Quartz components are expected to be in short supply in 2021
According to the previous data, in the 4G network deployment period, the demand for quartz components such as crystal oscillators and clock oscillators surged. Nowadays, with the gradual commercialization of 5G networks, the global deployment of 5G networks is accelerating, and the scale of 5G base station construction in various regions is continuously expanding. According to industry insiders, the market demand for quartz components is accelerating.
Analysts believe that China will become the world's largest 5G network, and its base station construction will be unprecedented in scale, which is bringing new demands to Taiwan's quartz component suppliers, including TXC, Siward, etc., which are optimistic about the market potential of the Chinese mainland market.
Peter Lin, director of Taiwan's quartz component manufacturer TXC, said recently that TXC expects that the demand for quartz components will increase, especially after the expansion of 5G applications, demand will increase significantly from 2020, and there may be a shortage in 2021. The main reason is that the frequency band used by 5G equipment is different from 4G, so the market demand for quartz components will surge.
It is understood that TXC's products include quartz crystals, quartz oscillators, sensors, applications include base stations, mobile phones, automobiles and PCs, Netcom products, in addition to optimistic about 5G communication to drive base station construction and mobile phone replacement needs, the Internet of Things is also a promising application . In addition, another manufacturer, Siward, is continuing to strengthen its layout in the 5G application market. The company completed a 20% capacity expansion of its high-end products in Taiwan last year, and its market share is expected to increase further.
At present, the global quartz component industry is dominated by Japanese and Korean manufacturers, followed by Taiwanese manufacturers. In contrast, mainland China manufacturers mainly focus on low-end products. Once the popularity of 5G drives the surge in demand for quartz components, quartz components may be in short supply.