Chipmakers including MediaTek, Qualcomm, and Broadcom are set to ramp up their output for Wi-Fi 6/6E chip solutions looking to embrace booming demand for such chips and increase their market shares in 2022, according to industry sources.
TSMC has narrowed its revenue growth outlook this year to 24%, based on its forecast of 4.5% sales rise at the midpoint of the foundry house's latest guidance for fourth-quarter 2021. Despite a media report's claims that Apple is cutting its production goals for iPhone 13 seies for 2021, components suppliers have disclosed hey have not seen any reductions in orders from the client for the new smartphones. In China, manufacturers are making contingency plans to cope with power restrictions, which they expect will become a long-term policy of the country.
As cloud and 5G applications continue to grow, the demand for data centers remains high, opening up opportunities for related supply chains such as connectors.
American clothing brands are seeing delayed production ahead of end-of-the-year shopping season because of reduced production in Vietnam, which logs the biggest quarterly fall in GDP for third-quarter 2021 due to the pandemic.
Notebook ODMs may experience a weak fourth quarter of 2021 with their feeble sales in China during the National Day holiday and possible low sales momentum during the year-end holidays in Europe and North America. Largan Precision also saw its gross margin hit the lowest in 25 quarters, but the percentage was still well above 59%. PCB maker Zhen Ding is also prepared to start making BT and ABF substrates in China in 2022.
India's huge population and potential economic growth have attracted investments from foreign IT enterprises, such as Samsung, Netflix, and Oppo, while local large enterprise groups such as Tata and Reliance have been pushing for innovations across industries in India with increasing investments as well.
Smartphone-use lens module maker Largan Precision released a financial report for the third quarter of 2021 at an October 7 investor conference, with a gross margin of 59.33% being the lowest quarterly level since the third quarter of 2015.
Taiwanese companies are investing in ASEAN more than in China this year. From January to August this year, investment in ASEAN countries has nearly tripled, compared to the same period in 2020.
Tight fab capacity has been sending foundry quotes rising, which is expected to continue boosting profits for foundry houses in 2022. For the backend sector, supply of packaging leadframes is expected to remain tight with order visibility already extending to 2023. Networking device vendors are wary that chip and component shortages could curb their sales growth in the fourth quarter of 2021.
Taiwan-based networking device manufacturers including Accton Technology, Arcadyan Technology and Sercomm all expect their revenues in the fourth quarter to outperform the prior quarter's levels, but are still aware of challenges arising from the ongoing chip and component shortage.
The supply of wireless connectivity chips will stay tight through the first quarter of 2022, with Wi-Fi 5 chip modules from vendors in Taiwan able to satisfy only 70% of demand, according to sources at IC distributors.