Page 2 - Inventory Correction News Today

Copper clad laminate (CCL) suppliers in Taiwan have encountered short-term headwinds, with many reporting year-over-year revenue declines in the first quarter, but remain optimistic about long-term demand driven by AI, server, and automotive applications, according to industry sources.

Touch module maker TPK Holding has warned that the second quarter will likely be a low point for this year because of continuous inventory correction in the supply chain and weak end-market demand for notebooks and tablets.

According to sources in the server industry, inventory corrections are likely to persist in the short term but the long-term outlook remains promising, driven by AI applications such as LLMs.

Apples inventory correction for iPads is expected to reach an end soon thanks to a major improvement in orders from Apple for high-end iPads in April; however, this may not be true for Apples notebook products as MacBooks shipments have remained feeble so far, according to sources from the upstream supply chain.

Notebook supply chain companies are seeing a lack of new product plans for the second half of this year despite the smooth progression of customer inventory corrections, according to sources.

Taiwan-based flexible PCB (FPCB) maker Complex Micro Interconnection (CMI) is on track to strengthen deployments in automotive and medical applications to secure new growth momentum, while continuing to enjoy stable demand for military and commercial applications.

Taiwans IC design houses managed to end the first quarter of 2023 with impressive revenue performances, bolstered by larger-than-expected replenishment orders and shipments, but it remains to be seen whether the short-term robust rush orders can serve as a prelude to medium- and long-term demand recovery, according to industry sources.

Sharp increases in global demand for advanced and mature chip manufacturing processes continued to significantly bolster equipment purchases by TSMC and other Taiwanese foundry peers in the fourth quarter of 2022, according to statistics released by Taiwans Ministry of Economic Affairs (MOEA).

Panel quotes are expected to continue rising in the second quarter of 2023 with those of LCD TV panels, after experiencing a surging increase in March, estimated to climb up further in April. Prices for IT panels will also have a good chance to ramp up slightly from before in April with a recovery in end demand, according to sources from the panel supply chain.

Server management SoC solution provider Aspeed Technology has set a flat or slight 5% revenue growth target for 2023.