PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving.
While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference.
“Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.”
Photo: Screenshot from the Internet
With key components unable to be delivered and backing up in warehouses, notebook computer makers have had to halt production, Chen said, adding that a full reopening, and not gradual steps, would be the only way to resume production.
Inventory has increased to about twice its normal levels due to port gridlocks, he said, adding that channel inventory has recovered to pre-pandemic levels.
“Supply and demand balance is a task we have been trying to achieve. There is a great deal of difficulty in doing it right,” Chen said.
Acer experienced a significant decline in revenue about two years ago, as it did not have sufficient inventory to satisfy sudden demand due to the work-from-home and remote learning trends, he said.
Acer now has sufficient raw materials and finished goods in stock, he said.
Demand is weakening as the war in Ukraine has stoked fears over inflation and an economic slowdown, Chen said, adding that lower household disposable income is affecting PC sales.
Worldwide PC shipments fell 3 percent annually to 118.1 million units in the first quarter, Canalys data showed.
However, commercial PCs and green PCs are growing, despite the industry downtrend, as enterprises are purchasing computers for employees returning to offices, he said, adding that sales of Acer’s green Vero PC series expanded 6 percent month-on-month last month.
Acer expects back-to-school demand and the Christmas holiday to bolster demand, Chen said, adding that new 3D technology should also stimulate PC demand.
The company yesterday launched seven new PC series including green PC series, Vero PCs, with chassis utilizing 30 percent post-consumer recycled (PCR) plastics that help reduce 21 percent in carbon emissions. The computer’s screen bezel uses 30 percent PCR plastics and the keycap uses 50 percent PCR plastics.
Semiconductor stocks on Friday took a beating after a grim profit warning from Idaho-based Micron Technology Inc sparked fresh worries about the US’ earnings power as the country is potentially heading for a recession. Despite a broader stock market rally, the Philadelphia Stock Exchange Semiconductor Index dropped 3.8 percent after Micron, the largest maker of memory semiconductors in the US, flagged that demand was cooling for chips used in computers and smartphones. The index — which is home to US chip giants Advanced Micro Devices Inc and Nvidia Corp, as well as Micron — is down 38 percent this year. Historically, semiconductor
WHOLLY OWNED SUBSIDIARY: Costco Wholesale said it expected the purchase of the remaining 45 percent stake to add 1 to 1.5 percent to its earnings per share US-based Costco Wholesale Corp on Thursday said that it had purchased the remaining 45 percent stake in Costco President Taiwan Inc (台灣好市多) for US$1.05 billion, making the local company a fully-owned unit. “We estimate that the purchase would add about 1 to 1.5 percent to [our] earnings per share,” Costco said in a statement. Costco President Taiwan was established as a joint venture with Kaohsiung-based President Group (大統集團), which held a 45 percent stake. Since the first Costco store opened in Kaohsiung in 1997, 14 outlets have been set up in Taiwan, company data showed. PROFITABLE Three Costco stores in Taiwan — in Taipei’s Neihu
MOBILITY SOLUTIONS: Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its ecosystem through the platform, the Taiwanese firm said India’s Tata Technologies Ltd has become the latest member of Hon Hai Precision Industry Co’s (鴻海精密) MIH Open Platform to jointly develop sustainable mobility solutions for customers worldwide, the Taiwanese company said yesterday. It might include embedded and electrical, electric platform development and battery management system solutions, among others, Hon Hai said. Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its electric-vehicle (EV) ecosystem through the MIH platform, it said. The open platform has about 2,380 members around the world, with an aim to jointly develop EV ecosystems and shrink the time to market for products. Hon Hai made the
SOARING PROFITS: Semiconductors and shipping have knocked automaking and construction out of the 10 highest paying industries, stock exchange data showed Mobile phone chip designer MediaTek Inc (聯發科) posted an average of NT$5.15 million (US$173,249) in annual compensation for non-managerial employees last year, marking the highest among all firms listed on the Taiwan Stock Exchange (TWSE), exchange data showed. That is a 66 percent increase from the company’s average compensation of NT$3.08 million in 2020, as its earnings per share (EPS) expanded from NT$26.01 in 2020 to NT$70.56 last year. That is also three times higher than the average compensation of NT$1.7 million in the nation’s semiconductor industry, the data showed. The increases helped MediaTek advance its ranking from third in 2020, replacing
RSS