In response to the decline in the market price of MLCC described by media and investors a few days ago, the situation of MLCC shortage has turned over. Guoju said that it is understood that it is the price adjustment of the retail (spot) market, and it is aimed at the fluctuation of supply and demand of several parts. The retail market is a niche market with passive components, and its market share is small. In particular, the retail market has been continuously out of stock due to its out-of-stock situation. Its retail price is much higher than the quarterly or semi-annual supply price of general direct sales customers. Times, the retail market conditions and their prices are completely unable to represent the supply and demand of MLCC.
Guoju stressed that, in fact, the supply and demand of MLCC is still very tight. In addition to the withdrawal of Japanese manufacturers from the supply chain, emerging applications such as 5G, automotive electronics and IOT have doubled the demand for parts, coupled with technical and environmental impact assessments. It is not easy for general manufacturers to expand production, even if the price rises, it will not solve the problem of imbalance between supply and demand. Guomao’s long-term strategic customers, Future Electronics (International Distributor) and Jabil Inc. (International Design Foundry) All said so.
Guoju said that the company's four major business directions include 'improving global market share, providing customers with excellent services, continuing to increase product lines and different passive component technologies, and continuously optimizing and stabilizing financial indicators'. In terms of capacitors, Murata's retreat items, especially high-capacity, automotive electronics and industrial products expand production and increase market share; in terms of resistance, it is the expansion of high-priced precision resistors and automotive resistors.
Guoju also pointed out that over the past year, due to the shortage of components, customers have pulled goods urgently, resulting in a sudden drop in the company's inventory and a rise in the length of the materials. In order to restore the quality of the past services, Guoju has reached the expectation that the customer orders will be delivered once. In addition, in response to the strong requirements of customers, Guoju will also sign long-term supply contracts with customers to ensure stable supply for customers for two years. The contract price will be adjusted according to supply and demand conditions, in addition to consolidating each other with customers. The relationship of long-term strategic partners also equalizes the fundamentals of the company's production and support capital expenditures, and achieves a win-win situation with customers.
Guoju said that the company has a core competitiveness of technology, market, service, and management. It can strive to enhance the long-term status of the company's passive components in the world while the passive component industry structure changes, and continue to pursue performance and profit. Reasonable growth, creating long-term value for customers and shareholders.