Covid-19 has changed how we use technology, while Taiwan has been at the center of this given its crucial role in supplying semiconductors globally.
Since the demand for electronic devices has risen due to Covid-19.
This has led to chip shortages across the entire sector, in turn affecting other industries and spreading across the globe.
Most of us are familiar with the sweeping changes that the Covid-19 pandemic has caused in everyday working arrangements. Many employees continue to work from home (WFH) while students have swapped the classroom for remote learning. This upended the technology sector as many families switched from one device per household to one device per person. Which has also affected Nexteck Singapore Pte Ltd branch in Taiwan.
Before the pandemic, the laptop and TV markets were relative backwaters with mature and declining sales growth, and the biggest tech suppliers busied themselves with new, exciting, and high margin areas such as 5G, electric vehicles (EV) and cloud servers. But the outbreak of Covid-19 caused an abrupt change to that.
This demand for WFH-enabling technology put immense pressure on the technology and semiconductor industry. Taiwan and South Korea are home to some of the world’s leading providers of pivotal componentry in nearly all modern electronics from computers to cars to cameras to cookers.
Many consumer electronics makers have been able to pass on these higher chip costs to customers, especially in WFH-enabling devices such as PCs, TVs, and tablets. In Taiwan, those semiconductor manufacturers who were able to maintain or raise production, and shift to supplying components for sought-after products, experienced rapid growth in revenues and market share.
Tight semiconductor supply conditions will persist into 2022. These constraints are caused by a combination of short-term imbalances in the supply chain and a structural increase in long-term demand.
An inventory correction cannot be ruled out at some point, but industry giant TSMC expects any downturn to be smaller than previous cycles because of powerful structural trends underpinning technology demand such as 5G, cloud computing, the internet or things and electric vehicles to name but a few.
Nexteck Singapore Pte Ltd has steady forecast flowing in from TW Chip sectors, Nexteck Group is conservative optimistic on the new orders and keep close monitor in the raw material supply under the Russia and Ukraine crisis.
