August 24, 2001 – Sales of listed electronics companies in Taiwan were down 17.4% in July, compared to a year ago, and down 0.5% from June. Cumulative sales for the first seven months of the year were down 4.1% from the same period last year.
Personal computer makers Acer and First International Computer saw sales of desktop PCs worsen and notebooks slow, but Dell suppliers Quanta Computer and Compal Electronic did well. Makers of mother boards for Pentium 4 clones increased sales. Assemblers of cell phones continued slow on weak end demand. Sales at producers of components for phones picked up over June as overseas OEM customers finally reduced inventories, though end demand remained weak.
Components suppliers started to see orders pick up in July, as expected, for products that will start to be ordered in September for the Christmas season. Taiwan Semiconductor Co. Ltd. (TSMC) saw a slight month on month increase in July, on an increase in demand for chips for personal computers. Consumer chip designer Sunplus Technology increased sales of its chips for digital cameras and toys. Many suppliers of passive components also increased sales in July over June’s levels. Though it is by no means a recovery, business is seeing some of the usual seasonal pickup.
-Daiwa Securities Senior Analyst Yasuo Nakane for Nikkei Microdevices