Robust demand to drive growth

TA Research noted that at current levels against 2022, most semiconductor companies under its coverage are trading on par or below their five-year average price-earnings ratio (PE) – for instance, Inari Amertron Bhd was currently trading at 29.8 times; Malaysian Pacific Industries Bhd (MPI) at 21.2 times; Unisem (M) Bhd at 18.5 times; and Elsoft Research Bhd at 26.3 times.

PETALING JAYA: Technology companies in Malaysia are expected to benefit from the robust global demand for semiconductors and semiconductor equipment driven by increasing digitalisation and rapid development of new technologies.

According to the World Semiconductor Trade Statistics, global semiconductors sales could increase 8.2% year-on-year (y-o-y) to reach a new high of US$601.5bil in 2022. Global chip sales in 2021 stood at a record US$555.9bil after growing 26.2% from the preceding year.