Huawei is under the control of the United States, and the Japanese passive component manufacturer TDK has also been affected. Many Japanese and Korean companies are eager to resume supply to Huawei.
Recently, Japanese media reported that passive component manufacturer TDK has applied to the United States to resume supply to Huawei.
This appeal stems from the fact that after the U.S. ban on Huawei chips took effect on September 15, many companies using U.S. technology were restricted and controlled and could not supply products to Huawei. Huawei’s core business may also face supply cuts and unsustainable difficulties.
On October 13, the Japanese media “Nikkei Shimbun” disassembled and analyzed the core device called “baseband” in Huawei’s latest 5G base station with the assistance of the investigation company “Fomalhaut Techno Solutions”.
The study found that Huawei’s 5G base stations use parts made in the United States, accounting for nearly 30%, accounting for 27.2%; followed by parts made in South Korea, the number of which is second only to the United States, including memory made by Samsung Electronics; in addition, there are Japanese companies. produced products.
Among the parts made in the United States, mainly semiconductors, chips, storage and other products, involving companies such as Lattice, Xilinx, Texas Instruments, ON semiconductor, Cypress, Broadcom, and Analog Devices.
The Taiwanese manufacturer TSMC participated in the manufacturing ratio of up to 60%. components produced purely in mainland China accounted for less than 10%.
On May 15 this year, the U.S. Department of Commerce issued a ban requiring that any company that supplies Huawei with chip products containing U.S. technology must first obtain an export license from the U.S. government. There is a 120-day buffer period before the ban is implemented until September 14. day.
On August 17, the ban was further escalated, continuing to expand Huawei-related subsidiaries. There are a total of 152 Huawei-related companies on the expanded entity list.
Headquartered in Tokyo, TDK has been established for 84 years. It is a component company started with ferrite materials and passive components. It is also the object of learning and catching up with many domestic manufacturers of passive components such as inductors, magnetic materials, and Electronic transformers.
TDK is an important supplier of Huawei’s 5G base stations. Asanuma Toshihide previously said at an exhibition site, “After 2020, we hope that the main business will be passive components, batteries and sensor systems.”
According to him, TDK’s global sales in 2018 reached 80 billion yuan, of which the largest share is passive components, including capacitors, inductors, filters, etc.
By industry, 56% of their applications are in the ICT sector, including smartphones, HDDs, base stations, PCs and other communication equipment.
Compared with 2012, the performance of TDK China in 2018 increased by 240%, accounting for more than 55% of TDK’s overall revenue.
At the same time, TDK’s products also use a large number of US technologies, which are in line with the US export ban.
After the implementation of the U.S. ban on September 15, Japanese companies such as TDK will undoubtedly lose a major customer, which will directly affect their business performance in 2020 and beyond. This also has to make the management of these foreign companies feel anxious.
Recently, according to Japanese media reports, TDK has applied to the United States to resume supply to Huawei. The report also mentioned that before TDK submitted the application, many Japanese chip companies such as Sony and Kioxia (formerly Toshiba Memory) had made the same request.
Not only Japanese companies like TDK are responding to the demands, but Korean companies such as Samsung and SK Hynix are also struggling. In the past, Huawei’s demand accounted for 3% and 12% of the sales of these two companies respectively.