[Epoch Times October 21, 2021](Epoch Times reporter Wang Xiang compiled a report) “Nikkei” (Nikkei) reported on Wednesday (October 20) that due to the shortage of US-made parts, China’s 5G infrastructure speed is slowing down. Slowing down, leading overseas suppliers to shift to the US and European markets.
China accounts for more than 60% of the global 5G market, and the demand for related component production used to be closely synchronized with the speed of infrastructure construction. According to data from the National Bureau of Statistics of the Communist Party of China, during the period from January to August this year, the output of base station parts and components plummeted by 53% year-on-year, which is the 11th consecutive month of decline.
The report said that the main reason for the slowdown in China’s 5G infrastructure is that the United States bans the sale of products to China’s 5G equipment vendors Huawei and ZTE, which has led to a shortage of foreign-made key components.
Antoine Bonnabel, an analyst at Yole Developpement, a French research institute, predicts that it may take years for China’s demand to recover.
The slowdown in Chinese demand has also affected Japanese and Taiwanese suppliers that rely on China’s 5G market.
Tsuneo Murata, chairman of Japan’s Murata Manufacturing Co., Ltd., told Nikkei that China’s demand for parts that prevent signal interference (such as filters) produced by the company is declining.
Another telecommunications component manufacturer also confirmed that since the summer of 2020, several transactions between its company and China’s Huawei Technologies have ceased.
Faced with the exhaustion of China’s 5G infrastructure demand, some foreign suppliers are shifting their sales focus from China to Europe and the United States.
The Chinese market accounts for 90% of Sumitomo Electric’s operating income. However, Sumitomo Electric Industries plans to double the number of R&D personnel in the European and American markets by March next year to quickly meet the market demand in the above-mentioned regions. At the same time, starting in September, it will operate a factory in the United States to start producing chips for 5G base stations. It also plans to increase the revenue share of the United States and Europe from the current 10% to about 50% within five years.
Japan Electric Glass (NEG), a global glass substrate manufacturer, also stated that it will set up US and European market teams as early as 2022. 90% of the fiber optic components produced by the company are sold to China.
Editor in charge: Ye Ziwei#
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