The U.S.-China trade spat had limited consequences on the semiconductor segment, as per to Ajit Manocha, CEO at Chip Industry Association, Semi. The trade battle between the two financial powerhouses has actually been a small cause behind the decline seen in the semiconductor industry, Manocha said to CNBC at the WEF (World Economic Forum), Dalian, China. Bothe the powerhouses have been entangled in a trade battle for over a year, with both parties levying tariffs on each other’s products worth hundreds of billions of dollars. The months of long trade battle has transferred supply chains, jolted global equities, and threatened the global economic outlook. Nonetheless, Manocha stated the prospect for semiconductors seems “very upbeat.”
He added, “Tariff has not truly slowed down the industry and 2019 is “not a good year” for the sector, partly owing to a surplus in capacity. Most of the easing you observe today is controlled by the memory pricing. I feel as the capacity and correction question takes place, perhaps the pick-up would begin again in early 2020.” He said that the AI (artificial intelligence) becomes more usual in areas like the latest generation 5G wireless standard, quantum computing, and smart medical technology.
On a related note, new obstacles arise as production looks to Vietnam throughout the U.S.-China trade war. As the trade disagreement amid the U.S. and China persists, countries across the world have also been unfavorably impacted by rounds of additional costs and tariffs hampering importing and manufacturing. But there are some places that have seen considerable benefits, from firms shifting production as a way to mitigate the crash of tariffs on goods from China. Consumer electronics companies and other businesses are looking to relocate operations—with a lot of companies looking to Vietnam—in regard to decreasing supply chain costs.
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