1. N XP's industrial and mobile business grew, while automotive revenue fell slightly

NXP (NXP) recently released its financial report for the first quarter of 2024, with revenue of US$3.13 billion, roughly the same year-on-year, and a decrease of 9% month-on-month; GAAP operating profit was US$856 million, an increase of 4% year-on-year, and a reduction of 10% month-on-month; gross profit margin was 57%, Year-on-year and month-on-month increases were 0.3 and 0.4 percentage points respectively.

Overall and segment financial reports Source: NXP

Among the various businesses, the automotive business revenue was US$1.804 billion, a year-on-year decrease of 5%, and a month-on-month decrease of 1%; the industrial and IoT business revenue was US$574 million, a year-on-year increase of 14%, a month-on-month decrease of 13%; the mobile business revenue was US$349 million, a year-on-year decrease—an increase of 34% and a month-on-month decrease of 14%.

NXP President and CEO Kurt Sievers said that NXP’s quarterly revenue was consistent with the midpoint of guidance, and all key end markets were as expected. Our first-quarter results, second-quarter guidance, and early outlook for the second half of the year leave us cautiously optimistic that NXP will successfully weather this industry-wide cyclical downturn. NXP expects mid-point revenue in the second quarter to be $3.025 billion, plus or minus $10 billion.

 2. ON Semiconductor's revenue and profits have retreated, and gross profit margins have generally been maintained.

Onsemi recently released its financial report for the first quarter of 2024, with revenue of US$1.863 billion, down 4.95% year-on-year and 7.7% month-on-month; GAAP net profit was US$453 million, down slightly 1.9% year-on-year and 19.5% month-on-month; gross profit margin was 45.8 %, a year-on-year decrease of 1 percentage point and a month-on-month decrease of 0.9 percentage points.

Overall financial report Source: onsemi

By business, the Power Solutions Group (PSG) revenue was US$874 million, a year-on-year increase of 2%; the Advanced Solutions Group (AMG) business revenue was US$697 million, a year-on-year decrease of 6%; the Intelligent Sensing Group (ISG) business revenue was 2.92 billion, down 18% year-on-year. Compared with last year, the current new department division method is used.

Segment financial reports Source: onsemi

Hassane El Khoury, President and CEO of ON Semiconductor, said that the structural changes made to the business over the past three years have enabled the company to maintain gross margins under challenging circumstances, remain focused on execution in the current environment, and continue to lead the industry. Gain a share in the power and sensing technology portfolio. ON Semiconductor expects second-quarter revenue of US$1.68 to US$1.78 billion, with gross profit margin between 44.1% and 46.1%.

3. As copper prices rise, many local semiconductor companies raise prices

According to relevant reports cited by Kuai Technology, since the semiconductor market demand began to pick up in the fourth quarter of last year, many domestic chip manufacturers have recently begun to announce price increases, with the highest increase reaching 20%.

Zhejiang Yaxin Microelectronics Co., Ltd. issued a "price adjustment notice" to customers on April 23, announcing that it would increase the unit price of the entire series of products by 15%-20%, which will be implemented immediately. The reason for the price increase is that the international precious metal market prices have recently increased by an average of more than 15%, with some materials reaching a peak of 50%, and there is a continuing upward trend, resulting in rising raw material costs.

Shenzhen Chuangxin Microelectronics Co., Ltd. also issued a "price adjustment notice" on April 23, announcing that it will increase the prices of some products starting from May 1. The reason for the price increase is also due to the gradual increase in the prices of raw materials such as metals, the rising quotations in the semiconductor industry, and the rising product costs.

Nanjing Zhilingxin Technology Co., Ltd. also issued a "Price Adjustment Notice" on April 26, announcing that from now on, all series of products will be adjusted based on the original sales price. The reason for the price increase is also due to the recent continued rise in raw materials, which has led to an increase in the overall cost of chips.

Wuxi Huazhongxin Microelectronics Co., Ltd. also announced that it will increase the prices of some products starting from May 20. The reason is also the sharp increase in raw material prices.

According to market research firm TechInsights, global semiconductor sales will grow by 24% in 2024.

4. Samsung Electronics first-quarter profit increased significantly, and its semiconductor business was profitable

Samsung Electronics recently announced its financial report for the first quarter of 2024, with revenue of 71.92 trillion won, a year-on-year increase of 13% and a month-on-month increase of 6%; operating profit was 6.61 trillion won, far more than the 0.64 trillion won in the same period last year and the 28,200 won in the previous quarter. billion won.

Overall and segment financial reports Source: Samsung

The storage business revenue of the Device Solutions Division (DS) was 17.49 trillion won, a year-on-year increase of 96% and a month-on-month increase of 11%. The overall DS division operating profit was 1.91 trillion won, compared with losses in both the same period last year and the previous quarter.

For the storage business, Samsung believes that overall demand is strong and prices continue to rise, with solid demand for DDR5 and storage for generative AI. Samsung will speed up the production ramp-up of HBM3E 12H memory.

 5. Samsung is rumored to launch the tenth generation V-NAND next year: up to 430 layers

According to IT House news, Samsung Semiconductor recently announced the mass production of the ninth-generation V-NAND 1Tb TLC product. The bit density is about 50% higher than the previous generation product, reaching 290 layers based on the 236 layers of the flagship V8 flash memory. It is mainly for large-scale Enterprise servers and artificial intelligence and cloud equipment. Industry sources say Samsung plans to launch the 10th generation NAND next year, using triple stacking technology to reach 430 layers, further increasing the density of NAND and consolidating and expanding its leading edge.

Omdia expects the NAND flash memory market to grow 38.1% this year after declining 37.7% in 2023. Samsung has vowed to invest heavily in its NAND business to gain a share of the fast-growing market. Samsung executives have previously stated that the goal is to develop more than 1,000 layers of NAND chips by 2030 to achieve higher density and storage capabilities.

6. MediaTek Tsai Lixing: 2024 is the starting point for the next wave of growth

According to China Taiwan Business Times, MediaTek held a press conference on the 26th and estimated that its US dollar revenue growth will reach 14%-16% in 2024. CEO Tsai Li-hsing emphasized that it will benefit from major products such as mobile phones, broadband, and TVs. The demand for inventory replenishment is strong. The full-year performance is not optimistic based on the excellent foundation in the first quarter and the improved visibility. In addition to the growth of mobile phones that will surpass other product lines, it has made good gains in ASIC and automotive platforms. 2024 will be the beginning of the next growth stage.

Cai Lixing analyzed that MediaTek's strong market share expansion in the flagship mobile phone market, and the higher average unit price of flagship mobile phone chips will surpass its competitors, mobile phone revenue growth will be higher than 15%, and the flagship level is expected to exceed 50%. MediaTek’s advantages in computing technology, coupled with its leading 112G and 224G SerDes IP and flexible ASIC business, will have a greater chance of winning AI accelerator orders. In the automotive field, MediaTek’s Dimensity Auto cockpit solution continues to win new cases from leading automobile manufacturers, laying the foundation for future revenue. And it has joined hands with NVIDIA to introduce high-end and entry-level car models.