The electronics industry supply chain is once again sounding the "price hike alarm"! Recently, Yageo, a global powerhouse in passive components, issued a price increase notice to its customers, announcing that prices for certain resistor products will rise by 15% to 20% starting from February 1, 2026. This price hike affects core models including RC0402, RC0603, RC0805, and RC1206. The driving force behind this price increase is the soaring cost of precious metals, with raw materials such as silver, ruthenium, and palladium making up 35%–40% of resistor production costs. Notably, silver prices have cumulatively surged by over 20% since December 2025, while palladium spot prices have soared above $1,200 per ounce, marking a 12% month-on-month increase. As a resistor market leader with an approximate 18% global market share, Yageo's price adjustment sets a precedent for the industry. Taiwanese manufacturers like Walsin Technology and Chilisin Electronics have quickly followed suit, raising prices for thick-film resistors by 15%–20%. This wave of price hikes has already sent ripples through the A-share market, with the passive components sector demonstrating strong performance. Companies such as Fenghua Advanced Technology and Sunlord Electronics have garnered attention due to expectations of import substitution and breakthroughs in high-end products. Industry analysis points out that the booming demand for AI servers and new energy vehicles is exacerbating supply-demand imbalances. A single AI server uses 30 times more MLCCs (Multi-layer Ceramic Chip Capacitors) than traditional servers, while the demand for automotive-grade resistors has surged sixfold compared to traditional fuel vehicles. Given the tight capacity for high-end production, sustained price increases are well-supported.