Growth in global notebook computer shipments is expected to weaken to less than 5 percent this quarter as more signs point to sluggish demand amid a fragile economic recovery in the US and Europe, a Taipei-based market researcher said yesterday.
As a result of weaker-than-expected economic revival in the world’s major PC markets, TrendForce Corp (集邦科技) yesterday trimmed its forecast for third-quarter global notebook computer shipments to 50.34 million units.
DISAPPOINTING SALES
Three weeks ago, TrendForce estimated that shipments would expand 12.8 percent this quarter from last quarter, on expectation of a boost from the back-to-school PC shopping season. Shipments have usually grown by 10 to 15 percent quarter-on-quarter in the traditionally busy third quarter.
However, “July sales from PC and NB [notebook] companies were mostly lower than the market expectations,” TrendForce said in a report.
“Major PC makers are axing orders [to contract equipment manufacturers] to keep inventories within normal levels amid weaker-than-expected end product demand,” the Taipei-based research firm said.
Acer Inc (宏碁), the world’s No. 2 PC maker, last week reported a surprising decline of 40 percent for sales last month to NT$26.26 billion (US$822 million) from NT$44.42 billion in June, although it reaffirmed its revenue forecast for growth of 15 to 20 percent quarter-on-quarter for the July-September period.
“Acer chose to sell its products to supply chains first, but only end demand matters,” TrendForce said.
For the full year, global notebook shipments would be 193 million units, instead of the 202.62 million units estimated originally, TrendForce said.
The latest forecast included netbook computer shipments.
PRICING PRESSURE
Besides, TrendForce said existing notebook computer contract makers are facing escalating pricing pressure from, and market loss to, new players of electronics manufacturer service (EMS) providers such as Hon Hai Precision Industry Co (鴻海精密), which are better at controlling costs through in-house production of components.
That would further cut existing players’ gross margin next year, the researcher said. TrendForce did not provide detailed gross margin projections.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks