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Insights Tag:Semiconductors
Infographic: Q2 2023 | Semiconductors, Foundry Share and Smartphone AP Share
Infographic: Semiconductors Top 7 in Q2 2023
Intel maintained #1 place in Q2 2023 amid memory market slow down, which dragged down major memory players performance such as Samsung, SK Hynix and Micron. In addition, Nvidia took over the second place from Samsung due to the revenue booming on its data center business supported by strong AI server demand. Nvidia expects to see another wave of revenue growth in the upcoming quarter which could make its revenue expand again. Qualcomm’s revenue was capped by looming handset revenue and thus ranked #4 in the quarter. Broadcom and AMD’s revenues were relative resilient amid demand uncertainty.
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Infographic: Global Smartphone AP Share in Q2 2023
Global Smartphone AP Market Share by Shipments
MediaTek dominated the smartphone SoC market with a share of 30% in Q2 2023. MediaTek’s shipments slightly increased in Q2 2023 as the inventory levels came down and the competition is growing in the entry level 5G. New smartphone launches in the low and mid-end segments have increased the shipments in Dimensity 6000, Dimensity 7000 series. Qualcomm captured a 29% share in the quarter. Qualcomm shipments increased by 14.5% sequentially in Q2 2023 due to the high shipment for flagship chipset Snapdragon 8 Gen 2. Also, Key design wins for the Snapdragon 600 and 400 series have also contributed to the growth of Qualcomm’s shipment in Q2 2023.
Global Smartphone AP Market Share by Revenue
高通主导美联社市场在2023年第二季度40% revenue share. This growth is coming from the premium segment due to the adoption of snapdragon 8 gen 2 in Samsung flagship smartphones and Chinese OEMs. The launch of the Samsung Flip and Fold series has also contributed to this growth. Apple had a 33% share in the AP SoC market in Q2 2023 in terms of revenue. Apple’s share declined by 24% QoQ due to seasonality. The iPhone Pro series is doing better. MediaTek captured the third position with a share of 16% in the total global smartphone AP/SoC revenues. MediaTek revenue remained flat in Q2 2023 due to the weak demand and slow China market.
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Infographic: Foundry Revenue Share in Q2 2023
Foundry Companies’ Share by Revenue
TSMC maintained its leadership in the foundry market with a stable 59% market share in Q2 2023. In contrast, Samsung Foundry’s market share dipped by nearly 1% to 11%, primarily due to ongoing smartphone inventory adjustments and the loss of smartphone AP SoC orders from a US client. On the other hand, UMC saw an increase in market share, driven by the continued strength of DDICs and automotive applications in Q2 2023.
Foundry Industry Share by Technology Node
In Q2 2023, the 5/4nm segment continued to dominate the market, holding a significant 21% market share. This strength was driven by robust demand, particularly in the field of AI, with key customers like Nvidia and Broadcom fueling this momentum. In contrast, the 7/6nm segment experienced weakness due to a slower-than-expected recovery in the smartphone market. On the other hand, the 28/22nm segment remained robust, as demand for primary applications, including DDIC and automotive-related applications, remained strong throughout Q2 2023.
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Counterpoint Quarterly: Q2 2023
Counterpoint Quarterly
IoT Q2 2023
Published Date: 16th August 2023
Overview:This insightful report covers key trends in Smart Home Security Cameras, Cellular IoT Connections, AI-driven transformations, revenue dynamics, and emerging technologies. It offers concise, valuable insights for informed decision-making across diverse industries.
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Table of contents:
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- Global Cellular IoT Connections to Cross 6 Billion in 2030
- AI & API Accelerating Digital Transformation Across Verticals
- Netgear Q1 2023: Revenue Stutters as Inventory Correction Set to Spill Into Q2
- India’s Smart Home Security Camera Shipments Up 48% YoY in Q1 2023
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- Global Connected Agriculture Node Shipments to Reach 187 Million Units by 2030
- Global Connected Construction Machine Shipments Grew 6.7% YoY in 2022
- PAX Revenues Cross $1 Billion in 2022; SmartPOS Adoption Supports Growth
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Automotive Q2 2023
Published Date: 8th August 2023
Overview:This comprehensive analysis covers global EV trends, connected car sales, regional market dynamics, key players, emerging technologies, pricing strategies, and market growth. It also provides concise, insightful automotive trends for informed decision-making.
