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EPTE Newsletter: COVID-19 Outbreak

COVID-19 emerged in China in December 2019 and spread around the world to over 200 countries. European countries and the U.S. report a significant amount of cases over the past several weeks. The total number of cases is more than 1.2 million and counting.

I traveled back to our home office in Japan last week. The number of cases in Japan had recently jumped significantly. I have no symptoms of the COVID-19 virus but will remain in self-isolation for at least two weeks. I will refrain from the use of public transportation, including taxicabs.

Market analysts predict a slowdown in the global electronics industry due to the pandemic. Stock markets throughout the world are experiencing extreme volatility with every news report. The Dow Jones fell almost 25% YTD. It’s at its lowest level since December 2016 and is on pace for its worst month since the Great Depression.

The global electronic industry was slowing down before the Chinese New Year in January. Smartphone shipments posted a negative number compared to the same month last year, shipments for semiconductor products decreased, and shipments from the Taiwanese circuit board industry show a significant decline over the last few months. Taiwanese circuit board manufacturers can be considered the barometer for the global consumer electronics industry. A slowdown with them can mean a slowdown for markets throughout the world (production was slowing down before the COVID-19 outbreak). The pandemic can cause a deeper contraction for the industry.

The U.S. announced a historic stimulus bill in the amount of $2 trillion to respond to the pandemic, and Japan announced a stimulus package to be delivered in April. The Federal Reserve Board in the U.S. reduced interest rate to zero, and the European Central Bank joined other central banks with the announcement of programs to keep the region’s financial system functioning. We are all in this together, and this pandemic will end. Stay safe.

Headlines

1. NEDO (R&D organization in Japan) 3/24
   Developed a picosecond pulse laser with deep UV light (wavelength: 266nm) with large power (8W).
2. Tokyo University (Japan) 3/24
   Developed a new process to form electrodes on organic semiconductor modules that is available for broad-range applications.
3. Toyota & Hino (automobile manufacturers in Japan) 3/24
   Agreed to co-develop large size trucks with hydrogen fuel-cell batteries, targeting a 600-km driving distance.
4. Ohara (specialty chemical supplier in Japan) 3/17
   Succeeded to make the battery life of lithium-ion battery four times longer, adding special solid chemicals for the electrolyte.
5. Murata (device supplier in Japan) 3/24
   Rolled out a new series of quartz devices with small SMT packages of 2016 for wireless LAN and Bluetooth modules.
6. Tokyo University (Japan) 3/25
   Discovered a new super ion conductor that makes switching by lighting.
7. NEC (electronics company in Japan) 3/25
   Will sell a 66% share of NEC Display Solutions to Sharp, a major subsidiary of the EMS company in Taiwan.
8. Sony (electronics company in Japan) 3/26
   Will found new venture company Sony Electronics in April. The company covers imaging products and solutions, home entertainment and sound, and mobile communications.
9. SMK (device manufacturer in Japan) 3/26
   Released a new touch panel display with capacitance switches built on a curved glass panel for instrument panels of the automobiles.
10. DNP (printing company in Japan) 3/27
    Developed a new transparent flexible antenna with fine meshes for 5G telecommunications (surface resistance: 2.5 ohm/square).
11. Toyobo (material supplier in Japan) 3/27
    Developed a new thin organic photovoltaic cell with a high conversion rate (25%). An 18-cm² sheet generates 130 microW power.

Dominique K. Numakura is the managing director of DKN Research LLC. Contact haverhill@dknreseach.com for further information and news.