Khein-Seng Pua: Flash industry may bottom out in 1Q19

Flash industry entered correction period due to oversupply and the decline of market demands this year. However, Khein-Seng Pua, the CEO of Phison Electronics Corp (8299-TW), pointed out today on December 13rd that the flash industry may bottom out in 1Q19 at the earliest. Inventory ramp-up demands from downstream manufacturers may appear in 2Q19 and 3Q19. The industry is expected to recover gradually.

Pua pointed out that although the US-China trade situation is intense, there are still basic demands from the market, especially handsets and other electronic products. The memory capacity continues to increase, boosting the growth of flash industry. Phison is ready for inventory pull-in in 1Q19.

Pua said that 4Q is traditional peak season. After Thanksgiving and China's double 11 sales, system companies may start to destock in mid-November. They may restart pull in inventory in mid-2019 at the earliest.

Pua stressed that the operation is not easy today and the industry is changing fast. What happened today may be known by people in the world in few days. It could be difficult to make decisions when everyone knows the information because everyone may only make the same decision.

Pua recalled that when he just started the company, it was always the battle between companies. However, in recent years, companies may have tough backgrounds, including the county or big corporations. Fortunately, Phison is in a right direction with right strategy now. The company has collaborated with United States’ and Japan’s corporations and Phison is expected to play an important roles in the industry after 2 years.