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Table of contents:
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- China EV Sales Defy Subsidy Cuts, Maintain Strong Growth in Q1 2023
- AI Needs to Reside in the Vehicle to Work Well
- 美国电动汽车销售同比增长79% 2023年一季度得益于税收Credit Subsidy
- Global Passenger Electric Vehicle Market Share, Q2 2021 – Q1 2023
- Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War
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- Google Puts Auto Expansion in Top Gear
- Huawei ADS 2.0: A Promising New ADAS in Market
- Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead
- Price Cuts Boost Tesla Revenue in Q1, Profit Slumps Compared to 2022
- EV Sales in US up 54.5% YoY in 2022; Tesla Market Share at 50.5%
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Wearables Q2 2032
Published Date: 24th July 2023
Overview:This is a comprehensive analysis of the latest developments in the wearables industry covering product reviews, market trends, and regional insights. It also includes the Sony WH-CH720N headphones, Apple’s Vision Pro, Meta’s Quest 3, smartwatch markets in China and India, MediaTek’s expansion, AR/VR value chain in China, Apple’s device ecosystem, and wearable innovations at MWC Barcelona 2023.
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Table of contents:
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- 索尼WH-CH720N评论:好声音,有效的国民大会,Long Battery Life
- Vision Pro, iOS 17, New Macs: Here’s Everything Announced at Apple WWDC 2023
- Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
- Quest 3 to Help Maintain Meta’s XR Dominance Even as Apple Entry Looms
- China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters
- India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023
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- Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022
- MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
- Analysis of the AR/VR Value Chain in China: Is China at the forefront of the industry?
- Apple’s Device Ecosystem Multiplies its Brand Strength and Stickiness
- Wearable Innovations Stand out at MWC Barcelona, 2023
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Semiconductors Q2 2023
Published Date: 24th July 2023
Overview:This is a comprehensive analysis of the industry, encompassing topics like international policies affecting self-reliance plans, regulatory acts in the US, earnings of major players, semiconductor manufacturing in India, emerging technologies in the market, and key events shaping the industry’s future. It provides valuable insights for stakeholders seeking a concise overview of the semiconductor landscape.
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Exhaustive table of contents below:
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- Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
- Will CHIPS Act Achieve US Goals?
- UMC Q1 2023 Earnings: Weak Cyclical Recovery But 28nm Remains Resilient
- STMicro Beats Q1 2023 Earnings Expectations Despite Chip Shortages
- India’s Promising Semiconductor Manufacturing Trajectory
- New Layer-1 Accelerator Cards Set To Boost Open RAN Market – Or Create More Lock-In?
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- MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
- Neil Shah Joins as Vice-Chairman for IC 50 Committee
- Arm Platform TCS23 Sets Benchmark to Power Advanced, Holistic Mobile Computing Experiences
- BoM Analysis: Samsung Galaxy S23 Ultra Costs $469 to Make
- COMPUTEX 2023: AI Solutions, Capabilities in Focus
- Currency Fluctuation Limits Global Wafer Fab Equipment Revenue Growth to 9% YoY in 2022
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Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.
Smartphones Q2 2023
Published Date: 12th July 2023
Overview:This report provides a comprehensive analysis of the global smartphone market, covering various topics and regions gathered throughout Q2. It includes insights into consumer preferences, market trends, and key players. The report offers a broad perspective on the industry, exploring topics such as foldable smartphones, market strategies, display technologies, reviews of smartphone models and much more. This report serves as a valuable resource for industry stakeholders seeking a concise overview of the global smartphone market.
