Recently, many customers have noticed the decline in the market price of metallic silver and have inquired whether thick-film chip resistors will also lower their prices accordingly. Focusing on this key concern, FOSAN Electronics provides a professional and transparent cost analysis based on the core material structure of thick-film chip resistors and the latest raw material market trends as of March 2026.
The downward adjustment of silver prices only brings minor cost fluctuations. Meanwhile, core precious metals such as ruthenium and palladium continue to rise in price, and the surge in crude oil has driven up the cost of packaging auxiliary materials. As a result, the overall material cost of thick-film chip resistors remains under pressure.
Product Structure and Material Application of Thick-Film Chip Resistors
Thick-film chip resistors consist of the following materials, with multiple key components being metallic materials:
Substrate: Mainly aluminum oxide (Al₂O₃);
Back electrode paste: Main component is silver (Ag);
Front electrode paste: Contains silver (Ag) and palladium (Pd);
Resistor paste: The core functional layer, containing silver (Ag), palladium (Pd), and ruthenium (Ru);
Plating layer (nickel/tin): Contains nickel (Ni) and tin (Sn);
Protective layer and auxiliary materials: Including glass layer, epoxy resin marking layer, paper tape, top and bottom adhesive tapes, and other non-metallic auxiliary materials.
2. Metal Content and Material Proportion in Each Layer of Thick-Film Chip Resistors
Silver is mainly used in the electrode layers of thick-film chip resistors:
Metallic silver is primarily applied in the electrode layers and part of the resistor layer of chip resistors. The back conductor is mainly composed of silver, while resistor paste mainly contains ruthenium, palladium, and silver.
Ruthenium and palladium are only used in the resistor layer of chip resistors, with palladium accounting for approximately 5%–20% and ruthenium 5%–45%.
As of March 22, 2026, silver is priced at 17.6 CNY per gram, palladium at 368 CNY per gram, and ruthenium at 461 CNY per gram. It is clear that silver has a much lower unit cost than ruthenium and palladium, and is not the core factor determining resistor costs.
Calculated as metal content × market unit price, ruthenium has the greatest impact on resistor paste costs, accounting for 60%–80%, making it the core cost driver of resistors.
To help you intuitively understand the impact of each material on costs, we can compare the cost structure of thick-film chip resistors to a cup of milk tea:
Silver is like the pearls in the milk tea (accounting for about 15%–30% of total costs). A 10% price drop in pearls barely changes the overall price of the drink.
Ruthenium + palladium are like the milk foam and tea base (accounting for about 30%–45% of total costs). Sustained price increases of these core raw materials are the key to resistor pricing.
Packaging auxiliary materials are like the cup, straw, and bag (accounting for about 15%–20% of total costs). Rising oil prices have made these packaging materials more expensive, further pushing up overall costs.
3. Metal Price Trends as of March 2026
Silver prices corrected in March 2026 but remain volatile.Current prices:
Silver: 17.6 CNY/g, 17,625 CNY/kg
Palladium: 368 CNY/g, 368,000 CNY/kg
Ruthenium: 461 CNY/g, 461,000 CNY/kg
Summary
1. Cost Structure of Thick-Film Chip Resistors
Thick-film chip resistors mainly consist of front/back conductors, resistor paste layers, and solder layers. Their primary components include precious metals and metal oxides such as silver, palladium, ruthenium, nickel, and tin, accounting for 60%–80% of total material costs.
2. Market Price Fluctuations
As of March 2026, silver prices have corrected, while ruthenium prices continue to rise driven by demand from memory and AI orders.
Affected by the situation in the Middle East, crude oil and some rare metal prices have climbed, leading to higher prices for component packaging materials (paper tape, adhesive tape reels, etc.).
Comprehensive Analysis: Although metallic silver prices have fallen, ruthenium and some packaging materials remain at high volatile levels. The overall material cost of chip resistors has not decreased and continues to rise.
FOSAN Electronics: Moving Forward Hand in Hand with Customers
Stable Quality, Optimized Costs, Enhanced Services
Facing complex raw material market fluctuations, FOSAN Electronics always puts customers first, adheres to the philosophy of long-term cooperation, and fully safeguards customer interests:
Real-time raw material market trackingA professional team monitors price trends of core raw materials including silver, ruthenium, palladium, and crude oil in real time, accurately controls cost fluctuations, synchronizes market information promptly, and ensures transparent and sincere communication.
Continuous cost structure optimizationWe deepen production process improvements, enhance material utilization, and promote large-scale production efficiency. Through technological upgrades and internal management optimization, we proactively absorb part of the cost pressure and strive to stabilize product prices to the greatest extent.
Unwavering commitment to qualityWe maintain consistent quality for every product, never compromise product quality due to cost fluctuations, and persist in high-performance product design.
