Chip Spot Market Analysis — UniBetter June 2024 Edition

Published on: June 25, 2024

Hot-selling inventory for this period

BrandModel Number
ADIADM2582EBRWZ
ADIADM2587EBRWZ
ADIADM2687EBRIZ
TITMS320C6678ACYPA
TISN74AVC4T245RGYR
TITPS53515RVER
TITPS62170DSGR
TITPS2491DGSR
TISN74AVC4T245RGYR
XILINXXC6SLX9-3TQG144I
XILINXXCF32PVOG48C
XILINXXC2C256-7VQG100I
XILINXXC2C128-7CPG132I
NXPFS32K118LAT0MLFR
NXPMKE02Z64VLH4R
NXPMCIMX6D5EYM10AD
MICROCHIPATMEGA128A-AU
MICROCHIPATMEGA128-16AU
MICROCHIPAT90CAN128-16AU
INFINEONBTS50085-1TMA
INFINEONBTS50055-1TMA
ONKST2222AMTF
QORVOTQP7M9103

Manufacturer Updates

Texas Instruments Brand (TI)

In the first quarter financial report for the fiscal year of 2024, Texas Instruments (TI) brand saw a year-over-year decline of 14% in analog revenue, a 22% decrease in embedded processing revenue, and other departments experienced a 33% drop. The current decrease in demand from the industrial market has a direct and more pronounced impact on the revenue from embedded processors. TI’s main strategy at this stage is still to control the prices of non-critical models to regain market share, while critical models such as analog and embedded may still adopt a profit margin control. There may be difficulties in subsequent price applications. Customers are advised to place orders early.

SeriesCurrent Lead TimeLead Time Trend
PMIC(UCCx、TPSx、LMRx、TLx)6-8 WEEKSsignificantly shortened.
DSP(TMS320x)6-30 WEEKSThe lead time for a few models is relatively long, while overall it has been significantly reduced
Data Converters(DACx、ADCx、ADSx)6-12 WEEKSstable
MCU and Processors(MSP430x、SMx)6-16 WEEKSThe majority of models are available within 6 weeks
Logic ICs(SN74XX、SN54XX、CD4x、74Ax)6-12 WEEKSstable
SeriesCurrent Lead TimeLead Time Trend
Interface Isolation ICs(ADMx、ADUMx、ADGx)13-15 WEEKSbasically returned to normal
Amplifier ICs(ADA4x、ADLx、AD8x)12-31 WEEKSaverage reduction of 3-5 weeks
Linear Products(ADRx、LT10x、16x、66x、67x)15-28 WEEKSsigns of lengthening
MAXIM Products10-36 WEEKSRelatively shortened for some, while lead times for certain products have been extendeds

ADI Brand

According to ADI’s financial report for the second quarter of fiscal year 2024, revenue fell to $2.16 billion, with a gross margin decline of 11% compared to the same period last year, but it still remains at 54.7%. The industrial sector, which saw the most significant decline at 47%, remains the largest business line. The automotive sector, with a 30% share, increased by 8%, firmly holding the second position. Both the communications and consumer sectors are approximately at 11%. The manufacturer predicts that Q2 will be the bottom for the industrial sector, with growth starting in Q3. In the automotive chip sector, the connectivity and functional safety power departments continue to grow. The company’s wired and wireless businesses are impacted by inventory digestion and weak demand in the communications sector. Overall, inventory decreased by $74 million quarter-over-quarter, and inventory turnover days decreased from 201 days to 192 days. As planned, channel inventory was reduced by approximately $100 million in Q2, with the current turnover days at around 8 weeks. It is highly likely that Q3 will also focus on reducing channel inventory.

Xilinx Brand (XILINX)

XILINX brand’s end of this month marks the final deadline for the previously announced discontinued products’ last scheduled orders. Inquiries and orders for related products have shown a slight uptick but not significantly; mainly because this type of product does not constitute a high market share within Xilinx’s product series. However, based on the past practice that there will still be a large number of demand orders entering the system before the final cutoff delivery date, it is possible to focus on planning a few key models in advance. Currently, to make rational use of its existing production capacity, Xilinx tends to encourage customers to actively stock up; therefore, it is quite proactive in terms of price applications for projects and feedback on delivery times. The production capacity for most general materials has basically returned to normal.

