According to the latest research from Susquehanna Financial Group, the average global chip delivery cycle (the time from order to delivery of chips) was 26.8 weeks in August, narrowing for the third consecutive month, indicating that the global chip shortage is easing further, but many types of chips are still in short supply.
"1) Global chip delivery times shortened again in August, narrowing for the third consecutive month."
"(2) the global flash memory chip pattern dramatically changed: two Korean companies control the share has exceeded 50%."
"(3) India said Intel will build a semiconductor factory in India, Intel denied."
"(4) Intel: Q4 began to the full line of motherboard chipset price increases, the range of about 10-20%"
"(5) IC Insights: TSMC Q3 is expected to overtake Samsung, the first global semiconductor leader."
Global chip delivery time was shortened again in August
△ Photo credit: Bloomberg Data source: Susquehanna
Susquehanna analyst Chris Rolland said the shortening of the global average chip delivery time reflects a slowdown in demand for chips for cell phones and personal computers. However, some markets are still overheating, and orders are growing faster than chip makers’ production capacity. He said in a research note, “We believe the trend of chip hoarding and inventory building has not yet worked its way through the system.”
Tom Sweet, the chief financial officer of Dell Technologies, said on Sept. 8 that the supply chain for the personal computer market has largely returned to normal operations. As supply improves and demand wanes, many parts are becoming less costly, though Dell is working to clear its inventory so it can take advantage of more favorable parts prices.
The chip industry often struggles to achieve a balance between supply and demand, in part because parts take months to produce. Today, semiconductor manufacturers are also serving the broader economy, producing chips that are also used in cars, factory equipment and home appliances.
In the past, investors have always believed that the chip delivery period lengthened is a sign that the industry has accumulated too much inventory, and is a precursor to the industry’s decline. Rolland pointed out that the global average chip delivery cycle down to the level of 10 to 14 weeks, is the industry’s “healthy” level.
Rolland said that the average delivery time of some power management, microcontrollers and optoelectronics devices is still further extended. companies such as Microchip Technology and Infineon are still scrambling to fill orders for these products. However, other chip makers have been affected by the decline in demand, including Nvidia and Intel, which rely heavily on the personal computer market.
The global flash memory chip landscape has changed dramatically, two South Korean companies control the share has exceeded 50%
The global flash memory market originally had six major original manufacturers, respectively, in the hands of the United States, Japan, and South Korean companies, the United States accounted for three, two for South Korea, Japan, and one, with Intel flash memory business was acquired by SK Hynix, has now become the five major original manufacturers, of which Samsung + SK Hynix combined share of more than 50%.
According to the Q2 flash memory report released by Tibco, Samsung ranked first in Q2 with revenue of $5.98 billion, down 5.4% YoY, and 33% market share.
SK Hynix established Soldigm, a joint venture after acquiring Intel’s flash memory business, and the two together contributed $3.615 billion in revenue, up 12.1% YoY, with a 19.9% market share.
The combination of SK Hynix + Soldigm changed the market landscape, not only surpassing Armor Man to become the second, but also reaching a combined share of 53% in the flash memory market with Samsung, making the Korean company control the flash memory market again after controlling the memory market.
Among other vendors, Armor Man posted revenue of $2.832 billion, a 16.3% plunge from the previous year, followed by Western Digital and Micron, both of which were relatively close, with revenue of $2.4 billion and $2.288 billion, and shares of 13.2% and 12.6%, respectively.
The share left to other manufacturers after 5.6%, which is obviously part of the domestic Changjiang storage, only the share is too low compared to the five major original manufacturers, still need to continue to improve.
India said Intel will build a semiconductor factory in India, Intel denied
According to Bloomberg news on September 7, the Indian Minister of Road Transport and Highways Nitin Jairam Gadkari (Nitin Jairam Gadkari) said on the same day that Intel will establish a chip manufacturing plant in India.
In this regard, according to the latest report of “Reuters”, Intel pointed out in a statement that the company currently has no plans to establish manufacturing plants in India.
It is reported that late last year, the Indian government announced a $10 billion incentive program to provide up to 50% of the project cost to attract display and semiconductor manufacturers to set up bases in India. This comes on the heels of news that India is in talks with chipmakers Intel, Ge-Core and TSMC to set up local semiconductor plants in India. Tower Semiconductor, the Israeli chipmaker acquired by Intel for $5.4 billion, is also actively discussing with the government to set up manufacturing plants in India.
Intel Q4 from the full line of motherboard chipset price increases
Recently, Intel issued a notice, will start in Q4, the entire line of motherboard chipset prices increased, the range of about 10-20%.
In fact, the manufacturers have already acted –
MSI price increase implemented in mid-August, a general increase of 2-5%, September does not rule out continued increases.
ASUS H510, the price increase of about 10 yuan in August, H510/H610 continue to rise in September.
GIGABYTE has notified H410/H510/H610 price increase in September.
TSMC Q3 is expected to overtake Samsung, the first global semiconductor leader
Global semiconductor maker ranking may usher in a reshuffle, according to research firm IC Insights estimates, TSMC Q2 revenue has achieved over Intel, jumping to the world’s No. 2, is expected to overtake Samsung again in the third quarter, so that the first time on the leading semiconductor throne.
According to IC Insights statistics, Samsung Semiconductor Q2 revenue of $22.623 billion, the world’s largest semiconductor factory, while TSMC revenue of $18.164 billion, just over Intel’s $14.861 billion.
Due to the poor performance of the memory chip market, Qualcomm, Nvidia and other major Samsung customers have left, IC Insights expects Samsung Q3 revenue fears will slide to $ 18.29 billion, a 19% reduction in the ring.
IC Insights predicts that TSMC Q3 revenue is expected to break the $20 billion mark to $20.2 billion, an increase of 11% over 2 quarters, and a move beyond Samsung, debuting at the top; while Intel Q3 revenue of about $15.04 billion, an increase of about 1% sequentially, maintaining the world’s No. 3 ranking.
It is reported that TSMC 2021 for the world’s 3rd largest semiconductor plant, annual revenue of $ 56.84 billion, about 31% lower than Samsung’s $ 82.019 billion.
