01. Global Semiconductor Sales Leap 18.3% Y/Y in Q2:SIA
Global semiconductor industry sales for the second quarter jumped 18.3% year-over-year to $149.9 billion, according to data from The Semiconductor Industry Association (SIA). The sales rose 1.7% in June as compared to the prior month.
“The global semiconductor market remained strong during the second quarter of 2024, with quarter-to-quarter sales increasing for the first time since the fourth quarter of 2023,” said John Neuffer, SIA president and CEO. The Americas market experienced particularly strong growth, Neuffer added. The market was up 42.8% in June. Based on region, year-to-year sales were up in China by 21.6%, and Asia Pacific/All Other by 12.7%, but declined in Japan by 5% and Europe by 11.2%.
02. China Chipmaker SMIC Beats Q2 Estimates Despite Steep Profit Fall
Semiconductor Manufacturing International Corp's new tab reported a 59.1% fall in second-quarter net profit on Thursday though the result from China's largest chip foundry beat expectations.
SMIC reported $164.6 million in unaudited profit attributable to owners for the three months to June 30, topping the $103.8 million expected by analysts polled by LSEG, while revenue rose by 21.8% to $1.9 billion, also beating forecasts.
03. Onsemi Expects to Produce 200mm SiC Wafers by 2025
Onsemi plans to qualify 200mm (8-inch) silicon carbide (SiC) wafers later this year, with production set to begin in 2025. "We are still on track to qualify 8-inch this year. When I talk about qualifying, it includes everything from substrates to fabs. This qualification will happen this year, with revenue generation starting next year as expected," said Onsemi's president and CEO, Hassane El-Khoury.
El-Khoury also highlighted the company's strengthening position in the automotive silicon carbide market, particularly through its recent supply agreement with Volkswagen Group. "We continue to ramp up production with leading global OEMs in Europe, North America, and China," he added.
However, Onsemi's inventory levels increased during the quarter, partially due to the sale of its wafer fabs in recent years. "We divested four fabs a couple of years ago, which accounts for $160 million in fixed costs that we'll start to recognize as demand picks up and we begin manufacturing those products within our existing network. We need to work through the inventory we've built for those fab transitions, and as we integrate them into our network, we'll start seeing the benefits," explained El-Khoury.
He also noted that while demand in core markets has somewhat stabilized, inventory digestion is ongoing with improvements in certain areas as customers remain cautious in 2024.
04. Infineon Launches Largest Power Semiconductor Plant in Malaysia
Infineon, a leading European chipmaker, has commenced production at its largest-ever power chip facility in Malaysia, representing a significant step for the country in its bid to ascend the global semiconductor supply chain hierarchy.
Located in Kulim, the new plant is projected to become the world's largest silicon carbide (SiC) semiconductor manufacturer as it ramps up to full capacity over the next five years. Infineon's strategic expansion is driven by the growing demand from the renewable energy sector, as well as the increasing adoption of electrified applications, including electric vehicles and AI-powered data centers.
05. Malaysia Sets Up Chip Design Center
According to SemiMedia, Malaysia has set up a chip design center in Selangor to advance its semiconductor industry and attract foreign investment. The report highlights that Malaysia is striving to enhance its chip design capabilities and transition from relatively simpler and lower-value testing and packaging technologies to more complex upstream processes.
Malaysia’s economic minister, Rafizi Ramli, stated, "The growth of data centers will continue to drive semiconductor demand. We want to eventually reduce our reliance on chips designed elsewhere and see more Malaysian data centers using locally designed chips."
The IC design center, located in Puchong near Kuala Lumpur, has partnered with companies like software maker Cadence and chip design firm Arm. Earlier this year, Malaysia committed at least 25 billion ringgit (approximately $5.6 billion) to support its semiconductor industry, aiming to enhance its significance as global supply chains are restructured due to tensions between the United States and China.
06. Wiwynn's First Half-Year Profits Surge to a New High
Wiwynn, a server OEM under the Wistron Group, announced its second-quarter financial results, reporting a single-quarter gross margin surpassing 10% and an after-tax net profit of 4.694 billion NTD, the second-highest in the company's history. The cumulative profit for the year's first half reached 9.401 billion NTD, with earnings per share at 53.77 NTD, setting a new record for the period.
In July, Wiwynn achieved a new single-month revenue record of 31.121 billion NTD, bringing the cumulative revenue for the first seven months to 178.231 billion NTD, representing a year-on-year increase of over 20%. The company remains optimistic about the demand for cloud services and AI servers, continuing to invest in data center technology, including injecting an additional 500 million USD into its U.S. subsidiary to optimize its financial structure.
Despite a short-term decline in stock prices, Wiwynn is confident about shipments and AI server projects in the second half of the year. The company expects that its collaboration with NVIDIA will drive revenue growth starting in the fourth quarter and anticipates ongoing contributions from NRE (Non-Recurring Engineering) income from new products.