01. Automotive, industrial sectors lead chip market growth
The automotive and industrial sectors are set to exhibit the strongest growth in demand for semiconductors during the decade 2021 to 2030, according to the Semiconductor Industry Association.
The semiconductor industry’s origins were in defense and communications before the drivers of growth moved to computing, personal computing and on to consumer electronics.
Now it is the turn of the automotive and industrial sectors, which along with consumer electronics each had 14 percent of the chip market in 2022, according to a blog by Robert Casanova, director of industry statistics and economic policy at the SIA.
For many years communications and computing have accounted for about one third each of chip sales with automotive, industrial, and consumer electronics accounting for the remainder. Casanova states 2022 showed a marked shift in end use.
The biggest end-use market for chips was still communications with 30 percent of the market followed by computing with 26 percent. But the lead has fallen while industrial and automotive applications leapt up to 14 percent.
02. NAND flash ASP to fall 5-10% in 2Q23
According to TrendForce, NAND flash ASPs will continue to fall but at a slower 5-10% rate in the second quarter of 2023, and whether prices continue to fall in 2H23 will depend on demand.
Despite chip suppliers' efforts to reduce production, the market remains oversupplied due to low demand for servers, smartphones, and notebooks. The ability of NAND flash suppliers to reduce production further is essential for supply and demand to return to market equilibrium. The memory ASPs may rebound in the fourth quarter of 2023, TrendForce said.
The majority of PC OEMs have effectively liquidated their component stockpiles and are now preparing for mid-year sales events. Suppliers are lowering costs to clear out their PCIe Gen 3 SSD inventories, which are being phased out gradually. Meanwhile, PCIe Gen 4 SSD prices continue to decline due to a slow intake of new customer orders.
The continued drop in QLC product prices in the first quarter of 2023 has dragged down TLC product prices, and there is little room for further price declines in the second quarter. While it is unknown whether demand will recover, TrendForce forecast that prices for client SSDs will fall by 5-10% in the second quarter of 2023.
03. SEMI: 2026 global 300mm semiconductor fab capacity is expected to hit a record high
Mar. 28, 2023, According to the latest SEMI report, global semiconductor manufacturers are expected to increase 300mm fab capacity to an all-time high of 9.6 million wafers per month (wpm) in 2026. After strong growth in 2021 and 2022, 300mm capacity expansion is expected to slow this year due to weak demand for memory and logic devices.
“While the pace of the global 300mm fab capacity expansion is moderating, the industry remains squarely focused on growing capacity to meet robust secular demand for semiconductors,” said Ajit Manocha, SEMI President and CEO. “The foundry*, memory and power sectors will be major drivers of the new record capacity increase expected in 2026.”
Chipmakers expected to increase 300mm fab capacity during the 2022 to 2026 forecast period to meet growth in demand include GlobalFoundries, Hua Hong Semiconductor, Infineon, Intel, Kioxia, Micron, Samsung, SK Hynix, SMIC, STMicroelectronics, Texas Instruments, TSMC and UMC. The companies are planning 82 new facilities and lines to start operations from 2023 to 2026.
The SEMI report shows analog and power leading other sectors in capacity growth at a 30% CAGR from 2022 to 2026, followed by foundry at 12%, opto at 6% and memory at 4%.
04. Murata announces completion of new production building in Thailand
Mar. 30, 2023, Murata Manufacturing Co., Ltd. announces the completion of the new production building of its manufacturing subsidiary Murata Electronics (Thailand), Ltd. in Thailand. Construction of the production building began in July 2021 and a completion ceremony was held on March 27.
The building has a total building area of 35,088 square meters, a total floor area of 80,950 square meters, and a total investment of 12 billion yen (90 million U.S. dollars). Mainly used in the production of raw materials for MLCC products.
Murata said the completion of the new production building will provide the necessary infrastructure to cope with the growing demand for multilayer ceramic capacitors in the mid- to long-term capacity.
05. Infineon optimistic about its chip business in 2023
Mar. 29, 2023, Chipmaker Infineon raised its financial outlook for the second quarter and for the full 2023, citing resilient business dynamics in its automotive and industrial divisions, according to a Reuters report.
Infineon said it now expects sales in 2023 to be significantly higher than its previous forecast of 15.5 billion euros.
Infineon said the outlook would have a correspondingly positive impact on margins. Better pricing and more favorable energy costs will also lead to higher segment margins in the second quarter and higher than its forecast of 25%.
06. South Korea's chip output plummets 41.8% year-on-year in February
Mar. 31, 2023, According to Bloomberg News, South Korean chipmakers' chip output in February fell 41.8% from a year earlier, the largest decline since the 2008 financial crisis.
The report pointed out that South Korea's chip production fell by 33.9% year-on-year in January, and production in February fell by a new 41.8%. Inventories rose 33.5% in February, while shipments fell 41.6%.
Chips are an important part of South Korea's export trade, accounting for about 12% of total exports in February.
South Korean policymakers hope for a rebound in the second half of the year and continue to focus on semiconductor investment as the economy's main growth engine. The South Korean parliament has recently approved a tax break for semiconductor companies to stimulate investment to boost the semiconductor industry.
07. Toshiba Accepts Japan Industrial Partners’ $15.3 Billion Takeover Bid
Toshiba, one of Japan’s largest technology companies, has accepted a proposed takeover by Japan Industrial Partners (JIP) for a total of $15.3 billion. The news has been greeted with great interest in the business and technology community around the world as it marks the end of an era for Toshiba and the beginning of a new era under JIP’s ownership.
JIP’s acquisition of Toshiba follows a series of financial and management challenges the company has faced in recent years. In 2015 the company was embroiled in an accounting scandal that affected its reputation and led to a major restructuring. Since then it has had to deal with a series of issues, including a major memory chip division and a $1bn cost to build a nuclear power plant in the US.
In a press release Toshiba announced that it has accepted JIP’s proposal to acquire all of the company’s issued shares. The transaction will be carried out through a tender offer in which JIP will acquire all of Toshiba’s common stock at a price of $40.3 per share. According to the press release, the transaction is scheduled to be completed in September 2023.