ELECTRONIC NEWS HIGHLIGHT W25.2024

1. NXP’s first quarter 2024 revenue exceeded expectations

According to NXP Semiconductors’ Q1 2024 financial report, the company’s revenue for the quarter was $3.13 billion, with a gross margin of 58.2% and an operating margin of 34.5%. .

In the first quarter of 2024, NXP’s industrial and Internet revenue was $574 million, up 14% over the same period in 2023; Mobile business revenue was 349 million USD, up 34%; Communications infrastructure and other revenue was 399 million USD, automobile business revenue decreased by 1%.

According to the financial report, growth in NXP’s mobile and industrial chip business in the first quarter offset a decline in the automotive and communications infrastructure services sectors.

NXP CEO Kurt Sievers said: “Our first quarter results, second quarter forecast and our preliminary outlook for the second half of the year suggest that NXP can successfully weather the industry-wide cyclical downturn. NXP will continue to manage controllable issues to maintain solid margins and earnings in a challenging demand environment.”

NXP has increased product prices by about 8% by 2023 to help maintain profits amid rising costs. The company said in February that it expected prices to remain flat through 2024.

Learn more: NXP’s first quarter 2024 revenue exceeded expectations

2. TSMC’s 3nm chip sales are expected to increase in the second half of 2024

According to Bloomberg analysts, chip upgrades by Intel and Nvidia are expected to boost TSMC’s 3nm chip sales starting in the second half of 2024. Shipments are expected to increase twofold triple by 2024 and double again by 2025.

Analysts point out that TSMC’s N3 process is the most advanced node currently in production. Although 3nm chip process sales in the first quarter of 2024 decreased by 32% compared to the previous quarter, accounting for 9% of total sales, it is expected to recover strongly from the third quarter of 2024, thereby achieving the target of process revenue growth. 3nm chip production in 2024.

Analysts predict that the price of the 3nm chip process will be significantly higher than the 4nm process, which will contribute significantly to TSMC’s foundry revenue, increasing TSMC’s wafer foundry revenue by 26%. in 2025, thereby boosting TSMC’s 2025 revenue growth by 26.6%.

Learn more: TSMC’s 3nm chip sales are expected to increase in the second half of 2024

3. Supply chain: ASE plans to build an advanced packaging factory in Japan

According to the supply chain, semiconductor testing and packaging company ASE plans to spend nearly NT$10 billion to build its first advanced packaging plant in Kumamoto, Japan.

Industry insiders said the Japanese government and ASE are negotiating, and related subsidies and investment details have been preliminary finalized. The factory will be located in Kumamoto, near TSMC, and is expected to go into production before the end of 2027.

In early 2004, ASE purchased ownership of NEC’s microchip packaging and testing factory in Yamagata Prefecture, Japan for $80 million. In recent years, with the Japanese government’s strong push to develop the semiconductor industry, ASE plans to seize the opportunity of Japan’s semiconductor recovery.