AmIn­vest­ment Bank ex­pects pos­i­tive out­look for local play­ers such as Inari and Malaysian Pa­cific In­dus­tries

New Straits Times - - Business -


THREE-di­men­sional (3D) in­te­grated cir­cuit (IC) adop­tion is ex­pected to spur in­vest­ments in Malaysia’s semi­con­duc­tor in­dus­try, says AmIn­vest­ment Bank.

The semi­con­duc­tor in­dus­try posted the largest year-on-year growth in more than six years in March while global semi­con­duc­tor sales grew at 18 per cent to US$31 bil­lion (RM134.5 bil­lion).

“The adop­tion of 3D struc­tures fu­els growth. From our in­dus­try sources, the strong growth can be at­trib­uted to a struc­tural tran­si­tion from two-di­men­sional (2D) to 3D chip de­signs.

“This is in the wake of a grow­ing thirst for high-per­for­mance chips and lower power con­sump­tion. The tran­si­tion is par­tic­u­larly ev­i­dent in the logic and mem­ory de­vices mar­ket.

“There is pos­i­tive out­look for Inari (Inari Amer­ton Bhd) and MPI (Malaysian Pa­cific In­dus­tries Bhd)... The avail­abil­ity of 3D de­vices would in­cen­tivise up­grades or re­place­ments of de­vices such as smart­phones, which would ben­e­fit semi­con­duc­tor play­ers in­clud­ing Inari and MPI,” it said.

The in­vest­ment bank said Malaysian ex­ports rose 23 per cent on the back of strong de­mand for elec­tronic ICs and piezo­elec­tric crys­tals and parts.

“Malaysian ex­ports of semi­con­duc­tor prod­ucts in March this year grew 23 per cent year-on-year (YoY) to RM14.6 bil­lion, out­pac­ing that of global semi­con­duc­tor sales amid a cheap ring­git en­vi­ron­ment.

“The growth was mainly driven by a 26 per cent YoY rise in ex­ports of elec­tronic ICs as well as a 30 per cent YoY surge in piezo­elec­tric­ity crys­tals and parts, while other seg­ments grew at slower rate of eight per cent.

“On a month-on-month ba­sis, Malaysian semi­con­duc­tor ex­ports climbed 19 per cent in March, which is on par with the av­er­age month-on-month growth reg­is­tered in the same month over the past five years.

“We be­lieve Malaysian semi­con­duc­tor ex­ports will con­tinue

Malaysia’s ex­ports of semi­con­duc­tor prod­ucts grew 23 per cent year-onyear in March to RM14.6 bil­lion.

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