Among the 41 major electronic component companies, more than 60% reported double-digit sales growth during the April-June period.

Operating profit Nearly half of the companies Operating profit increased. 30% or more.

　Electronic component manufacturers continue to expand their business performance. At Among the consolidated financial results for the first quarter (April to June) of fiscal year 2023, more than 60% of the 41 major electronic component manufacturers recorded double-digit year-on-year sales growth, and nearly 50% reported a substantial increase in operating profit of 30% or more. Strong demand for industrial machinery and automotive equipment, coupled with the depreciation of the yen, also contributed to these companies’ robust performance. Although recent signs suggest a slight slowdown in the electronic components market, most companies have maintained their initial full-year forecasts, and many plan to achieve growth in both sales and profits.

　Here in this Among the 41 companies, 37—more than 90%—reported year-on-year sales growth. Of these, 26 companies achieved double-digit sales growth, and 4 companies reported substantial sales increases of over 30%. Operating profits rose or turned profitable for 30 companies, accounting for 73% of all companies. Among them, 25 companies reported profits that grew by double digits or more, while 19 companies recorded substantial profit growth of 30% or higher, representing 46% of all companies. Profit from recurring operations increased or turned profitable for 35 companies; among these, 28 companies reported significant increases of 30% or more, though this figure accounted for less than 70% of the total. Net profits rose or turned profitable for 31 companies. One-third of the companies—14 in total—saw their net profits more than double compared to the same period last year.

　Due to China’s lockdowns and rising geopolitical risks, all companies have experienced challenges related to Chinese smartphones and personal computers. Despite weak demand for PCs, demand for industrial equipment, automotive components, and high-end smartphones remains robust. The depreciation of the yen has also boosted the company’s sales and profits. Since last year, backlogged orders have remained at a relatively high level.

　China The lockdown from April to May led major automakers to cut production, temporarily having a significant impact on orders for automotive components. However, advancements in ADAS and xEVs have created strong demand for high-value-added electronic components. In the industrial equipment sector, FA equipment and semiconductor manufacturing equipment performed well amid increased corporate capital investment and tight semiconductor demand.

　In the information and communication technology sector, the slowdown in demand for Chinese smartphones—driven by prolonged production adjustments—has been more pronounced than expected, partly due to the impact of lockdowns, which have affected the smartphone businesses of component suppliers. Demand for personal computers has also remained weak, owing to... At home The reaction to the end of demand, as well as the slump in Europe’s consumer market triggered by the Ukraine conflict. On the other hand, orders for high-end smartphones from U.S. company Apple and other manufacturers remain robust, and demand for data center-related components also remains strong.

　In addition, despite some limitations caused by the semiconductor shortage across various finished-product sectors, component users have established... The inventory of BCP (Business Continuity Plans) and the continued depreciation of the yen against other currencies have provided support to component companies’ performance. Many companies reported results slightly above their initial forecasts, and some even posted their best-ever first-quarter results.

　In terms of earnings, soaring raw material and energy costs, rising logistics expenses, and emergency costs announced due to supply chain disruptions have been cost-driving factors. However, increased sales, progress in corporate restructuring, and the weakening of the yen have all contributed to higher profits. Given the rise in raw material prices, these companies are also gradually making progress in adjusting their sales prices.

　On the other hand, recent orders for electronic components have shown some signs of slowing down, and people are concerned about the second quarter ( The situation from July to September and beyond is becoming increasingly cautious. In particular, there are growing concerns about the prolonged slump in China’s smartphone market, the waning of the special demand driven by COVID-19, and the heightened risks of economic downturns in Europe and the United States—fueled by rising geopolitical risks and accelerating inflation. Even in the semiconductor market, which has been remarkably robust to date, some regions have begun postponing capital investments starting from the second half of this fiscal year. Moreover, even in the U.S., where the economy has consistently been booming, signs of slowing housing demand have emerged.

　On the other hand, as the semiconductor shortage gradually begins to ease, there are high expectations for an expansion in automobile production starting from the second half of the year. Demand for Chinese smartphones is also expected to pick up from the third quarter. (Beginning in October to December) it started to reverse and rise.

　To component suppliers, such as automobile manufacturers and Predictions from FA-related manufacturers remain positive. Electronic component companies will closely monitor market and customer trends, driving business development from the perspective of managing risks and preventing missed opportunities.

　All All 38 companies that have already announced their full-year consolidated forecasts expect sales to grow year-on-year, with 16 of these companies planning to achieve double-digit sales growth. Thirty companies are expected to see an increase in operating profit or return to profitability, among which 20 companies forecast double-digit growth. Twenty-five companies plan to boost or restore profitability in terms of recurring profits. Net profits are also expected to rise or turn profitable for 25 companies, while 37 companies anticipate positive bottom-line results.