Taiwan, China IT factory's revenue has declined year-on-year for six consecutive months, and the period of performance downturn may be further prolonged
According to MoneyDJ, citing the Nikkei News, the performance of major IT enterprises in Taiwan, China continues to be sluggish. In July 2023, the total revenue of 19 major IT factories, including TSMC and Hon Hai, was about NT $1.156 trillion, down 8.7% from the same period last year. This month is also the sixth consecutive month of contraction, but the decrease was significantly reduced by 19.8% compared to June.
Among them, 15 companies experienced a contraction in revenue in July, and 13 companies experienced a double-digit decline or more. Affected by the decline in smartphone and PC orders, TSMC has decreased by 4.9% compared to July last year, while Hon Hai's revenue in July has decreased by 1.2%.
According to the report, in addition to contracting for more than half of the production of Apple iPhones, Taiwan, China enterprises also account for more than 60% of the market share of global wafer foundry, and nearly 90% of the production of servers, 80% of PCs, and 80% of game consoles are supplied to large global enterprises in large quantities. Therefore, from their monthly revenue trends, it is expected to predict the economic trend of about three months in the future from factory shipments to the actual launch of goods.
As the sales and equipment investment of large factories have not recovered, the performance downturn of Taiwan, China IT factories may be further prolonged.
According to Nikkei News, the total sales of 19 major IT companies in June were 4.9 trillion yen ($35 billion), a year-on-year decrease of 19.8%, the largest decline since tracking these numbers began in 2013. Among them, 14 companies experienced a double-digit decline in revenue.
The report said that, especially the weak demand for servers, computers and smartphones in Chinese Mainland, the capital investment of customers such as Apple and major information technology companies in the United States was still sluggish, which led to this result.
Among them, 15 companies experienced a contraction in revenue in July, and 13 companies experienced a double-digit decline or more. Affected by the decline in smartphone and PC orders, TSMC has decreased by 4.9% compared to July last year, while Hon Hai's revenue in July has decreased by 1.2%.
According to the report, in addition to contracting for more than half of the production of Apple iPhones, Taiwan, China enterprises also account for more than 60% of the market share of global wafer foundry, and nearly 90% of the production of servers, 80% of PCs, and 80% of game consoles are supplied to large global enterprises in large quantities. Therefore, from their monthly revenue trends, it is expected to predict the economic trend of about three months in the future from factory shipments to the actual launch of goods.
As the sales and equipment investment of large factories have not recovered, the performance downturn of Taiwan, China IT factories may be further prolonged.
According to Nikkei News, the total sales of 19 major IT companies in June were 4.9 trillion yen ($35 billion), a year-on-year decrease of 19.8%, the largest decline since tracking these numbers began in 2013. Among them, 14 companies experienced a double-digit decline in revenue.
The report said that, especially the weak demand for servers, computers and smartphones in Chinese Mainland, the capital investment of customers such as Apple and major information technology companies in the United States was still sluggish, which led to this result.