Within the vast ecosystem of the electronics industry, chip resistors, as fundamental and critical electronic components, see their market size changes not only reflecting industry development trends but also closely correlating with the rise of various new technologies.

PART 01 Global Passive Component Market: Capacitors Dominate, Resistor Potential Awaits
Data from the Electronic Components Industry Association (ECIA) shows the global passive component market reached USD 34.6 billion in 2022 and is projected to climb to USD 54.67 billion by 2027, representing a Compound Annual Growth Rate (CAGR) of 5.29%.

The resistor market is steadily expanding.

Drilling down into the resistor category, within China's automotive resistor demand in 2022, thick film resistors accounted for 38% and alloy resistors 37%. Different technology routes suit varied scenarios: thick film resistors cover consumer electronics leveraging cost advantages, while alloy resistors support automotive electronics and industrial control with high precision. This demand differentiation provides clear direction for corporate technology strategy.

PART 02 The Rise of Domestic Resistors: Growing Share, Ample Substitution Space
(I) Current Competitive Landscape
Based on estimated production capacity distribution, Taiwanese and Japanese manufacturers rank first and second, holding 59% and 21% shares respectively; Mainland Chinese manufacturers follow in third place, holding about 17%.

(II) The Rise of Domestic Resistors
Looking back to before 2020, foreign brands held a dominant 95% share in the domestic resistor market, with domestic brands at just 5%. Currently, the share of domestic manufacturers has risen to 15%. Although still in a 'catch-up phase', the growth trend is significant.

This progress is driven by continuous efforts from domestic companies in technological breakthroughs and capacity expansion: FOSAN's monthly business capacity reaches 20 billion pieces, ranking among the top three domestic manufacturers, and it jointly promotes the "import substitution" process alongside other leading Chinese companies.

FOSAN continuously increases investment in the chip resistor field, expanding production capacity, with products gradually moving towards the mid-to-high end. Through technological innovation and process optimization, FOSAN not only meets the chip resistor demands of numerous domestic companies but is also emerging on the international stage.

From a global competition perspective, the resistor market is still led by foreign manufacturers – the top eight global resistor manufacturers are all foreign companies, with players like Vishay and Yageo holding significant revenue shares.

However, the advantages of domestic enterprises are beginning to show: Taiwanese brands are gradually exiting the standard product market due to capacity relocation and conservative operations; Japanese, European, and American brands have limited capacity, with lead times stretching 18-30 weeks. Domestic enterprises, leveraging "local responsiveness + cost control," are rapidly penetrating the mid-to-low end market and breaking into high-value-added fields like automotive-grade and communications-grade resistors.

PART 03 Downstream Demand Drivers: Automotive and Communications as Growth Engines
The growth of the resistor market is inextricably linked to the 'pull' from downstream applications. Network communications, automotive applications, power, and industrial control are the core demand sectors, accounting for 42%, 16%, and 10% respectively.

Resistors are categorized by application into high-end, sub-high-end, and mid-to-low-end:

• High-end refers to automotive-grade resistors (requiring compliance with AEC-Q-200 standard, maintaining long-term stability in TCR, precision, etc., under -50℃~150℃ and severe vibration).

• Sub-high-end covers communications (mobile phones), computers, and other fields.

• Mid-to-low-end corresponds to scenarios like home appliances and lighting.

Taking automotive electronics as an example, the usage of resistors per new energy vehicle has significantly increased compared to traditional internal combustion engine vehicles. Furthermore, the stringent requirements for reliability and stability of "automotive-grade resistors" are driving growth in demand for both thick film and alloy resistors. The construction of 5G base stations and iteration of terminal devices also continue to push up demand for high-precision, small-size resistors in the communications field.

This demand differentiation creates opportunities for domestic companies: FOSAN focuses on the R&D of high-end automotive-grade resistors, adapting them for automotive electronics, new energy, and other scenarios, and engages in deep cooperation with industry leaders. In the communications field, through technological optimization, companies are narrowing the "performance gap" with foreign brands and gradually entering the supply chain system.

The rise of New Energy Vehicles has made automotive electronic systems increasingly complex, placing higher demands on the performance and quantity of electronic components like chip resistors. The large-scale deployment of 5G communication networks significantly increases demand for high-precision, highly stable chip resistors in base station equipment, terminal devices, etc. Development in the field of Artificial Intelligence drives upgrades in equipment like servers and data centers, similarly boosting market demand for chip resistors.

The "global restructuring" of the chip resistor market has begun: the old order dominated by foreign capital is loosening, and new forces advocating domestic substitution are rising. FOSAN will use "production capacity scale + technological innovation" as its anchor to secure a position in the global market wave, working with industry partners to build a "new growth pole" for domestic resistors – this is not only an opportunity for corporate development but also a microcosm of the upward breakthrough of China's electronic components industry.