1. Infineon: Demand in automotive and other fields continues to be strong, and will increase investment in silicon carbide
On August 3, Infineon announced the performance of the third fiscal quarter (as of June 30, 2023), 4.089 billion euros, a year-on-year increase of 13%, and a month-on-month decrease of 1%; the profit was 1.067 billion euros, a year-on-year increase of 27%, and a month-on-month decrease of 1%. A decrease of 10%; the gross profit margin was 44.5%, 1.3 percentage points higher than the same period last year, and 2.1 percentage points lower than the previous quarter.
The CEO of Infineon said that the demand for electric vehicles and renewable energy continues to be strong, but the demand for consumer applications such as PCs and mobile phones is still very low. Infineon expects revenue in the fourth fiscal quarter to be about 4 billion euros; revenue in fiscal year 2023 is 16.2 billion euros, with an adjusted gross profit margin of about 47%.
In addition, Infineon also announced that it will significantly expand its Kulim fab in Malaysia, which will build the world’s largest 8-inch silicon carbide power fab in addition to the investment plan announced in February 2022.
2. It is rumored that the supply of memory chips will be lower than the demand from the fourth quarter
According to Taiwan’s Electronic Times quoted by Science and Technology Board Daily, the production reduction effect of the three major memory chip manufacturers has gradually emerged. The oversupply situation of DRAM and NAND Flash will be significantly improved from the third quarter, and the ratio of oversupply will turn from positive to negative as soon as the fourth quarter.
With the gradual improvement of DDR5 overclocking performance, AI computing drives the upgrade of new product specifications and the adoption rate of cloud applications increases. After the DDR5 spot price was first adjusted, the contract price is also brewing in the third quarter. Due to the low inventory of memory module factories and OEM factories Low, the price of DDR5 16GB modules bucked the trend and rose by 3%-4% in July. It is expected that the increase in upstream DRAM supply will be limited, and the price of DDR5 in the third quarter is expected to continue the upward trend.
3. Infineon, NXP and other five major companies jointly promote the RISC-V architecture
According to Infineon’s official website, five major semiconductor companies including Bosch, Infineon, Nordic, NXP and Qualcomm have jointly established a new company to promote the global adoption of RISC-V by realizing next-generation hardware development.
The company will be established in Germany with the aim of accelerating the commercialization of future products based on the open source RISC-V architecture. The company will be the single source to enable RISC-V-based compliant products, provide reference architectures, and help build solutions that are widely used in the industry. The initial application focus will be automotive, but will eventually expand to include mobile and IoT.
4. Winbond: Destocking will end, plan to spend NT$9.5 billion to expand production
According to China Taiwan Business Times, memory manufacturer Winbond Electronics disclosed its second-quarter performance at the law conference on the 4th, with revenue of NT$18.811 billion, a month-on-month increase of 7.39%, a year-on-year decrease of 29.41%, and net profit after tax of NT$354 million. , Mainly due to non-industry dividend income, the single-quarter profit turned from loss to profit, but it decreased by 93% year-on-year. Revenue in the first half of the year was NT$36.327 billion, a decrease of 31.66% over the same period last year, a gross profit margin of 29.6%, a decrease of 18.87 percentage points over the same period last year, and an after-tax loss of NT$658 million.
Winbond’s utilization rate and order demand will gradually recover in the near future. The legal person predicts that this year’s industry is expected to turn from loss to profit, and the memory market will improve next year, and the outlook is positive. Due to the improvement of mobile phone/server applications, Netcom and other related applications will gradually recover. In terms of capital expenditure, it is estimated that the Kaohsiung plant will spend NT$9.5 billion to expand production, increasing the monthly production capacity from the current 10,000 pieces to 14,000 pieces in early 2024 (8 Inch wafers), which helps to reduce costs; in addition, about NT$1.9 billion was spent on the machinery and equipment/process quality of Zhongke Factory, and about NT$1.4 billion was spent on R&D process development.