Under the dual shadow of the epidemic and the Sino-US trade war, the Asian electronics industry is developing in reverse

Under the rising demand for 5G, the Asian electronics industry has been able to make steady progress in the epidemic, thus becoming a catalyst for the development of the entire Asian industry.

South Korea’s computer sales surged 107% in August and semiconductor shipments rose for the third consecutive month in the past four months, despite a slump in smartphone sales and a 9.9% drop in overall exports from a year earlier, a set of data released on Tuesday showed. monthly growth.

Manufacturing output in Taiwan rose 2.6 percent in July, while output of computers and integrated circuits grew at a double-digit rate. During the same period, Singapore’s electronics shipments rose for the third consecutive month.

Despite the headwinds of the U.S. ban on Huawei, further tensions in the U.S.-China trade relationship and a drop in demand for home office equipment, the latest figures are strong support for predictions that Asia’s electronics industry will continue to recover this year.

Benefiting from continued demand for infrastructure and 5G-related applications such as smartphones, the production of Electronic products will continue to be brisk, and even the latest technology ban against Huawei cannot stop this trend.

According to Gartner estimates, the global semiconductor industry’s revenue will fall only 0.9% this year to $415.4 billion.

However, risks remain. If Trump is re-elected in November, that could spell more trouble for Asian supply chains, and it is unclear how his rival, former Vice President Joe Biden, will change the U.S. strategy toward China.

However, many companies believe that the prosperity and development of the electronics industry can overcome risks, at least Taiwanese companies think so.

Fang Leuh, chairman of TSMC’s Vanguard, said that while the uptick in laptop and camera business due to remote work may be temporary, demand for computers will continue to be strong, while TV orders are also growing.

This is comparable to the data given by Quanta Computer. Quanta Computer is the world’s largest notebook computer ODM supplier. Its CEO Elton Yang said that notebook computer shipments are expected to achieve double-digit growth in the third quarter of this year. Demand will remain long-term.

Industry executives believe they need to take a longer-term view of the outlook for electronics even as uncertainty remains high due to the U.S.-China trade war, the U.S. election and the pandemic.

Apple, for example, has asked suppliers to produce at least 75 million 5G iPhones later this year, roughly the same number it released last year, showing that despite the negative impact of the pandemic and recession, the market has a strong focus on the company’s most important products. demand remains stable.

“The electronics industry is much more resilient than it was eight years ago,” said Vanguard’s CEO.

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