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Exhaustive table of contents below:
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- Survey: 28% of US Smartphone Users Highly Likely to Opt for a Foldable as Next Purchase
- OPPO’s LATAM Strategy is a Success So Far But Challenges Ahead
- China Premium Smartphone Market Outlook: Bright Future Ahead
- Smartphone Displays Moving Towards ‘Brighter’ Future
- OPPO Find X6 Pro Review: A Photographer’s Delight
- Refurbished iPhone Volumes Grew 16% YoY Globally in 2022
- China Smartphone Sales Fall 5% YoY in Q1 2023; Apple on Top With Highest Sales Share
- India Smartphone Market Records Highest Ever Q1 Decline of 19%, 5G Smartphones Contribution at 43%
- Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share
- Survey: 72% of Smartphone Users in India Experience Low-battery Anxiety
- US Smartphone Shipments Decline in Q1 2023 Amid High Inflation, Inventory Correction; Apple Share Up
- 欧洲第一季度智能手机出货量同比下降23%2023; Market at Lowest Levels for Over a Decade
- MEA Smartphone Shipments Fall to Lowest Q1 Level Since 2016
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- LATAM Smartphone Shipments Fall 9.9% YoY in Q1 2023, But Most Leading Brands’ Volume, Share Increase
- Apple Shines in a Declining Southeast Asia Smartphone Market
- Transsion Updates – Full Year 2022
- Festive Season Restricts Decline in Indonesia Smartphone Shipments to 8.1% YoY in Q1 2023
- Colombia’s Q1 2023 Smartphone Shipments Hit Three-year Low
- Vietnam’s Smartphone Market Drops 30% in Q1 2023, Biggest Q1 Decline Ever
- Philippines Smartphone Shipments Fall 9% YoY in Q1 2023; realme Leads
- Strategy Trumps Sentiment as OEMs Skip Canada for New Feature Launches
- Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
- HONOR Bucks Market Trend With Fast Overseas Expansion
- Share of OLED Smartphones at Record High
- China’s <$150 Smartphone Market Posts Surprising Surge in Q1 2023
- Ecuador Smartphone Shipments Up 18% YoY in Q1 2023; Xiaomi Takes Top Spot
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Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.
Related Posts
Global Semiconductor Foundry Market Share: By Quarter
Global Semiconductor Foundry Revenue Share: Q1 2023
Published Date: May 11, 2023
This page shows thequarterly revenue sharefor the top players in the global semiconductor foundry market from Q3 2021 to Q1 2023.
| Global Semiconductor Foundry Revenue Share (%) |
Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 |
| TSMC | 55% | 53% | 54% | 56% | 59% | 59% | 59% |
| Samsung Foundry* | 15% | 16% | 15% | 13% | 12% | 13% | 13% |
| GlobalFoundries | 6% | 6% | 6% | 6% | 6% | 6% | 7% |
| UMC | 7% | 7% | 7% | 8% | 7% | 7% | 6% |
| SMIC | 5% | 5% | 6% | 6% | 6% | 5% | 5% |
| Others | 12% | 12% | 12% | 11% | 10% | 10% | 10% |
(*)Samsung includes foundry service for its internal logic IC business
This page provides a view on the global foundries revenue share from 2021 till 2023. Here are some highlights from Q1 2023:
- Inventory correction in PC, smartphone, and consumer applications keeps weighing on the near-term performance and may continue in Q3 2023.
- Automotiveapplications posted growth in Q1 2023 but may see softness in H2 2023.
- TSMC is positive on long-term trend inAIapplications although the revenue contribution is still too low to offset smartphone and PC weakness now.
- The recovery in H2 2023 should be mild. The overall utilization rate may bottom in Q2 2023.
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(Use the buttons below to download the complete chart)
Read our foundry quarterly report for Q1 2023here.
For detailed insights on the data, please reach out to us atsales(at)www.arena-ruc.com. If you are a member of the press, please contact us atpress(at)www.arena-ruc.comfor any media enquiries.
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India’s Promising Semiconductor Manufacturing Trajectory
- India’s semiconductor market is expected to reach $64 billion by 2026 with the ‘telecom stack’ and industrial applications accounting for two-thirds of the total.
- India’s Central and State Governments are incentivizing more than 70% of the total cost in setting up a semiconductor manufacturing facility.
- The Central Government funds 50% of the project and has also earmarked outlays for R&D, skill development and training.
New Delhi, Beijing, Jakarta, London, Boston, Toronto, Taipei, Seoul – May 09, 2023
Invest India, the National Investment Promotion and Facilitation Agency, India Semiconductor Mission (ISM), and Counterpoint Research, recently hosted a series of webinars with key industry speakers to discuss the opportunities in India for establishing a semiconductor manufacturing base and in becoming a key destination for supply chain diversification.
The webinar covered four central topics, namely thesemiconductormarket across sectors and applications; government programs and incentives for foreign manufacturers; talent availability and initiatives for re-skilling; and the current infrastructural capabilities and support for semiconductor manufacturing.
With India’ssemiconductormarket expected to balloon to $64 billion by 2026, the country presents a considerable opportunity for global semiconductor manufacturing. India’s semiconductor market was valued at $22.7 billion in 2019, according to a joint report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA). The 2026 forecast is set to be driven by both domestic and export markets with significant demand from theconsumer electronics, telecom, IT hardware and industrial sectors. India’s ‘telecom stack’ and industrial applications are expected to account for two-thirds of the total.
