Electronic components industry or low rise


  In the fourth quarter of 2008 and early 2009, the global electronic components industry experienced a rapid decline, and the industry boom and company performance fell to the bottom. Although from the first quarter of this year to the semi-annual performance, it still shows a year-on-year decline, but the monthly operation has shown a significant upward trend, and the overall situation can be summarized as a low recovery.

  The decline in demand for global electronic products brought about by the financial crisis is the main reason for the rapid decline of the electronics manufacturing industry in this round. In addition, the cyclical adjustment of some sub-sectors itself is one of the factors that lead to the decline of company performance. The decline in vendor shipments is not entirely due to lower final demand. Agents and other industrial chain intermediate links have reduced their inventories due to lack of confidence in future demand and as much as possible to maintain a reasonable cash flow situation, and have also contributed to the decline in shipments of electronic products.

  This year, the state has successively issued a series of supporting policies and measures related to electronic components and their upstream and downstream, such as the adjustment and revitalization plan of the electronic information industry, home appliances to the countryside, trade-in, and reduction of export value-added tax. Both will bring opportunities to the electronic components industry.

  The current challenges facing the electronics manufacturing industry have prompted companies to begin to examine their technology and industry positioning, actively adjust their development strategies, and improve their competitiveness. In this context, corporate mergers and acquisitions, asset restructuring and other behaviors are more than in the past.

  In 2009, the investment in electronic components companies tends to be cautious, but the capacity utilization rate of most companies has rebounded.

  In the first quarter of this year, although the overall performance of the electronic components industry was not satisfactory, in fact, most companies that achieved profitability. The reason is that most of the profit of the profitable company has dropped by a large margin, while the amount of the loss-making company is large, resulting in a negative total net profit. At the same time, the utilization rate of sub-sectors such as semiconductor materials, device manufacturing, packaging, and magnetic materials has recovered in the first quarter, and the capacity utilization rate of some companies has increased rapidly.

  Although many companies in the first quarter indicated that their business conditions are improving month by month, the overall performance of the industry is still down from the fourth quarter of 2008, which is already considered to be very poor. There are two main reasons for this: First, the starting point is low. Due to factors such as declining demand and downstream destocking, the industry was at its lowest level at the end of last year and at the beginning of this year. Although some companies' capacity utilization rate improved significantly in February and March, the starting point was too low and the performance was dragged down. The second is the seasonal factor. The first quarter is the off-season of most sub-sectors, and includes New Year's Day and Chinese New Year holidays, which have a certain impact on performance.

  Due to the poor performance in the first quarter, the proportion of companies with pre-loss and pre-fall in the first half of the year is still more than half. If the overseas market cannot enter the recovery channel relatively quickly, the growth rate in the third and fourth quarters will gradually decrease. In the third quarter, the overall year-on-year growth is still difficult. In the fourth quarter, it is expected to achieve positive growth due to the sharp decline in industry performance in the same period last year. For the full year, achieving year-on-year growth in revenue and profit is difficult for most companies.