SeriesCurrent Lead TimeLead Time Trend
FPGA 16nm AU\KU\VU(XCAU7P、KU5P、VU3P)12-35 WEEKSreturning to normal
FPGA 20nm KU\VU(XCKU035、065)12-48 WEEKSmost still require a 40-week lead time
FPGA 28nm 7 Series(XC7S\7A\7K\7V)12-30 WEEKSreturning to normal
FPGA 45nm 6S Series(XC6S)17-50 WEEKSsome models have eased
SoC(XC7Z\ZU)20-48 WEEKSbasically returned to normal
SeriesCurrent Lead TimeLead Time Trend
Traditional 16-bit MCU(S912x)13-25 WEEKSfurther shortened
Traditional 32-bit MCU(MK64x、MK70x)13-54 WEEKSunstable lead times
General-purpose MCU(LPC17x)13-50 WEEKSfurther shortened
Automotive MCU(MP5x、FS32x、MCFx)36-54 WEEKSno significant change
Interface ICs(TJAx)12-16 WEEKSbasically returned to normal

NXP Brand (NXP)

NXP brand is currently focusing its efforts on the automotive sector, with production capacity also being directed towards this area. Recently, NXP officially launched the world’s first 5nm automotive MCU, the S32N55, designed for applications in vehicle body, chassis, and automotive gateway domains. High integration and high computational power of MCUs represent the future development trend. Products outside the automotive field may face potential declines in product and service quality or even discontinuation. Delivery cycles for 8/16/32-bit and DSP products have improved, but there are still a few automotive and industrial MCUs that are restricted.

SeriesCurrent Lead TimeLead Time Trend
8-bit MCU(PIC16x、AT89x、ATMEGA25x)6-12 WEEKSbasically normal
16-bit MCU(PIC24x、DSPIC3x)6-12 WEEKSLead times shortened for some items
32-bit MCU(ATSAMA5x、PIC32x)4-18 WEEKSExtended lead times for a few models
Ethernet Switch ICs(KSZ9x、LAN8x)4-24 WEEKSlead times shortened
Interface ICs(MCP2x)4-24 WEEKSlead times shortened
EEPROM(AT24x、24LCx)4-24 WEEKSlead times shortened

Microchip Brand (MICROCHIP)

Microchip brand’s revenue forecast for the second quarter is lower than market expectations, stemming from the current inventory adjustment phase in the automotive chip market, where customer purchasing power is weak. The excess inventory, accumulated due to previous overestimation of demand, still requires a considerable amount of time to be absorbed. The current inventory level has relatively bottomed out, and a positive growth in revenue is expected in the third quarter. The chip markets for the currently booming sectors such as automotive, AI, and new energy may be the main focus of its production capacity.

SeriesCurrent Lead TimeLead Time Trend
32-bit MCU(STM32F0、F1、L)10-12 WEEKSLead time shortened
32-bit MCU(STM32F2、F4、F7、H7)12-18 WEEKSLead time shortened
Discrete Components(STP、STW)12-26 WEEKSRelatively shortened lead time
Analog Components(VND、VNS、VNH)20-26 WEEKSLead time remains unchanged
Linear Products(LDO、LDC、ST)8-16 WEEKSLead time shortened

ST Brand

For Q1 2024, ST reported net revenue of $3.47 billion, with a gross margin of 41.7%. The operating profit margin was 15.9%, and net profit was $513 million. ST adjusted its full-year revenue target for 2024 to be in the range of $14 billion to $15 billion. The business outlook for Q2 forecasts net revenue of $3.2 billion, with a gross margin remaining around 40%. Q1 net revenue decreased by 18.4% year-over-year, and net profit declined by 50.9% year-over-year, mainly due to the slowing growth in demand for automotive semiconductors, which has entered a deceleration phase.Regarding lead times: the lead time for the 8/16-bit MCU product line has significantly shortened to around 10 weeks, while the lead time for automotive-related MCUs has not shown significant changes, still ranging between 32-40 weeks.

Storage Devices

Storage devices are seeing the original manufacturers’ production capacity continuously inclined towards the server market, actively meeting the stock preparation needs of AI servers. The price increase trend for storage in the second half of the year will mainly evolve around the development of AI. The three major original manufacturers are continuing the price increase atmosphere from the 2023 Q4 contracts, coupled with the fact that inventory is still at a healthy level, indicating a strong willingness to raise prices. Intel, AMD, Qualcomm, Microsoft, and their OEM partners are vigorously promoting the prospects of AI PCs in consumer marketing, and the DRAM market is recovering from the slump of 2023. The introduction of HBM3e this year, along with the introduction of NVIDIA’s Blackwell GPU and AMD’s Instinct MI325X GPU, which will integrate new standards, will enhance the performance of artificial intelligence and help with infrastructure upgrades and net new purchases. The strong demand for HBM has made supply scarce, and the production capacity of Micron and SK Hynix will be fully booked for 2024. The CEO of Micron stated that the vast majority of the supply for 2025 has already been allocated.

