Apple's no. 2 supplier, Pegatron, has faced challenges on multiple fronts, with an oversaturated smartphone market, recent iPhones being criticized for lacking innovation, and increasing encroachment from China-based Luxshare Precision. As Apple's halo fades, Taiwan-based OEMs have been seeking new opportunities. Pegatron's ventures into new businesses and markets show the agility that Taiwan-based OEMS have gained from years of experience in the field.
With TSMC and ASE Holdings (ASEH) gearing up to build additional fab capacities for advanced packaging, relevant supply chain participants are optimistic about growth driven by their development plans, according to industry sources.
Taiwan Semiconductor Manufacturing Company (TSMC) recently disclosed its overseas expansion progress and plans in its earnings report conference on January 18 and expressed interest in building a second fab in Japan. Surprisingly, supply chain sources said TSMC's success in Japan has inspired Singapore to pitch even better incentives to attract investments from TSMC.
In December, Pegatron surprised the market by yielding control of its Kunshan subsidiary to China-based Luxshare. Pegatron said it was a collaborative decision with its customers, and the company's diversification across geographies is pacing up.
Samsung Electronics unveiled its latest flagship smartphone, the S24 series, which features on-device AI capabilities. Samsung praised the contribution of the Indian R&D team to the smartphone and confirmed local production of the device.
Thailand's electric vehicle sales may double this year as Chinese manufacturers prepare to roll out their first locally manufactured models and about $2.4 billion in government incentives boosts consumer demand.
Near-term IC substrate market conditions remain unclear, with one of the suppliers, Kinsus Interconnect Technology, showing no rush to finalize its overseas capacity expansion plans.
As India and Indonesia become Asia Pacific focus markets for Acer, the company will increase local manufacturing in the two regions, according to Acer's president of Pan-Asia Pacific operations Andrew Hou. For the Indian market, Acer plans to outsource the production of large smart displays and servers, while Indonesia will see a doubling of assembly capacity.
As TSMC expands its fabs internationally, others in Taiwan's semiconductor supply chain are also working together to extend their presence to other countries, seeking to support the number-one pure-play foundry house's overseas projects and international customers.
TSMC's goal towards comprehensive digital management for its facilities (fac) and fabs is gathering pace, helping the company better address challenges in overseas expansions, according to S.D. Yang, manager of the pure-play foundry house's FAC Digital Department.
The notebook supply chain pointed out that the momentum of US brands shifting production to Vietnam has not met the initial expectations. The lack of orders has left supply chain members anxious, which moved production in response to customer demands. Recently, high-ranking executives of notebook brands have visited Taiwan to meet with ODMs to provide some reassurance.
Vietnam's VinFast is set to establish its first production facility, including an electric vehicle (EV) and battery manufacturing plant, in Thoothukudi district, Tamil Nadu, India, Reuters and TechCrunch reported.
Malaysia is the sixth-largest exporter of semiconductors worldwide and is starting to emerge in the global semiconductor manufacturing supply chain. Despite that, there are often negative comments locally about the shortage of technical talents. Regarding this issue, Liew Chin Tong, deputy head of the Ministry of Investment, Trade and Industry (MITI), recently stated that the issue lies in wages rather than talent.
Marking the beginning of 2024, DIGITIMES Asia compiled the list of the top 100 semiconductor companies based on their market values in dollar terms at the end of 2023. The median growth rate in market value among the top 100 companies in 2023 was 35.94%, with the average growth at 49.65%. Semiconductor equipment was the growth driver that saw its median and mean market capitalizations increase by 60.97% and 82.14% during the period.
