IC manufacturers have announced their financial reports one after another: automobiles and industries are the main growth points

From late April to the present, major IC manufacturers have successively announced their financial reports for the first quarter. In the background of a weak consumer market, the growth of performance for IC manufacturers has generally been put to the test. The automobile and industrial sectors have become the main driving force for the improvement of the performance of major IC manufacturers.

TI: Revenue and profit both fell, but its auto business grew

TI’s revenue in the first quarter was $4.379 billion, a year-on-year decrease of 11%; net profit was $1.708 billion, a year-on-year decrease of 22%. The analog business revenue was $3.289 billion, a year-on-year decrease of 14%; operating profit was $1.574 billion, a year-on-year decrease of 27%. The embedded processing revenue was $832 million, a year-on-year increase of 6%; operating profit was $237 million, a year-on-year decrease of 25%.

According to related information, TI’s automotive business revenue in the first quarter increased by approximately 4-6% quarter-on-quarter, while the industrial business revenue is roughly flat. The revenue from communication equipment business is estimated to decrease by 14-16% quarter-on-quarter, and the revenue from the personal electronic products and the enterprise systems are most affected, with a quarterly decrease of about 30% respectively.

TI stated that as expected, all end markets except for automotive have experienced weak demand. TI expects revenue to be between $4.17 billion and $4.53 billion in the second quarter.

ST: Revenue and profit continued to grow year-on-year

ST’s revenue in the first quarter was $4.247 billion, a year-on-year increase of 19.8%, and a quarter-on-quarter decrease of 4%; net profit was $1.044 billion, a year-on-year increase of 39.8%, and a quarter-on-quarter decrease of 16.3%.

The revenue of the automotive and discrete device sector was $1.807 billion, a year-on-year increase of 43.9%, and a quarter-on-quarter increase of 6.5%; the analog, MEMS, and sensing sector were $1.068 billion, a year-on-year decrease of 0.9%, and a month-on-month decrease of 20.3%; the MCU and digital IC sector Revenue was $1.368 billion, a year-on-year increase of 13.2% and a quarter-on-quarter decrease of 1.1%.

ST’s President and CEO Jean-Marc Chery stated that the company’s revenue in the first quarter exceeded expectations, but revenue in the personal electronics sector declined. For the second quarter, the company expects revenue to be around $4.28 billion, a year-on-year increase of 11.5% and a quarter-on-quarter increase of 0.8%.

Microchip: financial report hits a new high, but begins to guard against inventory risks

Microchip’s fourth fiscal quarter (ending in March) revenue was $2.233 billion, a record high, up 21.1% year-on-year; net profit was $604 million, also a record high, up 37.9% year-on-year. The entire fiscal year 2023 revenue was $8.439 billion, a record high, up 23.7% from the previous year; net profit is $2.238 billion, an increase of 74% over the previous year.

Microchip’s President and CEO Ganesh Moorthy stated that the company has achieved growth and higher profitability for the tenth consecutive quarter, and added that the company is postponing a large number of orders at the request of customers to help them improve their inventory situation, which will increase the company’s inventory levels. However, Microchip believes that the risk of product obsolescence due to increased inventory is very low.

Infineon: Performance growth continues, again raising expectations

Infineon’s second fiscal quarter (ending in March) revenue was 4.119 billion euros, up 25% year-on-year and 4% quarter-on-quarter. Net profit was 826 million euros, up 76% year-on-year and 13% quarter-on-quarter.

Infineon’s CEO Jochen Hanebeck said the company had strong business growth in electric vehicles, renewable energy generation, and energy infrastructure. Although the improvement in consumer goods markets such as smartphones, personal computers, and home appliances is not yet obvious, they are generally confident in Infineon’s future performance. The company has again raised its full-year revenue and profit forecasts.

NXP: Performance growth is hindered, but the automotive business is still growing

NXP’s revenue in the first quarter was $3.12 billion, with only a slight change year-on-year and a 6% quarter-on-quarter decrease; GAAP operating profit was $825 million, a year-on-year decrease of 5% and a quarter-on-quarter decrease of 16%.

Automobile business revenue was $1.828 billion, a year-on-year increase of 17% and a month-on-month increase of 1%. Industrial and Internet of Things business revenue was $504 million, down 26% year-on-year and 17% quarter-on-quarter. Mobile business revenue was $260 million, down 35% year-on-year and 36% quarter-on-quarter. Communications infrastructure and other revenues were $529 million, up 7% year-over-year and 7% quarter-over-quarter.

NXP’s CEO Kurt Sievers said that all the company’s key end markets performed better than expected, and the automotive and core industrial businesses continued to strengthen. Cautiously optimistic about successfully weathering the cyclical downturn in the consumer business.

ON Semiconductor: Automotive and industrial revenue accounted for a new high

ON Semiconductor’s revenue in the first quarter was $1.9597 billion, a year-on-year increase of 1%; net profit was $461.7 million, a year-on-year decrease of 12.91%. ON Semiconductor mentioned that the automotive market revenue increased by 38% year-on-year, accounting for 50% of total revenue, a record high; the automotive and industrial end markets together accounted for 79% of revenue, a record high.

Renesas: Performance keeps growing

Renesas’s revenue in the first quarter was 35.94 billion yen, a year-on-year increase of 3.8%, and its operating profit was 12.33 billion yen, a year-on-year increase of 23.5%.