TO FUEL INVESTMENTS

to trend higher as major smartphone makers would normally launch their flagship models in the second half,” it added.

The Semiconductor Equipment and Materials International expects slower overall growth in the semiconductor market, but asserts that several segments will grow significantly higher driven by the Internet of Things (IoT).

“The IoT applications that could drive global growth include sensors in the automotive industry, data storage to house higher quality contents and LTE-A adoption to facilitate seamless communications between connected devices, which spurs orders for analog ICs. This is positive for Inari and MPI as the companies provide testing services for radio frequency chips.

“Although signs are pointing towards stronger semiconductor sales, we are maintaining ‘neutral’ stance on the sector as valuations appear uncompelling,” it said.