Component Sense Blog

Samsung Electronics Posts 23% Rise in Profit as Pandemic Spurs Chip Demand

Samsung Electronics Posts 23% Rise in Profit as Pandemic Spurs Chip Demand
Samsung Electronics has posted surprisingly robust second-quarter profit, driven by high demand for computer chips amid the new work-from-home economy, despite coronavirus affecting smartphone sales. Beating analyst’s forecasts, the world’s largest manufacturer of memory chips, smartphones and electronic displays posted operating profit for the April-June period at 8.1tn Won ($6.8bn), up 22.7% of last year. The group’s results indicate the health of Asia’s technology sector in the second quarter, during which the pandemic battered global economies. Chip prices were strengthened by data centres stockpiling chips on account of the surge in online activity. However, analysts warn that this trend would...

Manufacturers Must Rethink Global Operations Following Covid-19

Manufacturers Must Rethink Global Operations Following Covid-19
A new study by the University of Birmingham reveals that in light of the coronavirus pandemic, manufacturers must move away from single production facilities in low-cost regions, in order to minimise risk. The study suggests that production should instead focus on having numerous facilities around the world, including re-shoring, to strengthen resilience. Researchers reported that the concept of value should be broadened beyond profit to include factors such as speed, customisation, reliability, and “place-based affiliations” to redraw global production networks (GPNs). Based on a study of 91 US manufacturing companies, the report found that Covid-19 had shown the most effective...

Hard-Hit Automotive Electronics Sector Stuck in Neutral

Hard-Hit Automotive Electronics Sector Stuck in Neutral
While some semiconductor sectors are showing signs of recovery, the automotive sector continues to suffer as the pandemic extends into the summer of 2020. Despite Marvell and several other chip makers showing signs of life, including new 52-week highs for stock prices, the automotive electronics sector remains stagnant. London-based market research firm Omdia forecasts a 16% drop in annual revenue for the hard-hit automotive power semiconductor segment. That equates to approximately $9.1 billion in 2020 revenues. The contraction reflects declining vehicles sales and plunging auto production, according to analysts. Earlier this year, hopes of a rebound in automotive power semiconductor...

Memory, Power and AI Semis in 5G to Hit $15 Billion by 2025

Memory, Power and AI Semis in 5G to Hit $15 Billion by 2025
The 5G AI, memory, and power amplifier (PA) semiconductor market is rapidly transitioning from a nascent stage to a growth stage, according to a new report by market research firm Frost & Sullivan. This development is strongly driven by exponentially increasing data traffic, technological advancements leading to hardware performance and capability improvements, and the emergence of new use cases, the report says. Registering an unprecedented growth at a compound annual growth rate (CAGR) of 74.3%, the market for 5G AI, memory, and PA semiconductors is projected to reach revenue of $15.03 billion by 2025, up from $536.9 million in 2019....

Electronic Component Manufacturers Face Lengthy Recovery from COVID-19

Electronic Component Manufacturers Face Lengthy Recovery from COVID-19
COVID-19 has caused severe disruption among electronics manufacturers, presenting consumer electronics and the automotive industry with a challenging year ahead, according to GlobalData, a leading data and analytics firm. In a fresh report, analysts disclose that economic shutdowns, which started in China and extended across the globe, have significantly impacted supply chains and may delay the prototyping and production of new products as a consequence. This is further compounded as new car purchases, including electric vehicles, are now unlikely to be a priority for businesses and consumers, amid the economic uncertainty resulting from the pandemic. One of the global electronic...

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