Major chip resistor makers to strive for communication resistors

Taipei, March 31, 2003 (CENS)--Taiwan's major chip resistor makers such as Yageo Corp., Ralec Co., Ta-I Technology Corp., and Walsin Technology Co. said yesterday that communication-use chip resistors would become major revenue resources in 2003.

Yageo, Ralec, and Ta-I said that they would focus on the manufacture of chip resistors for mobile handset uses in 2003. Walsin said its sales would come from wireless local area network (WLAN) this year.

Yageo's 0402 specification chip resistors are now supplied to major mobile handset makers in mainland China and South Korea. The firm expects its revenue from sales to mobile handset makers will grow between 15% and 20% in 2003, compared with 2002.

Over 70% of mobile handset makers with their own brands have started using chip resistors from Yageo. In South Korea, the firm posted a market share of about 30%, for example.

Yageo estimated its global market share for chip resistors would grow from 22% in 2002 to 26% this year.

Yageo expects to soon move part of its chip resistor production in the Kaohsiung plant to Suzhou. This overseas plant can produce up to 10 billion units per month.

Meanwhile, both Ralec and Ta-I have obtained WLAN orders from mobile handset and notebook PC makers in the mainland. They have reached their maximum production capacities.

Ralec said that its Kunshan plant in Jiangsu Province, mainland China has entered a full production recently. Its overall chip resistor production reached 4.6 billion units in March, with revenue exceeding NT$100 million. The firm estimated that profits from such production would stand at NT$60 million in 2003.

Ta-I started the construction of its No. 2 plant in Suzhou at the end of 2002. The firm expects to enter the formal production in the second half of this year.