MIDF Research is retaining a positive view for the semiconductor and technology sector, saying that the inventory replenishment and positive development in the US jobs market will lend support amid the possible economic headwinds.
"Global semiconductor sales held steady in June 2012, falling only by 0.1 per cent month-on-month to US$24.38 billion (RM75.82 billion).
"We believe that the inventory level normalisation process will continue until third quarter of this year in view of sustained demand for smart devices. This should support sales," MIDF said in a research note.
It said confidence in the electronics sector appeared to be robust for the next six months. "We believe this stems from the smart device market."
MIDF also stated that despite the many obstacles ahead, manufacturers in the electronics industry are confident of steering the difficulties.
"We believe that the semiconductor sector will be main beneficiary of the increase in confidence."