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Demand for 5G handsets in 2021 is likely to exceed half a billion devices

Demand for 5G handsets in 2021 is likely to exceed half a billion devices

Murata, the world’s largest maker of ceramic capacitors for Apple and other smartphone brands, expects demand for 5G handsets to exceed 500 million units this year.

US sanctions have plagued Huawei, and sales of the Chinese brand are likely to fall sharply this year, given the Honor brand. Companies want to replace Huawei and compete with each other. Apple and Samsung and Chinese companies Xiaomi, Oppo and Vivo are competing for the parts they need.

Murata CEO Norio Nakajima In an interview He pointed out that the company’s factories will not close during the holiday season because it must meet the high demand. Nakajima said:

“Smartphone makers are competing for the production capacity that Huawei once had. I’m not sure how much of this demand will come from forecasting for future handset production. “I expect orders to fall in February and March.”

Murata is a world leader in multi-layer ceramic capacitors and is used to regulate electrical current in boards. Hundreds and in some cases thousands of capacitors are used in a product from smartphones to cars.

Nakajima said about 5G phones:

“In 2020, there was close to 300 million demand for 5G handsets, and we expect that number to reach at least 500 million by 2021. “We continue to increase our capacity to meet demand.”

Some analysts see Murata’s boss as too conservative. Ace Research analyst Hideki Yasuda does not expect demand for capacitors from companies like Apple to decline this year, as users are looking for 5G handsets more than expected.

The 5G handsets coming to market this year will be compatible with a wider range of frequencies and will require more Murata components to regulate electricity. According to Yasuda, the problem with the Murata product line means a shortage of components in the electronics supply chain, which affects the production of many products, such as game consoles.

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