India Semiconductor Market Size by Application
Meanwhile, components leveraging mature technology nodes (28nm and higher) are expected to see significant short-term opportunities as they support India’s growingautomotiveand industrial sectors.
“In the short term, there is a huge opportunity being driven by domestic demand across applications like sensors, logic chips and analog devices,” said Tarun Pathak, Research Director at Counterpoint.
He also said “Local sourcing is already happening in a significant way. It accounted for around 10% of the overallmarketin 2022.”
At the global level, the Government of India has committed to being a reliable partner in thesemiconductorsupply chain, introducing various incentives and programs that facilitate foreign investments across a broad array of sectors.
Mr. Amitesh Kumar Sinha, CEO of ISM and Joint Secretary, Ministry of Electronics and Information Technology, said, “India is committed to becoming a reliable partner in global supply chains and we are working towards that by framing long-term policies, keeping the next 25 years in mind.”
Mr. Sinha further added, “More than 70% of the project costs forsemiconductormanufacturing are incentivized by the Central and State Governments in India of which 50% is funded by the Central Government on an upfront basis while the rest is covered by the State Governments.”
The Semicon India Program, which has an outlay of about $10 billion, funds 50% of thesemiconductormanufacturing project costs with 2.5% of the budget earmarked for R&D, skill development and training.
Apart from market sizing and fiscal support, the fourth area addressed during the webinar was the existing infrastructural capabilities and the availability of a skilled workforce, materials supply and other parts of the local supply chain.
India’s own fabrication unit, Semiconductor Laboratory (SCL), provided an end-to-end case study emphasizing India’s supply chain’s robustness across utilities, materials and talent.
Dr. Manish Hooda, Head of Technology Development at SCL said, “SCL has been an end-to-end manufacturer for 30 years, providing products for space and railway applications. For the last 15 years, SCL has received uninterrupted power supply and stable, continuous flow of ultra-pure quality water, which highlights India’s readiness to support high-volume manufacturing of semiconductors.”
An edited version of the webinar recording can be foundhere.
Contacts:
Nupur Yadav
Rohan Thomas Abraham– Sector Lead, ESDM – Invest India
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About Counterpoint Research
Counterpoint Technology Market Research is a global research firm specializing in TMT. It services major technology and financial firms with data, monthly reports, and detailed analyses of key technology markets.
About Invest India
Invest India is the national investment promotion and facilitation agency of India. The agency’s team of domain and functional experts provide sector- and state-specific inputs, and hand-holding support to investors through the entire investment cycle, from pre-investment analysis and decision making to after care and grievance redressal. Additionally, all facilitation support to investors under the “Make in India” program is provided free of cost by Invest India.
Website:https://www.investindia.gov.in/
About India Semiconductor Mission (ISM)
India Semiconductor Mission (ISM) is a specialized and independent business division within the Government of India’s Digital India Corporation. The organization aims to build a vibrant semiconductor and display ecosystem in India to facilitate the country’s emergence as a global hub for electronics manufacturing and design. Led by global experts in the semiconductor and display ecosystem, ISM’s mission is to serve as a focal point for the comprehensive, coherent, efficient and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem, in consultation with government ministries/departments/agencies, industry players and academia.
Website:https://ism.gov.in/
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Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead
- Volkswagen Group led in connected car sales, closely followed by Toyota Group.
- 4G cars captured more than 95% of connected car sales in 2022.
- Tesla broke into the top-10 connected car sales rankings for the first time.
New Delhi,London,San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023
Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’sSmart Automotive Service. TheUSremained the strongest market for connected cars followed by China andEurope. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.
Commenting on the market dynamics,Research AnalystAbhilash Guptasaid, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”
Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”
Commenting on the market outlook,Senior AnalystSoumen Mandalsaid, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost95%share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”
*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.
全面、深入的全球连接Car Tracker,Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are now available for purchase atreport.www.arena-ruc.com.
