01. Power Semiconductor Market Shows Signs of Recovery; Domestic Manufacturers Seize Opportunities
According to IC Semiconductor Industry News on May 27, 2025, the global power semiconductor market still faces the pressure of weak demand and high inventory levels in the first half of 2025, but signs of recovery are gradually emerging. According to Infineon's Q2 2025 financial report, the global power semiconductor market shrank to $32.3 billion in 2024. However, domestic power semiconductor companies performed remarkably well. Sino-Microelectronics and BYD jumped to the sixth and seventh places globally with market shares of 3.3% and 3.1%, respectively, becoming the only two companies in the top ten with increased market shares.
The market recovery is mainly driven by the warming of the consumer electronics industry and the growing demand in high-end fields such as automotive electronics, high-performance computing, and high-speed communications.
02. TrendForce: NAND Flash Brand Revenue Declines by Over 20% in Q1 2025, Expected to Rebound in Q2
According to TrendForce's research on May 29, 2025, in Q1 2025, NAND Flash suppliers saw their average selling prices (ASPs) drop by 15% quarter-over-quarter and shipments decrease by 7% due to inventory pressure and declining end-customer demand. The combined revenue of the top five brand factories fell nearly 24% to $12.02 billion. However, it is expected that in Q2, as end-buyer inventories reach a healthy level, NAND Flash prices will rebound from the bottom. Additionally, the impact of U.S. tariffs will prompt some manufacturers to actively purchase more goods, leading to a potential 10% quarter-over-quarter increase in brand factory revenue.
Samsung's revenue dropped by about 25% quarter-over-quarter to $4.2 billion due to weak demand for enterprise-level SSDs, but the rebound in NAND Flash wafer prices in March improved its profit margins. SK Group (including SK hynix and Solidigm) saw its revenue decline to $2.19 billion due to seasonal effects and customer inventory adjustments. Micron's revenue reached $2.03 billion, down 11% quarter-over-quarter, ranking third for the first time due to increased shipments. Kioxia's revenue was $1.92 billion, affected by weak seasonal demand. After the separation of SanDisk and WDC, the revenue was $1.7 billion, with plans to optimize profits by increasing QLC product shipments.
03. ADI Raises Q3 Revenue Forecast as Chip Demand Warms Up
On May 27, ADI raised its Q3 revenue forecast to $2.75 billion, with a possible fluctuation of $100 million, higher than the previously predicted $2.62 billion. This adjustment is mainly due to the stable recovery of chip demand in the industrial and automotive markets. In the quarter ending in May, ADI's automotive business revenue increased by 24% year-over-year to $849.5 million, partly due to short-term order advances triggered by changes in U.S. tariff policies.
Apart from the automotive sector, the demand for analog chips in industrial applications is also steadily recovering, with companies beginning to restock. However, analysts warn that demand driven by policy changes may not indicate a broad or sustainable recovery, and it is necessary to closely monitor the impact of advanced purchases in the automotive sector in future quarters.
04. Samsung Considers Splitting Foundry Business to Address Customer Concerns and Losses
On May 28, according to industry sources, Samsung Electronics is considering spinning off its foundry business from the semiconductor division to alleviate customer concerns about conflicts of interest. Since Samsung is involved in both chip design (through System LSI) and foundry manufacturing, customers such as Apple, Qualcomm, and Nvidia have always been cautious about outsourcing business to Samsung.
Although Samsung's foundry division has accelerated the development of advanced processes, applied 3nm technology, and plans to mass-produce 2nm chips this year, as the world's second-largest foundry, Samsung still lags behind TSMC in winning major orders. Analysts believe that the structural conflict between design and manufacturing is the core reason for customer hesitation. Splitting the foundry business may help Samsung rebuild trust, attract investment, and address ongoing financial losses.
05. Semiconductor Silicon Wafer Market Recovery
In Q1 2025, the global semiconductor industry showed a clear trend of recovery, but the recovery of the upstream semiconductor silicon wafer industry was slower, with many A-share listed companies experiencing profit declines. However, the prices of 6-inch and 8-inch wafers have gradually stabilized and risen in Q1, with continued capacity expansion. As downstream customer inventory levels normalize, it is expected that shipments and prices will further improve in the future.
Data shows that in 2024, the global semiconductor silicon wafer shipments decreased to 12.266 billion square inches, and sales dropped to $11.5 billion. In Q1 2025, global wafer shipment area increased by 4.6% year-over-year, but there was a divergence in performance across different sizes: 300mm wafer shipment area increased by 5.7% year-over-year, while 200mm wafer shipment area decreased by 2.9% year-over-year.
06. Foxconn Plans $3 Billion Acquisition of Singapore Chip Packaging and Testing Company UTAC
On May 26, sources revealed that Foxconn is considering acquiring Singapore's chip packaging and testing company UTAC Holdings for up to $3 billion. UTAC, founded in 1997 and currently owned by Beijing-based private equity firm Wise Road Capital, offers a wide range of semiconductor packaging and testing services covering consumer electronics, computing, security, and medical fields. UTAC has multiple production bases globally, including in Singapore, Thailand, China, and Indonesia.