MAEI expects semiconductor industry to grow 5-10pc [New Straits Time (Malaysia)]
(New Straits Time (Malaysia) Via Acquire Media NewsEdge) HONG Leong Investment Bank Research (HLIB) says based on various sources of market forecasts, Malaysian American Electronic Industry (MAEI) is expecting the semiconductor industry to expand five to 10 per cent this year.
This will be supported by the more resilient global gross domestic product forecast of 3.7 per cent, the research firm said yesterday.
Growth will be chiefly fuelled by markets such as China, India and the Middle East in Asia, Africa and Russia, on the back of strong demand for video game consoles (Sony PlayStation 4 and Microsoft Xbox One) and the sustainable demand for smartphones and tablets.
"MAEI is looking forward to ultra high-definition (4k and glasses- free 3D) TV and fitness and health-driven wearable devices to sustain the industry growth without displacing sales of other electronic devices.
"Last year, Malaysia's electrical and electronic exports grew marginally by 2.4 per cent to RM236.76 billion, with 20.7 per cent contributed by MAEI members. MAEI is expecting these figures to trend weaker or flat at best going forward," HLIB added.
The firm said major challenges faced by Malaysia's electrical and electronics (E&E) industry include declining talent pool and difficulty venturing into higher value chain.
For the past 40 years, industry players had been confined within the manufacturing boundary and have forgone opportunities in design and development, which eventually caused Malaysia to lag behind, it said.
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