Notebook component and peripheral suppliers expect customer order pull-in momentum to resume in the second half of 2023, according to industry sources in Taiwan.
Players in the notebook supply chain pointed out that inventory corrections have reached a reasonable stage, leading to plans to begin launching new products in the second quarter.
Notebook supply chain players including sound, power supply, and keyboard manufacturers pointed out that previous high inventory levels affected revenue contributions from PC products including notebooks in fourth-quarter 2022.
However, several companies noted that the situation has improved now that inventory levels are being corrected. Chicony Electronics, a computer peripherals manufacturer, revealed that its inventory days have returned to previous levels of under 80 days.
Industry players generally believe first-quarter 2023 will be the year's low point and will subsequently recover quarter by quarter. New product launches in the second half are expected to drive a new wave of demand, but uncertainties in the global market will continue to have an impact.
Most industry players are optimistic the market will see growth in the second half, but they are basing this on estimated customer orders, which could still change. Supply chain sources pointed out that even if companies participate in joint design, the final decision on whether to adopt and the shipment quantity is up to the customer.
On the other hand, if external factors continue to deteriorate or new variables emerge, it is impossible to predict how they will impact new product launches.
Sources noted that the consumer electronics market, including notebooks and PCs, is sensitive to external factors, which is why many in the supply chain are looking to develop opportunities in new markets.
Merry Electronics and Primax Electronics are developing in the automotive market, while Chicony is focusing on imaging-related fields and Darfon Electronics is looking toward opportunities in the green energy market. By expanding to new markets, these companies hope to reduce the influence of notebook and PC products.
Article translated by Eifeh Strom
