KUALA LUMPUR (Sept 19): Semiconductor manufacturer Unisem (M) Bhd is still running at full capacity even as slower smartphone demand growth prompts expectation of weaker expansion in the electronic-component sphere. 

digitaledge WEEKLY, in its latest September 21 - 27 issue, quoted Unisem chairman and group managing director John Chia Sin Tet as saying half of Unisem's customers were from the automotive and consumer-electronics sectors. The other half comprises buyers from the smartphone segment.

“Yes, some of our customers are facing a slowdown, but others are not. Overall, the business condition is quite good and we are still running at full capacity. After all, Unisem is just a tiny player in a very large industry, so we will not be affected that much.

“It (Unisem’s high exposure to the smartphone market) is not something to worry about because the likes of Apple, Lenovo and Xiaomi are still seeing strong market demand,” Chia said.

digitaledge WEEKLY, quoting industry association SEMI, reported that the semiconductor equipment market might grow 7.1% to US$40.15 billion (RM168.49 billion) in 2015 before expanding at a slower pace of 4.1% in 2016 to US$41.79 billion.

digitaledge WEEKLY, quoting Gartner Inc, also reported that world smartphone sales grew at the slowest rate in the second quarter of 2015 since 2013 as China sales fell.

Yesterday (Sept 18), Unisem shares closed unchanged at RM1.97 for a market capitalisation of RM1.45 billion. The stock had gained 11% this year, outperforming the FBM KLCI's 5% decline.

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