Rising Demand for 5G Phones Aids MLCC Makers in China, US, Middle East
The increasing demand for 5G Phones and networking is sure to fetch great profits for the firms involved in producing parts required to initiate the technology. As market trends change, the firms benefitting the most are the makers of multi-layer ceramic capacitors (MLCC), which are used to make the device.
As Apple is expected to step up the 5G phones business in 2020, a leading supplier of its MLCC for iPhones – Taiyo Yuden, is all geared up for record sales in the upcoming year.
From using 2G in 2000 to heading for 5G in 2020, the mass market mobile internet is changing at a fast pace. Analysts predict the number of devices connected to net will reach almost 50 billion by 2030. Sources claim that 5G phones use 30 percent extra ceramic capacitors than the 4G ones and hence, the demand for MLCC makers is sure to rise.
MLCCs are tiny components built of metallic plates and are used in electronic circuits to stabilize voltage and power flow. This year, sales of Taiyo Yuden hiked significantly. CEO Shoichi Tosaka claimed Huawei and Samsung will raise orders for MLCCs as they are currently leading the 5G networking market.
Analysts claim that besides some Japanese and Taiwanese firms like Yageo Corp and Walsin Technology Corp, South Korean – Samsung Electronics will also benefit from the shifting trends of 5G networking. A Bermuda Islands headquartered firm, Marvell Technology has shown commendable stocks this year despite not being in its best shape (as shown by the fiscal 2020 third quarter results). Investment banking firms – Cowen and Jefferies believe that Marvell is sure to benefit from the 5G networking rollout.
In a recent earnings conference call, CEO Matt Murphy said, “In fact, one of our important growth drivers has already started to benefit us and I’m very pleased that we shipped a significant amount of our 5G products in the third quarter, helping our key customer rapidly rollout base stations for the initial wave of 5G deployments in [South] Korea.”
As per Simone Vernacchia, a partner specialising in digital and cyber security at PwC Middle East – although 5G phones have entered the UAE and all over GCC, Asia, Europe and North America, the new networks will initially be used by large sector players in aviation, security and energy.
Moving much ahead of just 5G Phones, Dubai’s Etisalat Metro Station has become the first 5G enabled metro in the Middle East and North Africa region. With 1Gbps+ speed, the network is 20 times faster than 4G. Moreover, 5G networking was offered at the Abu Dhabi Grand Prix 2019.
The demand for MLCCs and 5G networking will benefit makers worldwide in the coming times. With its 5G enabled metro station, the Middle East seems to be running ahead of all!
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