Weak demand hit Japanese electronic component makers in 2Q23

The high inventory level of finished products is currently suppressing the performance of Japanese electronic component manufacturers. In the period of April to June 2023, among the 8 electronic component manufacturers in Japan, 7 of them experienced a year-on-year decrease in profits, with only Nidec showing growth. Despite the favorable exchange rate of the Japanese yen for settlements, it remains challenging to offset the negative impacts of prolonged poor sales of smartphones and reduced investments in data centers. The current situation only allows for hope for a recovery in the smartphone market and sufficient demand from electric vehicles (EVs) to sustain the industry.

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