The cold wave of storage continued, and the revenue of South Asia Branch in 2022 fell by more than 30% year on year, and more than 60% in Q4

According to the Taiwan Media Finance Newspaper, the revenue of South Asia Branch, a big memory factory, was hit by low memory prices in December 2022. The revenue amount was 2.4 billion NT yuan (NT, the same below), a 13.3% decrease from November, and a 65.4% decrease from the same period in 2021. Accumulated, revenue in the fourth quarter of 2022 reached 7.953 billion yuan, a decrease of 27.83 compared with the third quarter, and a significant contraction of 62.84% compared with the same period in 2021, which is a new low record for single season in recent 10 years. The total revenue in 2022 was 56.952 billion yuan, 33.47% less than 2021, which is a new low level in recent three years.

Previously, South Asia Section said at a legal conference that the global economy was facing a recession because of negative factors such as high inflation, interest rate hikes, the Russian-Ukrainian war, and weak market demand for electronic products, and the gradual depletion of inventory of some end customers, which made the overall market worse. On the supply side, supplier inventory increases, some suppliers reduce capital expenditure, and overall market supply growth slows down. As for demand, the impact of rising energy prices in the server market and overall economic slowdown has slowed down data center construction and delayed demand.

Although DRAM carriers are increasing in the mobile phone market, global mobile shipments will experience negative year-round growth due to high inflation and weak market demand in China, but demand for high-end mobile phones is stable. Also, PC demand is sluggish, annual shipment declines are widening, and high-end models are as stable as smartphones. Finally, with regard to consumer electronic terminal products, inflation and interest rate hikes have resulted in a decrease in consumer purchasing power, a reduction in the number of TV sets and set-top box outlets, a decrease in demand, a weak demand for storage equipment, and a stabilization of demand for Netcom and automotive products only.