Taiwan’s semiconductor industry shows no signs of recovery

Reference News Network reported on May 18 that the Nihon Keizai Shimbun website reported on the 17th that Taiwanese manufacturers that supply semiconductors and digital products to global technology giants continue to languish. Sales of 19 large IT companies in Taiwan fell 5% year-on-year in April, showing negative growth for three consecutive months. Changes in demand caused by the epidemic, coupled with the slowdown in consumption and investment caused by global inflation, have led to no signs of recovery in demand in industries such as semiconductors.

According to statistics from the "Nihon Keizai Shimbun", the sales of 19 large IT-related companies in Taiwan in April this year totaled NT$1.0605 trillion (NT$1 is approximately NT$0.23).

According to reports, MediaTek, which is mainly engaged in semiconductor design and development, saw its revenue drop by 46.1% due to a decrease in orders from its main customers, mainland mobile phone manufacturers. The company's CEO Cai Lixing told reporters in late April that customers will continue to adjust inventory in the second quarter of this year, and consumer demand will also decrease.

In addition, TSMC’s revenue fell by 14.3% year-on-year, and five semiconductor-related companies all experienced double-digit declines. Hon Hai Precision Industry, which manufactures about 70% of iPhones, saw revenue drop 11.8% year-on-year. The three main industries of mobile phones, computers and servers are all sluggish.

However, it is reported that the situation of Taiwanese companies setting up factories in Shanghai is very good. Compal Computer Industry, which is mainly engaged in computer OEM, achieved a 46.5% increase in revenue.