Hon Hai allies with Yageo to start large-scale sourcing

Hon Hai officially issued the "Yageo Project Plan" to nearly ten sub-groups under its group, requesting each group to put forward a list of purchase amounts and initiate large-scale sourcing of the Yageo Group. The target is not only Yageo, but also the Qilixin, Kaimei also plays the important role of "double arrow" and is included in the "Preferred Supplier List (PSL)" of Hon Hai Group, and will give priority to purchasing its passive components, inductors and other products.

The Hon Hai Group and Yageo Group signed a strategic alliance agreement at the end of September. The two parties will cooperate in the "3+3" direction that Hon Hai Chairman Liu Yangwei has previously decided on. Yageo Group will provide high-quality passive components.

The Hon Hai Group officially issued a notice last week, targeting nearly ten sub-groups, which is equivalent to covering all the business of the Hon Hai Group. Yageo, Kellett, and Kaimei must supply passive components related components, and the cooperation between the two parties has officially started.

According to the information released by the Hon Hai Group to the sub-group this time, the Hon Hai Group takes the "Yageo Project Plan" as the first English letter "Y" of the English name "Yageo" of Yageo, and the internal name is "Y+ Plan". The "+" in it means more diligence, which means deepening cooperation between the two parties.

According to a person familiar with the situation, Hon Hai attaches great importance to the "Yageo Project Plan". In the internal notification, the cyclical quality management "PDCA" is used to specify the details, and the plan (PLAN), implementation (DO), inspection (CHECK), Action (ACTION) and other four major levels.

Among them, Yageo requires Japanese and Korean passive component manufacturers to provide NRND (not recommended for new designs) product shares and medium-to-high capacity supply capabilities to fully meet the needs of Hon Hai Group, while Kemei provides tantalum capacitors; Qi Lixin Inductors, Yageo's chip resistors, and Pusi's filters are all included in the priority purchase list.

According to the internal data of Hon Hai Group, this time, each group is required to list the purchase amount from Yageo, Kellett and other manufacturers on an annual or even monthly basis, as the basis for compiling the purchase amount, and at the same time compare the results of new materials. Yes, and follow-up progress review and plan revision. Once there is an abnormal supply phenomenon, Yageo Group is also required to provide relevant cause analysis and improve delivery flexibility.

The ODM and OEM departments within the Hon Hai Group must also prioritize procurement for various terminal products, and regulate the selection of Yageo product numbers by R&D personnel. Each group must also share project information for reference.

Yageo Group is also required to put forward promotion projects and plans, and at the same time assist in fully cooperating with Hon Hai Group in supplying materials. In addition, Yageo will also regularly review the high-share supply situation with Hon Hai Group on a "monthly" cycle.

Industry insiders pointed out that Hon Hai is the global leader in electronic OEMs. Its products cover all kinds of 3C products. The annual shipment of mobile phones alone exceeds hundreds of millions. There are also various terminal applications such as game consoles and networks, which have huge demand for passive components. , Especially the advent of the 5G era, the consumption of passive components has increased by multiples. Hon Hai and Yageo’s cooperation have been officially launched, which not only makes the supply of passive components for Hon Hai safe, but also finds a barrier for Yageo Group’s future products to export to the sea.