On March 28th, Housheng issued a notice of resistor price increase, but little did they know that on the same day, Guojus subsidiary Qilixin also issued a notice of inductor price increase to its agents. This time, Qilixins inductor price increase was significant, with an adjustment range of 45% to 68% according to the notice.

Just as the weather warmed up in 2018, the US President brought bad news to US China trade. US President Trump officially signed a memorandum of understanding on trade with China at the White House. Trump announced on the spot that tariffs may be imposed on $60 billion worth of goods imported from China.

The Ministry of Finance and four other departments have issued the "Enterprise Income Tax Policy for Integrated Circuit Manufacturing Enterprises". The Policy proposes that after January 1, 2018, integrated circuit production enterprises or projects with a line width of less than 130 nanometers and an operating period of more than 10 years that invest in new integrated circuits will be exempt from corporate income tax in the first two years, and will be subject to a 50% reduction in corporate income tax at the statutory tax rate of 25% from the third to the fifth year, and will enjoy requirements until the expiration of the term.

On March 28th, Premier Li Keqiang presided over a State Council executive meeting to determine measures to deepen value-added tax reform and further reduce the tax burden on market entities. The meeting decided that starting from May 1, 2018, the value-added tax rate for industries such as manufacturing will be reduced from 17% to 16%, and the value-added tax rate for industries such as transportation, construction, basic telecommunications services, and agricultural products will be reduced from 11% to 10%. It is expected that the annual tax reduction will be 240 billion yuan.

The shortage and price increase of resistors have further intensified. Recently, resistor manufacturer Lizhi Electronics issued a price increase notice, with some products of Lizhi Electronics increasing by 15% -30%. It is expected that the shortage and price increase of resistors will continue until the third quarter.