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[October 2007]
Yageo Celebrates 10th Year in China and Opening of Second Suzhou Plant
Yageo Corporation (Hsin Tien, Taipei) has announced the 10th anniversary of its China operations and the official opening of the Second Suzhou Plant, the world’s largest single passive component back-end production line. R-Chips and MLCC monthly capacities at the Second Suzhou Plant are expected to reach 36 billion and 11 billion pieces respectively by the end of 2008, making it the world's largest passive component production base. This special occasion is also marked with the groundbreaking of the Second Phase Construction, which sets the foundation for further capacity growth to keep pace with customer demand.
“Yageo launched China operation in 1996 and, in ten years, we’ve steadfastly established a complete production, sales and logistic network in Southern, Eastern and Northern China, in creating the world’s largest passive component supply chain,” said Pierre Chen, Chairman of Yageo Corporation. “As Yageo move on to the next stage of our China strategy, we will focus on honing core competence in technology innovation, high-end product production, real-time delivery and cost advantage in order to meet increasing customer requirement dynamics. Backed by our strength in comprehensive product portfolio and customized service solutions, Yageo has been the best strategic partner to our customers and will play a key role in the global electronics supply chain. I am confident that under the leadership of Yageo’s CEO, Mr David Huang, the management team will take Yageo to record growth in the next ten years.”
Yageo continued to make strides in China in recent years as it took the number one position in R-Chips with 39% market share and a top three position in MLCC with 19% market share. On the basis of a wide customer base ranging from key global OEMs to customers from telecommunications, digital consumer electronics, laptops and wireless communication equipment sectors in China, Yageo is positioned for further market expansion in the rapidly growing China market. The company’s technology strength in specialty products including the 0201 chip resistors, chip arrays and high capacitance MLCC have already been applied in mobile phone, smart phone and MP3 markets. Yageo’s capacitor, resistor and antenna products have also been approved by local mobile phone design companies in China.
“Our innovative services and capabilities in customized technology support have been widely recognized by our customers,” said Mr C Y Ting, General Manager of China Operation, Yageo Corporation. “To meet our customers’ diversified application requirements, Yageo will establish its third R&D Center in Suzhou, China after Europe and Taiwan in our efforts to provide real-time customized solutions. This will take place when the R&D building in the Second Suzhou Plant is completed next February.”
Strong global demand for electronic products is expected to further boost the passive components market. Laptop computer, mobile phone and LCD shipments will increase by 22%, 10% and 3% respectively in 2008, said Yageo. Growth of electronic products in China will outpace the global market due to surging domestic demand and business opportunities brought by the 2008 Beijing Olympics, as indicated by the 40% and 20% increase forecast for notebook computers and mobile phones respectively, and 67% for LCD TV next year.
Since setting foot in China in 1996, Yageo has established a complete production, sales and logistic supply chain across the Southern, Eastern and Northern regions. Yageo has also in place production bases and real-time logistics centres located in Suzhou and Dongguan, together with sales and marketing service bases in Beijing, Suzhou and Dongguan. Today, Yageo’s revenue generated in China has topped off 50% of the group’s total, as opposed to just 9.7% in 2000.
ENDS