Texas Instruments revenue for the first quarter of 2023 and 2022 at a glance

While TI expects demand to remain subdued, TI said customers are clearing inventories and cutting orders, and inventories will increase this quarter. In order to better control inventory, TI also cut off the distribution agent. Revenue was expected to be between $4.17 billion and $4.53 billion in the second quarter, compared with analysts' forecasts of $4.82 billion, a 16.5% drop in the midpoint of the range from a year earlier.

But the car market does not seem to be as strong as expected. Since 2023, the mainland auto market has reversed, and auto sales have fallen short of expectations, especially for fuel vehicles, and the price reduction in the auto market has been serious. Although a number of well-known car prices in February and March have sharply reduced their prices to stimulate sales, the results have not improved significantly. According to data from the Mainland Passenger Association, retail sales of narrow passenger cars in March increased by only 0.3% year-on-year, and retail sales of narrow passenger cars in the first quarter dropped by more than 13% compared with the same period last year, and wholesale sales also declined by 7.3%.

Not only is demand weak in China's car market, consumption power in the United States is also depressed, and the weakness of the car market has also spread to the upstream chip end. According to a recent Morgan Stanley report, on the one hand, car companies began to cut orders, on the other hand, they asked chip factories to pay for the price war and asked chip suppliers to cut prices. Chuangli has made a certain degree of single power management IC, power semiconductors and MCU. According to Ditimens, orders for automotive semiconductor parts from some Taiwanese IC design companies and chip suppliers in Japan and the United States are likely to be cut by 10% and 20% in the second quarter.

According to the Daily Business News, some companies said that chip manufacturers have also begun to cut prices, and many manufacturers have begun to consider the possibility of converting the automotive chip production line to the production of industrial-grade chips. As consumer electronics chips faltered last year, many chip makers shifted production to automotive chips.

Foundry TSMC's revenue fell nearly 5% in the first quarter of 2023, citing uncertainty over automotive chips. Taiji CEO CC Wei reported that the company's automotive demand is currently stable, but shows signs of slowing down by the second half of 2023.

In recent years, a number of analog chip companies have emerged in China, such as Saint Bangwei, Srippu, Ai Wei Electronics, Naxin Micro, Jingfeng Mingyuan, Core Sea Science and Technology, Li Core Micro, Xindi Wei and so on. Most of them are cut in from the consumer electronics market. As a result, manufacturers who feel the most in this cold wave, especially those who are closely linked to mobile phone consumer apps and account for more than 60 per cent of revenue.

Shengbangwei is an important player in the field of analog chips in China, and currently the company has more than 4300 products for sale in 30 categories, covering the two areas of signal chain and power management. Shengbangwei's revenue in the first quarter of 2023 was 510. million yuan, down 33.80% year on year. Profit fell 88.40% to 30.206 million yuan. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses fell by a staggering 97.49%.

Holy Bon Micro Earnings Report for the First Quarter of 2023

Nanic is the rare analog chip vendor to grow in revenue in the first quarter, which is also inseparable from its market strategy to focus on high-barrier areas such as automotive and pan-energy. Nanocrystalline focuses on three product directions: sensors, signal chains and power management, with more than 1,400 product models, which are used in automotive, pan-energy (photovoltaic, industrial automation, digital power) and consumer electronics. According to Nanic's financial report, in 2022, the automotive sector accounted for 23.13% of total revenue, pan-energy accounted for 69.69%, and consumer electronics has dropped to 7.18%. In addition, more than 100 million nano-chip chips have been shipped in the automotive industry, and a large number of mainstream OEMs / Tier 1 automotive suppliers have achieved batch loading. And began to move towards the Fablite model, the subsidiary Nachtwey is mainly engaged in packaging and testing business, and has begun formal trial production in the fourth quarter of 2022, mainly to meet the company's own pressure sensors and small batch customized products.

Share of Nanocrystalline Downstream Applications in 2022

(Source: company earnings)

In 2022, Nanoscale expanded its product categories such as magnetic sensors for automotive, non-isolated drivers, and new power management products such as MOSFETs, IGBTs, and GaN, which were named as its growth engines in the first quarter of this year. In the first quarter of 2023, Nano Chip's revenue was 471 million yuan. Net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was -22.5 million yuan, down 126.84% year-on-year. The main reason is that the implementation of the restricted stock incentive plan in 2022 resulted in a substantial increase in share payment fees. Excluding the impact of share payment fees, the net profit attributable to shareholders of the listed company was 100 million yuan, an increase of 15.98%.

