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Daiwa Securities: OEM manufacturers are expected to expand against the trend due to the trade war.
On June 4, Daiwa Securities analysts Carlton Lai and Steven Nie pointed out in a research report that the trade war may provide important original equipment manufacturers (OEMs) with long-term opportunities to expand market share, rather than pose a threat. They said that while some brand customers have asked OEMs to help control costs, these requirements have been generally modest. The investment bank also pointed out that at present, the demand for production capacity in Southeast Asia is still strong, and the bargaining power of foundries is still strong.