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Taiwan's Technology Industry's Revenue in March Fell to Lowest in the Past Decade

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Update time : 2023-04-20 10:21:57
        China's leading Taiwan technology companies posted the biggest drop in revenue in at least a decade in March, indicating an impending slump in demand for chips and other electronics that will have far-reaching global implications, according to Nikkei Asian Review.
        The Nikkei index showed that 19 Chinese Taiwan tech makers supplying top manufacturers such as Apple and Microsoft posted total sales of NT$1.07 trillion ($35.3 billion) in March, down 18.5 percent from a year earlier and the biggest drop since 2013.

        In addition, revenue at Foxconn Hon Hai Precision, Apple's main assembler, fell 21 percent. Revenue from TSMC, the world's largest foundry, also saw its first decline in nearly four years, dropping about 15.4 percent.
        Sixteen of the 19 companies saw their revenue fall in the month, the highest figure in 10 years since the Nikkei began tracking the revenue of technology makers on the Asia300 list.
        As contract manufacturers, companies in Taiwan, China, are responsible for almost all production of Apple's iPhones, Mac computers and iPads. These companies produce more than 80 percent of the world's PCs, 90 percent of its servers, more than 60 percent of its semiconductors and 80 percent of its video game equipment.
        Nikkei believes the drop in revenue highlights the waning demand for digital products since the peak of the pandemic. The popularity of telecommuting and online education has driven purchases of personal PCs and other digital devices, and strong demand for semiconductors has led to chronic shortages.
        Quanta Computer has been hit particularly hard, as demand for personal PCs from the pandemic-induced boom quickly diminished and its revenue fell 15.9 percent in March.
        Worldwide PC shipments totaled 56.9 million units in the first quarter of this year, down 29 percent from a year earlier, according to data released this week by market researcher IDC. Shipments of Apple computers fell 40.5 percent. Lenovo's PC shipments fell 30.3 percent. Hewlett-Packard's shipments fell 24.2 percent, and Dell's dropped 31 percent.
        Weak demand for personal PCs also hurt LCD manufacturers and chip makers. Known as the "panel two tigers" of AUO and Qunar revenue fell 31.6% and 26.8%, respectively.
        The semiconductor industry is facing headwinds, with DRAM memory leader Nanya Technology's revenue plunging 68.1% in March.
Even TSMC was unable to buck the trend. According to a forecast by Fubon Securities Investment Services, TSMC expects first-quarter revenue to grow 3.6% year-over-year and net income to fall 10.6%.

 
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