In a significant development for the electronics industry, Yageo Corporation, the world's leading manufacturer of chip resistors, announced on January 16, 2026, that it would increase the prices of its mainstream resistor models, including RC0402, RC0603, RC0805, and RC1206, by 15% to 20% starting February 1, 2026. This move is set to have multi-level and far-reaching impacts on the industrial chain, affecting various sectors from consumer electronics to automotive electronics and prompting swift reactions from the capital and spot markets.
Primary Cause of the Price Hike: Soaring Precious Metal Prices
The primary driver behind Yageo's decision to raise resistor prices is the soaring cost of precious metals, which are essential components in resistor manufacturing. As global markets continue to experience volatility, the rising prices of these metals have significantly increased production costs for Yageo, necessitating the price adjustment.
Ripple Effects on Downstream Industries
Rising Costs for Consumer Electronics
The price hike is expected to have a notable impact on the consumer electronics sector, particularly for small and medium-sized brands that may struggle to pass on the increased costs to consumers. This, in turn, could accelerate the pace of domestic substitution, as major manufacturers like Huawei, Xiaomi, and OPPO increase their procurement from domestic suppliers such as Fenghua, Sunlord, and CCTC.
Notable Impact on Automotive Electronics
The automotive electronics industry is also set to feel the pinch, with new energy vehicles (NEVs) using more than three times the number of resistors compared to traditional fuel vehicles. This means that the price hike could lead to an increase of tens to hundreds of yuan in the single-vehicle cost, posing a challenge for automakers already grappling with rising production costs.
Supply Chain Restructuring
In response to the price hike, automakers are promoting a "de-Yageo" strategy, seeking to reduce their reliance on Yageo's resistors and support domestic automotive-grade resistor suppliers. Notably, Fenghua and CCTC have already obtained AEC-Q200 certification, positioning them as viable alternatives in the automotive electronics supply chain.
Quick Response from the Capital Market
The capital market reacted swiftly to Yageo's announcement, with Fenghua seeing an intraday surge of over 9% on the same day, and CCTC hitting a maximum gain of 5%. This indicates that investors are optimistic about the growth prospects of domestic resistor suppliers in the wake of Yageo's price hike.
Reactions in the Spot Market
Resistor and capacitor suppliers in the spot market have responded by suspending quotation and shipment, a temporary measure aimed at controlling risks, protecting profits, and retaining core customers. This move, driven by a combination of original factory price hikes, supply-demand imbalance, channel games, and inventory strategies, signals a shift in the industrial chain, where "secure supply" is gradually replacing "minimum cost" as the primary consideration for end users.
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