A sudden outbreak of new crown pneumonia has caused varying degrees of impact on all walks of life across the country, and 5G base station construction and terminal product listings are no exception. It is reported that the construction of 5G base stations in Beijing cannot be carried out due to insufficient construction personnel and the construction unit is not open.
Due to the impact of the epidemic and the need for defense, in addition to the relatively stable construction process of 5G base stations required by medical units in many places, the construction work in other areas was closed due to the failure of construction workers to resume work in a timely manner.
It can be seen that the slowdown in the demand for base station deployment is inevitable, and its pressure is transmitted to the upstream supply chain. At present, many component manufacturers involved in 5G base stations have uncertainties in multiple links such as resumption, stocking, ordering, and transportation. Very low, the impact on the entire industry chain is inevitable.
Forced to slow down
In November last year, the Minister of Industry and Information Technology Miao Wei announced the latest progress of China's 5G construction at a press conference on the development of the industrial communications industry. .
Throughout the entire 5G construction process, with the promotion of operators and terminal equipment manufacturers such as Huawei and ZTE, China's 5G application scenarios and terminal mobile phone brands have achieved new breakthroughs.
At that time, Huawei was the first to propose that it had started producing 5G base stations without any US components. "One stone stirs up thousands of waves," Huawei's self-reliance has also driven the pace of the rise of domestic suppliers. It is understood that regardless of the base station antenna, PCB, RF front-end or optical module, fiber optic cable and other fields, the proportion of domestic suppliers continues to expand.
2020 was an important time for the full rollout of 5G base stations. However, due to the impact of the epidemic situation, the current deployment of 5G macro base stations required for epidemic prevention and control will be in a phased increase, but the overall construction speed of 5G base stations may not be optimistic.
According to Jiwei.com, the number of 5G macro base stations currently equipped for epidemic prevention hospitals is not included in the national 5G network construction plan. The number of new 5G base station deployments for epidemic prevention and control in the country is at least 10,000. . This is a critical period for the country to make every effort to prevent and control the epidemic, and to ensure the smooth communication of the affected areas and the key public health institutions in the provinces.
Conversely, throughout the country, due to the impact of the epidemic, many places are plagued by reasons such as insufficient construction personnel and construction units are not open, and 5G infrastructure work is difficult to start. Recently, Beijing Mobile stated that Beijing's 5G base station cannot be constructed temporarily, and it will make adjustments in terms of 5G base station construction strength and equipment supplier supply.
Industry insiders analyzed: "The impact of the epidemic is very intuitive. The suspension of construction of the Beijing base station is not an exception. Now the backbone is serving the epidemic. Most of the infrastructure workers are also field personnel. Failure to resume work in time is the biggest problem. Moreover, the personnel caused by the epidemic Management and control, closed management in multiple places, construction units can not carry out construction, the overall infrastructure construction work is bound to lag behind. "
Coincidentally, the slowdown of 5G infrastructure construction is transmitted to the supply chain links such as components and equipment in the upper and middle reaches, and the situation of its related suppliers can be imagined.
It can be described as "moving the whole body with one stroke." The force majeure caused by the epidemic is also inevitable to delay the entire 5G process. This is a national problem. According to industry insiders, regardless of the construction of base stations or the listing of finished consumer products, due to the unknown inflection point of the epidemic, the impact of order delivery is close to 30%, coupled with many uncertainties at the customer level, order delivery also encounters joint risks.
Jiwei understands that at present, Huawei's 5G base station component manufacturers are mostly domestic suppliers, and there are many related listed companies involved in the center of the epidemic area, such as Huagong Technology, Wuhan Fangu, and Changfei Fiber. The impact of this stage cannot be ignored.
Affects geometry?
At present, China's 5G industry chain has formed a relatively complete production landing capacity. Among them, Wuhan Huagong Technology, Guangxun Technology, YOFC, Wuhan Fangu, etc. are all important suppliers of 5G base station upstream components.
According to Jiwei.com, none of the enterprises in Wuhan area have resumed work. The resumption time according to government regulations will be on February 20. During this period, the above four manufacturers have started remote office to evaluate and gradually advance the company's materials, logistics, warehousing and delivery, capacity raising, order delivery, and cash flow status.
Industry insiders said that from the impact of the delayed resumption caused by the epidemic, the short-term impact on 5G base station construction is inevitable.
Jiwei.com learned that, as an important PCB supplier for 5G base stations, under the influence of the epidemic, the subsidiary of Shanghai Electric Power Co., Ltd. Huangshi Hudian has suspended production for one week from the 11th and will gradually resume production.
It is worth noting that before that, Shanghai Electric Power Co., Ltd. stated that its subsidiary Huangshi Hushi Electronics had not stopped production during the Spring Festival, and it maintained production on the original scale on the basis of strict epidemic prevention and control measures.
From the normal production to the suspension of production, this decision of Shanghai Electric Power also revealed a lot of helplessness. It is true that the current resumption risk is also closely related to the cost tolerance of the enterprise. For example, Wuhan Huagong Technology of Wuhan, Wuhan Fangu, etc., whose factories are located in second- and third-tier counties and cities outside Wuhan. By the 20th, coupled with the lack of resumption materials, the protection of the resumption environment, and the absence of personnel, the resumption of work is more difficult.
In addition, at present, most companies have applied for resumption of work in a timely manner, and the true rate of resumption of work is only about 30%, which may reach 70% by the end of February. At the same time, the current pace of the entire 5G industry chain restricts each other, and low recovery rates are a common problem. Under the epidemic, the overall process of the 5G industry will also slow down this year. After the epidemic, there will be a rebound trend, and the wave of replacements triggered by 5G commercial will also follow.