Semiconductor market news(Jan. 2 to Jan. 8)丨Chip glut to last most of 2023 while automotive crunch persists; DRAM/NAND Flash prices to continue slide in 1Q23…

01. Chip glut to last most of 2023 while automotive crunch persists

Jan. 5, 2023 — According to Nikkei Asia, the oversupply of semiconductors in the second half of 2022 is not expected to ease until the third quarter of 2023, but the shortage of automotive chips and some industrial chips may continue throughout the year.

The report pointed out that the oversupply of smartphone chips is not expected to ease until the fourth quarter of this year; personal computer chips are expected to peak in the third quarter and then gradually ease; data center chips may last until the first quarter of this year.

In contrast, the automotive industry still faces semiconductor shortages, even with shorter lead times for some products.

Increased production by automakers coupled with the rising number of semiconductors required per vehicle has boosted demand for chips in the auto industry, the report said.

The report believes that by 2023, the supply of power semiconductors for controlling current and analog semiconductors for power management will remain tight. Some major automakers have also said that parts supply will not return to normal until 2024.

02. DRAM/NAND Flash prices to continue slide in 1Q23

DRAM prices are poised to continue their slide in the first quarter of 2023, with mainstream DDR4 prices declining 15-20%, according to industry sources.

Drops in NAND flash ASPs are expected to be 10-15% in the first quarter of 2023 from 20-25% in the prior quarter, as "suppliers' production cuts take effect," TrendForce said in its recent report.

03. Production Capacity for Power Management ICs Will Grow by 4.7% YoY for 1H23

The effect of the low season, the planned scale-back of capital expenditure on the part of enterprises, and the ongoing slump in the wider consumer electronics market are going to constrain the demand for power management ICs during 1H23. On the supply side, Texas Instruments (TI) as the leading supplier for power management ICs will be activating the newly added production capacity at its production sites RFAB2 and LFAB in the same period. Given this circumstance, TrendForce projects that the global production capacity for power management ICs will increase by 4.7% YoY for 1H23.

In the market for power management ICs, falling demand for products belonging to consumer electronics, networking devices, and industrial equipment continues to generate downward pressure on prices. Consequently, quotes for power management IC orders are projected to register a sequential drop of 5~10% during 1H23.

04. Dell looks to phase out 'made in China' chips by 2024

Dell Technologies Inc plans to stop using China-made chips by 2024 and has told suppliers to reduce the amount of other made-in-China components in its products amid concerns over US-Beijing tensions, Nikkei reported on Thursday.

The computer maker told suppliers late last year that it aims to meaningfully lower the amount of China-made chips it uses, including those produced at facilities owned by non-Chinese chipmakers, the report added, citing three people with direct knowledge of the matter.

05. Samsung sees Q4 operating profit down 69% amid recession worries

Samsung Electronics said Friday its fourth-quarter operating profit likely plunged 69 percent from a year earlier due to sliding memory chip prices as the global downturn pummeled demand for IT gadgets and servers.

The world's largest memory chip and smartphone maker estimated its October-December operating profit at 4.3 trillion won ($3.4 billion), down from 13.87 trillion won a year ago.

In an earnings shock, Samsung reported a quarterly operating income of less than 5 trillion won for the first time in eight years after posting 4.06 trillion won for the third quarter of 2014.

06. Taiwan to join WTO chip dispute consultation to understand possible impacts

Taiwan filed a request on Jan 3 expressing its desire to join a World Trade Organization (WTO) consultation regarding China's protest of the "certain measures on certain semiconductors and related services and technologies taken by the US" as a third.

07.2022 car display shipments might miss target, according to DIGITIMES Research

Car display shipments during 2022 are forecast to remain short of 200 million sheets. Notably, center control display (CCD) shipments are expected to decrease to 95.3 million sheets for 2022, according to forecasts made by DIGITIMES Research.

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