569they have their own fabs in America, so they are the ones with the less problems for sure.
True to a point, but aren't they packaged in China?
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