Simulate the emergence of urgent orders in the second quarter of IC, slowing down the trend of price decline

Source: Mantianxin

     According to Taiwanese media MoneyDJ, the simulated IC sub industry is benefiting from the demand for consumer electronics orders, including TVs, PCs, etc. At the same time, customers are mostly looking forward to the peak season effect of 618 consumer products. Therefore, the market is optimistic, and the operating performance of the simulated IC in the second quarter will show significant improvement. Some manufacturers have already started to resubmit, and are not pessimistic about the traditional peak season in the third quarter.

    The industry pointed out that most of the urgent orders this time are replenishment of channel inventory, similar to the situation driving IC, and generally customers are not clear about the demand for orders in the second half of the year, and order visibility is still low. However, at least the orders have started to flow back.

     In addition, in terms of simulating the price of ICs, due to the increase in demand, the price decline in the second quarter has also converged. Although there are still some general purpose products with price reductions, most have already shown signs of a stop down, and gross profit margin and profit performance are expected to rebound in the second quarter.

    From the perspective of operating conditions in the second quarter, under the situation of urgent order replenishment and increased working days, the quarterly revenue performance will increase. However, the base period was generally high in the same period last year, and there is still pressure for annual decline; In the second half of the year, it is necessary to continuously observe changes in the global economic climate.

    Taichang Maoda is optimistic that demand will not be weak in the second half of the year, and has strategically restarted chip production, gaining space for renegotiation with wafer foundries, which will help control the cost side in the second half of the year. It is evident that they are not completely pessimistic about the demand during the traditional peak season in the past.

    The market is optimistic, and due to strong purchasing power in the second quarter, the process of inventory reduction in the overall supply chain will also accelerate; Manufacturers have previously been relatively conservative in their investment volume in the first half of this year, so the market is also optimistic. Starting from the first quarter, the inventory level will gradually decrease, and there is a chance to return to a more normal range in the middle of the year. This will also depend on each company‘s investment strategy. However, after the entire supply chain is improved, it will also be helpful for the peak season effect in the second half of the year.