Growth in Demand Related to Automotive and Industrial Equipment, IoT and Cloud Computing

「Demand for industrial machinery remained firm, supported by capital investment in generative AI and data centers」

「Demand for AI servers and data centers increased significantly against the backdrop of expanded AI infrastructure investment by hyperscalers. PC demand recovered steadily, while demand for consumer electronics such as smartphones and for industrial equipment such as factory automation equipment recovered only gradually. For automotive electronic components, the wider adoption of ADAS and SDVs provided support, but demand growth was limited by US tariff measures, policy revisions concerning electric vehicles in Europe and the United States, and the slowdown in domestic demand in China.」

「In the electronic components industry, AI servers and data centers continued to perform well, driven by strong demand for generative AI applications, but demand for consumer products such as smartphones and PCs and for industrial equipment such as factory automation equipment recovered only gradually amid the impact of US-China trade friction and other factors. For automotive electronic components, demand increased with the adoption of automotive electronics, including advanced driver-assistance systems, but remained sluggish because of US tariff measures and slower EV growth.」

「AI servers and data centers performed well, driven by strong demand for generative AI applications, but consumer demand for smartphones and PCs showed signs of a pause in its recovery, while demand for industrial equipment such as factory automation equipment remained sluggish because inventory adjustments were prolonged.」

「In the electronic components industry, demand for industrial equipment was sluggish because of cautious capital investment, but AI servers and data centers remained firm, driven by strong growth in demand for generative AI applications. Demand for consumer products such as smartphones and PCs also began to recover gradually. For automotive electronic components, inventory adjustments emerged as demand for electric vehicles slowed, but demand remained resilient because of growth associated with increasing use of automotive electronics, including in hybrid vehicles and advanced driver-assistance systems.」

「Demand for generative AI applications remained firm in cloud and data-center applications and industrial equipment such as semiconductor manufacturing equipment and factory automation equipment, but demand growth was sluggish because of cautious capital investment. Automotive electronic components remained generally firm as demand continued to increase with the increasing use of automotive electronics and the shift toward electric vehicles, although inventory adjustments emerged as demand for electric vehicles slowed.」

「In the electronic components industry, demand for consumer products such as smartphones and PCs reached a bottom but remained weak, affected by the economic slowdown in China and persistently high interest rates in Europe and the United States. Demand for industrial equipment used in cloud and data-center applications and for semiconductor manufacturing equipment and factory automation equipment was firm in generative AI applications, but remained weak because of investment restraint. Automotive electronic components showed a clearer recovery as semiconductor shortages were resolved and demand continued to increase with the increasing use of automotive electronics and the shift toward electric vehicles.」

「Demand growth was seen in cloud and data-center applications and industrial equipment such as semiconductor manufacturing equipment and factory automation equipment, including for generative AI, but overall the market remained in an investment adjustment phase and demand did not recover. For automotive electronic components, demand continued to increase as semiconductor shortages eased and the number of components installed per EV rose, but the recovery remained gradual.」

「Investment caution was seen in cloud and data-center applications and industrial equipment such as semiconductor manufacturing equipment, and conditions remained weak. For automotive electronic components, demand increased as semiconductor shortages eased and the number of components installed per finished vehicle rose with the increasing use of automotive electronics and the shift toward electric vehicles. Although demand had not yet returned to pre-pandemic levels, it had passed the bottom and signs of a recovery were emerging.」

「Production adjustments were seen due to lower production volumes for smartphones and PCs and investment restraint in cloud and data-center applications, and demand was generally sluggish. For automotive electronic components, supply shortages for some semiconductors remained unresolved because of supply-chain issues, automobile production adjustments continued for an extended period, and the recovery remained gradual.」

「In the electronic components industry, companies were seen holding back on investment in IoT devices for cloud and data-center applications and for digital transformation in industrial equipment, factories, healthcare and other sectors, amid continued uncertainty in the economic environment due to the protracted situation in Ukraine and persistently high inflation. Production cuts resulting from inventory adjustments continued for electronic components used in smartphones and PCs. Automotive electronic components continued to be affected by automobile production adjustments and did not reach a recovery trend.」

「In the electronic components industry, demand for IoT devices for cloud and data-center applications and for digital transformation in industrial equipment, factories, healthcare and other sectors remained relatively firm, but inventory adjustments emerged in 5G smartphones and PCs, which had previously driven demand, resulting in signs of a slowdown. For automotive electronic components, demand increased as the number of electronic components and semiconductors installed per finished vehicle rose with the increasing use of automotive electronics. However, supply shortages for some products could not be resolved because of lockdowns and other effects of China's zero-COVID policy, resulting in automobile production adjustments and delaying the recovery.」

