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As hardware prices continue to fall, electronics industry experts predict that all electronics manufacturing firms will be transformed into service enterprises over the next decade. That transformation is already a fact at Yageo, with continuous growth as a supplier of passive components compelling the corporation to define itself as a service enterprise early on.
In the fast-paced electronics field, Yageo firmly believes that playing a proactive role in the industry supply chain requires a clear vision of emerging trends and customer requirements.
The corporation s global deployment strategy has thus always been based on providing customers with comprehensive passive component solutions.
So wherever customers go, Yageo is right beside them, providing innovative service around the globe.
Strategic pursuit of #1
Back in 1977 Yageo leveraged its competitive advantages in mass production economies of scale and cost control to blaze new trails in the precision resistor field, and build the foundation for continued success in the PC era. But with the arrival of the post-PC era, and the trend toward miniaturization and shorter product cycles for consumer electronics and telecommunication applications, it became clear that future growth would demand globalization, and the ability to become part of customer supply chains through enhanced service.
This realization led Yageo to pursue three strategies:
(1) Integrating Passive Component Sectors - In 1996 & 1997 both Teapo (Taiwan s largest E-cap manufacturer) and Chilisin (Taiwan s largest inductor manufacturer) became part of Yageo. These additions enabled Yageo to become one of only three manufacturers in the world to supply all three primary passive components: resistors, capacitors, and inductors.
(2) Establishing Global Channels - In 1994 Yageo captured the Southeast Asian market by acquiring ASJ, a Singapore-based resistor manufacturer. In 1996 the corporation also established a beachhead in the European market to enhance market penetration, acquiring German resistor manufacturer and industry veteran Vitrohm. In 1999, we also acquired passive component distributor Steller of Seattle, USA.
(3) Enhancing Core Technologies - In the year 2000 Yageo acquired two passive component departments from Philips Electronics NV, now part of Yageo under the brand names Phycomp and Ferroxcube.
These acquisitions completed Yageo's global deployment strategy, integrating competitive advantages in efficiency, costs, distribution channels, and technology. In chip resistors, Yageo now has the world s largest production capacity at 18 billion units/month, almost one-third of the global market. The corporation also has the world s fourth largest MLCC capacity at 6 billion units/month, on a par with TDK, and ranking behind only Murata and AVX/Kyocera. In the ferrites field, annual global production of 17,000 tons puts Yageo in second place, behind TDK.
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