WEEKLY NEWS 011

1. Storage Semiconductor Market Rebounds with Rising Prices

2. Global EV Sales Surge, Driven by the Chinese Market

3. China's PC Market Adjusts While Tablet Sales Surge

4. Apple Becomes the No.1 Smartphone Producer, Surpassing Samsung

5. Nine European Nations Form ‘Semiconductor Alliance’ for Chip Independence

1. Storage Semiconductor Market Rebounds with Rising Prices

As smartphone and PC demand recovers, the storage semiconductor market is experiencing a significant rebound, driving up the prices of DRAM and NAND flash. The global AI boom and improving economic conditions have fueled consumer demand for high-performance semiconductors. Prices for 128Gb MLC NAND flash have risen for two consecutive months, reaching $2.29 in February, while DDR4 8Gb and DDR5 16Gb spot prices continue to climb.

Industry players remain optimistic. SanDisk plans to increase prices by over 10% in April, while Micron expects PC and smartphone inventories to normalize by spring. SK Hynix’s president anticipates NAND market supply adjustments by year-end. Additionally, Gartner projects the AI PC market to expand by 165.5% in 2024, further driving semiconductor demand. Major players like Samsung and SK Hynix are considering expanding production to meet this growing market trend.

Comment: The rebound in storage semiconductor prices reflects a delicate supply-demand balance, driven by AI and high-performance computing. However, sustainability is uncertain, as production expansions could trigger new market fluctuations.

2.?Global EV Sales Surge, Driven by the Chinese Market

On March 12, data showed that global electric vehicle (EV) sales soared, reaching 1.2 million units in February, a 50% year-on-year increase. China played a key role, contributing approximately 75% of total sales, with an 87% increase, significantly boosting the global market. In the first two months of 2024, China's EV sales rose 35% to 1.4 million units, accounting for 60% of the global total.

Battery electric vehicle (BEV) sales in China saw a 46% increase, driven by new models from BYD, Xiaomi, XPeng, and Zeekr, while plug-in hybrid vehicle (PHEV) sales grew at a slower pace of 22%. BYD continued its strong growth, doubling its exports to 67,025 units in February, marking three consecutive months of record highs. Meanwhile, Tesla’s market share in China declined significantly, with February sales plummeting over 50% to just 30,688 units.

Comment: China’s explosive growth cements its dominance in the global EV industry. Domestic brands challenge Tesla’s position, but economic uncertainties may impact future demand trends.

3. China's PC Market Adjusts While Tablet Sales Surge

On March 12, Canalys reported that China’s PC market shipments dropped 4% in 2024 to 39.7 million units, whereas tablet sales defied the trend, growing 11% to 31.5 million units. The tablet market is expected to maintain its growth momentum into 2025.

In the PC sector, Lenovo maintained its top position with a 35% market share, followed by Huawei (11%), HP (9%), iSoftStone (9%), and Asus (8%). In the tablet market, Huawei led with a 27% share, closely followed by Apple (26%), Xiaomi (12%), Honor (8%), and Lenovo (6%).

Canalys predicts that government subsidies and the shift to domestic equipment will drive a 3% recovery in the PC market in 2025, with commercial sector growth expected to reach 7%. The tablet market is forecasted to grow by a modest 1%, reaching 31.9 million units, with consumer demand driven by government incentives.

Comment: The PC market adjusts, but tablet sales soar, with fierce competition among Huawei, Apple, and others. Government subsidies and localization efforts may drive a 2025 PC recovery.

4.?Apple Becomes the No.1 Smartphone Producer, Surpassing Samsung

On March 11, TrendForce reported that global smartphone production by the top six brands reached 335 million units in Q4 2024, up 9.2% quarter-on-quarter. This growth was mainly driven by Apple’s peak production season and consumer subsidies in China.

Apple led with 80.1 million units, a 57.4% quarterly increase, surpassing Samsung, which dropped to second place with 52.4 million units (-10.6%). Xiaomi (including Redmi and Poco) ranked third with 44.5 million units (+4.7%), followed by OPPO (including OnePlus and Realme) at 36.8 million units (-1.1%). Vivo (including iQOO) produced 28.6 million units (+5.9%), while Transsion (TECNO, Infinix, and itel) secured sixth place with 27 million units (+5.9%).

Looking ahead to 2025, TrendForce expects only a modest 1.5% growth in global smartphone production due to sluggish economic recovery, cautious consumer spending, and international trade barriers such as increased import tariffs.

Comment: Apple surges to the top, benefiting from peak production and Chinese subsidies. Samsung declines, while Xiaomi and OPPO sustain growth, reshaping the competitive landscape.

5.?Nine European Nations Form ‘Semiconductor Alliance’ for Chip Independence

On March 12, Germany, along with eight other European countries—including the Netherlands, France, and Italy—formed the "Semiconductor Alliance" to reduce reliance on Asian manufacturers, particularly TSMC, and enhance Europe’s semiconductor industry independence and innovation.

The alliance plans to collaborate with the European Commission to develop strategies for expanding chip production, investing in R&D, and cultivating a skilled workforce. Germany is leading this effort by providing subsidies to support the construction of the ESMC chip factory, a joint venture between TSMC and European partners NXP, Infineon, and Bosch.

The alliance emerges amid a booming AI chip demand, with the global semiconductor market expected to grow by 9.5% this year. Previously, the EU launched a €43 billion subsidy plan aiming to increase Europe’s share of global chip production from 8% to 20%, but setbacks, including Intel halting its projects in Germany, Poland, and Italy, have hindered progress. The new alliance is seen as a more pragmatic successor to this initiative, adjusting goals to strengthen Europe’s semiconductor competitiveness.

Comment: Europe strengthens semiconductor independence, reducing reliance on Asia, especially TSMC. Germany leads subsidy efforts to localize chip manufacturing amid booming AI chip demand.