2020's power-hungry 5G iPhones may cause a surge in capacitor demand
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Taiyo Yuden Co, which provides components such as ceramic capacitors to Apple, Huawei, and Samsung, has seen a large surge in its share price this year. A likely reason? Increased capacitor demand to accommodate 2020’s power-hungry 5G iPhone models.
Apple is expected to introduce 5G iPhones next year. As these models enter production, we will likely see demand for Taiyo Yuden’s capacitors increase further. 5G modems consume more power than 4G modems, and 5G phones require, on average, 30 percent more capacitors. Interestingly, though, 5G phones tend to be more power-efficient overall. This is because even though active 5G modems consume more power, data transfer happens so fast that they spend far less time at peak operation levels compared to 4G modems
Huawei and Samsung, other companies supplied by Taiyo Yuden, have already introduced 5G phones to the smartphone market. Taiyo Yuden’s CEO Shoichi Tosaka expects Huawei to sell more than 100 million 5G smartphones by 2020, just in China. Tosaka says that Taiyo Yuden factories are only operating at 85% capacity right now and can be easily upgraded to meet enhanced demand levels.
5G iPhones will likely arrive next September. Orders for capacitor production will come by June at the latest, a timeframe that Shoichi says his company is ready for.