Japanese electronic parts manufacturers have received a large number of orders from domestic mobile phone manufacturers such as Xiaomi, oppo and vivo, making up for the loss of Huawei's orders, the Japanese Economic News reported on October 16. "A lot of orders are pouring in, far beyond the factory load," said a head of the Japanese display company (JDL).
According to IDC, a market research firm, global smartphone shipments will decrease by 10% to 1.2 billion in the fourth quarter of 2020, but many mobile phone manufacturers are still expanding production.
TDK, a Japanese electronics component maker, believes that competitors have shared Huawei's reduced mobile phone production, but that they have increased production by "a little bit too much.".
"Orders at the end of September have reached an all-time high, and some manufacturers intend to double their production plans for next year," said an employee of a large Japanese electronic parts manufacturer
In addition to increasing production and hoarding, the sense of crisis also urged mobile phone manufacturers to seek alternatives to American technology.
Zuken, a printed circuit board manufacturer based in Yokohama, Japan, said companies in other countries and regions, not only in China, have shown a significant increase in interest in finding alternatives to U.S. products. Renesas electronics, the chipmaker, said it had been asked by Chinese customers to have non US engineers redesign specific products in non US factories.
However, it should be noted that some suppliers have warned that this is only a "special one-off demand boost", and this phenomenon will be adjusted next year.