The global mobile communications market is undergoing a significant realignment following Japanese technology giant NEC's decision to cease development of 4G and 5G wireless base station hardware.
The move, announced in late 2025, highlights a consolidation of the traditional base station market while signaling new opportunities for Taiwan’s networking equipment manufacturers in the growing sector of Fixed Wireless Access (FWA).
A ‘Winner-Takes-All’ Market
NEC stated it would pivot its resources toward defense, software, and next-generation 6G technology. The decision reflects the intense competition in the base station hardware sector.
According to an analysis by Cathay Futures, three major players—Huawei, Ericsson, and Nokia—control nearly 80 percent of the global market. In contrast, Japanese manufacturers NEC and Fujitsu combined hold a market share of less than 2 percent.
Analysts suggest Japanese firms have engaged in a "strategic retreat," unable to compete with the cost structures of Chinese manufacturers or the technical upgrade pace of European competitors.
Taiwan's Role in FWA Growth
While the Radio Access Network (RAN) market faces consolidation, the market for Customer Premises Equipment (CPE) and FWA is expanding. Ericsson projects global FWA connections will reach 350 million by 2031, representing a compound annual growth rate of 26 percent.
Industry observers point to this sector as a key strength for Taiwan.
"Taiwan manufacturers' performance in CPE and FWA equipment makes us very proud," said Ericsson Taiwan President David Chou (周大企).
"The vast majority of FWA equipment globally is actually manufactured in Taiwan."
This indicates Taiwan's evolution from a component supplier to a leader in high-end terminal equipment.
The Shift to 6G and AI
Looking toward the era of 6G and AI-RAN, the industry is transitioning toward software-defined networking (SDN) and high-performance computing.
Experts believe Taiwan is well-positioned to capitalize on this shift due to its established strengths in semiconductors, servers, and thermal management systems. As Japanese competitors like NEC exit hardware manufacturing, Taiwan's companies are leveraging their supply chains to transition from terminal manufacturing to system integration. （Related： Opinion | China’s Retaliatory Sanctions Pose Rising Threat to Foreign Business ｜ Latest ）
