The continued weakness in global chip sales will show in the results of semiconductor companies despite chip sales showing some improvement month-on-month (m-o-m) in September.
Analysts at Alliance Investment Bank Bhd said in a report that on a year-to-date basis, chip sales were down, painting a bleak picture for the semiconductor industry.
They said chip sales showed some improvement in September when it rose 2% m-o-m due to a recovery from the Americas.
“However, chip sales still declined by 4.7% year-to-date versus the same period in 2011 due to lingering economic headwinds,” they said.
Nonetheless, they said on year-on-year (yoy) basis, it was still down by 3.8%.
“Global chip sales reached US$24.8mil (based on three-month moving average) for September thanks to a recovery from Americas that reflected a 5.8% increase m-o-m, marking the region’s largest increase since May 2010.
“On quarter-on-quarter basis, global chip sales for the third quarter inched up by 1.8% compared to the previous quarter,” they said.
The analysts said the decline in bookings and billings for semiconductor equipment to levels last reported in the second half of 2011 further confirmed its expectation of a second-half investment slowdown.
“The book-to-bill ratio dipped below one time parity for the fourth time since May 2012 to 0.81 times in September versus 0.84 times in August, implying that US$84 worth of orders was received for every US$100 of products billed for the month.
Alliance Research said Unisem (M) Bhd and Malaysian Pacific Industries Bhd are expected to release their quarterly results today and on Nov 20 respectively.