3D CHIP SHIFT
AmInvestment Bank expects positive outlook for local players such as Inari and Malaysian Pacific Industries
KUALA LUMPUR
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