Taiwan notebook business scents upturn
But still held back by LCD costs
Taiwan's notebook sector appears to be relatively healthy according to research by Merrill Lynch, although visibility remains extremely limited. A research note from Merrill Lynch said that after visiting Taiwanese vendors, it seemed that March was going to be better than January, which was in turn going to be better than January.
However, the bank continued, visibility remains limited with rolling forecasts at one month with no committed production, compared to a year ago, when rolling forecasts were three months with one month of committed production. Pressures on the sector include short supply and high pricing for LCDs, with little improvement until the second half of next year. DRAM contract pricing is also high. A further blot on the horizon is increasing manufacturing capacity in China, which will enjoy an increasing cost advantage as volumes ramp up.
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