Market Quotes: Semiconductor, Passive Component, MOSFET
1. Market reports hint that IC supply shortages and long delivery cycles will continue
February 3, 2023 – Supply shortages and long lead times will continue into 2023, despite reported improvements in some IC supply chain bottlenecks. In particular, the shortage of cars will be widespread. The average sensor development cycle is more than 30 weeks; Supply can only be obtained on a distributed basis and shows no signs of improvement. However, there are some positive changes as the lead time of MOSFETs is shortened.
The prices of discrete devices, power modules and low-voltage MOSFETs are slowly stabilizing. Market prices for common parts are beginning to fall and stabilize. Silicon carbide semiconductors, which previously required distribution, are becoming more readily available, so demand is forecast to ease in Q12023. On the other hand, the pricing of power modules remains relatively high.
The growth of global new energy vehicle companies has led to a rise in demand for rectifiers (Schottky ESD) and supply remains low. Supply of power management ICs such as LDOs, AC/DC and DC/DC converters is improving. Lead times are now between 18-20 weeks, but the supply of automotive-related parts remains tight.
2. By the continued rise in material prices, passive components are expected to raise prices in Q2
February 2, 2023 – Delivery cycles for passive electronic components are reported to remain stable through 2022, but rising raw material costs are changing the picture. The price of copper, nickel and aluminum significantly increases the cost of manufacturing MLCCs, capacitors and inductors.
Nickel in particular is the main material used in MLCC production, while steel is also used in capacitor processing. These price fluctuations will lead to higher prices for finished products and may create a further ripple effect through demand for MLCCs as the price of these components will continue to rise.
In addition, from the product market side, the worst time for the passive component industry is over and suppliers are expected to see signs of market recovery in the second quarter of this year, with automotive applications in particular providing a major growth driver for passive component suppliers.
3. Ansys Semiconductor: automotive, server MOSFETs are still out of stock
Most companies in the semiconductor and electronics supply chain maintain a relatively conservative view of market conditions in 2023, but the trends in electric vehicles (EVs), new energy technologies, and cloud computing continue unabated. Power components manufacturer Ansei Semiconductor (Nexperia) Vice President Lin Yushu analysis pointed out that, in fact, automotive, server MOSFETs are still “out of stock”.
Lin Yushu said, including silicon based insulated gate bipolar transistor (SiIGBT), silicon carbide (SiC) components, these wide energy gap, the third category of semiconductor components, will be used in high growth areas, with the past pure silicon process is not the same, maintain the existing technology will not be able to keep up with the pace of industry, the major manufacturers are very active in the investment.
Original Factory News: ST, Western Digital, SK Hynix
4. STMicroelectronics to invest $4 billion to expand 12-inch wafer fab
Jan. 30, 2023 – STMicroelectronics (ST) recently announced plans to invest approximately $4 billion this year to expand its 12-inch wafer fab and increase its silicon carbide manufacturing capacity.
Throughout 2023, the company will continue to implement its initial strategy of focusing on the automotive and industrial sectors, said Jean-Marc Chery, president and chief executive officer of STMicroelectronics.
Chery noted that approximately $4 billion in capital expenditures are planned for 2023, primarily for 12-inch wafer fab expansions and increases in silicon carbide manufacturing capacity, including plans for substrates. Chery believes the company’s full-year 2023 net revenues will be in the range of $16.8 billion to $17.8 billion, with year-over-year growth in the range of 4 percent to 10 percent, based on strong customer demand and increased manufacturing capacity.
5. Western Digital Announces $900 Million Investment to Prepare for Divestment of Flash Memory Business
February 2, 2023 – Western Digital recently announced that it will receive a $900 million investment led by Apollo Global Management, with Elliott Investment Management also participating.
According to industry sources, the investment is a precursor to the merger between Western Digital and Armor Man. Western Digital’s hard drive business is expected to remain independent after the merger, but details may change.
As previously reported, the two parties have finalized a broad deal structure that will see Western Digital divest its flash memory business and merge with Armored Man to form a U.S. company.
Western Digital CEO David Goeckeler said Apollo and Elliott will help Western Digital with the next phase of its strategic assessment.
6. SK Hynix reorganizes CIS team, targets high-end products
On January 31, 2023, SK Hynix reportedly restructured its CMOS image sensor (CIS) team in order to shift its focus from expanding market share to developing high-end products.
Sony is the world’s largest producer of CIS components, followed by Samsung. Focusing on high resolution and multifunctionality, the two companies together control 70 to 80 percent of the market, with Sony having about 50 percent of the market. SK Hynix is relatively small in this area and has focused on low-end CIS with resolutions of 20 megapixels or less in the past.
However, the company has already started supplying Samsung with its CIS in 2021, including a 13-megapixel CIS for Samsung’s foldable phones and a 50-megapixel sensor for last year’s Galaxy A series.
Reports indicate that the SK Hynix CIS team has now created a sub-team to focus on developing specific functions and features for image sensors.
Post time: Feb-07-2023