Chip resistors are integrated circuit devices that are used to restrict or oppose the flow of electrical current. They are extremely compact and are manufactured in rectangular or square chip packages. They are significantly used for controlling and protecting the circuit. Due to the exemplary resistance provided by chip resistors, they are extensively used in various industries like consumer electronics, automotive, industrial, IT & telecommunication, and many more.
Forecast Analysis of the Global Chip Resistor Market
The global chip market is expected to witness an augmented growth, owing to the surging demand for electronic devices like smartphones, laptop, television, and others. In addition, exponential growth in the automotive, IT and industrial sectors, and their rising adoption of chip resistors are further expected to drive the growth of the market during the forecast period (2021-2028). But, high cost and persistent fluctuations in the prices of raw materials required to produce a chip resistor is expected to restrain the growth of the market during the forecast period. However, rising adoption and advancements in the electric vehicles, 5G testing infrastructure, and IOT are anticipated to create vital opportunities for the growth of the market during the forecast period.
According to report published by Research Dive, the global chip resistor market is predicted to generate a revenue of $3,330.3 million during the forecast period. The key players of the global chip resistor market include TE Connectivity, Yageo Corporation, Susumu Co. Ltd, Bourns Inc., Vishay Intertechnology Inc., Tzai Yuan Enterprise Co., Yageo Corporation, AVX Corporation, Koa Corporation, AVX Corporation, International Manufacturing Services, and others.
Recent Trends & Key Developments in the Market
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global chip resistor market to grow exponentially.
In May 2018, Vishay Intertechnology Inc., a leading manufacturer of discrete semiconductors (diodes, rectifiers, transistors, and optoelectronics), acquired GEKA GmbH, a global manufacturer of brushes, applicators, and of complete packaging systems for the cosmetics industry, so as to increase its share and presence in the chip resistor market.
In May 2020, Yageo, a Taiwan-based leading electronic component manufacturer, acquired KEMET Corporation, a Florida-based electronic component manufacturer, for about $1.8 billion. This acquisition will allow Yageo to focus, innovate and expand its offering on Multilayer Ceramic Chip Capacitors (MLCC) and also diversify its footprint in the American market.
In May 2021, Vishay Intertechnologies Inc., introduced a chip resistor called “The Vishay Sfernice P2TC” which is a modern high-precision slim-film wraparound chip resistor which can be used for various applications requiring reduced noise and maximum stability. This product further extends the product categories of the company in the chip resistor market.
Most Profitable Region
The Asia-Pacific region is expected to have the highest market share and hence dominate the global chip resistor market. The Asia-Pacific chip resistor market is predicted to generate a revenue of $1,434.1 million during the forecast period, due to the availability of advanced technologies and cheap labor in the region. Moreover, increasing usage and adoption of electronic devices in the region are further expected to drive the growth of the Asia Pacific market during the forecast period.
COVID-19 Impact on the Market
The outbreak of novel virus has had an adverse impact on the global chip resistor market, owing to the nation-wide lockdowns that were prevalent in various countries around the globe. The lockdowns led to the closure of production and manufacturing facilities of various industries, leading to a consequent downfall in the demand for chip resistors. Moreover, stringent governmental regulations on the import and export of raw materials further impeded the growth of the global chip resistor market.