Market Trends

ADI Brand

For linear products such as LT, due to the stability in lead time and pricing, the market price is currently quite firm, making it difficult to negotiate. The market inventory level continues to decline. Some power module products, such as LTM4620, are experiencing tight lead times and market price increases. The original manufacturer is in an allocated state, while products with traditionally long lead times like HMC are currently in low demand, with limited market supply, and prices are relatively stable. Due to the long lead times and fewer production lines, the original manufacturer’s willingness to offer discounts is also minimal, so the market remains stable. There is some improvement in demand, focusing on materials such as transceivers and isolators.

TI Brand

The current inventory levels at TI’s market and among its distributors are relatively high, and they are still in the process of clearing inventory. In the short term, TI’s prices are expected to continue to decline. However, as the original manufacturer tightens its pricing, TI’s prices should stabilize soon. Overall demand for TI is gradually picking up, and with the support of current prices, customers’ willingness to purchase is higher than before. Therefore, TI is likely experiencing a slow growth trend at present.

MICROCHIP Brand

Starting this month, the number of inverted models for MICROCHIP has been gradually increasing, especially for some low-end MCU products. The market price for MICROCHIP is expected to face a period of price reduction in the future. The current prices at distributors are still relatively firm. It will depend on how well they coordinate with the distributors in the coming period. If the firm prices are maintained, market inventory may become the mainstream direction for transactions in the foreseeable future.

NXP Brand

The market inventory remains at a high level, with distributors holding large quantities of stock. The most abundant in inventory are interface-type chips, which are also facing a more severe situation of price inversion; it will take a longer period to address the pressure of destocking. The willingness of customers to purchase PPV (Plan Purchase Volume) is not high, and it is likely that the inverted models in the market will become the mainstream for customers to reduce costs in the coming period.

ST Brands

Popular products like the 32-bit F4 series have seen a slight decrease in popularity compared to the first quarter, with the market inventory remaining relatively stable throughout the second quarter. Demand in the industrial and consumer categories continues to be lukewarm, with the overall trend for general-purpose MCU materials showing a move towards destocking. In contrast, discrete components or linear products have experienced a price increase due to their relatively low inventory, which correlates positively with the growth in actual demand.

Storage Products

The spot memory market is facing numerous challenges as it enters the traditional off-season. Although upstream manufacturers continue to raise prices, there is a polarization between the upstream and downstream markets. The upward momentum of NAND flash and DRAM since last Q3 has encountered obstacles due to the off-season, with high spot inventory levels. Quotes need to be significantly lower than market prices to potentially gain customer favor. However, HBM (High Bandwidth Memory) is still in short supply and demand.

In the next phase, the expansion of HBM production may encroach on the general DRAM market, potentially causing a shortage of general DRAM during the peak season. Manufacturers are increasing prices with the intention of boosting market share, especially for DDR5. But once the current balance is disrupted, there is a higher possibility that some DRAM models may increase in price in the second half of the year. Customers may consider buying inventory at the current lower levels.

Customer Trends

New Energy Vehicle Sector:

The demand in the European and American markets is sluggish, coupled with high chip inventories and a slowdown in growth. Innovations in electric vehicles (EVs) have increased the demand for products such as Battery Management Systems (BMS), powertrain control systems, and Advanced Driver-Assistance Systems (ADAS), mainly power devices and power management chips. In the future, autonomous driving will require a large number of computing chips, vision chips, radar, storage, and control-related chips.

Artificial Intelligence:

The trend of artificial intelligence and machine learning technologies in data centers, autonomous driving vehicles, and cloud computing will also impact the demand for specialized hardware accelerators, processors (CPUs), and AI chips.

Consumer Sector:

Smartphones and PCs are entering a cyclical renewal phase, showing signs of recovery and an optimistic outlook.

Medical Sector:

Continuous innovation and development have created a stable demand for medical electronic products such as healthcare IT infrastructure, wearable health sensors, and medical imaging equipment.

Aerospace Sector:

The market size will maintain high growth, with increased investment in technology and innovation to improve operational efficiency and address sustainable development issues.

Summary

The AI wave has led to increasing demands for power consumption and speed of computing and storage chips in smartphones, PCs, and other intelligent devices, as well as in smart homes and autonomous vehicles. The general energy market also continues to accelerate, including applications in photovoltaics, energy storage, and digital power supplies; these market sectors can be continuously monitored. In addition, traditional areas such as personal PCs, industrial PCs, mobile phones, and the communications industry will maintain a stable growth rate even if they no longer experience explosive development, which are also areas that require ongoing attention.


The above is the monthly spot market analysis report from UniBetter. We hope that this practical summary and analysis of the chip spot market can bring you some help and value.

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