According to the Semiconductor Industry Association on April 6, global semiconductor industry sales fell by 20.7% y-o-y and 4% m-o-m to US$39.7 billion ($53.01 billion) in February. CGS-CIMB’s Korean research office also noted that Samsung Electronics’ plan to cut its memory production could “signal the bottoming of the semiconductor memory market”.
CGS-CIMB Research analysts William Tng and Izabella Tan are remaining “neutral” on the tech manufacturing services sector. The companies within the sector are widely expected to release their business updates for the 1QFY2023 in the coming weeks.
Ahead of the results, Tng and Tan are expecting to see mostly weak y-o-y revenue growth or revenue declines for the companies under their coverage, which are AEM Holdings (SGX:AWX
) , Aztech Global (SGX:8AZ) and Venture Corporation (SGX:V03) . This is due to concerns over slower economic growth, which may lead to cautious spending by both corporates and consumers; a seasonally weaker 1Q on the back of the Chinese New Year holidays; and the ongoing slowdown in the semiconductor industry.
