Taiwan’s technology firms may fare better moving forward, compared with the first half of the year, driven by inventory replenishment and improved end-demand, as Apple Inc is expected to launch next-generation devices next quarter, UBS Securities said yesterday.
The technology sector, which has seen only a limited pickup in business in the past few years, may end with results on a par with a high season this year, thanks to recouping economic fundamentals in the US and Europe, the Swiss brokerage said on the sidelines of the annual Taiwan Conference, a major event for institutional investors.
“We believe a further increase in seasonal inventory will serve as the next catalyst, especially with the long-expected launch of the next-generation iPhone next quarter,” UBS Taipei-based equities and research head William Dong (董成康) told a media briefing.
Dong kept his forecast for TAIEX unchanged at 9,650 at the year-end, but added the main index may rise above the target during trading sessions next quarter as the new iPhones draw closer to hitting the shelves.
UBS is positive on the camera lens and metal casing sub-sectors given the increasing adoption of innovative new designs such as 3D effects and thinner form factors, electronics hardware lead analyst Arthur Hsieh (謝宗文) said.
“Even though global growth in smartphone shipments could decelerate due to high penetration, opportunities still exist for middle-priced devices, which is attributable to the emergence of the super-mid market,” Hsieh said.
Smartphone camera lens supplier Largan Precision Co (大立光) maintains competitive advantages over its Chinese rivals which are aggressively trying to catch up, Hsieh said.
PC shipments could be higher than expectations (since most people remain skeptical on the sustainability of the recovery) and the increasing appeal of the products should help boost demand, Hsieh said.
UBS shares the belief in business potential linked to the “Internet of Things” (IoT), but has yet to spot an industry standard or a convincing application as of now which would drive immediate demand.
The “Internet of Things” has been a buzz concept encompassing wearable computing devices, smart home-appliances and cloud computing analytical services, UBS technology sector analyst Samson Hung (洪希民) said. However, investors are watching developments from the sidelines and expect the impact on different industries to become more apparent in a couple of years, he said.
“We expect IoT to drive specific industries, such as smart control systems and semiconductors, when the specifics of wearable devices, sensors and chips are developed further,” Hung said.
UBS is optimistic about the growth of the LED industry that has seen a better balance between supply and demand, Hung said, adding that smart lighting is expected to be the next focus of the industry.
Meanwhile, Paul Donovan, senior global economist at UBS Investment Bank, told reporters that he holds a “relatively optimistic” view on the global economy this year, forecasting that the US economy will grow 2.5 percent this year and the eurozone 1 percent.
“Those two economies [the US and Europe] matter a great deal to Taiwan because we are looking for exports from Taiwan to America [and] to Europe to provide support for Taiwanese GDP this year,” Donovan said.
He forecast Taiwan’s GDP will grow 4 percent this year based on strong export growth along with “a reasonably good level” of domestic consumer spending, which will be helped by a relatively strong labor market and recent wage increases in Taiwan.
Additional reporting by CNA
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last