1. The demand gap in the car core subdivision field widened, and some began to adjust inventory
According to Taiwan’s Electronic Times quoted by Science and Technology Board Daily, IDM operators generally emphasized that the steady purchase of the automotive market is in line with original expectations, and the visibility of follow-up orders is relatively clear.
However, people who are familiar with the automotive semiconductor market believe that the stocking attitude of car factory customers is relatively positive, and the dynamics of other parts and components are showing signs of slowing down. Related parts in the aftermarket, like other applications, have entered a state of inventory adjustment. The temperature difference required is very large.
2. Realization of TSMC’s wafer price increase: all major customers accept it
According to China Taiwan Business Times, Morgan Stanley Securities pointed out that many of TSMC’s main customers, including Apple, have accepted TSMC’s increase in foundry quotations after the latest negotiations, with a maximum rate of 7%.
The semiconductor industry will be in a correction cycle in 2023, and major international organizations and legal persons have never stopped arguing over whether TSMC can successfully raise the foundry price. Morgan Stanley has set the tone this time. MediaTek, AMD, Qualcomm, etc. have all accepted a 5%-7% increase in foundry service fees; Apple will also accept a 3% increase from the middle of the year. According to Morgan Stanley’s analysis, TSMC’s 53% gross profit target seems to be more stable.
3. The utilization rate of wafer foundry capacity declines, and Samsung may start a price war
According to IT House citing Taiwan’s Economic Daily, Samsung’s chip business profit plummeted by more than 90% in the last quarter, but the wafer manufacturing business’s revenue in the last quarter and the full year of 2022 hit a new high, and last year’s profit also increased, reflecting The production capacity of advanced processes has expanded, and customers and application areas have become more dispersed.
However, Samsung said frankly that it is difficult to escape the pressure of industrial inventory adjustment in this quarter, which will cause the capacity utilization rate of the foundry business to begin to decline. The industry is worried that Samsung may launch price cuts to grab orders, which is not conducive to TSMC, UMC and other factories. If Samsung cuts prices to grab orders, it will be very attractive to IC design and IDM factories that are facing huge inventory pressure and are unwilling to pay more manufacturing costs. Samsung can not only fill the capacity gap, but also help increase market share.
4. SK Hynix hits record losses amid weak demand
According to TechWeb reports, Hynix’s financial report for fiscal year 2022 and the fourth quarter showed that the operating loss in the fourth quarter of last year reached 1.7 trillion won, and the profit in the same period last year was 4.2 trillion won. It posted its first quarterly operating loss. The consolidated revenue for the full fiscal year was 44.6481 trillion won, the operating profit was 7.0066 trillion won, and the net profit was 2.4389 trillion won. Fiscal year operating margin was 16% and net margin was 5%.
Hynix said that although sales continued to grow last year, the market conditions continued to slump from the second half of the year, so operating profit decreased compared with the previous year. As the uncertainty of the operating environment increases, the company will reduce investment and expenses to focus on high-growth industries and minimize the impact of deteriorating market conditions.
5. It is rumored that Intel has a large-scale salary cut, and the CEO’s basic salary will be cut by 25%
According to TechWeb citing foreign media reports, Intel, which has experienced a decline in performance, has reported that it will cut wages on a large scale. The salary cut involves personnel at multiple levels. Employees at levels 7-11 below the chief engineer will receive a 5% reduction in salary; employees at the vice president level will be cut by 10%; the leadership team will be cut by 15%; CEO Pat Key Singh’s cuts amounted to 25 percent.
For Intel’s salary cut, it was reported that Intel had confirmed it on Wednesday. According to another source, in addition to cutting the basic salary of 5%-25%, the hourly wages of the company’s employees will not be cut.