Global Market Conditions
IC Wafer Capacity: Forecasts indicate that IC wafer capacity will reach record levels by 2025. According to the latest report from Knometa Research, IC wafer capacity is expected to grow by 8% in 2025, compared to a 4% increase in 2024. Seventeen new wafer fab lines are anticipated to commence operations next year.
Semiconductor Sales: The World Semiconductor Trade Statistics (WSTS) organization has revised its 2024 global semiconductor sales growth forecast upward from 13.1% to 16%, primarily due to stronger performance in the computing market.
Consumer Goods and Other Sectors:
- Ciena: Ciena’s revenue guidance for the third quarter of the 2024 fiscal year is expected to be relatively flat and below market expectations. The company forecasts full-year revenue to be around $4 billion, down from the previous guidance of $4-$4.3 billion.
- Logistics: Severe congestion in the Red Sea has significantly impacted global supply chains. Maersk and other shipping companies have been forced to reroute around the southern tip of Africa due to Houthi militant attacks, leading to an approximately 80% reduction in Suez Canal transits.
Data Center:
- Google: Google has laid off at least 100 employees from its cloud computing unit, affecting various teams including sales, operations, and engineering.
- Microsoft: Microsoft has cut up to 1,500 jobs in its Azure cloud division.
Automotive Market:
- Tesla: Tesla’s deliveries from its China plant increased by 16% month-over-month in May but were down 7% year-over-year. In contrast, BYD’s shipments grew by 38% year-over-year.
- US Auto Sales: The annualized rate of new car sales in the US for May was 15.9 million units, marking a year-over-year increase of approximately 3.5%.
Supplier
Vishay: Vishay has acquired Ametherm for approximately $31.5 million in cash. Ametherm specializes in surge current limiters and sensing thermistors for automotive, industrial, and medical applications.
NXP: NXP, in collaboration with Vanguard, plans to build a $7.8 billion 300mm wafer fab in Singapore. The facility will target process nodes ranging from 40nm to 130nm, suitable for automotive, industrial, and consumer applications. Production is expected to begin in 2027.
ST Micro: STMicroelectronics has signed a long-term supply agreement with Geely Auto to provide Silicon Carbide (SiC) power devices for various Geely automotive brands.
Regional Market Dynamics
United States: The US Manufacturing Purchasing Managers’ Index (PMI) for May showed mixed data, with the S&P Global PMI indicating expansion at 51.3, while the ISM PMI indicated continued contraction at 48.7.
Eurozone: The Eurozone’s Manufacturing PMI for May was 47.3, indicating expansion in peripheral Eurozone countries and a slower contraction in France and Germany.
China: China’s official Manufacturing PMI fell from 50.4 in April to 49.5 in May, indicating renewed contraction in domestic and export orders. However, the Caixin China PMI showed manufacturing activity expanding to 51.7 in May, reflecting the strongest growth in 23 months.
