Technology Sector - DBS Research 2023-10-25: Are Negatives Priced In?

Technology Sector - Are Negatives Priced In?

Technology Sector - DBS Group Research | SGinvestors.ioGrand Venture (SGX:JLB) UMS HOLDINGS LIMITED (SGX:558) VENTURE CORPORATION LIMITED (SGX:V03)
  • Global semiconductor shipments see further improvements from the low in February 2023 while inventory correction progresses well. Worldwide PC and mobile shipments continued to see improvement, with the rate of decline slowing compared to previous quarters.

Tech industry on path to recovery; albeit uneven.

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  • We expect the front-end semiconductor to recover first. Industry data such as global semiconductor shipments are already trending up.
  • For the downstream players, there are some bright spots already, including the lower inventory level and gradual improvement in end market demand, such as the PC and the mobile segment.

Read-through from recent results of global players.

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  • ASML is expecting a flat year ahead, as customers remain cautious. The expected strong growth of ~30% y-o-y is mainly due to the orders secured in 2022 and prior. The group is also affected by the further tightening of export restrictions to China. Although there is no immediate impact, we may see lower contribution from China going forward. Nonetheless, the shortfall should be filled by higher contributions from other regions.
  • Lam Research is guiding for the current quarter to be in line with market consensus vs better-than-expected performance for the previous quarters. Outlook remains mixed with some caution in logic, but we expect secular trends in AI and recovery in consumer electronics to boost the memory segment.

Inventory correction progressing well

Inventory level to normalize by 4Q23.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Lee Keng LING DBS Group Research | Amanda TAN DBS Research | 2023-10-25

More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector


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