Apple supplier Murata expects half a billion 5G phones in the new year
Murata Manufacturing Co., the world’s largest manufacturer of ceramic capacitors for Apple Inc. and other smartphone brands, expects demand for fifth-generation wireless devices to exceed 500 million handsets during the month. next fiscal year, relying on a rush to replace Huawei Technologies Co. in the global consumer arena.
Apple, Samsung Electronics Co. and its Chinese rivals Xiaomi Corp., Oppo and Vivo are fighting over the components of their devices, hoping to fill a void as Huawei’s mobile business shrinks under the weight of US sanctions. President Norio Nakajima said in an interview in December that Murata factories would not take a vacation while working to catch up with assembly orders, adding that “the situation is most serious with our peak capacitors for the use of smartphones .
These handset makers are competing to grab our supply capability once taken by Huawei, and I don’t know how much of it is supported by their actual production forecast, Nakajima said. “I feel like the move is overheated so I expect their orders to drop in February and March.”
“The industry had 300 million units of 5G smartphones in the current fiscal year, and I expect that figure to increase to at least 500 million in the next fiscal year,” said the president of the Kyoto-based company. “We will continue to make capital expenditures to meet growing demand.”
Analysts believe the Murata chief’s position is too conservative. Hideki Yasuda of the Ace Research Institute doesn’t expect demand from Apple and its ilk to wane at any point in this calendar year, fueled by a stronger than expected consumer appetite for 5G phones. The handsets slated to launch this year will also be compatible with a wider set of frequencies, increasing the need for Murata-made components to adjust the flow of electricity.
Yasuda said Murata’s production problems are representative of severe shortages in the electronics supply chain, affecting the assembly of many products, including video game consoles. The PlayStation 5 from Sony Corp. and the Xbox Series X from Microsoft Corp. both remain limited in supply, nearly two months after their initial release.
Murata’s Nakajima does not dispute that demand for his MLCC will remain strong throughout this year, although he said he expected a brief respite from the Lunar New Year holiday in China. He said the company’s MLCC sales would increase 10% in its next fiscal year starting in April, thanks in large part to 5G phones.
By Takashi Mochizuki and Yuki Furukawa
