Malaysia chip sector to gain from Thai flood

Malaysia's semiconductor industry will likely gain from the continuous floods in Thailand, a research house said today.

MIDF Research, in its research note, said the redirection of demand from Thailand towards Malaysia's semiconductor players from Thailand may have a positive impact on the industry.

"This may give a boost to the sector in the short term, but possible slack in global demand continues to be a worry. Additionally, the upside will be limited due to the time needed for qualification of new products," it said here today.

The research house said it remains 'neutral' on the semiconductor sector. While several industry indicators are pointing towards lowering demand towards the end of 2011 and into 2012, there remain ares of growth such as smartphone and tablets that will moderate the impact, it added.

According to a recent news report, Nielsen Malaysia said a study showed that tablet computer and smartphone markets are set to increase exponentially by the middle of 2012, with tablet ownership reaching 75 per cent of digital consumers from 18 per cent currently, and smartphones rising to 89 per cent from 48
per cent. -- Bernama