Feel free to reach us at press@www.arena-ruc.com for questions regarding our latest research and insights.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Analyst Contacts
Abhilash Gupta
Soumen Mandal
Peter Richardson
Counterpoint Research
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- Connected Car Market Analysis – Q4 2022
- EV Sales in US up 54.5% YoY in 2022; Tesla Market Share at 50.5%
- Global Passenger Electric Vehicle Market Share, Q1 2021 – Q4 2022
- Electric Vehicles Gain Ground in Southeast Asia; Thailand Dominates Volumes
- One in Four Cars Sold in China in 2022 Was an EV With BYD Powering Country’s Outperformance
- Berlin Factory Takes Tesla to Top Spot in Europe EV Sales as Chinese Brands Gain Ground
- Global Electric Vehicle Sales Crossed 10 Million in 2022; Q4 Sales up 53% YoY
- AI Voice Assistants to Push Success of Autonomous Driving, Software-defined Vehicle
- China EV Charging Points Soar 56% YoY in 2021; 42% CAGR Seen for 2022-2026
- One in Two Cars Sold Will Have Electric Powertrain by 2030
- ADAS Penetration Crosses 70% in US in H1 2022, Level 2 Share at 46.5%
- Connected Car Sales Overtake Non-connected Cars in Q2 2022
Will CHIPS Act Achieve US Goals?
- The legislation includes over $52 billion in subsidies for semiconductor manufacturing.
- So far, investments worth over $200 billion have been announced for manufacturing.
- New foundries from TSMC, Intel, Samsung, Micron and Texas Instruments are underway.
Last August, the US Congress passed the CHIPS Act, the largest piece of industrial policy signed into law in the US in a generation. The legislation includes over $52 billion in subsidies for semiconductor manufacturing. Over the past two decades, the share of semiconductors manufactured in the US has steadily fallen while advanced semiconductor manufacturing has become increasingly concentrated in just a handful of cities, primarily in Taiwan and South Korea.
The outbreak of COVID-19 wreaked havoc on supply chains as factories shuttered, while the fallout of an unexpected winter storm in Texas further disrupted semiconductor manufacturing. Compounded by an explosion of demand as companies, schools and government offices pivoted to work from home, the chip shortage set in, shaving a percentage off of GDP growth according to the White House. In summary, the events of the past few years have made abundantly clear the foundational role that semiconductors play in today’s economy, and the costs that accompany constrained supply.
All this triggered the finalization and passage of the CHIPS Act. The US government was convinced that the country’s supply of semiconductors, which power everything from washing machines, smartphones and cars to supercomputers and hypersonic missiles, faced an unacceptable bottleneck at a pivotal moment. The US is almost entirely dependent on Taiwan for the production of advanced chips even as cross-strait tensions reach new highs and US-China relations new lows. Indeed, concerns over a potential conflict in the South China Sea as well as between North Korea and South Korea, not to mention acts of God, impacting chip supplies convinced the US government about boosting the country’s semiconductor manufacturing. But with higher labor costs and plenty of red tape,semiconductor manufacturersneeded added incentives to make the transition worthwhile. The CHIPS Act has done just that, sparking a wave of private investment.
Since the CHIPS Act was passed, investments worth over $200 billion have been announced for manufacturing capacity in the US, with new foundries underway from TSMC, Intel, Samsung, Micron and Texas Instruments. But while the CHIPS Act has lit the flame under private companies to act, some of the legislation’s provisions and shortcomings could lead to its undoing. These projects are faced with red tape and regulations that will cause them to linger before coming on line. Besides, while funding has been made available for workforce education and job training, the scale of the need for new employees and the lack of the required workers and skills will likely pain semiconductor firms for years to come. One solution would be to raise the number of visas available for skilled workers from abroad. Another would be to provide targeted assistance to students pursuing degrees in related fields. Finally, the Act itself fails to address the reason why semiconductor manufacturing left the US in the first place – American labor costs and regulations make production in the US more expensive than elsewhere. Once the funding runs dry, how will American semiconductor manufacturing remain competitive? Additional burdens on employers to guarantee union wages and provide child care certainly won’t make these projects anymore cost-competitive.
虽然有缺陷,但芯片的行为是一个主要的圣one to creating secure, resilient supply chains that will insulate the country from many outside shocks. This is a step in the right direction, but more must be done if the country wants to win the semiconductor manufacturing marathon and avoid fizzling out after the starting sprint.
For more information about the CHIPS Act, a detailed report on the legislation can be foundhere.
Additional Reading:
US Chips Act Takes New Form Before August Recess, Leaves Some Unhappy
UMC Q1 2023 Earnings: Weak Cyclical Recovery But 28nm Remains Resilient
Global Smartphone AP (Application Processor) Shipments Market Share: Q3 2021 to Q4 2022
Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
Related Posts
Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
Joining the US-led effort to restrict chipmaking equipment exports to China, Japan has put in place restrictions that are more draconian than that of the US and where the Japanese state has effectively taken control of the country’ssemiconductorcapital equipment market.
