1. STMicroelectronics’ automotive and industrial revenues continue to grow
On July 27, STMicroelectronics announced its financial report for the second quarter of 2023, with revenue of US$4.33 billion, a year-on-year increase of 12.7%, and a quarter-on-quarter increase of 1.9%; net profit of US$1.001 billion, a year-on-year increase of 15.5%, and a quarter-on-quarter decrease of 4.1%. Gross margin increased to 49.0% from 47.4% in the second quarter of last year.
In terms of business, the revenue of the automotive and discrete device business (ADG) was US$1.955 billion, a year-on-year increase of 34.4%, and a month-on-month increase of 8.2%; the revenue of the analog, MEMS and sensing business (AMS) was US$940 million, a year-on-year decrease of 15.7%, and a month-on-month increase of 8.2% Decreased by 11.9%; MCU and digital IC business (MDG) revenue was US$1.427 billion, a year-on-year increase of 13% and a month-on-month increase of 4.3%.
STMicroelectronics expects third-quarter revenue of $4.38 billion, with a gross margin of 47.5%. The company will drive growth based on expectations for full-year revenue of $17.4 billion (plus or minus $150 million), with a full-year gross margin of more than 48%.
2. Texas Instruments’ second-quarter revenue continued to decline year-on-year
On July 26, Texas Instruments (TI) announced its financial report for the second quarter of 2023, with revenue of US$4.53 billion, which was at the high value predicted in the first quarter, a year-on-year decrease of 13% and a month-on-month increase of 3%; net profit was US$1.722 billion, a year-on-year increase of 3%. A decrease of 25%, an increase of 8.2% month-on-month. Operating cash flow of US$7.4 billion in the past 12 months highlights the advantages of high-quality product portfolio and 12-inch analog production.
In terms of business, TI’s analog business revenue in the quarter was US$3.278 billion, a year-on-year decrease of 18%; operating profit was US$1.463 billion, a year-on-year decrease of 34%. Embedded processing business revenue was US$894 million, a year-on-year increase of 9%; operating profit was US$318 million, a slight decrease of 2% year-on-year. Other business revenue was US$359 million, a year-on-year decrease of 10%; operating profit was US$191 million, a year-on-year increase of 10%.
TI forecast third quarter revenue of 4.36 to 4.74 billion US dollars, and said that except for the automotive market, demand in other end markets was weak.
3. Renesas’ second-quarter revenue decreased slightly year-on-year
On July 27, Renesas announced its financial report for the second quarter of 2023, with revenue of 368.7 billion yen, a year-on-year decrease of 2.1%, and operating profit of 97.3 billion yen, a year-on-year decrease of 11.7%. Operating profit as a percentage of revenue dropped from 29.3% in the same period last year to 26.4% in the second quarter of this year.
In the first six months of this year, Renesas’ revenue was 728.1 billion yen, a slight increase of 0.07% over the same period last year; operating profit was 220.5 billion yen, an increase of 5% over the same period last year.
4. Samsung’s storage business revenue has fallen sharply in a row, and production will continue to be reduced in the second half of the year
According to TechWeb citing foreign media reports, in the second quarter earnings conference call, Samsung Electronics executives stated that they plan to continue to reduce memory chip production in the second half of the year to accelerate inventory normalization. Samsung Electronics will continue to adjust the output of DRAM and NAND flash memory, especially to significantly reduce the output of NAND flash memory.
Samsung Electronics’ storage business revenue in the second quarter was 8.97 trillion won. Although it increased by 1% from the previous quarter, it fell by 57% year-on-year. The operating loss in the second quarter was 4.36 trillion won, exceeding 4 trillion won for two consecutive quarters.
The situation of SK Hynix, another Korean original memory manufacturer, is not optimistic in the second quarter. Although the revenue of 7.3 trillion won increased by 44% from the previous quarter, it fell by 47% year-on-year. It also expanded from 2.59 trillion in the previous quarter.
5. ON Semiconductor and Magna have reached an agreement on the silicon carbide solution for electric vehicles
ON Semiconductor announced on July 27 that it has reached an agreement with the world’s leading auto parts supplier Magna, which integrates ON Semiconductor’s EliteSiC smart power solution into its electronic drive system.
By integrating ON Semiconductor’s EliteSiC MOSFET technology, Magna’s eDrive system can provide better cooling performance, faster acceleration and charging speed, thereby improving efficiency and increasing the range of electric vehicles. In addition, ON Semiconductor’s end-to-end SiC manufacturing capabilities, combined with its ability to rapidly ramp up production volumes, enhance Magna’s vertical integration to meet its growing demand for SiC products for EVs.
In addition, Magna will invest $40 million in new silicon carbide equipment for ON Semiconductor’s New Hampshire and Czech plants to ensure its future supply.
6.IDC: Packaging and testing demand is accumulating, and the OSAT market will resume growth next year
According to the Science and Technology Innovation Board Daily on the 28th, the latest IDC report shows that the global demand for applications such as AI, HPC, 5G, automobiles and the Internet of Things has surged, driving the expansion of the semiconductor supply chain. In 2022, the global semiconductor packaging and testing foundry (OSAT) market will reach US$44.5 billion, with an annual growth rate of 5.1%.
The agency predicts that the global OSAT market size will decline by 13.3% in 2023. However, with the gradual recovery of the semiconductor industry and the layout of manufacturers in advanced packaging and heterogeneous integration, the overall OSAT industry will resume growth in 2024.