1. Supply chain: Microchip price increase by 5%, effective from March 1
According to foreign media Semimedia, supply chain sources pointed out that Microchip plans to increase prices by about 5% in March this year. According to sources, affected by the prices of raw material suppliers and wafer foundries, Microchip’s production costs continue to increase, and some of the costs have to be passed on to customers, and the prices of multiple product lines will be adjusted from March 1, 2023. increase by about 5%.
The source further pointed out that Microchip did not issue a notification letter as before, nor did it disclose specific product prices, but the price increase is open to all customers.
2. STMicroelectronics (ST) introduces AI design chips to improve efficiency
According to Taiwan’s Electronic Times quoted by Kechuangban Daily, STMicroelectronics (STM) and chip design software company Synopsys announced that STMicroelectronics used AI software running on Microsoft’s (Microsoft) cloud for the first time in chip design, claiming that it will help Improve chip design efficiency.
3. The supply of some analog chips is still tight, and ADI said that investment is still insufficient
According to Taiwan’s Electronic Times quoted by the Science and Technology Board Daily, although the chip shortage is gradually being lifted, there are still some semiconductor products that are still in short supply, such as analog chips. ADI pointed out that semiconductor investment is too biased towards digital IC, and investment in analog IC is still insufficient.
4. Infineon sells HiRel DC-DC converter business to Micross
On February 8, Infineon announced the sale of its HiRel DC-DC converter business, including hybrid and custom on-board power products, to Micross Components.
The sale will enable Infineon to concentrate on the reliability market and expand its investment in the development of core semiconductor products, while de-emphasizing the business of providing more customized products for the high-reliability industry. The transaction is expected to close in the first quarter of 2023.
5. SMIC’s net profit exceeded US$1.8 billion last year, and it will strive to grasp the rhythm of production expansion
According to Fast Technology, the wafer foundry SMIC has announced its unaudited fourth quarter and full-year results as of December 31, 2022.
In the fourth quarter of 2022, SMIC’s sales revenue was US$1.6213 billion, a decrease of 15.0% from the previous quarter and a year-on-year increase of 2.6%; the gross profit margin was 32.0%, a decrease of 6.9 percentage points from the previous quarter and a decrease of 3.0 percentage points from the same period last year. The annual sales revenue is US$7.2733 billion, an increase of 33.6% compared to 2021; the net profit is US$1.8179 billion, an increase of 6.8% compared to 2021.
In 2022, SMIC’s capital expenditure will be US$6.35 billion. By the end of the year, the monthly production capacity of 8 inches will reach 714,000 pieces, and the annual capacity utilization rate will be 92%.
6. Last year, the top ten semiconductor buyers chip spending decreased by 7.4%
According to Techweb, Gartne’s preliminary statistics show that in 2022, the chip spending of the world’s top ten original equipment manufacturers (OEMs) will decrease by 7.4%, accounting for 37.4% of the total market. Global inflationary and recessionary pressures have sharply sapped demand for PCs and smartphones, impacting production by global OEMs.
The top ten companies in 2022 are the same as in 2021, with Apple and Samsung Electronics continuing to rank in the top two. Only Samsung Electronics and Sony increased chip spending in 2022.
Memory will account for about 25% of semiconductor sales in 2022. Revenue in the memory market fell 10 percent, the worst-performing device category, as prices plummeted amid sluggish demand in the second half of the year.
7. Global silicon wafer shipments and sales both hit new highs last year
According to TechWeb citing foreign media reports, data from research institutions show that global silicon wafer shipments last year were 14.713 billion square inches, higher than the previous year’s 14.165 billion, an increase of 3.9%; sales were 13.8 billion US dollars, also higher than the previous year. A year of 12.6 billion US dollars, an increase of 9.5%.
According to the report, the increase in shipments of silicon wafers last year was due to the increase in demand for applications such as automotive, industrial, Internet of Things and 5G, which drove the increase in demand for 8-inch and 12-inch. In the past 10 years, the shipment of silicon wafers has increased in 9 years, and only 11.81 billion square inches in 2019 has declined from 12.732 billion in the previous year.