- Japan is imposing export restrictions on 23 types of equipment used to makesemiconductors. But instead of limiting the restrictions just to China, it has flipped the entire industry on its head.
- Instead of being able to ship to anyone unless told not to, now the Japanese companies can’t ship to anyone unless they are allowed to.
- This effectively gives the Japanese trade ministry life and death power oversemiconductorequipment, which may prove to be detrimental to the local industry’s health in the long run.
- Unlike theUSDepartment of Commerce, where the presumption is denial of a license, it seems the Japanese Ministry of Trade will operate under the presumption of granting licenses.
- Any other mode of operation would be highly detrimental to its own industry.
- This represents a bigger step than what many analysts were expecting from Japan. It will really hinderChina’sability to manufacture chips at non-leading edge nodes below 20nm.
- This was the weakness of the new measures announced by the US last October, as at 20nm-10nm, it is possible to build a fab using non-US equipment.
- However, when you add Japan into the mix, this then becomes virtually impossible and there will be no point in buying machines from ASML, meaning that the combination of the US and Japan represents an effective embargo.
- This means thatChinawill now have to rely on domestically produced capital equipment which is going to be a real problem.
- Although Huawei claims to be able to manufacture at 14nm, it did not say whether it could do so at volume with good yields which is what is required for Huawei to be able to use these chips economically in its products.
- The net result is that Japan’s actions make the US actions far more effective and deal a blow to any workarounds that the Chinese may have found to build fabs without US equipment.
- This reinforces the view that China is in real trouble when it comes tosemiconductors, which will hamper and slow its rise as a technological superpower.
- That being said, there will be a likely bounce in the Chinese economy in H2 2023, although the lack of action on stimulating the economy remains a cause for concern.
- If it comes, the rising tide will lift all boats and especially the beleaguered technology sector.
Micron: A display of weakness
- China’s review of Micron on “national security” grounds is a tit-for-tat retaliation that shows just how weak its hand is in the game ofsemiconductorbrinksmanship.
- The Cyberspace Administration of China (CAC) has said it would review Micron’s imports into China to ensure that using its products would not compromise the security of its information infrastructure.
- It seems that this move has nothing to do with national security but is instead an attempt to damage US interests in China without compromising its own technological ambitions.
- If China was really concerned about “national security”, it would be reviewing many other companies. But a blockade on the import of products from many of these companies would hurt China just as much as the US, if not more.
- In the case of Micron, China can still buy the same products from South Korea or Japan with no ill effects on its development of technology.
- This is precisely why Micron has been targeted. It is unlikely that other companies that export chips to China will be targeted as it would do more harm than good.
- The move is also unlikely to give China much in the way of negotiating leverage and so this will prove to be an isolated incident that is pretty irrelevant to the overall technological and ideological struggle.
(This is a version of a blog that first appeared on Radio Free Mobile. All views expressed are Richard’s own.)
Meet Counterpoint at 2023 GSISS
We will be attending 2023 GSISSfrom 7th-8th April 2023
Our Research DirectorTarun Pathakwill be speaking at the 2023 Global Semiconductor Industry Strategy Summit on Friday, April 7th, 2023. His session details are below:
Topic:Looking at the global smartphone market from the perspective of AP/SOC technology evolution
When:Friday, April 7th, 2022 | 16:10-16:30 (GMT+8)
Location:Regency Art Hotel, Macau, China
About the event:
JW Insights will hold the 2023 Global Semiconductor Industry Strategy Summit (2023 GSISS) in Macau, China from April 7th to 8th, 2023. We will invite representatives from world-renowned research and consulting firms, industry associations, leading enterprises, and investment companies to participate.
为期两天的活动将全面升级and extension of the “Jiwei Semiconductor Analyst Conference” and “Dialog with Automotive Electronics Industry Experts” organized by JW Insights. The 2023 GSISS aims to analyze the future trend and co-competition relationship of the semiconductor industry from a global perspective and invite analysts, industry organizations, leading companies, and VCs to discuss future industry development trends, opportunities, and challenges in depth from multiple perspectives, such as technological trends, market dynamics, industry chain changes, and regional competition and cooperation, providing a communication platform from a global perspective for China’s companies and foreign enterprises’ strategic deployment, business and investment decision-making for investment firms.
During the summit, JW Insights will jointly establish an industry exchange organization with world-renowned consulting firms and industry associations, form a regular industry exchange mechanism, and jointly discuss opportunities and challenges for semiconductor industry development.
