Electronics Industry Weekly: International Semiconductor Manufacturers Revise Inventory

Industry perspectives and investment advice. According to our recent channel research, major international semiconductor companies (including Broadcomm, ST, Qualcomm, TI, MTK, Spreadtrum, etc.) have all recently revised their package or chip OEM orders. We believe the main reasons are: (1) Weak orders from individual customers such as Nokia; (2) Macro-uncertainties have caused manufacturers to strategically reduce inventory at the end of the second quarter. We judge that June is the last industry inventory to digest this year, and there will still be a seasonal rebound in the third quarter (although the intensity may be lower than the historical average), and the chain will continue to grow in the fourth quarter. After the bad weather in the third quarter is fully digested, there will be a good buying point in the electronics industry. The focus is on companies that are less affected by the industry cycle and have relatively reasonable valuations: such as Lixun Precision, Jinfu New Materials, Derun Electronics.