According to Nikkei, the Nikkei and Goldman Sachs research found that due to the inability to sell to Huawei, the profit of Japan’s four major electronic component suppliers (Murata, TDK, Kyocera and Taiyo Yuden) will drop by about 230 million US dollars.
In terms of last year’s profit, Huawei’s four major Japanese suppliers, Murata, TDK, Kyocera and Taiyo, were the most affected. The stock prices of these companies have fallen by about 10% in the past month.
Overall, Goldman Sachs Japan analyst Daiki Takayama pointed out that if Huawei’s sales are zero, TDK’s operating profit will drop by as much as 9 billion yen. In addition, Passive component manufacturers Murata Manufacturing Co., Ltd. and Taiyo Yuden supply capacitors to Huawei for the production of base stations, if the supply to Huawei is stopped, Murata’s operating profit will be greatly reduced.
In addition to these four major electronic component suppliers, some Japanese equipment suppliers have stopped supplying to Huawei. In the future, the profitability of the entire industry is estimated to be affected.