Global semiconductor sales to continue to record positive sales
KUCHING: Global semiconductor sales are expected by analysts to continue to record positive sales growth on a year on year basis (yo-y).
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), in recent years, the China government has been supporting the Chinese domestic semiconductor industry with tremendous capital budgets.
“This has led to China gradually playing a pivotal role in upholding the demand of semiconductor products,” MIDF Research said.
“At present, sales from China have accounted for one-third of global sales. It is also the main export destination of Malaysia semiconductor products.”
Moving forward, MIDF Research expected the sales growth momentum emanating from China to remain robust in the foreseeable term.
“This is in-tandem with the anticipated heavy investment in fab equipment in the upcoming years.”
In the immediate term, the research arm expected the global semiconductor sales to continue to record positive sales growth on a y- o-y basis. Its view corroborated with the recent upgrade in sales forecasts by World Semiconductor Trade Statistics’ ( WSTS).
MIDF Research noted that the WSTS recently revised 2017 sales figure upwards to US$ 408.7 mil-
This has led to China gradually playing a pivotal role in upholding the demand of semiconductor products. MIDF Research
lion from US$ 377.8 million previously, representing an upgrade of 8.2 per cent.
“Following the sales revision, 2017 sales is now expected to surge by 20.6 per cent y- o-y as compared to 2016 sales of US$ 338.9 million. Higher sales were also seen from across all regions,” the research arm said.
Apart from the smart devices segment, MIDF Research also expected healthier demand from the automotive, storage and healthcare markets.
“The automotive market will be driven by the continuous effort to increase the average semiconductor content per vehicle. Demand from this market is also less susceptible to seasonality factors, thus providing a steadier stream of revenue. Meanwhile, higher demand for the storage market would be supported by the cloud computing and data centre industries,” it said.
All factors considered, MIDF Research maintained its ‘ positive’ stance for the technology sector.