[Core News] Infineon’s profits decrease, ON Semiconductor SiC platform supplies Xiaomi YU7 (2025-08-06)

1. Infineon: Steady growth in revenue, pressure on profits, focusing on automotive and AI power supplies

1. Q3 core performance of fiscal year 2025 (as of 2025-06-30)

• Revenue: 3.704 billion euros,Same year-on-year, +3% month-on-month
• profit: 668 million euros,Year-on-year - 9%, month-on-month + 11%
• Gross profit margin：40.9%，Year-on-year - 1.1pct, month-on-month + 0.5pct
• Segment profit margin：18.0%，Exceeded market expectations (15.6%)

2. Business structure and growth highlights

• Automotive Electronics (ATV): Revenue of 1.87 billion euros (50.5%),YoY + 1%; The profit margin is 19.8%, the highest among all departments.SiC MOSFET, automotive grade MCU, and power modules are the core growth engines.
• Green Industrial Power Supply (GIP): Revenues of €431 million,YoY + 8%;Profit margin 14.2%,Exceeded expectations.Benefit from industrial automation and new energy investments.
• Power and Sensing System (PSS): Revenues of €1.05 billion,YoY + 5%;Profit margin 18.8%,Significantly exceeded expectations (13.4%).AI data center power supply solutions have made outstanding contributions.
• Networked Security System (CSS): Revenues of €349 million,Year-on-year - 5%; Margin 11.2%, dragged down by weakness in consumer electronicsInfineon Technologies。

3. Full-year outlook and strategic priorities

• FY2025: Revenues of approximately 14.6 billion euros (Slightly lower than the same period last year); adjusted gross profit margin **≥40%; Profit rate17%-19%**。
• strategic move：
  • Acquired Marvell's automotive Ethernet business to strengthenSoftware defined carslayout.
  • OverweightAI data center power supply, aiming to achieve revenue of 1.5 billion euros in the 2026 fiscal year.
  • Promote the research and development of chips related to humanoid robots and lay out the next generation of intelligent hardware.

2. ON Semiconductor: EliteSiC M3e 800V platform is launched on Xiaomi YU7, SiC is accelerated on the road

1. Core cooperation: Xiaomi YU7 is equipped with ON Semiconductor EliteSiC M3e

• Technical solution: Xiaomi YU7 electric SUV adopts ON SemiconductorEliteSiC M3e 800V driver platform, the core is SiC MOSFET traction inverter.
• Performance advantages：
  • Low on-resistance: Industry leading,Power density increased by 30%+, the inverter size is reduced by 25%.
  • Efficiency improvement: Vehicle battery life **+5%-8%, charging speed+20%**。
  • cost optimization: Total system cost **-10%-15%**, helping to popularize 800V high-voltage platforms.
• Industry significance: ON Semiconductor SiC enters Xiaomi’s high-end models, logoSiC penetrates from high-end to mainstream models, Chinese new energy vehicle companies have become the core promoters of SiC technology implementation.

2. ON Semiconductor SiC strategy

• Capacity expansion: SiC production lines in the United States, Czech Republic, and China are at full capacity, and SiC revenue share in 2025Over 25%。
• Customer coverage: Has entered the supply chain of mainstream car companies such as Tesla, BYD, NIO, and Xiaomi,Top three in the world in terms of market share。

3. WSTS: Global semiconductor market recovers strongly, reaching US$728 billion in 2025

1. Market data for the first half of 2025

• Total scale: US$346 billion,Year-on-year + 18.9%
• quarterly performance: Q1 US$167 billion (+18.1%); Q2 US$180 billion (+19.6%),Accelerating from quarter to quarter
• category growth：
  • logic chip: +37% (AI driven)
  • memory chip: +20% (DDR4 price increase, HBM explosion)
  • sensor: +16% (automotive, industrial demand)
  • Analog/Micro Devices：+4%
  • Discrete/Optoelectronic Devices:-4%/-0.5% (Consumer Electronics Weakness)

2. Forecast for the whole year and next year

• 2025: US$728 billion,Year-on-year + 15.4%
• 2026: 800 billion US dollars,Year-on-year + 9.9%
• core driver: The three major fields of AI infrastructure, new energy vehicles, and industrial automation continue to grow rapidly.

4. Dramatic changes in the storage landscape: SK Hynix overtakes Samsung, HBM becomes the winner

1. Storage revenue comparison in 2025Q2

• SK hynix: 22.232 trillion won (approximately US$16.5 billion),YoY + 45%
• Samsung Electronics: 21.2 trillion won (approximately US$15.8 billion),YoY + 12%
• result：SK hynixSurpassed Samsung for the first time, becoming the world’s largest storage company

2. Core reason: HBM market share disparity

• SK hynix: HBM3E leads,Market share 62%, obtained exclusive/priority supply rights from AI giants such as NVIDIA, AMD, and AMD.
• Samsung: HBM3E has not been certified by NVIDIA.Market share is only 17%, was forced to reduce HBM's wafer production volume (from 70,000-80,000 wafers/month to 30,000-40,000 wafers/month).
• DDR4 inversion: Samsung cancels DDR4 production discontinuation plan and extends it to the end of 2026,Hedging HBM Trailing Loss。

5. Arm transformation: Official announcement of self-developed chips, IP licensing model changes

1. Major strategic shift

• Official announcement: Arm plans to invest in profitable R&DOwn chips and components, marking its transformation from pure IP licensing to IP + self-research two-wheel drive.
• market reaction: After-hours stock priceDropped 8.65%, investors are worried about the impact on its core IP licensing business.
• transformation logic：
  • Respond to RISC-V competition through self-developed chipsVerify IP performance and build ecological barriers。
  • Entering high-end markets such as AI and automobiles,Improve profitability(Although the gross profit margin of IP licensing is high, the revenue ceiling is obvious).
  • provide customers withIP + chip + softwareOne-stop solution to enhance customer stickiness.

6. Consumer electronics picks up: Q2 smartphone revenue exceeded US$100 billion for the first time

1. 2025Q2 market data

• total revenue：Breaking through $100 billion for the first time，YoY + 10%
• Both volume and price rise: Shipment volume + 5% year-on-year, average selling price (ASP) + 4.8% year-on-year
• Head pattern:Apple with13% revenue growth, 43% market shareRemaining at the top of the list; domestic brands such as Huawei, Xiaomi, and OV continue to increase their share in the mid-to-high-end market
• driving factors: U.S. tariff pressure has eased, demand for high-end models is strong, and iterations of AI mobile phone functions have driven a wave of phone replacements.

7. Summary of core trends in the industry

1. Reshaping the storage landscape: SK Hynix reaches the top with HBM, Samsung retreats to DDR4,HBM becomes the new moat in the storage industry。
2. Automotive SiC explosion: ON Semiconductor, Infineon, STMicroelectronics, etc. are accelerating the introduction of SiC,800V high voltage platform becomes mainstream, Chinese car companies lead the implementation of technology.
3. AI drives the entire industry chain: From logic chips, storage (HBM) to power management, investment in AI infrastructure continues to increase and has become the core engine of semiconductor growth.
4. IP model changes: Arm self-developed chips, the rise of RISC-V,Chip design ecology changes from closed to open and diverse。
5. Domestic substitution deepens: In the fields of simulation, power, storage and other fields, domestic manufacturers rely on their cost-effectiveness and localization advantages toShare continues to increase。