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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.
Apple's 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 Apple's 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.