AmBank Research sees semicon sector growing 9.6% up to 2022

KUALA LUMPUR: AmBank Research forecasts Malaysia’s electrical and electronics (E&E) sector to grow about 9.6% annually from 2018 to 2022, tracking the global semiconductor industry.

It said on Wednesday growth will be supported by the electronics segment which it forecasts at 13.0% between 2018 and 2022.

AmBank Research said the global semiconductor market revenue should grow in 2018 and thereafter stay at a healthy pace supported by the megatrend of the internet of things (IoT) that has multiple applications and increasing use of wearable gadgets, smart home applications, automotive industry, and the use of artificial intelligence (AI) technologies.
 
“Hence, our electrical and electronics (E&E) sector is expected to continue playing a pivotal role. 

“With a growing focus on integrated circuit (IC) design innovation and the adoption of Industry 4.0, this paves way to move up the value chain. 

“Besides, Asia Pacific and in particular China and India, would dominate the smart display market for the automotive industry. Also, the current US-China trade war should have a positive impact on Malaysia,” it said.
 
The research house said Malaysia’s E&E sector has successfully positioned itself in the global supply chain of electronic manufacturing services, outsourced semiconductor assembly and testing as well as in research, design and development. 

It should flourish from several megatrends such as Industry 4.0, AI, machine learning (ML) and the IoT.

 Also, the digital lifestyle and economy will continue to support the growth in e-commerce, e-mobility and e-healthcare. 

“Importantly, our local E&E industry is able to leverage these megatrends,” it said. 

On Monday, the US-based Semiconductor Industry Association (SIA), announced worldwide sales of semiconductors reached US$41.8bil for October 2018.

The SIA said this was an increase of 12.7% from the US$37.1bil a year ago and 1% more than October’s US$41.4bil. 

The World Semiconductor Trade Statistics (WSTS) organisation had raised its forecast and projects annual global market growth of 15.9% in 2018 and 2.6% in 2019.