Market Analysis after Q1
Summary; Q1 2023 shows a decline in year-on-year operating and net profits due to the previous year’s market surge.The negative situation cannot be used as macro data to compare and evaluate the overall market trend. Distributors must maintain a high industry sensitivity, carefully distinguish the current risks, optimize their inventory structure, and provide customers with […]
Summary;
Q1 2023 shows a decline in year-on-year operating and net profits due to the previous year’s market surge.The negative situation cannot be used as macro data to compare and evaluate the overall market trend. Distributors must maintain a high industry sensitivity, carefully distinguish the current risks, optimize their inventory structure, and provide customers with longer-term value-added services to wait for the dawn to rise. In the second half of the year, we can focus on on new opportunities and finally focusing on long-term business again.
The Brands;
TI= Revenue decline gap in the first quarter mainly existed in analog devices. The delivery of automotive and some high-end analog chips has not been fully eased. Long-term purchase models are suitable for early ordering and early delivery.
AD = Delivery period is shortening and the adjustment progress is basically in line with expectations which is still around 13-16 weeks.
ST = Plans to invest about US$4 billion to expand wafer production capacity this year, and after transferring consumer production capacity to the automotive category, it is expected to see a turnaround in the delivery of automotive chips in Q3; but the overall output is expected to be worse than expected in 2022. At present, the inventory of the MFG and franchises of consumer MCUs is relatively big and keeps incoming. So the prices of these products are returning to normal.
Xilinx = Is rumored about price adjustment in Q3, and Q2 is a suitable time for stocking up. At present, some customers are willing to accept L/T quotations. It is announced that the product life cycle of the 7 series will be extended to 2035, which means that the price fluctuation during the life cycle will not be particularly large. The lead time of most 7 series materials is maintained at 18-30weeks; while the lead time of 6S series has not been significantly improved for the time being, it is about 50-80 weeks;