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CCI expects 5G smartphones to drive vapor chamber demand

Overall vapor chamber (VC) demand for handsets has been a disappointment thus far this year, according to Junichi Nagai, chairman for cooling module firm Nidec Chaun-Choung Technology (CCI), who expects demand to pick up driven by the upcoming roll-outs of new 5G models.

The penetration rate of 5G smartphones was far weaker than expected in 2020 amid the coronavirus pandemic, resulting in most smartphone brands turning conservative about adopting new technologies for their new devices.

However, Nidec CCI is still optimistic about related demand and expects VC to become a critical component for future smartphones, said Nagai.

Nagai pointed out that the company’s smartphone brand clients are currently developing new products and will have demand for heat dissipation modules similar to that prior to the pandemic.

Although Samsung Electronics has turned to adopt graphite sheets for its new smartphones for 2021 to control its costs amid weak end demand for smartphones, the Korea-based brand has been said to be mulling using VCs for its new smartphones for 2022, some market observers noted.

However, cooling modules makers have not seen any solid orders for VCs from Samsung so far, the market observers added.

In addition to smartphones, Nidec CCI is also positive about the business opportunities from 5G base stations, game consoles and gaming notebooks and expects these product lines to drive up its revenues in the second half, Nagai said.

Nidec CCI’s new plant in Vietnam has finished the first-phase construction and will begin contributing revenues in the second half. The company expects revenues from the Vietnam plant to account for 20-30% of its overall amount in 2022, with the production line mainly used to supply cooling modules to non-China clients. The company’s supply to Chinese clients will continue to be handled by its factories in China, Nagai added.

Nidec CCI reported net profits of NT$222 million (US$7.94 million) for the first half, down 29.97% on year, due mainly to increased costs from materials such as copper, logistics, components and currency exchange. Digitimes

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