The US and China m ay have entered into a truce to their trade war, but for Taiwan's notebook ODMs that means clients are now less eager to build up their inventory, affecting their shipments during the traditional peak season in the third quarter. In fact, the US-China trade war remains a key factor affecting various industries, with the semiconductor sector needing at least three months to digest its inventory. But in the NAND flash sector, despite its sufficient inventory levels, prices have dropped so low that they are expected to rebound.
Notebook ODMs see June revenues rise, but 3Q19 shipments may be flat: Inventec has reported June revenues surged 16.7% sequentially, while other Taiwan-based ODMs are also expected to post substantial revenue increases for the month.
Semiconductor supply chain needs at least 3 months to digest inventory: It will take at least three months for global semiconductor inventories to be digested while semiconductor supply chain players are still plagued by overcapacity and clients' conservative order placements, as a result of persisting global economic uncertainties, datacenter growth slowdown, memory demand recession and smartphone market saturation, according to industry sources.
Samsung reportedly mulling 10% hike for NAND flash prices: NAND flash prices are expected to rebound in the near future, as Samsung Electronics is reportedly considering raising its quotes by as much as 10% and other peer makers including Micron Technology may follow suit, despite distributors still holding more than two months of inventories, according to industry sources.