ELECTRONIC NEWS HIGHLIGHT W41.2024

1. Silicon wafer sales are expected to recover strongly in 2025, reaching a peak in the third quarter of 2024.

According to the SEMI report, global silicon wafer shipments reached 3.214 billion inches in the third quarter of 2023, marking a 5.9% sequential increase and a 6.8% year-over-year increase. Shipments reached a five-quarter high and silicon wafer shipments are expected to continue to increase through 2025, although volumes have yet to return to the 2022 peak.

Demand for advanced silicon wafers used in AI applications remains strong, while demand for automotive and industrial uses remains slow. In contrast, demand for wafers used in smartphones and other consumer products has seen some improvement.

SEMI forecasts global silicon wafer shipments will decline 2% by 2024 and reach 12,174 billion inches (MSI). However, as demand gradually recovers from the current downturn, sales are expected to rebound by 10% by 2025 and reach 13,328 billion inches (MSI).

However, as demand gradually recovers from the current downturn, sales are expected to rebound by 10% by 2025 and reach 13,328 billion inches (MSI).

This growth trend is likely to last until 2027, due to increasing demand related to AI and advanced manufacturing, SEMI believes that the increasing adoption of new technologies and applications will drive demand sustainability for silicon wafers in the coming years, boosting global semiconductor fab utilization rates

Learn more: Silicon wafer sales are expected to recover strongly in 2025, reaching a peak in the third quarter of 2024.

2. AMD cuts 4% of global workforce, optimizing resources amid challenging market landscape

AMD announced a 4% reduction in its workforce, affecting approximately 1,000 employees. The layoffs are part of an effort to optimize resource allocation and better position the company for future growth opportunities.

The layoffs come after AMD announced its third-quarter 2024 earnings, which showed mixed results. While the company’s revenue and profit rose 17% and 34%, respectively, the quarter’s revenue midpoint of $7.5 billion fell slightly short of analyst expectations of $7.54 billion. Additionally, AMD’s gaming revenue fell 69% to $462 million, nearly wiping out the company’s operating income. The decline was attributed to a decrease in “custom sales”.

AMD stated that the layoffs are part of “a series of targeted measures” to reallocate resources to support its strategic focus on the AI sector. In recent years, AMD has pursued multiple acquisitions and business adjustments to strengthen its position in the AI market and drive future growth.

Learn more: AMD cuts 4% of global workforce, optimizing resources amid challenging market landscape

3. Infineon delays factory expansion in Kulim, cuts investment as 2025 revenue outlook declines

Infineon Technologies announced that it is postponing the second phase expansion of its new manufacturing plant in Kulim, Malaysia and will reduce investment plans by 10%, citing the still weak semiconductor market and slow in most countries all end markets.

In its fiscal year 2024 report, Infineon announced that the company will cut capital spending by 10% and further reduce its workforce in the coming months. Infineon is preparing for a potentially unremarkable business environment in 2025. Chief Executive Officer Jochen Hanebeck said that current capacity at the Kulim plant is sufficient, leading to postponement of cleanroom expansions next.

The company expects fiscal 2025 revenue to miss 2024’s figure of 14.96 billion euros, below analysts’ consensus estimate of 15.75 billion euros. Management forecasts segment profit margins will decrease from 20.8% to 15% to 20% in 2024.

The automotive industry, which accounts for more than half of Infineon’s total revenue, has yet to see the expected recovery. Competitive pressure in the electric vehicle market, especially from low-cost Chinese car models, has increased. Infineon issued three revenue downgrades in fiscal 2024 and forecast first-quarter 2025 revenue of about 3.2 billion euros, below market expectations of 3.8 billion euros.

Learn more: Infineon delays factory expansion in Kulim, cuts investment as 2025 revenue outlook declines