Prices for chip resistors in 0402 sizes dropped by 5-8% cumulatively in the first half of 2011 and are expected to further slip by 2-3% in the third quarter due to weak demand, according to industry sources in Taiwan.

Additionally, prices of resistors in smaller 0201 sizes have also begun to fall at a slow pace due to increasing popularity of the products, the sources noted.

Affected by slack demand and inventory checks at clients, resistor makers Ta-I Technology and Ralec Electronic are expected to see their June revenues decrease by about 10% each on month to below NT$300 million (US$10.45 million) and NT$200 million, respectively, the sources estimated.

Revenue outlook for resistor makers will remain flat in the third quarter due to low order visibility and uncertainly about demand from the PC sector, the sources pointed out.

Article translated by Steve Shen