Asian technology companies are set for a moderate recovery later this year, according to credit ratings agency Standard & Poor's.
Bruce Hyman, director of corporate and government ratings at S&P's New York office, said on a visit to Hong Kong this week that S&P had been seeing rising order levels at many of the major components suppliers and manufacturers in the region.
The company's latest Asian technology sector report sounded the same theme, highlighting rising orders and average selling prices at Taiwan Semiconductor Manufacturing Co (TSMC), United Microelectronics Corp (UMC) and Chartered Semiconductor Manufacturing.
Despite the continuing bad news about the telecommunications sector - including WorldCom's revenue reporting fraud and equipment supplier Alcatel's recent warning on lowered revenue expectations - Mr Hyman said S&P was starting to see increased buying in other industries and in the consumer electronics sector.
'All of these companies who are not telecoms focused are also saying we are seeing signs of increase in demand,' he said.
Many technology industry observers have been hesitant to declare that the entire sector is on the mend, and S&P also hedges on the question.
'Some of it [the orders] may be cautious buying on the part of intermediaries, distributors who serve the needs of a large number of second-tier customers,' Mr Hyman said.