Clickherefor more information about the event.
Click below(or send us an email at contact@www.arena-ruc.com) to schedule a meeting with him.
You can schedule a meeting with him to discuss the latest trends in the technology, media and telecommunications sector and understand how our leadingresearchandservicescan help your business.
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NXP Reports Record Revenue in 2022, Automotive Shines
- 2022 was a record-breaking year for NXP with solid profit growth and healthy free cash flow generation.
- Accelerated growth drivers (except UWB) are on track within the expected revenue growth range (∼25%) to help take NXP’s total revenue to $15 billion by 2024.
- For Q1 2023, the company expects revenue of about $3 billion. This would mean a deceleration of 4% YoY with a 9% downside sequentially.
NXPSemiconductors reported record revenues of $13.21 billion in 2022, a yearly growth of 19.4% on account of increased revenues in all end markets, unprecedented design wins across the entire portfolio and higher pricing (due to input cost inflation).Automotiveand coreIoTmarkets witnessed robust demand throughout 2022, outstripping the company’s supply capabilities.Consumer IoTand mobile markets experienced softening demand environment in the latter half of the year. In Q4 2022, NXP delivered revenues of $3.31 billion, up 9% YoY and down 4% QoQ. The Q4 revenues were $12 million better than the midpoint of the guidance with all markets performing in line or better than expected except the communication and infrastructure segment. The full-year non-GAAP gross profit was $7.64 billion with non-GAAP gross margin standing at 57.9%, an increase of 180 basis points YoY due to higher internal factory utilization and follow-through on higher revenues.
Automotive
- NXP’s automotive business captured 52.1% of the total revenue in 2022, an increase of 2.4% from the previous year. Revenue for the full year stood at $6.88 billion, a yearly growth of 25.2%. This growth was driven by higher pricing, record customer design wins (forxEVsolutions – battery management solutions, inverter controls, other xEV control processors, etc.), and strong traction of company-product drivers owing to accelerated content increases within xEVs andpremiumcar models.
- Q4 revenues were $1.81 billion, up 17% YoY and flat QoQ, in line with the company’s guidance. Due to supply constraints, NXP couldn’t ship more in Q4.
- NXP emphasized on its auto-specific accelerated growth drivers, which will help it with increased yearly revenues in the future. Theyinclude 77-gigahertzradarsolutions, electrification systems, and the S32 domain and zonal processors. Customer enthusiasm for S32 processors continues to grow, far exceeding expectations. A major automotive OEM has selected the S32 family of automotive processors and microcontrollers for use across its fleet of vehicles beginning next decade.
- In Q4, NXP introduced the high-performanceS32K39series MCUs for electrification applications like traction inverter control, BMS and OBC, and announced its collaboration withDelta Electronicsin which the latter will utilize NXP’s S32 automotive platform and S32K39 MCUs to develop next-generation EV platforms. At theCESthis year, it unveiled theSAF85xxSoC, the industry’s first 28-nanometer RFCMOS radar one-chip IC family forADASapplications.
- For Q1 2023 revenues, the company is estimating this segment to be up in the mid-teens and flattish on a YoY and QoQ basis respectively.Increasedglobal automotive production and growing penetration of xEVs would prove beneficial for future revenue growth.
Industrial & IoT
- The industrial andIoTsegment’s revenue for 2022 was $2.71 billion, up 13% YoY. The growth can be attributed to higher pricing and demand for its industrialprocessors, and analog, connectivity, and security solutions. Specifically, its secureconnectededge solutions (accelerated growth driver), which include bothcrossoverandi.MX application familiesofprocessors,grew nearly 50% YoY in 2022.
- Q4 revenues were better than their earlier guidance at $605 million, down 8% YoY and 15% QoQ respectively. Due to lockdowns inChinaand uncertain macro conditions, consumer-exposed IoT businesses saw a deceleration in revenue.
- In Q4, the company launched its new analog front-end (N-AFE) family of devices targetingindustrialapplications, specifically software-defined factories. It will help with high-precision data acquisition and condition monitoring systems for factory automation.Schneider Electricis incorporating the N-AFE family in its industrial solutions. NXP also launchedMCX N seriesMCUs for secure intelligent edge industrial andIoTapplications and expanded its portfolio of end-to-end Matter solutions by announcing theRW612andK32W148wireless MCUs. Both are targeted towardsmart homeapplications such as garage doors, thermostats, smart plugs, and smart lighting.
