Sentiment toward the Asian tech food chain remains quite positive, based on feedback from JPM Global TMT Conference this week. Key messages were:
(1) supply tightness in the Foundry/OSAT food chain shows no signs of easing, WFH demand (esp. PCs) remains strong, and inventory correction risk is not imminent
(2) the datacenter hardware and memory spaces are starting to show greenshoots, setting the stage for a strong 2021
(3) the EV component opportunity is likely to manifest in 2021 as the market broadens, especially in power, motors and auto-use ICs;
(4) Apple demand remains strong across the board, with the likelihood for above-seasonal demand into 1Q21 for iPhones. Demand for iPad and MacBook also appears to be trending better than expected. While the market has been concerned about Chinese competition, iPhone EMS vendors don’t appear to be too concerned about a near-term impact on pricing and allocation.