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Yageo Poised to Narrow Valuation Gap with Japanese and Korean Rivals Amid Passive Component Price Hikes

Electronic Technology · Electronic Components · economic_daily · 2026-10-23

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Passive component leader Yageo is seeing strong order momentum and price increases, leading analysts to believe its valuation will soon catch up with its Japanese and Korean peers.

What Happened

Financial Performance: Yageo reported Q3 revenue of NT$49.53 billion, a 49.7% year-on-year increase that met market expectations. With a book-to-bill ratio maintained at 2 and capacity utilization reaching 90%, the company demonstrates robust operational health.

Price Hike Momentum: Following price adjustments by major Japanese and Korean manufacturers, Yageo is also raising prices for consumer-grade MLCCs by 20% to 30%. Analysts expect these price increases to materialize gradually based on specific product lines and contract terms.

Strategic Positioning: Yageo is leveraging its production capacity and bargaining power to transition into a comprehensive power component supplier. Market analysts suggest that this strategic shift will help the company close the valuation gap with its international competitors.

Future Outlook: Key monitoring points include consumer demand trends and inventory digestion, with potential saturation expected by mid-2027. The balance between new capacity coming online and overall market demand will be the primary driver of future pricing power.

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