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Industrial Parts Open Solid Revenue Stream for Japanese Firms

B usiness performance of electronic components manufacturers in the industrial equipment field have shown signs of bullishness. Rebounding from sluggish production of industrial equipment, companies now aggressively invest in plants and equipment, thus boosting demand for semiconductor manufacturing equipment and machine tools. In addition, the introduction of Internet of Things (IoT) and robots in manufacturing has been pushing up the demand for components.

According to statistics on machine tool orders by the Japan Machine Tool Builders' Association (JMTBA), while orders fell in 2015 and 2016, cumulative orders (preliminary figure) for the January to November period in 2017 reached ¥147.968 billion, an annual increase of 30 percent.

Investments in the introduction of IoT, M2M, and robots in manufacturing gather steam, boosting demand for industrial components.
Photo 1: Investments in the introduction of IoT, M2M, and robots in manufacturing gather steam, boosting demand for industrial components.

With rigid PWBs, the development of millimeter wave radar PWBs and camera module PWBs in the advanced technology regions in automobiles, such as advanced driver assistance systems (ADAS), has become robust. In the smartphone and high-functional module fields, high-density technologies, including components-embedded PWBs, have been advancing.

Higher Sales Ratio of Industrial Components
The demand for components for industrial equipment strongly contributed to the overall performance of components manufacturers in the first half of FY2017. Components manufacturers view that this robust demand will continue in the foreseeable future, and endeavor to strengthen their business positions for components for industrial equipment.


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