Search
Xiamen Sinuowei Automated Science and Technology Co.,Ltd
2023 All-around demand expansion signals beginning of MLCC industry recovery
- Categories:News
- Time of issue:2023-03-28 10:17
- Views:
(Summary description)All-around demand expansion signals beginning of MLCC industry recovery
2023 All-around demand expansion signals beginning of MLCC industry recovery
- Categories:News
- Time of issue:2023-03-28 10:17
- Views:
With overall IT device demand in China proving stronger than expected, it appears that the MLCC industry has entered a full-fledged recovery phase, backed by growing demand for automotive electronics and AI industry components. Seeing prospects for additional demand improvement, we expect the industry recovery to further strengthen in 2023. Against this backdrop, SEMCO shares offer solid upside potential.
IT demand strong in China; automotive electronics growth positive
In China, IT device demand, which accounts for a large portion of SEMCO’s recent sales, is proving stronger than feared. With e-commerce companies having implemented massive subsidy policies from March, product prices have decreased tangibly overall. In addition, smartphone and PC sales increase is being further stimulated by economic reopening and the official adoption of Esports at the Hangzhou Asian Games, respectively.
In 2023, the recovery in demand for IT devices is likely to strengthen further, helped by both the launch of the iPhone 15 series, which is set to receive significant hardware upgrades, and enhanced promotional efforts by IT set makers aiming to capitalize on deferred demand and peak seasonality.
Also positive, SEMCO’s solid growth trajectory remains intact thanks to its diversification of products and customers in the automotive MLCC market. Having expanded its global market share from fifth to third (behind Murata and TDK), SEMCO has recently started supplying MLCCs for powertrains (high value-added products) to North American EV makers. We expect the firm’s rapid growth to continue in the future.
Now at start of MLCC recovery cycle; share price still attractive
Following large-scale inventory adjustments in fear of slowing demand due to a macroeconomic slump, strong demand for IT devices is emerging, with demand expanding into a range of industries such as automotive electronics and AI, which is fueling hopes for a faster-than-expected MLCC recovery cycle. Considering the usual cycle length of around one to one and a half years or more, now is likely just the beginning.
A full-fledged industry improvement phase is expected to be confirmed in 2023, with MLCC supply-demand conditions to tighten significantly from 2023. Bolstered by improving demand and recovering MLCC margins, SEMCO’s share price is predicted to level up once again. At present, the shares are still attractive.
Source:BUSINESSKOREA
Hot news
In a significant development for the manufacturing industry, a new German Type Hose Clamp Automatic Machine is set to revolutionize efficiency and precision in hose clamp production, offering a seamless and streamlined solution for various applications.
In the realm of precision manufacturing, a groundbreaking innovation has emerged with the introduction of the High Precision Ceramic Cutting Machine. This cutting-edge machine is set to revolutionize the industry by offering unparalleled accuracy, efficiency, and versatility in ceramic material cutting.
The manufacturing industry has long relied on precision and accuracy to produce high-quality products. In recent years, the Table Vision Jet Dispensing Machine has emerged as a game-changer in the field, offering unparalleled precision and efficiency in the dispensing process.
Scan the code to contact us
Scan the code to contact us