Nanoscale Micro Earnings Report for the First Quarter of 2023

Aiwei Electronics has a total of 1,000 product models in 42 categories, involving three categories of high-performance digital-analog mixed signal, power management, signal chain. Revenue in the first quarter of 2023 was 380 million yuan, down 35.41% year-on-year. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses fell 354%. Due to the decline of the company's operating income, the company increased investment in diversified research and development projects, and the corresponding increase in staff salaries and other costs over the same period last year. Aiwei Electronics is also gradually infiltrating into AIoT, industrial, automotive and other markets from consumer electronics, and related products have made continuous breakthroughs in the automotive field, successfully importing BYD, Hyundai, Geely, Chery, Zero Run, Changan and other brand customers.

Ai Wei Electronics Earnings Report for the First Quarter of 2023

In the first quarter of 2023, Jingfeng Mingyuan achieved sales revenue of 265 million yuan, down 12.18% from the same period last year; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was -77 million yuan, down 112.34% from the same period last year. According to its financial report, the average unit price in the first quarter decreased by 33.23% compared with the first quarter of 2022. Although the unit price of products has declined from the same period last year, it has improved in the fourth quarter of 2022, and has basically returned to the historical normal price, at the same time, the company's shipment volume increased by 31.52% compared with the same period last year. However, the gross profit of the consumer analog chip itself is very low, and if the unit price drops again, the gross profit margin will be lower. It is reported that the gross profit margin in the first quarter was 23.20%, down 6.57% from the same period last year.

Jingfeng Mingyuan Earnings Report for the First Quarter of 2023

Core Micro mainly develops power semiconductors, including three product lines of household appliances, standard power supplies and industrial control power, including PMIC, AC-DC, DC-DC, GateDriver and supporting power devices. Currently, there are more than 1500 effective product models. Its products are widely used in household appliances, mobile phone and tablet chargers, set-top box adapters, car chargers, smart meters, industrial control equipment and many other fields. In the first quarter of 2023, the revenue was 187 million yuan, an increase of 1.03%. Net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was 11.28 million yuan, down 62.19 percent year on year. According to the report, the main reason for the decline was that the company continued to increase its research and development input in industrial and vehicle regulation. The increase in R & D costs led to a decrease in earnings. In Q1, the research and development input increased by 36%. The company is actively expanding its high-quality research and development team. With the increase of staff and the increase of salary, the corresponding staff salary increased significantly compared with the same period of last year. In the future, Chippeng Micro will upgrade its technology platform and continue to enrich its product line along the product line of "consumer-industrial-vehicle grade."

In summary, it can be seen that almost all domestic analog chip manufacturers felt varying degrees of performance decline in the first quarter of 2023, which is also a major situation faced by the entire global industry. Automotive, industrial, communications, consumer and other related applications are driving the growth of the analog chip market, but relatively speaking, the growth of consumer demand is limited. A number of domestic analog chip manufacturers have gradually developed industrial and automotive products. Domestic analog chips, heading to the deep water area! 》The author has already made some interpretations on this.

Although domestic analog chip manufacturers have declined in margin, but part of the reason is that research and development input, temporary decline in margin for domestic analog chip manufacturers, is not a bad thing. We should also give domestic manufacturers more time to save power to meet the larger market.

With the gradual opening of the industrial and automotive markets to domestic chips, and the majority of analog chip manufacturers have begun to move towards high-end products, the localization penetration rate of industrial and automotive grade chips is on the rise. The future may also bring a sense of urgency to international manufacturers such as TI in more areas.

However, we must also admit that with the opening of those 12-inch fabs in TI, they have more confidence to arm wrestle with domestic manufacturers on price, which in the previous article in the Semiconductor Industry WatchAnalog chips, we are getting further and further away from TIIt is also mentioned in.

It can be seen that under the pressure of going to stock, the competition of local analog chips can be foreseen. How to avoid being eliminated among them is also a top priority for local manufacturers to think about.