Chinese semiconductor industry
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China's 5G base installations slow as U.S. parts dry up
DALIAN, China -- China's campaign to build up fifth-generation wireless infrastructure has lost steam as manufacturers here run out of U.S.-made components, forcing suppliers to make further inroads into the American and European markets instead.China makes up more than 60% of the global 5G market, and parts production there closely keeps pace with base installation in the country. Output of base station parts fell 53% on the year in the January-August period, and has shrank for 11 straight months for which data is available, according to China's National Bureau of Statistics.
The slowdown is largely attributed to a ban on U.S. companies from selling products to Huawei Technologies and other Chinese companies, resulting in a shortage of crucial components in the country. The effect is also spreading to suppliers in Japan and elsewhere that rely heavily on the Chinese 5G market.
With China-related demand drying up, some suppliers, many of which are Japanese, are now shifting their focus to the U.S. and Europe.
Sumitomo Electric Industries will double its research and development staff in these markets by March to meet client requests there quickly. It also began operating a factory in the U.S. in September that produces chips used in 5G base stations.
This article is propaganda.
The intention is to mislead, to make it appear the Americans still has some sway in what China can do.
It also deflects away of how America is losing the 5G race.
China already deployed that many base stations, and those are standalone 5G networks.
The entire national wide 5G standalone network, will need X number of base stations.
If this task is already 60% to 75% complete, then obviously the rate of building base stations will slow down.
But since China is slowing down building base station, cue the propaganda articles from the usual media outlets.
This will happen until China starts mass manufacturing 12-14 nm chips indigenously. Actually installing all the current inventory makes a lot of sense because earlier you install 5G more economic benefits you will reap from it. And currently, there is nothing to be concerned about. China has installed more 5G stations than the rest of the world combined so far.
I would normally treat all articles written by Asia Nikkei with a pinch of salt.
Don't take their opinions seriously.
Mostly turned out to be completely off track or wrong.
Anyone know specifically which components are running out because of the embargo?
Huawei has stockpiled enough components for millions more base station. So it is just pure propaganda. Huawei just won 60% of base station in a recent tender with China mobiles. Chinese telecom companies are way ahead of their schedule of 5G rollout. Therefore, further investment in 5G would be slowdown and more investment would be in convergence of 5G and 4G network.
What type of economic benefits are they reaping from it right now?
Not the OP but I will answer. For now its not economical benefits but technological benefits because it gives China the opportunity to grasp the first mover advantage in the numerous and surely profitable 5G applications that will arise in a few years.
China will almost certainly have the new products out, so its only a matter of converting that leading technology to economic dominance on the market.
Not significant economic benefits as of now. These will potentially (very likely) become a reality in a few years
4G leadership allowed the USA to create mobile data apps first.
Think of all the apps that are used in the US or Europe, sitting on top of Google Android and Apple iOS
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