A gloomy outlook surrounds the local semiconductor sector following disappointing quarterly results from Unisem (M) Bhd and ViTrox Corp Bhd.
Unisem, one of the largest outsourced semiconductor assembly and test (OSAT) companies in Malaysia, reported a decline in its net profit in the first quarter.
With a record of only RM9.86 million, its profit fell 80.5% year-on-year and 85% quarter-on-quarter in the period, with a net loss of RM2.83 million.
Meanwhile, ViTrox, the country's largest automated test equipment (ATE) firm also reported a lower net profit of RM33 million in the first quarter.
Following the dismal performance of the two drivers of the local semiconductor sector, Kenanga Research analysts gave a gloomy picture that the sector will remain challenging throughout the year.
This follows macroeconomic problems, including weak consumer sentiment impacting demand for consumer electronics products.
This indirectly also gives a negative outlook to other semiconductor companies that will release their quarterly reports.
Globally, the decline was also seen by semiconductor giants such as Intel Corp, Samsung Electronics Co and memory chipmaker SK Hyinx Inc.
