R&A Weekly News 32

Contents

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1.?Early August 2024 Panel Price Trends

2.?IDC Predicts Global Automotive Semiconductor Market Will Exceed $88 Billion by 2027

3.?SMIC and Hua Hong Report Better-Than-Expected Q2 Revenue

4.?Global Server Shipments Increased 7.3% in Q2 2024

5. June Semiconductor Industry: Americas Market Leads with 42.8% Year-on-Year Growth

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1.?Early August 2024 Panel Price Trends

According to the latest research from TrendForce's Display Research Center in the "TrendForce 2024 Panel Price Forecast Monthly Report," panel prices for 65-inch TVs experienced a slight decline in early August 2024. Prices for other TV sizes, as well as monitor and notebook panels, remained stable.

Television Panel Prices

• 65-inch TV Panel: The average price is $175, down $1 from the previous period. The price range is between $171 and $182.
• 55-inch TV Panel: The average price remains at $129, unchanged from the previous period. The price range is between $127 and $132.
• 43-inch TV Panel: The average price is stable at $64, with prices ranging from $62 to $65.
• 32-inch TV Panel: The average price holds steady at $36, with prices between $35 and $37.

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Monitor Panel Prices

For this period, monitor panel prices across all sizes remain unchanged from the previous period.

• 27-inch IPS Panel: The average price is $63.1, with prices ranging from $57.6 to $65.8.
• 23.8-inch IPS Panel: The average price is $49.7, with prices between $47.0 and $51.2.

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Notebook Panel Prices

For this period, notebook panel prices remain unchanged across all sizes compared to the previous period.

• 11.6-inch TN Panel: The average price is $25.1, with prices ranging from $24.2 to $26.5.
• 14.0-inch TN Panel: The average price is $26.9, with prices between $26.4 and $28.1.
• 15.6-inch Value IPS Panel: The average price has been stable at $40.4 since late January 2024, with a price range of $38.7 to $42.1.
• 17.3-inch TN Panel: The average price has remained steady at $38.3 since late September 2023, with prices ranging from $37.7 to $39.8 this period.

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Comment:?In Q2 2024, Lenovo maintained its lead with 11.6 million notebook shipments, marking a 6% year-over-year growth. HP followed closely with a 22% market share. Dell was the only major brand to experience a slight decline in shipments, down 1% year-over-year, with 8.3 million units shipped. Apple's recent release of the M3 MacBook Air contributed to its 6% growth this quarter. Acer saw the strongest growth, with a 13% increase, driven by rising demand for Chromebooks and educational devices.

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2. IDC Predicts Global Automotive Semiconductor Market Will Exceed $88 Billion by 2027

The transformation of the automotive industry has driven increased demand for high-performance, high-safety-standard semiconductor products. As electric vehicles and autonomous driving technology continue to evolve, these companies will play crucial roles in the global automotive semiconductor market. However, the market is currently experiencing a period of slow growth. Quarterly revenue reports from the top three global automotive chip suppliers—Infineon, NXP, and STMicroelectronics—indicate a slowdown in market growth since late 2023.

Infineon's automotive semiconductor revenue peaked in Q2 2023 and has since begun to decline. NXP saw a 5% drop in revenue in Q1 2024 compared to the previous quarter and expects the overall market to remain weak in the first half of 2024. STMicroelectronics' automotive semiconductor revenue decreased by 23% in Q1 2024, signaling a "deceleration phase."

According to data from the International Organization of Motor Vehicle Manufacturers (OICA), global automotive production in 2023 reached 93.5 million units, a 10% increase from 2022. Despite being the strongest production growth since 2010, it remains below the all-time high of 97.3 million units recorded in 2017.

Comment:?Currently, MCUs and other chips are facing significant inventory pressure due to the decline in automotive end-user demand. However, the demand for power chips and autonomous driving chips remains strong, driven by the trends of electrification and smart technologies in the automotive industry. Therefore, while the automotive semiconductor market may experience a slowdown in the short term, the market for automotive chips still holds long-term growth potential as electric vehicles and smart cars become more prevalent and with the increasing adoption of silicon carbide and autonomous driving chips.

