Foreign securities brokerage CLSA Ltd said it favors makers of consumer electronics products, including Hon Hai Precision Industry Co (鴻海精密), among Taiwanese technology stocks, as it expects the proliferation of consumer gadgets such as cellphones to replace computers in fueling growth for the local electronics industry.
Digital televisions, game consoles and handsets are the strongest technologies at the moment, said Cheng Ming-kai (鄭名凱), head of the firm's technology research.
"This year will be a good year for the technology [sector] in general. We are looking for further upside during the rest of the year," Cheng told reporters during a two-day forum in Taipei.
Rising equities prices would be more sustainable despite the short-term shock from soaring energy prices and an appreciating NT dollar, Cheng said.
Demand in the handset, semiconductor and thin-film-transistor liquid-crystal-display (TFT-LCD) industries would likely outpace other industries throughout this year as buyers aggressively build up inventories, he said.
Among CLSA's top picks, mobile phone-related stocks made up a major part of its recommended investment portfolio.
These include Hon Hai, the world's biggest mobile phone maker and its affiliate Foxconn International Holdings Ltd (
Cheng expects handset sales this year to grow to around 900 million units.
CLSA's optimism is built on global electronics companies' fast-growing production outsourcing to Asia, particularly Taiwan, in the recent two years.
While Cheng foresees stronger performance from downstream electronics industries, he still expects growth from upstream semiconductor producers such as Taiwan Semiconductor Manufacturing Co (
He said some inventory was built, but would not pose a serious problem for chipmakers as it did during the last downturn.
Local chip designer Mediatek Inc (聯發科), which diversified to chips used in digital TVs from DVD chips, and recently listed Nan Ya Printed Circuit Board Corp (南亞電路板) would benefit from the growing adoption of consumer electronics such as digital TVs and game consoles in the upcoming years, according to the brokerage house.
Computer power supply system maker Delta Electronics Inc (
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
RSS