Dear Valued Customers,
Thank you for your long-standing support and trust in FOSAN! Recently, affected by the drastic fluctuations in the global metal material market prices, the raw material costs of our thick film chip resistor products have increased significantly. To help you understand the background of this price adjustment, we hereby explain the relevant situation as follows:
I. Overview of Product Structure and Metal Material Application of Thick Film Chip Resistors
Thick film chip resistors are mainly composed of the following materials, among which several key components are metal materials:
Substrate: Mainly made of aluminum oxide (Al₂O₃)
Back electrode paste: Mainly composed of silver (Ag)
Front electrode paste: Containing silver (Ag) and palladium (Pd)
Resistor paste: As the core functional layer, it contains silver (Ag), palladium (Pd) and ruthenium (Ru)
Electroplating layer (nickel/tin): Containing nickel (Ni) and tin (Sn)
Protective layer and auxiliary materials: Including glass layer, epoxy resin marking layer, as well as non-metallic auxiliary materials such as paper tape and upper and lower adhesive tapes
II. Price Increase Analysis of Major Metal Materials (December 2024 vs. January 2026)
Recently, metal market prices have been rising continuously. The core metals directly affecting resistor material costs have the following price increases:
Among them, the skyrocketing prices of silver, palladium and ruthenium, as the key components of resistor paste and front/back electrodes, are the main factors leading to the increase of resistor material costs.
III. List of Core Materials Affected by Metal Prices
The prices of the following materials are significantly affected by the fluctuations in the metal market due to their high metal content, with the price of four major materials increasing by more than 100%:
Resistor paste: Containing silver (Ag), palladium (Pd) and ruthenium (Ru), which is the item with the greatest impact on resistor material costs
Front conductive paste: Containing silver (Ag) and palladium (Pd), which is the second largest cost of resistor materials
Back conductive paste: Containing silver (Ag)
Electroplating layer (side conduction and external plating): Containing nickel (Ni) and tin (Sn)
IV. Conclusion: The Price of Core Raw Materials Increased by Over 200%, Leading to a More Than 100% Rise in the Cost of "Partial Resistor Metal Materials"
Based on the comprehensive analysis of the price increase rate of various metals and their BOM (Bill of Materials) proportion, compared with December 2024, the overall cost of "metal paste raw materials (front/back conductive paste, resistor paste and nickel-tin layer)" of thick film chip resistors in January 2026 has increased by more than 100%, resulting in a substantial growth in the total cost of thick film resistor products.
The skyrocketing prices of silver, ruthenium and palladium are the main influencing factors
Resistor paste and electrode paste account for the largest proportion of the total material cost, and their price fluctuations are directly transmitted to the total product cost
Faced with this uncontrollable external factor, FOSAN has always adhered to the corporate value of "Craftsmanship Quality, Pursuit of Excellence". While ensuring product consistency and reliability, we have tried our best to absorb part of the cost pressure through process optimization and supply chain management. However, to maintain product quality and sustainable supply capacity, we have to make corresponding adjustments to product prices.
We sincerely hope to receive your understanding and support. If you wish to further understand the material details or cost composition, our sales team is ready to provide you with detailed explanations at any time.