Nihon Keizai Shimbun reported on October 16 that Japanese electronic component manufacturers have received a large number of stock orders from Chinese mobile phone manufacturers such as Xiaomi, OPPO, and Vivo. The loss of Huawei’s orders was filled.
A person in charge of Japan Display Corporation (JDL) said that “a large number of orders have poured in, far exceeding the factory capacity.”
The report pointed out that due to US sanctions on Huawei, Chinese mobile phone manufacturers worry that the US government will extend the ban to Chinese companies other than Huawei, leading to a surge in demand.
According to data from market research organization IDC, global smartphone shipments in the fourth quarter of 2020 will decrease by 10% to 1.2 billion units. However, many mobile phone manufacturers are still expanding production.
Among them, Apple recently revealed that this year’s iPhone shipments will reach 220 million units, 10% more than originally planned. Many people familiar with the supply chain revealed that, as the world’s 4th and 5th smartphone manufacturers, both Xiaomi and OPPO plan to increase production in 2021 and produce 200 million smartphones, an increase of more than half compared to 2020.
Japanese electronic parts manufacturing company TDK believes that many competitors have shared Huawei’s reduced mobile phone production, but their increase in production appears to be “a bit excessive.”
An employee of a large Japanese electronic parts manufacturer said, “The orders at the end of September have reached a record high, and some manufacturers also intend to double their production plans for next year.”
In addition to increasing production and stockpiling, the sense of crisis also urges mobile phone manufacturers to seek alternatives to American technology.
Zuken, a printed circuit board manufacturer based in Yokohama, Japan, said that not only China, but companies in other countries and regions have also greatly increased their interest in finding alternative products from the United States. Chip manufacturer Renesas Electronics revealed that some Chinese customers have asked it to let non-US engineers redesign specific products in non-US factories.
However, it should be noted that some suppliers have reminded that this is only a “special one-time demand boost.” This phenomenon will be adjusted next year.