Analysts: memory chip demand in Asian market may grow soon
According to foreign media news on February 13, the managing director of CreditSuisse and Taiwan director of equity research, RandyAbrams, said many chip manufacturers believe the first quarter of 2019 may hit “bottom of the cycle” although its prospect is predicted to be poor. Besides, investors will try to “take time of bottom” while “worrying about speed of economy recovery”.
Downturn of semiconductor industry may “be shorter than expected”, said by Daniel Yoo, the global strategy and research executive of KiwoomSecurities.
Most investors expect turnround of DRAM demand when chip manufacturers reducing capital expenditure. It will lead to a “sizable adjustment” of semiconductor oversupply in the second half of 2019, said by Yoo. “In fact, component manufacturers are talking about demand recovery which may be much more stronger than market expectation.” Abrams from CreditSuisse said, “trade talks between China and the United States.”
He said, “due to worry about trade slowing, many companies put off their capital expenditure projet (no matter in China or abroad), so they are still cutting orders to reduce inventory”. In addition, Chinese market sentiment and demand have been affected by uncertainties.
He said, agreement on tariff reduction or avoid trade tensions will contribute to improving demand and investment of China as well as increasing capacity or rebuilding inventory of companies.
Daniel Yoo said, Korean semiconductor export data declines by 23%, which mostly because of China. As the US pressures on China for opening its market, Korean chip manufacturers may benefit it.
Korean Samsung and SK Hynix are world’s largest manufacturers. Most Asian semiconductor stocks have a powerful rising.
Samsung stocks rises by 19% in Korea. Stocks of chip manufacturer, SK Hynix, has increased by 24% so far.
Meanwhile, TokyoElectronics, an semiconductor equipment electronics corporation in Tokyo, Japan, has a 25.3% rise in stock prices. Chipmaker Renesas Electronics stock has a 43% rise. TSMC, a main supplier of Apple in Taiwan, has a 2% rise. MTK increases by over 12%.
