Chip sector seen recovering in second quarter

- Advertisement -
- Advertisement -

The demand for semiconductor products is expected to improve in the second quarter, driven primarily by smartphone and tablet markets and a struggling-to-recover US economy, according to a report by the star.

Both Pentamaster Corp Bhd and Globetronics Technology Bhd expect some recovery in the semiconductor sector in the second quarter.

Heng Huck Lee, chief executive officer, Globetronics said the driver for semiconductor and consumer electronics demand should come from the United States, which was gradually recovering.

- Advertisement -

“Electronics manufacturing companies in China and Asia should benefit from the demand in the United States, especially in the smartphone and tablet markets, which will require more light-emitting diodes (LEDs) and chip products,” Heng said.

He said the days-of-inventory (DOI) level for semiconductor chips, which hovered around 81 days for the second half of 2011, should drop to below 80 in the first quarter.

“The DOI should improve due to a tighter control over chip production and the demand created by the Christmas festive season. The normal inventory for chip manufacturers should be 45 days or less. The inventory at Globetronics is managed to around two weeks,” he said.

Heng said the company’s LED business should grow in the second quarter due to a fresh range of product line-up for new customers.

“LED-backlit display panels are facing overcapacity and price erosion presently,” he said.

For the first quarter 2012, orders for Globetronics’ LED products are expected to be flat compared with the fourth quarter 2011, and slightly down compared with the first quarter 2011, according to Heng.

Pentamaster executive chairman CB Chuah said the company expected a moderate improvement of orders for its semiconductor automated equipment in the second quarter.

“The demand from consumer electronic multinational corporations in China, who are supplying to global markets, should provide the stimulus,” he said.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

India, China Grow Amid First Global Cellular IoT Module Shipments Annual Decline

0
Several companies started local manufacturing in India. 4G Cat 1 bis emerged as the fastest-growing segment. Around 12% of the modules shipped in...

“More Chargers Provide Security And Confidence To Customers, Encouraging EV Adoption”

0
With an agenda to transform the EV industry, EarthtronEV has established 250+ charging stations on major highways across India. The company aims to interconnect...

5G RedCap To Transform IoT Module Shipments

0
Over 60% of IoT module shipments will originate from the Asian & Oceania region. Automotive sector is expected to be a significant driver. The...

Buzz

Montra Electric Boosts Amritsar’s Green Mobility with RAAHI Project

0
The initiative is a component of the City Investments to Innovate, Integrate, and Sustain (CITIIS) program, which falls under the auspices of the Ministry...

BYD Delays Vietnam EV Factory Plans

0
Vietnam's government announced in May that BYD plans to construct a facility for manufacturing and assembling electric cars in Phu Tho, a northern Vietnamese...
Keysight Technologies Pvt Ltd Logo

Keysight Acquires Spirent Communications For $1.46 billion, Outbids Rival Viavi Solutions

0
Keysight's offers 85.9% premium over Spirent's closing price on March 4, exceeding Viavi's 61.4% premium. Keysight expects new serviceable available market opportunities of...

Important Sectors

India, China Grow Amid First Global Cellular IoT Module Shipments Annual Decline

0
Several companies started local manufacturing in India. 4G Cat 1 bis emerged as the fastest-growing segment. Around 12% of the modules shipped in...

Montra Electric Boosts Amritsar’s Green Mobility with RAAHI Project

0
The initiative is a component of the City Investments to Innovate, Integrate, and Sustain (CITIIS) program, which falls under the auspices of the Ministry...

BYD Delays Vietnam EV Factory Plans

0
Vietnam's government announced in May that BYD plans to construct a facility for manufacturing and assembling electric cars in Phu Tho, a northern Vietnamese...
Keysight Technologies Pvt Ltd Logo

Keysight Acquires Spirent Communications For $1.46 billion, Outbids Rival Viavi Solutions

0
Keysight's offers 85.9% premium over Spirent's closing price on March 4, exceeding Viavi's 61.4% premium. Keysight expects new serviceable available market opportunities of...

Hyundai Motor Boosts EV Investment In Korea

0
The automaker stated that over half of the investment, amounting to 35.5 trillion won will be dedicated to new R&D infrastructure and EV assembly...

Manufacturing

BYD Delays Vietnam EV Factory Plans

0
Vietnam's government announced in May that BYD plans to construct a facility for manufacturing and assembling electric cars in Phu Tho, a northern Vietnamese...

JLR To Hire 250 Electrical Technicians For Future EVs

0
These new roles, part of a £15 billion investment, are in addition to 300 positions created last year by the British car maker. Jaguar Land...

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...