Hyderabad: The electronics sector, which accounts for the bulk of demand for industrial gold, grew year-on-year growth (13%) to 66.4 tonnes worldwide in the first quarter of 2021. Demand for gold in all major applications in the sector has increased from the historical lows recorded in the first quarter of 2020.
The memory sector also maintained steady growth in the first quarter, recording an increased gold demand of 3-6 percent annually. However, there are still challenges to the miniaturization of the chip architecture, which reduces the amount of gold used and the threat of manufacturers switching to silver binder.
Regarding the consumption trend, Somasundaram PR, Managing Director, India, World Gold Board (WGC), told Telangana Today: ‘Semiconductor, 5G, wireless and other electronic segments experienced strong and steady growth in the first quarter of 2021, despite major manufacturers in this space looking for an alternative material to reduce the total cost of the products. The technology sector consumes largely 300-400 tons of gold consumption annually and will continue to grow. ”
The Printed Circuit Board sector performed strongly during the first quarter, showing an increase of 15-18 percent per year. Each of the largest electronic manufacturing hubs around the world recorded an increase in gold demand during the first quarter. Japan, China and Hong Kong, South Korea and the United States achieved an increase of 11.6 percent, 27.4 percent, 13.5 percent and 5.7 percent, respectively.
The growth in LED gold consumption between 10 and 13 percent per year is driven by the demand for high-consumer electronics, such as laptops, tablets and TVs, as well as the recovery in the automotive industry. 3D sensors in mobile and artificial intelligence devices have also put pressure, along with the increasing use of UV LEDs in the biomedical sector, especially in bactericidal portable devices.
Somasundaram said: ‘5G is also becoming more common in handheld devices. These devices require a larger number of power amplifiers, which depend on gold for their reliable operation. In the future, 3D sensing chips in smartphones and partially autonomous car systems will further support the gold demand in the wireless sector. ”
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He added: ‘Digital channels are going to increase the gold demand, especially in the jewelry space. The use of technology will be tremendously strong. Jewelry companies and IT companies are already working together to bring about 3D and innovation. Technology is also being actively integrated into handmade jewelry. ”
The purchase of gold will also increase in the future. Micro savings in gold will also add up. Gold purchases were mainly dependent on the entire buying experience of customers in physical stores, but technology is definitely going to increase demand, Somasundaram said.
Source: Telangana Today