Mobile phone-related components are still under pressure to cut prices, and silicon wafers are delayed

1. IPhone 14 series screen orders fell sharply year-on-year, reflecting that demand for mobile phones has not recovered

Demand for IPhone 14 series appears to be on the decline, as evidenced by a significant drop in screen orders. In April, orders for the iPhone 14 series screens were down by 39% compared to the same period last year for the iPhone 13 series. Furthermore, orders from March to April have also decreased by 23%. This drop in demand may be due to various factors, including inventory adjustments, macroeconomic conditions, inflationary pressure, and weak demand. While it’s not unusual for shipments and component orders to decrease over time, a sharp year-on-year decline is cause for concern.

2. Nvidia GPU foundry demand increases, out of stock or earlier than expected

There has been an increase in demand for Nvidia’s A100, H100, and A800 series GPUs, with foundry TSMC reporting a surge in OEM orders. The A800 series is designed specifically for data centers, while the A100, H100, and A800 series GPUs are all experiencing increased demand in the domestic market. The uptick in OEM orders may be driven by the popularity of recent products, like ChatGPT, which require GPUs for training and related services. As a result, the world may face another shortage of GPUs sooner than anticipated.

3. Infineon and Delta Electronics cooperate in the field of electric vehicles

Infineon has announced an extension of its partnership with Delta Electronics, a global leader in energy management and power supply, from industrial to automotive applications. The two companies are collaborating to deepen their cooperation and provide solutions with higher power density and energy efficiency for the electric vehicle market. The partnership focuses on developing high-voltage and low-voltage discrete power components, modules, and microcontrollers for electric vehicle powertrain applications such as traction inverters, DC converters, and on-board chargers. Additionally, the two companies plan to establish a joint innovation laboratory for electric vehicle applications, to be located in Pingzhen, Taoyuan, and expected to launch in the latter half of 2023, which will be jointly managed by the two companies.

4. Arm plans to change its business model and seek to increase chip design prices

Arm is reportedly planning to adjust its business model and increase the price of its chip designs in a bid to boost revenue ahead of its upcoming initial public offering in New York. The company has informed several of its largest customers about this shift, according to former employees and industry executives cited by the Science and Technology Board Daily and the Financial Times. This move represents a fundamental change in Arm’s approach to its chip design business.

5. It is rumored that TSMC’s 5/4nm chip sales will increase by NT$100 billion this year

There are rumors that TSMC’s sales of 5/4nm chips will increase by NT$100 billion this year, according to a report by IT House citing Taiwan Electronics Times. The semiconductor industry has noted that the capacity utilization rate of TSMC’s various processes has stopped declining since Q2 and is expected to rebound in Q3. It is anticipated that TSMC’s revenue growth this year will be similar to last year, with a significant increase in 5/4nm chip sales contributing to this growth. In Q1, the capacity utilization rates for 16/12nm are around 80%, and the 28nm process is currently the only one that TSMC maintains at 95% capacity.

6. Institutions: The silicon carbide market will grow to $9.4 billion in 2029

According to a report by TechInsights cited by IT House, the demand for automotive semiconductors has increased, along with the use of wide bandgap technologies. Silicon carbide (SiC) MOSFETs provide an alternative to Si IGBTs and SiC MOSFETs for power systems, leading to a surge in demand for SiC products. The report predicts that the SiC market revenue will grow from $1.2 billion to $5.3 billion at a CAGR of 35% between 2022 and 2027. By 2029, the market size is expected to reach $9.4 billion, with China accounting for half of it.

The report highlights the significant progress made by Chinese companies in the development and production of SiC semiconductor products, particularly in the automotive industry. With the Chinese government’s focus on SiC development and investment in the industry, it presents a unique opportunity for Chinese companies to catch up. However, the development of China’s SiC semiconductor supply chain presents a complex and ever-changing pattern, with both challenges and opportunities. Institutions predict a bright future for the SiC market, particularly in China.


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