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© designersart dreamstime.com Electronics Production | September 03, 2015

A slowdown for Asia's electronics businesses

The downturn on the Asian stock market is – not unexpectedly – also impacting on the region's electronics manufacturers.
It is a combined effect of China's economic slowdown, and mature smartphone market that hasn’t maintained its growth, and a vulnerability in the market which now sends ripples that also disrupts electronics companies further back in the ranks.

Both Samsung and Hynix are expecting to experience a slowdown, according to the Wall Street Journal. Even some Japanese companies further up the ranks, companies such as Fanuc Corp and equipment company Tokyo Electron, have lowered their full year forecasts.

But even more segments are being affected by this. Weaker sales smartphone is also affecting companies working with displays, one that comes to mind is Sharp – which has experienced some tough times even before these recent developments.

Unfortunately we're not done with the gloomy bits of this article. There is also some concerns that Samsung's and Hynix' latest announced investments – in combination with the market conditions currently prevailing – might affect DRAM prices. In short; there is some worry that the companies new plants might lead to excess supplies and thus falling prices, wsj continues.

Meanwhile, some companies will move forward, according to Shoji Sato, an analyst at Morgan Stanley MUFG, whom wsj spoke to. Sony Corp continues to increase its production of image sensors – which are used in digital cameras and iPhones. Companies such as Murata, which manufactures miniature capacitors for phones, may actually take advantage of the market moving towards more sophisticated handsets and thus more expensive individual components. Some companies are trying to migrate its sales of components to areas that can currently offer more stability, such as the automotive industry.

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