Demand for 5G handsets may have been dampened by the quick spread of the coronavirus, but other 5G segments, such as instrastructure deployments, have remained robust enough to help shore up IC backend firms' sales. The outbreak has fueled further talks among IT firms about moving production facilities out of China, but for the HDD sector, its major manufacturing hub is already in Southeast Asia, with Thailand boasting the biggest ecosystem. For server PCB suppliers, their sales in the first two months of 2020 were impressive, unaffected by the outbeak.
IC backend firms see strong demand from non-handset 5G segments: IC backend houses are enjoying stronger demand from 5G infrastructure, server and datacenter segments than the handset sector that is being increasingly hit by the fast spread of the coronavirus, according to industry sources.
HDD manufacturing cluster formed in Thailand: A cluster of PC hard disk drive (HDD) supply chain makers has been formed in Thailand with Taiwan-based Cal-Comp Electronics & Communications and Quanta Storage also participating, allowing them to circumvent impacts of the coronavirus outbreak, according to industry sources.
PCB makers GCE, ACC gaining from strong server demand: Taiwan-based PCB makers Gold Circuit Electronics (GCE) and Allied Circuit (ACC), both dedicated mostly to server applications, have reported significant revenue gains for the first two months of the year as shipments have stayed in high gear since the server market resumed growth momentum in the fourth quarter of 2019, according to industry sources.
