Sentiment remains weak for semiconductor sector

Illustration picture of semiconductor chips

PETALING JAYA: Near-term sentiment remains weak for outsourced semiconductor assembly and test and automated test equipment providers, amid the chip sector’s downcycle, according to TA Research.

However, the research unit said the companies under its coverage, namely Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Unisem (M) Bhd and Elsoft Research Bhd, have strong balance sheets (with all in robust net cash position) which will help them to sail through the current downcycle.“This will also allow them to carry on with capacity expansion plans as they seek the next wave of opportunities from an eventual upcycle, which is anticipated to be catalysed by a slew of secular trends such as 5G, artificial intelligence, high-performance computing, the Internet of Things, and vehicle electrification,” said TA Research.