Taiwanese tech companies sustained revenue growth in July

Both the pandemic and American sanctions are negative factors for many market participants, but these conditions also have their beneficiaries. The combined revenue of Taiwan's 19 technology companies rose 9,4% in July, marking the fifth consecutive month of positive growth.

Most fortunate, as the publication notes Nikkei Asian Review, manufacturers of semiconductor products. TSMC showed a year-on-year increase in revenue by 25%, MediaTek by 29%. If in the first case, the demand for the services of a contract chip manufacturer is maintained at a high level by a combination of factors, then the well-being of MediaTek could be indirectly affected by American sanctions against Huawei. As practice shows, this Chinese company is trying to be proactive, purchasing in advance those components that the American authorities will try to block access to in the foreseeable future. Such measures justified themselves - since August, Huawei has lost the opportunity to receive processors both from MediaTek and from any other companies whose products are developed or manufactured using American know-how.

Industry consolidation is also having an impact. Only select companies can handle advanced technical processes; demand for their services is growing at a steady pace. This partially benefits second-tier manufacturers, as less demanding clients of technology leaders switch to them. In particular, the fourth largest contract chip manufacturer in the world, Taiwanese company UMC, increased revenue by 13% year-on-year in July.

Of nineteen Taiwanese technology companies, thirteen reported an increase in July revenue. The most modest increase of one percent was achieved by the contract assembly giant of mobile devices, Foxconn or Hon Hai Precision Industry. On the other hand, he managed to achieve a record revenue for July of $35,7 billion.

Overall, Taiwanese companies managed to increase exports by 12% compared to July last year. Information technology and telecommunications products generated 30% more cash. The most active importers of Taiwanese products in July remained the United States and China (including Hong Kong), which increased consumption by 22 and 17%, respectively. The capitalization of Taiwanese companies on the local exchange in July reached a record value since 1990.

Source:

• Nikkei Asian Review

Source: 3dnews.ru