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Adata Technology believes its industry will start stabilizing in the second quarter, while fellow memory module firm Team Group still sees the industry having a difficult year.
The Cyberspace Administration of China on March 31 said it launched an investigation into Micron's products in China on the grounds of "safeguarding supply chain security of critical information infrastructure," a move viewed as Beijing's retaliation against Washington's technological and strategic curb on China's development.
Samsung has announced that starting this week it will be lowering memory chips production by a 'meaningful' level, especially that of products with supply secured, and most market observers believe that the production cut will focus on DDR4 memory chips.
China has kicked off a cybersecurity review of Micron Technology's memory products sold in the country, making it the first foreign semiconductor company in China to face the scrutiny and casting darker clouds over its business prospects. It remains to be seen what the possible consequences will be, and if China will conduct similar probes into other foreign semiconductor firms.
Taiwan-based OSATs such as ChipMOS Technologies and Chipbond Technology are seeing the monthly operating growth rate of chip and backend companies exceed 20%.