Foxconn, Samsung and Murata at risk from China exposure

Nikkei Asian Review
Date: March 08, 2020
By: DAISUKE MARUYAMA and KENSAKU IHARA, Nikkei staff writers

TOKYO/TAIPEI — Asian chipmakers and other high-tech manufacturers face a nearly $11 billion hit to profits — a 7% drop — in fiscal 2020 as the novel coronavirus outbreak saps both demand and their supply chains in China, according to research by Goldman Sachs.

Foxconn, the world largest iPhone assembler, stands to suffer one of the biggest blows, followed by South Korea's Samsung Electronics, Taiwan Semiconductor Manufacturing Co. and other East Asian names.

The outbreak marks a setback for companies just starting to recover from headwinds such as the U.S.-China trade war and a cyclical downturn in chip demand. East Asia's tech manufacturers in turn are watched as a leading indicator of global economic trends. 

"We think the pace of recovery in capacity utilization and monthly shipments over the next one to two months will determine the direction of share prices," Goldman analysts wrote in February in a report covering 105 major Asian manufacturers with various levels of mainland China exposure.     [FULL  STORY]