Novatek Microelectronics is about to hold its earnings call, and what market outlook the top Taiwanese supplier of display driver ICs (DDI) will give for the chip segment is highly concerned by the entire supply chain, given that DDI was the first chip segment to undergo inventory correction, starting as early as the second quarter of 2022, according to industry sources.
As SIC power chips are increasingly applied to EV inverters, many IDMs are not only expanding production capacity but also keenly launching products and solutions to meet robust market demand, according to industry sources.
First-tier networking chip suppliers are stepping up efforts introducing Wi-Fi 6E into mainstream high-end and midrange product lines, but they are eyeing much more keenly on Wi-Fi 7 specs, according to industry sources.
As the smartphone market in China is facing challenges due to a weak economy and the pandemic, wireless solutions provider Skyworks posted an annual drop in both sales and profit and may see another drop in the January-March quarter.
Worldwide semiconductor sales totaled US$573.5 billion in 2022, the highest-ever annual total and an increase of 3.2% compared to the 2021 total of US$555.9 billion, according to the Semiconductor Industry Association (SIA). Sales slowed during the second half of the year, however.
Stereo vision, first utilized as far back as in the late 1800s, is now entering the autonomous driving space. Nodar, a Boston-based software company, is developing an algorithm to align camera measurement by software. Unlike the traditional practice of stereo vision that installs two cameras close together on a rigid metal beam to maintain alignment, Nodar's software can maintain alignment through signal processing when given fast GPU processors.
Both MediaTek and Realtek Semiconductor believe that a wave of Wi-Fi 6/6E upgrades is still in progress and that basic demand has not abated. Wi-Fi chip sales can still contribute to their overall operations in 2023 if the customer purchase pattern returns to normal.
Qualcomm and MediaTek are both looking to emerging markets such as India and Southeast Asia for growth in mobile SoC sales this year, as overall confidence in the mobile phone supply chain remains low for 2023.
Taiwan's IC test interface specialists in the supply chain of MediaTek are experiencing a slightly weaker than the past traditional off-season in the first quarter of 2023, as the mobile SoC vendor continues to adjust its inventory in line with similar corrections at downstream system makers, according to industry sources.
Taiwan-based semiconductor firms had a total revenue of US$175 billion in 2022. With the semiconductor industry accounting for 65% of the added value compared to the total GDP, the contribution of the semiconductor industry to Taiwan's overall GDP is 13%.
MediaTek has provided a relatively optimistic short-term outlook concerning handset inventory digestion at channels. It has also seen some recovery in non-handset business segments. But MediaTek has stressed that it needs more time to observe the long-term business outlook for the entire 2023, which highlights the uncertainties shrouding the current market.
China-based Geely Technology, an affiliate of Geely Automobile, has recently signed a strategic cooperation agreement with domestic power chips foundry GTA Semiconductor to carry out comprehensive collaboration in the areas of auto-grade chips R&D, manufacturing, market applications and talent training, according to industry sources.
Mr. Wufu Chen, Chairman of Acorn Campus Taiwan pointed out that, facing a new wave of lifestyle paradigm shift, he and his company will assist Taiwan in forming an international team with globalized visions and help Taiwanese startups connect with international talents, markets, and capital. On top of technological skills, members of the international team should also possess international vision and perspective. They must be able to define their market and customers, and engage in dialogs with the international market, thereby establishing a footing for the new economy and industry developments in Taiwan.
MediaTek has reported an over 40% sequential decline in net profits for the fourth quarter of 2022, with revenue decreasing nearly 24% on quarter, despite record-high sales and profit results for the entire year.
All firms with considerable business scales in Taiwan's electronics industry are publicly traded. When they release their tentative annual financial indicators, we can already grasp the growth momentum of the industry, as well as the interactions between different industry sectors and the medium- and long-term outlook. DIGITIMES has again collected data on the ICT product manufacturing, semiconductors, optoelectronics, IC distribution and components sectors, providing readers with a comprehensive picture of the electronics industry and an outlook of the industry trends in 2023.
While Chinese handset vendors such as Oppo, Vivo and Xiaomi are aggressively moving to develop in-house chips to differentiate their product functions, mobile SoC specialists Qualcomm and MediaTek are also joining the differentiation arena by providing customized solutions for their Android handset clients, according to industry sources.
Inventories at downstream system makers are expected to return to healthy levels in the second quarter of 2023, but those at upstream components suppliers will take more time to digest and may not fall to normal status until the end of the year, according to Mike Chang, CEO at IC distributor WPG Holdings.
Germany-based semiconductor IDM Infineon reported a sequential decline in revenue for the first quarter of FY2023 (quarter ended on Dec 30, 2022). The company cited weakening demand in consumer applications due to macroeconomic uncertainties, but said its capacities in the automotive division "are completely booked out for fiscal 2023."
Taiwan's IC design houses are expected to breath a slight sigh of relief in late first quarter or the second quarter thanks to frequent influx of rush orders, but end-market sources said current chip inventories, particularly those for PC applications, have yet to reach targeted levels and will take some more time to digest.