Stagnation in the Electronic Components Market Due to Inventory Adjustments for Certain Products

「In consumer equipment, sectors such as communications recovered and remained firm. In particular, sales of current-year smartphone models were strong compared with a typical year. Meanwhile, inventory adjustments continued in the market, particularly for industrial equipment, and the timing of recovery remains uncertain.」

「In the electronic components industry in which the Group operates, the rush demand for automotive-related components resulting from U.S. tariff policies has subsided, but medium- to long-term growth is expected, centered on components for xEVs and ADAS. In consumer equipment, sectors such as air conditioning and communications have remained firm. Meanwhile, inventory adjustments in the market, particularly for industrial equipment, have continued from the previous fiscal year, and demand is expected to recover from the beginning of the new year onward.」

「In the electronic components industry to which our Group belongs, inventory adjustments for consumer and industrial equipment, caused in part by China's economic stagnation, have been prolonged, and a marked recovery in demand is not expected until the following fiscal year or later.」

「Inventory adjustments for consumer and industrial equipment have lasted longer than expected, having a very significant impact on performance.」

「Although the order environment for the Group's lead frames and connector components remains within the market's long-term growth trend, inventory adjustments have been prolonged in the near term. While the timing of supply and demand normalization depends on the end-product market, overall recovery is expected from the middle of the next fiscal year onward.」

「Although the order environment for the Group's lead frames and connector components remains within the market's long-term growth trend, inventory adjustments stemming from supply chain disruptions in prior years have been prolonged in the near term. Supply and demand are now expected to normalize later than initially anticipated, from the end of the current fiscal year into the next fiscal year.」

「Although the order environment for the Group’s lead frames and connector components remains within the market’s long-term growth trend, the impact of continued advance orders prompted by supply-chain disruptions during the COVID-19 pandemic has brought the market into an adjustment phase. Many fields involving industrial and consumer equipment have been affected, and supply and demand for components is expected to normalize from the second half of this year onward.」

「In the electronic components industry to which our Group belongs, unstable conditions have continued, including inventory adjustments caused by stagnation in the Chinese economy. In particular, demand for components used in consumer electronics, including smartphones, fell sharply from year-end onward.」

「In the electronic components industry to which our Group belongs, the outlook remains difficult, as production stoppages and inventory adjustments caused by the decline in private consumption in China and supply-chain disruptions have occurred intermittently.」

「Although the order environment for the Group’s lead frames and connector components remains within the market’s long-term growth trend, some areas have entered a temporary pause due to supply-chain disruptions, centered on the automobile industry, caused by the effects of infectious diseases and geopolitical risks, as well as the reversal of advance demand for smartphones that arose in the previous fiscal year.」

「Although the order environment for the Group’s lead frames and connector components remains within the market’s long-term growth trend, some areas have entered a temporary pause due to supply-chain disruptions, centered on the automobile industry, caused by the effects of infectious diseases and geopolitical risks, as well as the reversal of advance demand for smartphones that arose in the previous fiscal year. In light of these conditions, orders for the current fiscal year are expected to follow a pattern close to the traditional quarterly trend, with a peak forming in the second half.」

「For connector components, the trend toward advance orders strengthened due to concerns about the supply of raw materials and peaked in the first half of the current consolidated fiscal year, resulting in adjustment conditions in some areas in the second half. However, total orders for the full year remained strong, and preparations for 2022 smartphone models are progressing smoothly.」

「In the electronic components industry in which the Group operates, temporary inventory adjustments in some areas, following advance orders caused by shortages of components and raw materials, have been occurring since around the end of last year.」

「In the short term, current orders are thought to include advance component orders intended to avoid supply risks, raising concerns about a temporary adjustment and requiring close monitoring of market trends.」

「There are concerns that the market may enter an adjustment phase during the current fiscal year because component orders may exceed actual demand, and the market trend therefore requires close monitoring.」

「In the electronic components industry in which the Group operates, growth generally remained sluggish in the first half amid disruption caused by regional or city-level lockdowns in other countries and policies restricting corporate activity. In the second half, however, the industry entered a rapid recovery trend as global automobile demand and consumer sentiment improved.」

「The electronic components industry in which our Group operates is on a strong overall recovery trend, particularly as the automotive and production machinery sectors have recovered since last summer.」

「The electronic components industry in which the Group operates comprises both sluggish fields and relatively firm fields.」

「In the electronic components industry in which the Group operates, demand has declined in many industries, particularly the automobile industry, where global unit sales remain sluggish. However, some recovery from the summer onward is expected in part, based on hopes for an improvement in economic conditions as countries reopen their economies.」

「The electronic components industry in which the Group operates appears to be emerging from its temporary stagnation, and there has been no change in the forecast that the market size will remain firm over the medium to long term.」

「Although the market size of the electronic components industry in which the Group operates is expected to remain firm over the medium to long term, the market is currently in a temporary stagnation phase caused by uncertainty in the global economy.」

「Although the market size of the electronic components industry in which the Group operates is expected to grow gradually over the long term, the market is temporarily stagnating due to the impact of political instability.」

「The electronic components industry in which the Group operates generally remained firm, led by demand for automobiles and IoT-related products. However, concerns about slower growth have emerged recently in demand for mobile devices, following reports around the beginning of the year that a major smartphone manufacturer had revised down its earnings outlook.」

「In the electronic components industry in which the Group operates, growth in electronic components and devices slowed somewhat, as demand for mobile devices showed signs of leveling off, but the market is now showing signs of renewed growth.」

「Although the long-term growth outlook for the electronic components industry in which our Group operates remains unchanged, inventory adjustments for certain products and rising raw material prices have exerted downward pressure, resulting in a temporarily stagnant market.」