According to the "Nihon Keizai Shimbun" on December 28, the artificial intelligence (AI) fever will drive the recovery of the semiconductor industry.
When it comes to Asian companies to watch in 2024, market leaders often mention companies related to high-performance semiconductors used in AI and other fields, such as Taiwan Semiconductor Manufacturing Corporation (TSMC) and MediaTek Corporation (MediaTek). In Southeast Asia, economic stimulus policies have led to a strong trend in private consumption, and some market participants have expectations for Thai beverage companies. On the other hand, electric vehicles (EVs) have entered a growth plateau.
In 2024, the semiconductor market may usher in a recovery situation. Hsiao Qian-hsiang, chairman of Taiwan's Fubon ** Investment Consulting Co., Ltd., pointed out that in 2024, in addition to servers, the demand for AI in consumer terminals will also expand. Semiconductors and server-related brands, which account for a large share of the world's market, are highly anticipated.
Regarding the brands that are expected to develop, Xiao Qianxiang listed Quanta Computer Company and TSMC. "The number of high-performance servers** used for AI is about 20 times that of ordinary servers**, and it will contribute greatly to improving profits," he said. ”
As a related brand, MediaTek, Asus Computer, etc. are mentioned. MediaTek is promoting the introduction of semiconductors for the manufacture of smartphones with improved AI processing performance. ASUS is a large computer company.
As demand for high-performance DRAM and other memories for AI increases, smartphone sales are expected to grow, so 2024 will also be a year of growth for South Korea's Samsung Electronics and SK hynix.
On the other hand, it has also been pointed out that there has been large-scale investment in the field of electric vehicles in recent years, but it is now entering a plateau.
The revenue of LG Energy Solution, a major South Korean battery company, and SK On, a subsidiary of SK Innovation, decreased in the third quarter of 2023 from the previous quarter. LG's revenue has declined for the first time in seven quarters, and SK has seen a revenue decline for the first time. The reason for this is the stagnation of demand for EVs due to the reduction in the selling price of battery raw materials***.
According to **, the stock prices of South Korean companies such as LG New Energy and Samsung, which have large transactions with Western automakers, will be temporarily adjusted.
In Southeast Asia, there is a growing expectation that economic growth will boost private consumption. Paul Khoo, an analyst at Phillip** Group Research in Singapore, focuses on Thailand's consumer goods industry, typified by Thai beverage companies.
According to the analysis, despite the sluggish recovery of Thailand's tourism industry in the post-epidemic era, it is expected that the recovery of the tourism industry will accelerate in 2024 under the stimulus of the most active fiscal policy. The recovery in travel demand will benefit airports, and air tickets are expected to be good for Thai Airways International, among others.
Singtel is in the spotlight. In addition to the improvement of the mobile communications business, we also recognized the improvement of management from the financial side through cost reductions and asset management.
In India, there is a growing focus on renewable energy sectors such as solar and wind power. Nirkant Mishra, an economist at Harmony Bank, said: "The efficient use of green hydrogen and energy storage are important issues for the Indian economy. ”
In the renewable energy sector, Renewable Energy Global signed a memorandum of understanding with the Asian Development Bank in December for a US$5.3 billion financing. The Adani Group and others are actively investing.
India still relies heavily on coal, thermal power generation, etc. Takuma Otaki of Japan's New Delhi office said: "We are watching the movements of the National Thermal Power Corporation of India and the Indian Gas Company on how to strike a balance. ”