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The demand for mobile phones has not yet recovered, and the rise of AI may lead to a shortage of GPUs

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

According to foreign media reports quoted by TechWeb, after nearly two quarters of launch, demand for the iPhone 14 series has shown a significant downward trend, and screen orders have dropped significantly year-on-year. The report of the panel supply chain organization pointed out that the iPhone 14 series screen orders in April were 39% lower than the iPhone 13 series, compared with the iPhone 13 series in the same period, and orders from March to April also decreased by 23%.

As for the reasons for the sharp decrease in screen orders, the report mentioned inventory adjustment, macroeconomic downturn, inflationary pressure and weak demand. Although after the new iPhone is launched for a period of time, shipments will decline as demand continues to be met, and the required screen and other components will also decrease accordingly, but a sharp year-on-year decline is not common.

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

According to TechWeb citing media reports, foundry TSMC’s OEM orders from Nvidia’s A100 and H100 GPUs are increasing, and Nvidia’s A100, H100 and A800 series GPUs designed for the domestic market are increasing.

The A800 series GPUs are all products for data centers. The increase in OEM orders for these three GPUs is likely to be related to recent hot products such as ChatGPT. OEM orders are also increasing. Due to the training and provision of related services such as ChatGPT, the world may once again face the challenge of GPU shortage, and the shortage may occur earlier than expected.

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

A few days ago, Infineon announced on its official website that it has extended its long-term cooperation with Delta Electronics, a global leader in power supply and energy management, from industrial to automotive applications. The two parties aim to continue to deepen cooperation and innovation, and provide solutions with higher power density and energy efficiency for the electric vehicle market.

The agreement covers high-voltage and low-voltage discrete power components, modules, and microcontrollers, focusing on electric vehicle power systems including: traction inverters, DC converters, and on-board chargers. The two parties will also set up a joint innovation laboratory for electric vehicle applications, which will be jointly managed by the two companies. The Delta Electronics-Infineon Automotive Innovation Center will be located in Pingzhen, Taoyuan, and is expected to be established in the second half of 2023.

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

According to the Science and Technology Board Daily, citing the Financial Times, Arm is seeking to increase the price of its chip designs, aiming to boost revenue ahead of an initial public offering in New York this year. Arm has recently informed several of its largest customers of a fundamental shift in its business model, according to several industry executives and former employees.

Arm plans to stop charging chipmakers royalties for using its designs based on the value of the chip and instead charge device makers based on the value of the end device, the people said. That should mean the company earns several times more for every design it sells.

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

According to a report from IT House citing Taiwan Electronics Times, the semiconductor industry pointed out that the capacity utilization rate of TSMC’s various processes has stopped falling since Q2 and some have gradually recovered, and Q3 is expected to rebound.

It is expected that TSMC’s revenue growth this year will be roughly the same as last year, but 5/4nm chip sales will increase by NT$100 billion. 28nm is currently the only process that TSMC still maintains at 95% close to full capacity; 16/12nm capacity utilization rates are also around 80% in the first quarter and the second half of the year.

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

According to IT House, TechInsights released a report saying that the demand for automotive semiconductors has surged, and the use of wide bandgap technologies has also increased. SiC MOSFETs provide an alternative to Si IGBTs and SiC MOSFETs for power systems. Silicon carbide market revenue will grow at a CAGR of 35% from $1.2 billion to $5.3 billion between 2022 and 2027. By 2029, the market size will grow to $9.4 billion, of which China will account for half.

The report pointed out that in recent years, Chinese companies have made significant progress in the development and production of silicon carbide semiconductor products, which have a wide range of applications, including the automotive industry. The Chinese government’s focus on silicon carbide development and significant investment in the industry presents a unique opportunity for Chinese companies to catch up. Overall, the development of China’s silicon carbide semiconductor supply chain presents a complex and ever-changing pattern, with both challenges and opportunities.