“This is in tandem with the weak demand and semiconductor oversupply for components for the majority of 2023. Global personal computer shipments were also down by 29% y-o-y in 1Q2023, according to International Data Corp,” says Yeo.
RHB Group Research analyst Alfie Yeo has maintained their “neutral” call on Frencken Group (SGX:E28
) with a lower target price of $1.14 from $1.24 previously on high inventory and weak end-demand still prevailing in the chip sector.
The chip sector is expected to be weak in 1H2023 from soft consumption of electronics as well as the high level of semiconductor inventories, says Teo. Citing Gartner’s semiconductor inventory index, inventory levels will likely remain high and range between a moderate and severe surplus, he adds.
