2022 Semiconductors Mid-Year Review: Can AEM and its Peers Still Grow?

The Smart Investor2022-07-14

With disruptions across the semiconductor supply chain, can electronic and semiconductor players still grow their top and bottom lines?Time flies, and it’s now halfway through the year.We had just ...

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Comments

Yinjia
2022-07-19
Yinjia
Good luck
blessed_1
2022-07-14
blessed_1
Ok
CoolFox
2022-07-14
CoolFox
I don't get the explaination that Russian-Ukraine conflict is the main factor of the component shortage for chip manufacturing. Ukraine produces 50% of neon gas for the chip industry. Even with Ukraine out, China and Russia have huge amount of neon to supply the world. The problem is politic and economic because they will sell it at their conditions and price they want. Welcome to the reality of these bulls*** sanctions.
BlueDaisy
2022-07-14
BlueDaisy
I believe slowing growth is just temporary. Demand will return eventually.
Bspn
2022-07-14
Bspn
Ok
Rick13
2022-07-14
Rick13
Ok

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Numerous businesses were also pushed to digitalise to survive in the wake of the pandemic.Companies that benefitted from this surge had it good for two years and are now seeing the effects moderating, leading them to report that sales and demand had “slowed”.Coming off a high base, it’s not surprising that companies such as Micron and AMD are sounding an alarm.On the flip side,Taiwan Semiconductor Manufacturing Co (TPE: 2330), one of the world’s largest microchip manufacturers, signalled this week that demand is holding up.It reported revenue that exceeded analysts’ expectations, while Samsung Electronics (KRX: 005930) announced a better-than-expected 21% year on year jump in revenue.To figure out the true picture, let’s take a look at some indicators on the supply side.Snarled supply chainsIn the medical technology (MedTech) sector, there is still an acute semiconductor shortage.A survey conducted in April this year revealed that almost 80% of the respondents reported longer lead times for products to arrive, leading hospitals and healthcare institutions to look for alternative sources and products.Over at the automotive sector, the shortage of semiconductors plaguing the industry is unlikely to be settled this year, according to the CEO of Mercedes Benz India.The situation may only improve in 2023.Meanwhile, SEMI, a global association of companies involved in electronics design and the manufacturing supply chain, now believes that the problem is more complex than initially thought.While snarled supply chains are responsible for the lack of supply early in the pandemic, it’s now a problem of not having enough chips to manufacture more chips.CEO of SEMI, Ajit Monacha, highlighted that the toolmakers for semiconductor fabs need chips themselves to grow capacity to supply chipmakers with the components to manufacture more.The Russian-Ukraine conflict is worsening this problem as most of the materials needed come from Ukraine, and it will take months, or even years before new plants are up and running to ease the supply crunch.Get Smart: A mixed outlookFrom the above, it’s clear that demand remains high for microchips and semiconductors due to residual elevated demand from the pandemic.However, supply chain problems could interfere with chip manufacturers’ orders, resulting in lower volumes.These problems will, in turn, affect the Singapore-listed players that are supplying components or testing solutions to these larger players.The good news, though, is that demand remains firm, as highlighted by the World Semiconductor Trade Statistics (WSTS).WSTS projects that the global semiconductor market will grow by 8.8% year on year to US$601 billion.With demand still high, the companies need to wait for the supply-side issues to sort themselves out.It may take some time, but they should all eventually post higher sales and net profits.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9075535928,"gmtCreate":1658221613664,"gmtModify":1676536124197,"author":{"id":"3578642980717739","authorId":"3578642980717739","name":"Yinjia","avatar":"https://community-static.tradeup.com/news/04cee1d83d5c75784c42484aa3b94215","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Good luck&nbsp;","listText":"Good luck&nbsp;","text":"Good luck","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9075535928","repostId":1195746189,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9076322877,"gmtCreate":1657797419299,"gmtModify":1676536063302,"author":{"id":"4112410321254552","authorId":"4112410321254552","name":"blessed_1","avatar":"https://community-static.tradeup.com/news/71622697830d9517eb67a61917d8a95f","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":4,"crmLevelSwitch":1},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9076322877","repostId":1195746189,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9076968462,"gmtCreate":1657773317956,"gmtModify":1676536060290,"author":{"id":"3584782885850103","authorId":"3584782885850103","name":"CoolFox","avatar":"https://static.tigerbbs.com/53ed2b2a4ca54289d3bee0a3310b5704","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"I don't get the explaination that Russian-Ukraine conflict is the main factor of the component shortage for chip manufacturing. Ukraine produces 50% of neon gas for the chip industry. Even with Ukraine out, China and Russia have huge amount of neon to supply the world. The problem is politic and economic because they will sell it at their conditions and price they want. Welcome to the reality of these bulls*** sanctions.","listText":"I don't get the explaination that Russian-Ukraine conflict is the main factor of the component shortage for chip manufacturing. Ukraine produces 50% of neon gas for the chip industry. Even with Ukraine out, China and Russia have huge amount of neon to supply the world. The problem is politic and economic because they will sell it at their conditions and price they want. Welcome to the reality of these bulls*** sanctions.","text":"I don't get the explaination that Russian-Ukraine conflict is the main factor of the component shortage for chip manufacturing. Ukraine produces 50% of neon gas for the chip industry. Even with Ukraine out, China and Russia have huge amount of neon to supply the world. The problem is politic and economic because they will sell it at their conditions and price they want. Welcome to the reality of these bulls*** sanctions.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9076968462","repostId":1195746189,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9076995379,"gmtCreate":1657767855791,"gmtModify":1676536059312,"author":{"id":"3582677971530678","authorId":"3582677971530678","name":"BlueDaisy","avatar":"https://static.tigerbbs.com/0747094283743978b62fb8b1ee2cf44c","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"I believe slowing growth is just temporary. Demand will return eventually.&nbsp;","listText":"I believe slowing growth is just temporary. Demand will return eventually.&nbsp;","text":"I believe slowing growth is just temporary. Demand will return eventually.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9076995379","repostId":1195746189,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9076901497,"gmtCreate":1657766149919,"gmtModify":1676536059025,"author":{"id":"3582502134655895","authorId":"3582502134655895","name":"Bspn","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9076901497","repostId":1195746189,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9076077160,"gmtCreate":1657765690850,"gmtModify":1676536058904,"author":{"id":"3582011723925907","authorId":"3582011723925907","name":"Rick13","avatar":"https://static.tigerbbs.com/2d3e47faeb6cb380146cd4f1415c29cf","vip":1,"crmLevel":6,"crmLevelSwitch":1},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9076077160","repostId":1195746189,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":120,"commentSize":15,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1195746189"}