Chip Resistor Makers Face Broad Raw Material Cost Pressure
Per DigiTimes chip resistor makers are expected to see rising cost 
pressure from leading upstream materials suppliers as SMT packaging 
materials maker Laser Tek and alumina substrate maker Leatec Fine Ceramics 
are said to be either planning price adjustment or running short of 
capacity.  Whether passive component makers are going to raise their 
prices for chip resistors again is drawing concern as combined costs from 
the two materials, as well as ruthenium- and metal-based resistor pastes 
currently account for over 80% of total costs. Chip resistor cost 
breakdown by items is: SMT materials and ruthenium/metal-based resistor 
pastes each 15-20%; substrate 40-50%; remainder labor costs.