Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 13, according to the Nikkei Chinese website, due to the reduction in global demand related to IT, the performance of semiconductor and electronic components enterprises, which are pillar industries in Taiwan, is suffering a huge impact. Total sales at 19 major IT companies, including TSMC and Hon Hai Precision (Foxconn), fell 19.8 per cent in June from a year earlier, the biggest decline since statistics began in 2013.

▲ source Pexels Taiwan's representative semiconductor company TSMC's June sales fell 11.1% year-on-year to 156.4 billion New Taiwan dollars (CTOnews.com Note: currently about 35.972 billion yuan), shrinking for four consecutive months. Investment in devices by Apple and other large US IT companies, as major customers, remains weak, while the previous surge in demand for servers, personal computers and smartphones also suffered a retaliatory decline due to the end of the epidemic, especially the poor performance of the mainland market, which is an important reason for the decline in TSMC's performance, the analysis said.

On the other hand, from the perspective of the related fields of generative AI actively developed by Nvidia and other enterprises, this field has not brought a substantial increase in semiconductor demand at present.

The downturn of another representative Taiwanese company, Hon Hai, is also evident. Sales of Hon Hai, which mainly manufactures Apple's iPhone smartphones, fell 19.7% in June to NT $422.7 billion (currently about 97.221 billion yuan), the fifth consecutive month of decline.

The total sales of 19 major IT Taiwanese companies in June were about 4.9 trillion yen (currently about 253.33 billion yuan), down 20%, of which 14 reported double-digit sales declines.

The IT industry is the foundation of Taiwan's economy. Due to the downturn of the IT industry, Taiwan's real GDP decreased by 2.87% from January to March 2023 compared with the same period last year, two consecutive quarters of decline. The previous decline in October-December 2022 was Taiwan's first negative GDP growth in seven years. As a result of the global decline, Taiwan's exports also fell by 23.4% in June, the highest decline since the US financial crisis in 2009.

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