Weekly News

Contents:

1.?55% Surge: SSD and Storage Prices Continue Upward Trend for 2 Years.

2.?STMicroelectronics Signs Long-Term Silicon Carbide Supply Agreement with Li Auto, Boosting 800V Platform.

3.?Europe Car Sales Gain to Put Double-Digit Recovery Within Reach.

4.?In Nov, medical and health financing in China hit?around $830mln, a 49% rise.

5.?Intel Lays Off 311 In California Amid Ongoing Cost-Cutting Efforts.

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1.?55% Surge: SSD and Storage Prices Continue Upward Trend for 2 Years.

According to some media, the performance report of major storage giant Micron revealed revenues of $4.73 billion as of November 30, surpassing market estimates of $4.58 billion, marking a 16% annual increase. However, the net loss stood at $1.23 billion, a reduction from the $1.43 billion in the same period last year, equating to a net loss of $0.95 per share.

Micron's CEO, Merotta, anticipates a rebound in product pricing next year, with the upward trend continuing until 2025. This signals that demand from data centers is aiding in offsetting the slow recovery of the PC and smartphone markets.

A report by research firm TrendForce suggests that prices of mobile device DRAM and NAND (eMMC, UFS) storage chips are expected to increase further, with a projected surge of 18-23% in the first quarter of 2024. Moreover, the possibility of additional price hikes due to panic buying cannot be ruled out.

Comment:?

Industry experts believe 2024 will mark a rebound year for the storage industry, with many storage companies foreseeing Micron's return to record-breaking levels by 2025."

2.?STMicroelectronics Signs Long-Term Silicon Carbide Supply Agreement with Li Auto, Boosting 800V Platform.

According to a post on STMicroelectronics' official social media account, the company has signed a long-term supply agreement with Li Automotive for silicon carbide (SiC). Under the agreement, STMicroelectronics will supply silicon carbide MOSFETs to support Li Automotive's strategic deployment in the high-voltage pure EV market.

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Reportedly, STMicroelectronics' silicon carbide boasts higher switching frequencies, breakdown voltages, and thermal resistance, significantly enhancing the performance and efficiency of power transistors. These characteristics are crucial in the high-voltage environment of pure EVs. Li Automotive's upcoming 800V high-voltage pure electric platform will adopt STMicroelectronics' third-generation 1200V SiC MOSFET technology in its electric drive inverters.

Comment:

Li Automotive announced plans to complete the construction of 300+ supercharging stations by the end of 2023 and 3000+ supercharging stations by 2025. By 2025, the average distance between supercharging stations will be 100 kilometers, with each station capable of serving 9-20 vehicles per hour.

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3.?Europe Car Sales Gain to Put Double-Digit Recovery Within Reach.

European car sales rose 6% in November as manufacturers continued to work through order backlogs, putting the region on course for double-digit growth this year.

New vehicle registrations climbed for the 16th consecutive month to 1.08 million units, the European Automobile Manufacturers’ Association said Wednesday. Entirely electric vehicles made up 17% of total deliveries.

European auto sales grew despite a 5.7% drop in Germany, the region’s biggest market, after Berlin phased out subsidies for battery-powered company cars. The government also abruptly ended a stimulus program for private buyers due to the country’s unprecedented budget crisis. It prompted Volkswagen, Mercedes-Benz, Tesla, and Stellantis to step in with their rebates.

In November, the region’s biggest carmakers primarily benefited from well-filled order books. Volkswagen’s sales rose 9.2%, with Renault SA recording a 6.5% increase. Stellantis NV’s shipments declined 2.8%.

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Comment:

After years of surging sales, signs of slower EV uptake are spreading. Volkswagen’s Audi is dialing back its EV rollout plans to avoid burdening factories and dealers amid slower sales growth. The UK has postponed its planned ban on new gasoline and diesel models by five years to 2035.

4.?In Nov, medical and health financing in China hit?around $830mln, a 49% rise.

Regarding the primary market's overall investment direction?and frequency?in November,?the top five?invested areas included?biopharmaceuticals, medical devices, medical equipment, medical information technology, and medical aesthetics.

Viewed?the investment preferences within China's segmented sectors,?more attention?was?paid?to?innovative drugs, consumables, medical robots, equipment, and software.

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Comment:

Expert analysis indicates a slight variance between the global?segments?that received funding in November and the specific directions of?Chinese?investment.?The international funding?focused on?biopharmaceuticals, medical devices, medical information technology, medical equipment, and third-party medical service institutions. Meanwhile, the segments were innovative drugs, consumables, medical software, and medical equipment.

5.?Intel Lays Off 311 In California Amid Ongoing Cost-Cutting Efforts.

Intel said it plans to lay off 311 employees across two campuses in California as the semiconductor giant continues a multibillion-dollar cost-cutting effort started last year.

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A?continuation of the cost reduction plan initiated last year, aiming to cut billions of dollars in costs by 2025 through layoffs, reduced working hours, and potentially selling off divisions.

Comment:

In October's earnings call, Intel's CEO, Pat Gelsinger, highlighted that a slowdown in the personal computer market impacted the company's profits. The third-quarter revenue dropped from nearly $19.4 billion to around $15.4 billion year-on-year.

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