01. Discrete Components Market Trends Show a Quiet Bounce-Back
According to a research report released on July 22, power semiconductors in the discrete devices segment are showing strong growth momentum. Automotive applications are the key driver—electric vehicles, charging infrastructure, and advanced driver-assistance systems (ADAS) require a large number of MOSFETs, IGBTs, and diodes. Many Tier 1 automotive suppliers report that orders are strong and will continue through 2026.
Similarly, the industrial sector's pursuit of energy efficiency and automation continues to drive demand for robust power discrete devices. Silicon carbide (SiC) and gallium nitride (GaN) components, once niche products, are expanding their applications due to their efficiency and thermal performance advantages. While the standard commercial discrete devices market remains stable, specialized power devices are facing extended lead times and slight price increases.
02. Power Component Makers Optimistic for H2: Inventory Adjustment Nears End, Automotive Market Recovers
On July 24, the Commerce Times reported that major automotive power component manufacturers recently disclosed their Q2 financial results and outlook for the second half of the year. NXP observed that Tier 1 automakers' inventory reduction is nearing completion, with automotive revenue expected to grow year-over-year in Q4. In contrast, Texas Instruments (TI) remained more conservative, noting that the automotive market is still declining year-over-year, though at a slower pace. Both companies highlighted that the long-term trends of electric vehicles and software-defined vehicles have been established.
In Q2, Tier 1 automakers in Europe and the US were still in the final stages of inventory reduction. NXP expects shipments to return to actual demand, with strong performance in its automotive business in China. However, TI believes the automotive market recovery is not as strong as expected. Industry analysts noted that NXP's active presence in innovative application areas such as software-defined vehicles (SDV), radar, and battery management systems (BMS) highlights the increasing penetration of semiconductor content in future intelligent vehicles.
03. NXP Expects Automotive Chip Inventory Adjustment to End, Demand to Rebound
On July 23, NXP CEO Kurt Sievers said that the long-term inventory adjustment in the automotive chip sector may come to an end this year, laying the foundation for a recovery in demand for the company's core business. Sievers noted during the Q2 earnings call that despite ongoing global supply chain disruptions and market uncertainties, NXP's automotive business revenue showed strong growth momentum in Q3. He mentioned that the automotive chip business, which accounts for over half of NXP's total revenue, had been under pressure due to trade-related disruptions and weak automotive demand but is expected to see increased orders from distribution partners and direct customers in the coming quarters.
04. Micron and SK Hynix Face HBM Price War Pressure
On July 21, according to SemiMedia, the high-bandwidth memory (HBM) market may see a price war with Samsung Electronics' strong entry, putting pressure on Micron and South Korea's SK Hynix. Goldman Sachs analyst Giuni Lee projected that HBM prices will decline in 2026, with pricing power potentially shifting to major customer NVIDIA, leading to SK Hynix's 2025 operating profit falling below market expectations. Daishin Securities also lowered its 2025 HBM average price forecast, and Micron and SK Hynix's stock prices both fell sharply on October 17.
Samsung is in talks with NVIDIA to supply 12-layer stacked HBM3E. If it becomes a qualified supplier, NVIDIA will have a stronger position in price negotiations with Micron and SK Hynix. Additionally, SK Hynix's 12-layer HBM3E has a higher cost, and if Samsung passes NVIDIA's quality test, it could trigger a bidding war. This may also be one of the reasons NVIDIA is delaying the adoption of HBM4.
With Samsung entering the market, the HBM supply landscape may be reshuffled, and memory manufacturers face pressure to reduce profit margins and adjust pricing strategies.
05. OpenAI and Oracle Collaborate to Deploy Over 2 Million AI Chips
On July 24, OpenAI announced a collaboration with Oracle to build a new data center in the US, deploying over 2 million AI-optimized chips to support artificial intelligence training and inference workloads. The collaboration will add 4.5 gigawatts of power capacity, bringing OpenAI's total infrastructure capacity to over 5 gigawatts. The first racks of Nvidia GB200 chips have been delivered to OpenAI's site in Abilene, Texas, and are partially operational. The data center construction is expected to create over 100,000 jobs in the US.
06. Google Boosts Cloud Investment, Quanta and Inventec Benefit from Server Orders
On July 24, Alphabet, Google's parent company, increased its capital expenditure for this year to $85 billion, $10 billion more than originally expected. The CFO revealed that server supply and demand will remain tight next year, and capital expenditure will increase further. This means that Google will have a greater need for AI server deployments, and partners such as Quanta and Inventec will benefit.