The world's second largest semiconductor market trend

Taiwan's current semiconductor output value ranks second in the world, second only to the United States, and is the first pillar industry supporting Taiwan's economy. At the time of the 6.7-magnitude earthquake that struck southern Taiwan in 2016, many electronic component parks in Taiwan were completely shut down, which had a major impact on the entire electronic components industry.

In February 2018, an earthquake occurred in Hualien County. After that, the price of MLCC has skyrocketed for a period of time, and the market is still deeply impressed, so there will be expectations for this speculation. However, from the performance of Taiwan's electronic stocks, there has not been a clear drop.

Some market participants believe that the earthquake in Taiwan may still have an impact on related industries. After the earthquake news report, Xingsen Technology and Fenghua Hi-Tech surged sharply, and Changdian Technology and Jiemei Technology also responded at the end. From a global perspective, the recent rise in the Philadelphia Semiconductor Index is gratifying, and whether the entire industry has entered a bullish trend is worthy of attention.

It is worth noting that from the performance of the US market, the semiconductor industry seems to have seen a significant improvement. Driven by Qualcomm, overnight US chip stocks rose, the Philadelphia Semiconductor Index hit a record high, up 2%. Intel rose 4.5% after the company announced its withdrawal from the smartphone's 5G baseband chip business, but will maintain a 5G network infrastructure. Qualcomm rose 17.1% in the session on the 17th, plus 24% on the 16th, the biggest increase in more than 40% in two days.

Researchers said that since the beginning of 2019, the market's expectation that 5G commercials will accelerate will provide an opportunity for the semiconductor industry to recover. Combined with the progress of 5G commercial construction in the global market in 2019 and 2020 and the expected restocking stage in the second half of 2019, downstream demand from 5G in the second half of 2019 is expected to pick up. There are signs that the global semiconductor industry boom cycle is expected to improve completely in the second half of 2019.