01-TI

According to Texas Instruments released its latest forecast, the scope of weak chip demand is expanding from the previous consumer electronics sector to the industrial machinery sector, the timing of the chip demand recovery may still be far away.

It is reported that automotive and industrial machinery manufacturers contribute more than 60% of the revenue of Texas Instruments, and the latest forecast from Texas Instruments, some industrial machinery manufacturers customers are like computer and cell phone manufacturers, orders are slowing down, the current demand is still strong only the automotive market.

Texas Instruments said that, in general, the order situation is worsening as the quarter progresses, and cancellations are increasing.

Although Texas Instruments claimed that the automotive industry chip demand is still strong, but Summit Insights Group analyst Kinngai Chan pointed out that many automakers have ordered twice as many chips as needed and expects demand for automotive chips to slip to pre-epidemic levels in the first half of next year.

TI delivery time has been shortened for five consecutive months, most customers have received the message of shortened delivery time. Among them, power management chips and analog chips have seen the biggest drop in lead times, and comprehensive big data shows that the TLV702 series has been more popular in the last two weeks, and prices have seen a slight increase.

 

02-Micron

Micron is currently facing a situation where PC sales have begun to slow or shrink, while server sales are expected to show little to no growth in 2023.

According to Micron Technology President and CEO Sanjay Mehrotra, "The industry is experiencing the worst supply-demand imbalance in thirteen years. Too much supply of memory chips and not enough demand is causing companies to hold more inventory and lose pricing power, and we have seen a significant drop in demand over the past few months." He said he expects customers to move to healthier inventory levels by about mid-2023 and chip makers' revenues to improve in the second half of next year.

It is also understood that Micron is cutting budgets for new plants and equipment and now expects to spend $7 billion to $7.5 billion in fiscal 2023, down from a previous target of as much as $12 billion. The company is also slowing down the introduction of more advanced manufacturing technologies.

But analysts point out that unlike other products in the industry, memory chips are manufactured to industry standards, which means rival companies' products are interchangeable. Unless competitors follow Micron's lead, Micron's pledge to reduce factory output and slow down expansion projects will not ease the chip oversupply problem.

It is also worth noting that Micron Technology also announced its intention to reduce its workforce by about 10% in 2023 through a combination of voluntary reductions and layoffs. Public information shows that Micron has about 48,000 employees, and this 10% layoff means that nearly 5,000 people will be affected. In addition, Micron also said it will suspend bonus payments in 2023.

 

03-NXP

Recently, there is news that the major manufacturer NXP (NXP) plans to raise the offer of automotive chips. However, NXP did not respond to this news.

Although the second half of the consumer electronics supply chain into the inventory de-stocking phase, but the automotive, industrial control, netcom chips and other applications demand pulling goods are still climbing upward, especially the automotive chip demand is strong, NXP and other large IDM manufacturers said that the car company customers have accelerated replenishment phenomenon.

In response to the continued tight supply chain capacity, NXP has established the NCNR (non-cancelable non-returnable) system to help automakers and Tier 1 (Tier 1 suppliers) companies make reasonable capacity allocations. Based on the current and 2023 NCNR order levels, NXP's current capacity can cover 80% of the order demand, which makes the company confident about the long-term market outlook.

It is reported that automotive chips are structural, rather than a comprehensive shortage, some product inventory pressure has quietly spread, but power semiconductors and MCUs are still relatively tight, IDM large manufacturers of automotive IGBT delivery time are still more than 50 weeks.

In addition, NXP began to slow down hiring and cut capital expenditures.

 

04-Infineon

Recently, Infineon announced an increase in revenue and profit target, revenue growth from 9% of the previous value to more than 10%, profit margin is expected to increase from 19% to 25%, seems to confirm the recent news that Infineon intends to raise the automotive chip offer, it is reported that Infineon plans to raise the price of industrial and automotive components in the fourth quarter of this year, consumer components will not increase prices, but industrial components will rise 10%, automotive components will rise 20%. Automotive components will rise by 20%.

At present, Infineon a number of industrial control class chip, IGBT supply is still very tight, including IGBT Q4 delivery period reached 39-50 weeks. According to industry sources, the supply and demand gap for automotive IGBTs has reached 50%, which has become the consensus of many suppliers. At present, the supply of automotive IGBTs exceeds the demand, and the delivery pressure is so high that the orders on hand have been scheduled until the end of this year or even next year.

In order to meet the growing demand, Infineon plans to expand its production capacity, its semiconductor factory in Austria was inaugurated last year. The head of Infineon's automotive division said in January this year that he expected the shortage of its core microchips to end next year, and the situation will improve by the summer of 2023.

 

05-ST

At present, this year's automotive chip capacity has been sold out, the backlog of orders visibility of 18 months, of which the supply of IGBT is still very tight, in Infineon, STMicroelectronics and other major international manufacturers at the end of the year price adjustment is expected to influence the domestic orders continue to burst. Some manufacturers expect the supply and demand tension will continue to 2024-2025, and said "customers want to lock the 2025 order".

According to Digitimes, the international power semiconductor giant Rohm plans to increase product prices from October 1, STMicroelectronics also has plans to increase the price of industrial and automotive power devices in Q4.

STMicroelectronics pointed out that the next two segments will focus on the development of industrial and automotive, industrial and automotive are the two markets with the strongest growth momentum in the business portfolio, to promote and focus on these two high-growth markets is the strategic direction in recent years, but also to achieve the company's revenue of more than $ 20 billion in three years the key to the goal.

 

06-ONSEMY

Morgan Stanley pointed out in a recent report, automotive semiconductors such as MCU and CIS suppliers Renesas and ON Semiconductor has issued a cut order to cut the fourth quarter of the chip test orders, suspected that "the shortage of chips plaguing the automotive industry for a long time officially ended.

A joint venture automaker analysis, in addition to a very small number of high-end chips, the automotive industry's lack of core problem has been largely resolved. In his view, some companies use the chip shortage as an excuse for poor sales, while on the demand side, he said many consumers have recently shelved their car purchase plans.

In addition, ON Semiconductor President and CEO HassaneEl-Khoury said that the biggest revenue growth of ON Semiconductor in 2023 will come from the growth of silicon carbide in the new energy vehicle market. Just in September 2022, ON Semiconductor inaugurated an expanded SiC plant in Roznov, Czech Republic, which will gradually increase capacity by 16 times in the next two years; up to now, ON Semiconductor has invested more than To date, ON Semiconductor has invested more than $150 million in the Czech plant and will continue to invest $300 million by the end of 2023.