Flyking Weekly Express 2024-12-09

Follow and subscribe us for the latest industry news!

ST: MCU Demand Remains Weak

ST reported a continued decline in Q3 revenue, primarily driven by weak demand in industrial and automotive markets. In contrast, revenue from communication equipment and computer peripherals remained stable, with consumer electronics seeing a quarter-over-quarter increase of about 20%. However, the MCU product line has shown year-over-year declines due to several factors: compression of China's distribution channels from 2021 to 2022, rising domestic brands, high inventory levels, and the slow recovery of automotive and industrial demand. Spot market demand for ST MCUs remains weak, with recovery expected only by the second half of 2025.

NXP: Plans for China Chip Supply Chain

NXP has announced plans to establish a dedicated chip supply chain for China. During a groundbreaking ceremony for the VSMC 12-inch wafer fab in Singapore, a joint venture with GlobalFoundries, NXP emphasized its goal to support customers with domestic production capabilities in China. The facility is expected to start mass production in 2027, with plans for a second plant under consideration.

Xilinx: Quota Allocation for Key Materials

Since July, Xilinx has implemented a quota supply for materials produced on 16nm to 28nm technology nodes, with only about 10% allocated to the Chinese market. Affected series include 7A, 7S, 7K, 7V, and others. Despite this, some inventory remains available, with falling prices for the 7 series. Prices for the 6 series remain high, while the 2C CPLD series is in high demand but facing supply issues due to production discontinuation.

Microchip Halts Chip Act Subsidy Applications

Microchip has decided to suspend its applications for semiconductor subsidies under the U.S. CHIPS Act. Initially intended for factory expansions in Colorado and Oregon, the move is linked to scaled-down plans, which could be a contributing factor.

ADI: Demand Picks Up

ADI experienced an uptick in demand with steady lead times. Key trends include a preference for small batch, diverse orders, faster material turnover in the spot market, and slight price increases for some products. Despite a 23% year-over-year drop in annual revenue, ADI maintained over 40% operating profit margins, leveraging strategic investments and robust business operations.

NAND Market Slump; Samsung to Cut Production

Samsung is set to reduce NAND production amid plummeting prices caused by decreased demand in smartphones and laptops. The only stable pricing segment has been enterprise SSDs for AI-driven data centers. Samsung previously reduced NAND output in 2023 and is implementing additional measures to stabilize pricing.

TSMC to Produce NVIDIA's Blackwell GPUs in 2025

Reports indicate that NVIDIA is negotiating with TSMC to manufacture its Blackwell GPUs at the Arizona fab using a 4nm process. Production is slated to begin in early 2025, aligning with NVIDIA’s timeline for mass GPU deployment.

Marvell Q3 Performance Driven by AI

Marvell reported a 6.9% year-over-year and 19.1% quarter-over-quarter revenue growth in Q3, exceeding expectations due to strong AI-related business. Data center revenues nearly doubled, while revenue from enterprise networking and telecom infrastructure saw significant declines.

Stay updated with the latest industry news by following us on LinkedIn and visiting our official website!