Semiconductor market news(Oct. 09 to Oct. 15)丨Notebook ODM sees shipment bounceback in September; DRAM and NAND chip supply in China will be in short supply next year

01. Auto and GenAI will be growth drivers for semiconductor market growth in 2024

DIGITIMES Research projects that smartphones, PCs, and servers demand for semiconductors are likely to account for 40% of total global demand in 2024. Another 60% is mainly driven by Auto and GenAI.

Due to the popularity of electrical vehicles and the development of the Advanced Driver Assistance System (ADAS) and smart cockpit, automotive application is taking up a higher percentage of the semiconductor markets. Companies such as NXP and Qualcomm also have collaborated with TSMC, UMC, and GlobalFoundries to develop advanced automotive chips. We anticipate automotive application processors (AP) to see robust growth in the next three years.

The development of generative AI will boost the growth of capital expenditure related to data centers. We anticipate semiconductors used for cloud AI to be the main driver for investment in 2024.

02. Notebook ODM sees shipment bounceback in September

Notebook ODMs saw their shipments increase in September, but their outlook for the fourth quarter remains conservative. Both Wistron's and Inventec's evaluations stated that shipments in 4Q23 would remain flat or decline compared to 3Q23.

03. DRAM and NAND chip supply in China will be in short supply next year

According to supply chain insiders, Samsung Electronics’ recent survey of the semiconductor demand of its major global customers shows that the adjustment of memory chip inventory by customers in various fields is nearing the end. Starting in 2024, there will be a supply shortage of DRAM and NAND Flash in some regions.

04. Coherent SiC biz to draw investment from Denso, Mitsubishi Electric

Denso and Mitsubishi Electric have agreed to invest an aggregate US$1 billion in Coherent's silicon carbide (SiC) business. The transaction results from the strategic review process announced in May 2023 for Coherent's SiC business.

05. Samsung Electronics reportedly to produce battery monitoring IC

In response to the rapidly growing EV market, Samsung Electronics will reportedly manufacture battery monitoring IC (BMIC) to boost the automotive semiconductor businesses at its foundry and attract new customers.

06. Japan plans to include electronic components like MLCC as economic security subsidy items

The Japanese government, in consideration of economic security, has designated 11 specific key materials that will be subsidized by the government for equipment investments and R&D. These 11 items include semiconductors and storage batteries, and the Japanese government is currently considering the addition of advanced electronic components like multilayer ceramic capacitors (MLCCs) to the list of key materials.

07. Huawei aims for 70 million smartphone shipments in 2024

Huawei aims to ship between 60 to 70 million smartphones in 2024, according to sources familiar with the matter on Tuesday. The source claimed that Huawei has placed sufficient orders with its supply chain to ensure it meets this shipment target for 2024.

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