EMS Revenue Rises 27%, but Margin Pressures Persist

Electronics manufacturers made more money in the first quarter of FY27, but keeping those profits is becoming harder.

The eight largest companies increased their revenue by 27% from the same period a year earlier.

They raised prices because materials such as memory chips and copper-related components became more expensive.

Even after those price increases, profit margins were squeezed because costs rose before companies could fully pass them on.

Smartphone sales were weak, and domestic smartphone volumes fell by about 11%.

Businesses making products other than smartphones and air conditioners grew much faster.

Supply problems also forced companies to keep more parts in stock, tying up more money.

Analysts still expect the sector to grow, but they will watch whether profits recover as costs and supply problems improve.