Both MediaTek and Realtek Semiconductor believe that a wave of Wi-Fi 6/6E upgrades is still in progress and that basic demand has not abated. Wi-Fi chip sales can still contribute to their overall operations in 2023 if the customer purchase pattern returns to normal.
Taiwanese startups can no longer involve in "me-too" or "me-better" businesses, but must plan ahead and develop "me-only" technologies. The reasons are because the scales of Taiwanese venture capital (VC) and local market are limited, and does not have an advantage in demographic dividend. Mr. Michael Kao, President of Taiwan ITRI New Venture Association (TINVA) said that environmental, social, and governance (ESG), pharmaceuticals, smart manufacturing, and the semiconductor industries are some of the cutting-edge technologies that Taiwan should plan ahead and invest in. Given Taiwan's complete information and communications technology (ICT) industry chain, there is a good chance that Taiwan can gear to become a key hub for innovations and startups for the Asia Pacific region.
Qualcomm and MediaTek are both looking to emerging markets such as India and Southeast Asia for growth in mobile SoC sales this year, as overall confidence in the mobile phone supply chain remains low for 2023.
MediaTek has provided a relatively optimistic short-term outlook concerning handset inventory digestion at channels. It has also seen some recovery in non-handset business segments. But MediaTek has stressed that it needs more time to observe the long-term business outlook for the entire 2023, which highlights the uncertainties shrouding the current market.
Taiwan's Chunghwa Telecom (CHT) has set aside a capital expenditure budget of NT$35.31 billion (US$1.18 billion) for 2023 mainly for expanding IDC (Internet data center) capacity, investment in additional submarine cable systems and continued deployment of fiber-optic networks, according to the company.
Despite still being the smartphone market leader, Samsung is losing to Apple in the high-end market while being pursued by Chinese brands in the mid-to-low tier market. Samsung has hoped that foldable phones can save its business. However, with Samsung's technical capability and customer loyalty both falling, foldable phones haven't performed well and don't appear to be capable of saving the company.
All firms with considerable business scales in Taiwan's electronics industry are publicly traded. When they release their tentative annual financial indicators, we can already grasp the growth momentum of the industry, as well as the interactions between different industry sectors and the medium- and long-term outlook. DIGITIMES has again collected data on the ICT product manufacturing, semiconductors, optoelectronics, IC distribution and components sectors, providing readers with a comprehensive picture of the electronics industry and an outlook of the industry trends in 2023.