Taiwan Semiconductor Industry Association (TSIA) held "2018 TSIA Annual Meeting" today on November 27. The founder of Powerchip (5346-TW), Frank Huang, told reporters that the industry is full of uncertainties for now. It is expected that the semiconductor industry will slow down slightly in 1Q19, and China’s development of semiconductors will slow down due to US-China trade war.
Semiconductor industry in China may no longer be able to expand as it has in the past and may face the wave of merge and acquisition.
As a result, it may bring opportunities for Taiwan’s companies. “Through Jinhua case, we can see that the United States is trying to make sure that China can no longer develop DRAM.” said Huang.
Regarding US-China trade war, Huang pointed out that the trade war is relatively favorable to Taiwan's semiconductor industry. For now, the industry is full of uncertainty and the companies are adjusting the inventory. It is expected that semiconductor industry may slow down slightly in 1Q19. However, once the United States confirms to impose 10% tariff on China’s $200 billion worth of goods, the situation will become more evident.