According to Taiwan media Economic Daily, there are good signs of semiconductor inventory adjustment. In the microcontroller (MCU) market, which was the first to bear the pressure of falling prices, mainland Chinese companies that have taken the lead in bargaining have recently stopped bargaining to clear inventory, and some items have even begun to increase prices. . MCUs are widely used, covering key fields such as consumer electronics, automobiles, and industrial control. Now the quotations have rebounded, and "those who fell first (prices) stopped falling first." This reveals that terminal demand is picking up, and the semiconductor market is not far away from rejuvenation.
Global MCU indicator manufacturers include Japanese company Renesas, Dutch company NXP, American Microchip, etc., all of which have an important position in the global semiconductor industry; Chinese Taiwanese manufacturers include Holtek (6202), Xintang, Yilong, Songhan, etc. are the representatives. As the price-cutting competition among mainland Chinese companies eases, related manufacturers will also benefit.
Industry insiders point out that MCUs have a wide range of uses, and their dynamics are used by the market to judge the semiconductor boom. Microchip released its financial report and outlook, and has been likened to a "canary in the mine," highlighting the close relationship between MCUs and market development. , now the quotation has stopped falling and rebounded, which is a good sign after many quarters of semiconductor inventory adjustment.
Industry insiders analyze that in 2020 and 2021, when the COVID-19 epidemic broke out, the supply chain was worried about being broken. As long as goods were available, they would rush to grab them first. As a result, the IC design industry ushered in a flood of orders and a rare big price increase. However, this Rongjing began to change in 2022. As various terminal applications showed signs of fatigue, MCUs were the first to bear the brunt. Manufacturers' inventories were rising steadily, and some top performers in the industry even admitted that inventories had reached a record high level for dozens of months.
In order to solve the huge inventory pressure, the MCU industry faced the bleakest period in history from the fourth quarter of last year to the first half of this year. Mainland China MCU manufacturers did not hesitate to bargain at any cost to clear inventory, and even well-known integrated component manufacturers (IDM) joined the bargaining battle. Fortunately, the recent market bargaining to clear inventory has gradually come to an end. MCU manufacturers in mainland China cannot bear the losses and no longer sell at lower than cost prices. They have even slightly raised prices to return to a more reasonable range.
An anonymous MCU factory in Taiwan, China, revealed that as mainland Chinese companies have eased their price-bargaining attitude, the price difference between cross-strait product quotations has gradually narrowed, and a small number of urgent orders have begun to come in, which will help to eliminate inventory more quickly. "The dawn should not be far away." .
Taiwan MCU manufacturers mentioned that as customer orders gradually return, they will first buy goods from channel vendors to digest downstream inventory. Therefore, it may not be immediately reflected in the performance figures of IC design manufacturers this quarter, but it will be beneficial to next year's operating prospects.
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