Chip inventory facing correction

Malaysia Semiconductor Industry Association President Datuk Seri Wong Siew Hai (centre) with Nomura Asset Management Senior Equity Analyst Takeshi Kawamoto (2nd right), ASTRO Awani Anchor & Senior Current Affairs Editor Ibrahim Sani (2nd left), Nomura Islamic Asset Management Managing Director Atsushi Ichii (left) and Nomura Asset Management Malaysia Managing Director & Country Manager Leslie Yap (right) during the Launch of Nomura Global Shariah Semiconductor Equity Fund at Majestic Hotel in Kuala Lumpur. — MUHAMAD SHAHRIL ROSLI/The Star

KUALA LUMPUR: While global inventories of chips for automotive and industrial applications remain low, chips for global personal computers and Chinese smartphones are undergoing an inventory correction, according to Nomura Asset Management UK senior equity analyst Takeshi Kawamoto.

“It takes two to three years to build a semiconductor fabrication plant (fab), and there are plans for more capacity, but for automobiles and industrial applications. In the next six to 12 months, I think there will be a recession and demand will go down.