Japan's electronic parts export growth is being trampled

The tech detail section showcases a range of high-tech components, including a mobile phone crystal with dimensions 3.2*2.5mm (3225), operating at 26M (26.000MHZ) with capacitance of 7.5PF and frequency tolerance of 10PPM, 20PPM, or 30PPM. Another key component is the STM32L151CCU6, a single-chip microcontroller known for its low power consumption and high performance. Additionally, there's an SMD aluminum electrolytic capacitor from Japan, noted for its reliability and use in various electronic applications. In October to December 2015, orders from major Japanese electronics companies like Kyocera and TDK remained flat compared to the same period in the previous year, marking a significant slowdown after years of steady growth. This decline was partly due to weaker demand from China, the largest market for these components. As electronic components are a major export for Japan, slower order growth posed a challenge to the country’s economic outlook. According to independent data from Japan Economic News (Nikkei Chinese), total orders during this period increased by only about 1% year-on-year, reaching less than 1.4 trillion yen. While still a record high, this marked the lowest growth rate since 2012, influenced by the aftermath of the 3.11 earthquake and floods in Thailand. Despite continued growth in orders centered around smartphones and automotive parts, global economic slowdowns have dampened production momentum in China. This has had a ripple effect on the electronics sector. For instance, Kyocera saw a drop of over 6% in orders due to reduced supply of semiconductor protection parts for communication base stations. Meanwhile, Nitto Denko faced declining demand for liquid crystal-related components as the smartphone market slowed. Murata, however, maintained a growth rate of 7-9%, albeit lower than the previous 20-30%. This was driven by the increasing complexity of smartphones and rising demand for automotive electronics. On the other hand, Japan’s electric power industry is expected to grow by around 10% due to strong automotive parts sales, but the air conditioning market in China faces challenges. Excess inventory and stalled construction of high-end buildings have led to a difficult situation, with some companies reporting tens of millions of units in stock. Apple’s new product releases also impacted the market. The iPhone 6s, released in early 2016, failed to meet expectations, leading to a reported 20% drop in sales. Analysts suggest that electronic component orders for Japanese firms may remain flat or even decline in the first quarter of 2016. According to IHS Global analyst Nan Chuanming, while smartphone supply is expected to improve after the summer, other sectors will face tough conditions throughout the year. As one of Japan’s main exports, electronic components play a vital role in the economy. In 2014, the export value of semiconductors and related components reached 3.6908 trillion yen, accounting for 5% of total exports. With auto exports showing signs of recovery, the slowdown in electronic component exports could significantly affect Japan’s already sluggish economy.

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