KUALA LUMPUR (Jan 5): Tech stocks were among the top gainers on Bursa Malaysia on Friday, after US-based industry association SEMI reported that the global semiconductor capacity was forecast to hit a record high in 2024.

Outsourced semiconductor assembly and test (OSAT) firm Malaysian Pacific Industries Bhd (MPI), which ranked first on the gainers list, rose 52 sen or 1.86% to close at RM28.52, valuing the group at RM5.99 billion.

Also on the top 50 gainers list were Inari Amerton Bhd, KESM Industries Bhd, Mi Technovation Bhd (Mi Tech), Dufu Technology Bhd, Pentamaster Corp Bhd and Unisem (M) Bhd.

Shares in Inari closed up 13 sen or 4.36% at RM3.11, KESM rose seven sen or 1.02% to RM6.95 and Mi Tech increased seven sen or 3.87% to RM1.88.

Dufu closed six sen or 3.28% higher at RM1.89, Pentamaster rose six sen or 1.36% higher to RM4.46 and Unisem added six sen or 1.86% to RM3.29.

SEMI, in its quarterly World Fab Forecast report released on Tuesday (Jan 2), said it expects the global semiconductor capacity to increase 6.4% in 2024 to top the 30 million wafers per month (wpm) mark for the first time, after rising 5.5% to 29.6 wpm in 2023.

SEMI said that the growth in 2024 will be driven by capacity increases in leading-edge logic and foundry, applications including generative artificial intelligence and high-performance computing, and recovery in end-demand for chips.

Despite the projected global upturn, Kenanga Research is “neutral” on the technology sector, premised on the decreasing trend of contraction, suggesting a cycle bottom and meaningful recovery by the second half of 2024 (2H2024).

Kenanga Research noted that recent data indicates a pattern of contraction in semiconductor sales, but this has been progressively decreasing, implying that the cycle is bottoming in the technology industry.

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Global semiconductor capacity to hit record high in 2024 — report
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