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 and 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. In furtherance to our industry consolidation strategy, we acquired controlling stake in Compostar (Taiwan's third largest MLCC manufacturer) in 2005, thereby propelling Yageo to the world¡¯s number three MLCC supplier in terms of capacity.
(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 24.5 billion units/month, almost one-third of the global market. The corporation also has the world's third largest MLCC capacity at 14.5 billion units/month, on a par with TDK, and ranking behind only Murata and Taiyo Yuden. In the ferrites field, annual global production of 13,000 tons puts Yageo in second place, behind TDK.

 

With a history of continued growth and a solid array of global advantages, Yageo remains dedicated to achieving its ultimate goal: to become the world's largest producer of passive components.