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3.?SMIC and Hua Hong Report Better-Than-Expected Q2 Revenue

On August 8, semiconductor foundry giants SMIC and Hua Hong Semiconductor released their financial reports for Q2 2024. Both companies are seeing gradual improvements in gross margins and capacity utilization, with Hua Hong Semiconductor even nearing full production capacity. On August 9, SMIC held a financial conference call stating that demand for consumer electronics is improving, and smartphone manufacturers are increasing their inventories. Clients are placing orders with SMIC to mitigate geopolitical risks. Additionally, other foundries such as TSMC, Samsung, UMC, and GlobalFoundries have all signaled a partial market recovery, with expectations for continued market improvement in Q4 of this year.

Comment:?According to data disclosed by major foundries, gross margins， and capacity utilization rates are gradually improving. Strong demand for AI is driving significant growth in HPC (high-performance computing) performance, while competition in advanced process technologies remains intense. There are clear signs of recovery in some areas of consumer electronics, while the automotive electronics sector is still working through inventory reductions. Looking ahead, AI is expected to continue being a major driving force for the foundry and semiconductor markets.

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4.?Global Server Shipments Increased 7.3% in Q2 2024

Global notebook shipments (excluding detachable models) in Q2 2024 saw a 7.8% quarter-on-quarter increase. However, brand vendors are expected to place conservative orders for Q3, with new seasonal models likely to drive up average selling prices (ASP). Compared to the relatively high base in Q2, global notebook shipments in Q3 are projected to grow only 0.9%, with seasonal demand expected to be weaker than usual. Q4 is anticipated to see an influx of AI notebooks, with brand vendors ramping up shipments to meet annual targets. Global notebook shipments are forecasted to reach 173 million units in 2024, a 4.6% increase from 2023.

Among major brands, market leader Lenovo will focus on the U.S. and European consumer markets in Q3. However, its growth will be constrained by weakening demand. HP, the second-largest brand, will face challenges in Q3 due to the education procurement off-season and cautious consumer demand, leading to a quarter-on-quarter decline in shipments.

Dell, the third-largest brand, is expected to see continued recovery in enterprise market demand and is developing AI notebooks based on Qualcomm technology, potentially generating new demand. Dell’s shipment growth is projected to surpass that of the top two brands.

Taiwanese ODMs are expected to outperform the overall market in Q3, with their market share rising to 74.4%. Compal and Pegatron are likely to benefit from increased shipments of consumer devices by brand customers during the peak season, with performance expected to exceed other ODMs.

Comment:?As transportation costs rise, notebook brands and distributors are shipping products earlier to meet the growing demand in Q2 2024. Seasonal growth in the North American education market has exceeded expectations, and the recovery in the Chinese market has accelerated.

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5. June Semiconductor Industry: Americas Market Leads with 42.8% Year-on-Year Growth

The Semiconductor Industry Association (SIA) has released the global semiconductor sales data for Q2 2024. According to SIA, the total sales in Q2 2024 reached $149.9 billion, marking an 18.3% increase from Q2 2023 and a 6.5% rise from Q1 2024. Sales in June 2024 amounted to $50 billion, up 1.7% from the $49.1 billion recorded in May 2024.

Monthly sales showed both month-over-month and year-over-year growth, with the Americas leading, experiencing a 42.8% increase compared to June 2023. Regionally, sales increased in China (21.6%) and the Asia-Pacific/Other regions (12.7%), while Japan (-5.0%) and Europe (-11.2%) saw declines. In June, sales grew month-over-month in the Americas (6.3%), Japan (1.8%), and China (0.8%), but declined in Europe (-1.0%) and the Asia-Pacific/Other regions (-1.4%).

Market Segmentation

• PC Market:?The global PC market continued its recovery in Q2 2024, with shipment growth ranging from 1.9% to 3%.
• Smartphone Market:?The global smartphone market continued to rebound in Q2, with a 12% increase in shipments.
• Notebook Market:?Driven by the AIPC (AI-powered computing) era, the global notebook market grew by 4% in Q2 2024.
• Memory Market:?South Korean memory manufacturers achieved record-high performance, indicating strong demand in the memory market.

Comment:?The global semiconductor industry is showing a complex and evolving landscape. Recently, major top players have announced their Q2 performance, revealing both growth highlights and performance adjustments along with market warnings.