Robust order visibility from automotive and communication
In our recent discussion with management, it indicated that MPI is experiencing robust order visibility for FY21F due to 1) new customer win for cu-clip power packages going into servers at data centres; 2) a pick-up in sensor shipment volume, driven by recovery in the global automotive and electric vehicle (EV) market; and 3) higher demand for radiofrequency (RF) chips going into smartphones and 5G base stations, especially in China. We estimate that Carsem’s plant in Ipoh is running in excess of 90% utilisation, while Carsem Suzhou (CSZ) has been running at full capacity since 4QCY20. Moreover, we expect the tightening supply condition in the semiconductor market to keep utilisation at high levels and this is likely to offset the seasonal demand weakness in the Mar quarter.
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