Yageo chairman: inventory adjustments have reached healthy level

Janet Kang, Taipei, DIGITIMES Asia 0


The passive component giant Yageo held its shareholders' meeting on May 30. Founder and chairman Pierre Chen stated that current inventory adjustments have reached a healthy level. The capacity utilization rate for standard products has increased from 50% to 65%, and for niche products from 70% to 75%, with the expectation that inventory will be fully adjusted by the first half of 2024.

Looking ahead, Chen noted that Yageo is optimistic about the rapid growth of markets related to High-Performance Computing (HPC), sensing, high-speed computing, automotive, and AI. He also mentioned that Yageo would continue to expand its global presence through various means. Chen emphasized that they plan to connect peripheral products, aiming to transform Yageo into a one-stop solution provider.

Reflecting on 2023, despite the challenges of slowing market demand, ongoing supply chain inventory adjustments, international tensions, and global inflation, Yageo achieved steady results. This was due to the continuous expansion into high-end application markets, optimization of niche product portfolios, execution of acquisition strategies, and realization of consolidation benefits. As a result, Yageo's annual consolidated revenue surpassed NT$100 billion, with robust performance in gross profit, operating profit, net profit after tax, and earnings per share.

In 2023, Yageo's consolidated revenue reached NT$107.609 billion, with a gross margin of 33.5%. The operating profit was approximately NT$20.472 billion, yielding an operating margin of 19%. The net profit attributable to the company's owners after tax was NT$17.469 billion.

In addition, Chen mentioned that in 2023, Yageo successfully completed the cash acquisition of two high-end sensor suppliers: the German Heraeus Group's high-end temperature sensor business unit (Nexensos) and the French Schneider Electric's high-end industrial sensor business unit (Telemecanique Sensors). This aligns with Yageo's strategic focus on high-end niche markets, further expanding its product portfolio in high-design and high-end applications, and enhancing Yageo's market position as a global supplier of niche component solutions.