There is no need to be pessimistic about Taiwan's industrial development amid the surging domestic COVID infections, as its solid high-tech supply chains are expected to demonstrate explosive power starting in the third quarter of the year if the pandemic can be contained fast, according to industry sources.
The pandemic may cause short-term impacts on the supply chains, but what needs more attention are recent industry and market conditions, including persistently tight capacity in the semiconductor, panel and other sectors, continuously rising raw materials prices, shrinking handset shipments from Chinese vendors to the China and India markets, and a slowdown in price hikes for memory prices expected in the third quarter, the sources said.
Some makers opined that it is premature to predict overall handset demand will wane in 2021 despite the recent declines in handset sales in China and India. They said the second quarter is traditionally an off season for handset sales, and handset vendors can naturally adjust their components inventory levels while transition to 5G has yet to complete.
The outbreak in Taiwan may also prompt terminal clients to revive their order placements with upstream IC components suppliers, in turn adding more growth momentum to the suppliers in the months ahead, the sources said.
