Global Market Conditions
- IC Wafer Capacity: Predicted to reach unprecedented levels by 2025, with an 8% growth forecast, an increase from 4% in 2024. Seventeen new wafer fab lines are anticipated to commence operations next year.
- Semiconductor Sales: Expected to grow by 16% in 2024, revised from 13.1%, primarily driven by strong performance in the computing market.
Auto/Transportation Sector:
- Audi: Plans to market new BEVs in China without the traditional four-ring logo, signaling a shift in branding strategy.
- BMW: Reported a lower-than-expected EBIT margin in 2Q; China sales dropped 4%, reflecting challenges in maintaining market share amid local competition.
- BorgWarner: Revised its sales outlook downward to $14.1-$14.4 billion, indicating potential softness in the market.
- BYD: July BEV sales declined by 11% Y/Y, highlighting market volatility and competitive pressures.
- Cummins: Increased its full-year outlook to flat to +3%, demonstrating resilience in the face of market challenges.
- China: Enhanced subsidies for vehicle scrappage programs to stimulate demand amid slowing economic growth.
- Daimler Truck: Implemented cuts in working hours and a job freeze in Germany, indicating operational adjustments to market conditions.
- Europe: Chinese brands captured 11% of the electric car market in June, showcasing their growing influence and competitive pricing.
- Magna: Lowered its 2026 sales outlook, reflecting concerns over long-term demand and market conditions.
- Mercedes-Benz: Reported a 25% Y/Y decline in BEV sales in 2Q, underscoring challenges in transitioning to electric mobility.
- Stellantis: Initiated another round of voluntary buyouts in the U.S. as part of cost-cutting measures.
- VW: Emphasized significant cost-cutting efforts needed to improve profit margins amid declining sales.
- US Auto Sales: July sales forecasted to rebound to 1.27 million units (15.8 million SAAR), suggesting a recovery in consumer demand.
Datacenter Sector:
- HPE: The EU approved its $14 billion takeover of Juniper Networks, indicating consolidation trends in the industry.
Semiconductor Sector:
- Samsung Electronics: Extended strike by the largest workers’ union in South Korea due to unresolved disputes over pay and benefits.
- Global Semiconductor Sales: Increased 19.3% Y/Y in May to $41.2 billion. Notable growth in the Americas (+43.6%) and China (+24.2%).
- Onsemi: Acquired SWIR Vision Systems, a leader in short-wavelength infrared technology, to bolster its product portfolio.
- Nexperia: Investing $200 million to develop wide bandgap semiconductors, including SiC and GaN. Increasing wafer fab capacity for silicon diodes and transistors.
- ROHM and SiCrystal Germany: Expanding production capacity for SiC wafers with a new building in Nuremberg, set to complete by early 2026.
- UMC: Reported a 10% M/M and 7% Y/Y decline in June revenue but anticipates improved demand in H2.
- Huawei: Expected to launch Kirin 9100 processor produced by SMIC’s 5nm process, likely outperforming Qualcomm Snapdragon 8 Gen 2.
- MediaTek and Qualcomm: Both set to release new 5G phone chips in Q4 using TSMC’s 3nm process.
- TSMC: Q2 revenue reached T$673.51 billion, up 32% Y/Y. Adjusted prices for 3nm processes due to high demand.
- Amkor: Awarded up to $400 million in government grants for its Arizona facility.
- Intel: Cutting over 15% of workforce following weak 2Q results.
- Lam Research: Posted stronger-than-expected results driven by AI chip demand.
- SK Hynix: Investing ~$6.81 billion in a new chip fab in South Korea.
- Qualcomm: Exceeded FY3Q expectations, with automotive revenue up 87% Y/Y.
Consumer/Other:
- Amazon: Reported weaker-than-expected 2Q revenue, raising concerns about consumer spending.
- Apple: Achieved a 5% increase in CY2Q sales, with upcoming AI features delayed.
- China Smartphone Market: Shipments of foreign-branded phones rose 10.9% Y/Y in June, indicating strong consumer demand for international brands.
Regional Market Dynamics:
- United States: Mixed manufacturing activity; S&P Global PMI at 49.6 (contraction), ISM PMI at 46.8 (decline).
- Eurozone: Manufacturing PMI at 45.8, indicating ongoing contraction and reduced new orders.
- China: Official Manufacturing PMI eased to 49.4 (contraction), while Caixin PMI declined to 49.8.