「The electronic components industry remained generally firm, supported by demand for 5G smartphones and high-speed communications infrastructure, data-center expansion, industrial infrastructure, and IoT devices for digital transformation in factories, healthcare and other sectors. Meanwhile, some electronic equipment, including PCs and tablets, showed signs of weakening due to a decline following the stay-at-home demand surge and inventory adjustments. Demand for automotive electronic components increased as the number of electronic components and semiconductors installed per vehicle rose with the continued adoption of automotive electronics. However, component supplies remained insufficient because of tight semiconductor supply and demand and the impact of the novel coronavirus in China, significantly affecting automobile production and prolonging difficult conditions.」

「Demand was generally firm, supported by 5G smartphones and the development of their base stations, data-center-related demand associated with the remote operation of IT infrastructure and the expanding use of cloud services, and demand for IoT devices for digital transformation in factories, healthcare and other sectors. Meanwhile, despite firm automobile demand, semiconductor supply shortages in automotive electronic components could not be resolved, affecting automobile production.」

「In the electronic components industry, performance remained generally solid, supported by demand for 5G-compatible smartphones and related infrastructure, data centres associated with the spread of remote work and online learning, and IoT devices for digital transformation in factories, healthcare and other areas, although some semiconductors and electronic components were affected by supply shortages. Meanwhile, although automotive demand remained solid, the company was unable to resolve disruptions to component supplies from Southeast Asia caused by the spread of COVID-19 or semiconductor shortages, which affected automotive production.」

「The electronic components industry remained firm, supported by the expansion of 5G (fifth-generation mobile communications system) smartphones and PC-related demand associated with the spread of remote work and online learning. Meanwhile, although demand for automobiles recovered, disruptions in the supply of components from Southeast Asia caused by the spread of the coronavirus, together with semiconductor shortages, affected automobile production in the automotive electronic components sector.」

「In the electronic components industry, demand for 5G-compatible smartphones, PCs and data centres remained solid, supported by the expansion of 5G-compatible smartphones and the spread of remote work and online learning. Meanwhile, although demand for automobiles showed signs of recovery, concerns remained over the impact of semiconductor shortages on automotive production and electronic components for automobiles.」

「In the electronic components industry, the impact of the COVID-19 pandemic was limited, supported by the expansion of 5G (fifth-generation mobile communications system) smartphones and increased PC demand associated with remote work and staying at home. Automotive electronic components, which were affected by the pandemic in the first half of the period, began to recover in the second half, but power shortages caused by cold weather and fires also occurred. By the end of the period, shortages of automotive semiconductors had affected automobile production adjustments.」

「In the electronic components industry, uncertainty continued amid the prolonged US-China trade war and the extended impact of the COVID-19 pandemic. However, markets such as those created by the adoption of infection-control measures and automotive-related markets showing signs of recovery from the pandemic are driving demand for electronic components.」

「In the electronic components industry, uncertainty continued amid the prolonged US-China trade war and the COVID-19 pandemic. However, new markets created by the adoption of infection-control measures and markets less affected by the pandemic, including automotive-related markets showing signs of recovery, are driving demand for electronic components.」

「Sales of hard-gold plating chemicals for microconnectors were ¥2,463 million, up 25.1% year on year, as demand from the smartphone, automotive and industrial machinery sectors progressed smoothly.」

「There is uncertainty over the impact on raw-materials manufacturers benefiting from the increasing use of electronics in automotive components, as declining automobile sales became apparent. Meanwhile, sales of plating chemicals for connectors, following the launch of improved plating chemicals, progressed smoothly.」

「Sales of plating chemicals for connectors remained firm as the use of electronics in automotive components progressed, but」

「Sales of hard-gold plating chemicals for microconnectors were ¥1,968 million, up 1.0% year on year, as steady demand from the automotive and industrial machinery sectors offset sluggish demand for smartphones and tablets.」

「New demand is growing in the electronic components industry, driven by the increasing use of electronics in automobiles and the shift toward IoT applications such as digital consumer electronics and edge computers.」

「Meanwhile, the industrial machinery and automotive-related markets continued to expand, and demand for electronic components remained strong.」

「Sales of electroless-plating chemicals for package substrates and mobile-phone motherboards continued to perform well. Demand for components for smartphones, automobiles and industrial machinery also remained strong for hard-gold plating chemicals for connectors.」

「Demand for electronic components for automotive and industrial equipment increased as automotive parts became more electrified and industrial machinery adopted factory automation. Demand for semiconductors and communications equipment to support cloud infrastructure also remained strong as the volume of information increased with the shift toward IoT.」