MOSFET have gone through several quarters of low performance and inventory adjustments. Recently, there are signs of recovery. Apart from the AI server-driven subcontractors boosting the demand for MOSFET chips, China's Huawei is reported to have initiated related stockpiling, preparing for potential further sanctions by the US. This recent wave of demand for basic chips is slightly higher than in the past, and the MOSFET supply chain in Taiwan is benefiting from some urgent orders.
MOSFET industry insiders admit that the AI wave is stimulating the operations of server subcontractors like Quanta and Wistron, as well as power module suppliers like Lite-On and Ac-Bel Polytech. Recently, MOSFET suppliers such as Force-MOS Technology have seen a slight uptick in demand for their ETG and RTG technology-based MOSFETs. They are partnering with foundries like Vanguard International and UMC to compete with international peers.
Force-MOS Technology's accumulated revenue in the first three quarters of 2023 is approximately NT$527 million, showing signs of catching up with its 2022 performance. Its proprietary Extended Trench Gate (ETG) technology enables similar performance to international peers without infringing on patents, allowing Force-MOS to enter the power supply chain of major manufacturers. Meanwhile, RTG technology is widely used in battery products by customers like Celxpert and Simplo.
The world is also keeping an eye on Huawei's return to the 5G smartphone market. Though partnering with China's semiconductor foundries and OSAT supply chain for processors, Huawei is still procuring some basic components from Taiwanese manufacturers. It's rumored that Huawei's determined return to the high-end smartphone market has led to an increased demand for wafers for basic power components, resulting in some urgent orders in the short term.
Observers believe that Huawei's high-profile return to the 5G smartphone market is driven by a fear of further US sanctions. Therefore, in the face of a bleak outlook for the smartphone market in 2023, Huawei is implementing a strategy to outperform its competitors. The sales performance of Huawei in China's domestic smartphone market remains to be closely watched.
As for the PC/notebook sector, sales volume is moderate. However, brands and major system manufacturers continue to launch new models and introduce new specifications like USB PD 3.1, which benefits Taiwanese MOSFET manufacturers, including companies. Some companies that originally specialized in diodes, such as Panjit Semiconductor, Taiwan Semiconductor and Eris Technology, are also expanding into the MOSFET sector.
MOSFET manufacturers indicated that the de-stockpiling of notebooks is gradually coming to an end, and new models for 2024 are beginning to enter production. During this period, system customers will compare the cost competitiveness of international and Taiwanese manufacturers. For Taiwanese MOSFET manufacturers that have been struggling for some time, their production has a chance to get back on track in 2024, with at least a higher production volume compared to 2023.
The industry is also looking forward to the recovery of the consumer electronics component supply chain after the traditional slow season in the first quarter of 2024. While most companies in 2023 may experience a year of decline, the long-term outlook suggests that they will gradually emerge from the worst of the downturn.
Taiwanese power component manufacturers emphasize that they do not make public comments on the specific situations of individual companies or customers.
