KUALA LUMPUR (Nov 2): MIDF Research has maintained its “Neutral” rating on the semiconductor sector and said it anticipates 2016 to be a muted year for the sector.

In a note today, the research house said despite the positive momentum seen in 3Q16, 9M16 sales was still lagging behind World Semiconductor Trade Statistics’ sales estimate.

“In addition, sales growth of smartphone is expected to remain lackluster in the immediate term owing to global economic slowdown and lack of innovation in new smartphone launches.

“On another note, we take comfort in knowing that semiconductor players remain committed in its capital spending as seen in the positive Book-To-Bill ratio.

MIDF Research said this would ensure that the industry will continue to grow, albeit at a slower pace.

“All in, we are anticipating 2016 to be a muted year and we maintain our Neutral stance on the sector,” it said.