An article written by Sam Kim for Bloomberg – A slump in tech demand that weighed on the global economy is showing signs of a turnaround, according to a trio of indicators tracking the semiconductor industry.
Along with the phase-one U.S.-China trade deal, a tech pickup would be a tailwind for export-orientated economies like South Korea and Taiwan — key suppliers of chips — and would ripple through supply chains across Asia.
Semiconductor sales serve as a key barometer of worldwide tech strength due to their use in devices from smartphones and laptops to televisions and cars. A sustained turnaround would be a fillip for nations like Korea, which is headed for its feeblest full-year expansion since the global financial crisis.
Here are three indicators shedding light on the strength of global demand for semiconductors.
Expanding chip-making capacity is one of the clearest leading indicators of chip output to come. The latest data on North America chip-equipment shipments support the view that semiconductor sales will continue to rise after bottoming in March. The November figure from SEMI, a global association of chip makers, marks the highest year-on-year gain since May 2018.
“This improvement in equipment billings meets industry expectations for a stronger close to 2019,” Ajit Manocha, president and CEO of SEMI, said in a statement released Friday… Full article