ELECTRONICS NEWS HIGHLIGHTS W30.2023
1. Industrial and automotive chip demand will be constant in 2023
In 2023, the consumer electronics industry’s outlook remains bleak despite the onset of the peak season in the latter half of the year. Conversely, the demand for automobiles and industrial control is expected to maintain stability. Major consumer applications like mobile phones, personal computers, and notebook computers are anticipated to face further reductions in shipments, and other consumer products show little improvement. Many businesses believe that the new growth trend will not resume until 2024, leading to low customer expectations for the consumer market and impacting the demand for IC.
While the consumer electronics industry grapples with new challenges, the demand for consumer goods will not be as steady as in previous years. However, demand for non-consumer goods remains relatively stable. The latter half of 2023 is expected to witness a return to normal demand momentum, particularly in the automobile and industrial control sectors. After a brief period of destocking, the subsequent recovery of demand momentum in these industries surpasses that of the consumer electronics sector.
Some Integrated Device Manufacturers (IDMs) have even raised their financial performance expectations for the year 2023.
2. Global MCU shipments are expected to down 10% year-on-year in 2023
According to the latest report from YOLE Group, the MCU market witnessed intense competition in 2022, with NXP, Renesas, and Infineon leading the pack, and STMicroelectronics and Microchip performing well. Despite declining and stagnant shipments during that year, the MCU portfolio managed to increase average selling prices (ASP) and drive revenue growth.
However, the global post-pandemic recovery and trade tensions have led to market uncertainty and inflation, impacting the semiconductor market, including MCU shipments, which are expected to drop nearly 10% in 2023 compared to 2022. The report predicts that MCU ASP will peak at $0.92 in 2023, and though it may decline slightly over time, it is not expected to return to pre-pandemic levels in the foreseeable future.
3. TSMC delaying production at Arizona fab
TSMC is facing challenges due to a shortage of skilled workers with specialized expertise needed for equipment installation in a semiconductor-grade facility. To address this, they are planning to send experienced technicians from Taiwan to train local workers for a short period. As a result, the production schedule for the N4 process technology is expected to be delayed to 2025, originally planned for early 2024. The fab, known as Fab 21, is designed to operate at a capacity of 20,000 wafer starts per month.