- For Q1 2023, the industrial and IoT segment is expected to be in the negative territory in both YoY (low 30% range) and QoQ (low 20% range) terms. The core industrial business remains supply constrained in some areas while consumer IoT is expected to experience cyclical weakness in demand and potential correction of customer inventory.
Mobile
- For 2022,Mobilesegment revenues stood at $1.61 billion, an increment of 14% YoY due to higher pricing and continued traction of the secure mobile wallet.
- In Q4, it reportedrevenuesof $408 million, up 9% YoY and down 0.5% QoQ, and faring better than the company’s guidance. As observed in theprevious quarter, weakness in the Android mobile market continued to persist, affecting the largely channel-driven mobile business.
- NXP’s mobile segment-specific accelerated growth driverUltra-Wideband(UWB) was below the expected revenue growth range since NXP’s UWB solutions are aimed at the Android market, which is experiencing softening demand. However, the company is optimistic about this growth driver in the near future as it continues to build out its ecosystem and register more design wins both in the mobile and automotive sectors.
- For Q1 2023, NXP is expecting this segment to be down in the mid-40% range both in YoY and QoQ terms. The mobile segment is dependent on a cyclical rebound and is expected to improve performance as and when theAndroidhandset market fares better.
Communication infrastructure and other
- The ‘communication infrastructure and other’ segment’s revenue in 2022 was $2 billion, up 15% YoY. This growth was driven by higher pricing and sales of in-demand solutions likenetworkprocessors, secure transit and access products and RF-powered products for the cellularbase stationmarket.
- Q4revenuesstood at $494 million, up 8% YoY but down 5% QoQ and below the company’s guidance. Weakness in this quarter had nothing to do with demand but was primarily due to operational issues and supply constraints.
- NXP’s accelerated growth driver –RFpower amplifiers– was on track as per its expected revenuegrowthrange. The industry transition from LDMOS technology to gallium nitride happened faster than expected and the company’s revenue doubled YoY with respect to gallium nitride-based solutions. However, the demand continues to outstrip even its increasing supply capabilities.
- In January 2023, NXP launched a new wideband GaN RFtransistor–MMRF5018HS– primarily for aerospace and defense communications.
- For Q1 2023, the guidance expects the revenues to be flat both in YoY and QoQ terms. NXP will try to improve its supply capabilities to cater to the pent-up demand in RFID packing solutions, e-government identification, 5G base station market build-out especially inIndia, and more.
Capex overview and inventory
- Cash flow from operations stood at $3.9 billion in 2022. Netcapexinvestments were $1.06 billion or 8% of overall revenue, a 1% jump from the previous year. Due to softening demand in consumer-oriented markets, internal front-end utilization rates have dropped for non-auto industrial products. From running in the high 90s in Q3 to touching 90% inQ4 2022and in Q1 2023, it is expected to go down to 85%. Despite this, NXP is confident of keeping itsgross marginwithin its long-term range of 55%-58% as it has a disciplined inventory management approach and a better grip on its cost structure, which is more variable in nature now than it was in past.
- NXP continues to face shortages in certainnodesand other technologies like 180 nanometers, 9055 gallium nitride and the high-voltage analog mixed-signal (which are proprietary to NXP). This can lead to significant customer escalations which thecompanyhopes will moderate by the end of this year. However, it remains optimistic about its supply capabilities in the future as its ability to cater to risk-adjusted backlog has gone up from 85% in 2022 to 90%-95% in 2023.
- DOI已经增加到116天,天之顺序increment, and distribution channelinventoryhas been deliberately restricted to 1.6 months as opposed to its long-term target of 2.5 months. China’s market is experiencingweakersell-through and NXP is being prudent about shipping more in the channel as it might not meet the true end demand and lead to an unnecessary inventory build-up. Since more than 50% of the company’s revenue goes through the channel, it is taking a very vigilant inventory management approach and keeping more than enough products in hand to fill the channel as and when required.
Conclusion
Input cost inflation due to supply chainconstraintsled to higher pricing for NXP solutions in 2022, a trend that will continue this year as well. Dynamicmacrotrends continue to pose an uncertain general demand environment and a potential rebound in theChinesemarket could significantly improve end markets’ revenues, which is why managing internal and channel inventory is an important topic for the company. Overall, NXP is prepared for market uncertainties and will continue to execute diligently on its accelerated growth drivers and be disciplined with its operating expenses while protecting long-term R&D investments.
