[Core Information] A quick overview of semiconductor industry trends in mid-May 2025 (5.8-5.9)

1. Microchip: Revenue declines but inventory improves significantly, industry cycle bottoms out

• Core Financials (FY2025 Q4, as of 3/31)
  • Revenue:$970 million, year-on-year - 26.8%, month-on-month - 5.4%
  • Net profit:GAAP net loss $157 million(Profit of $155 million in the same period last year)
  • Full fiscal year: revenue of $4.402 billion (-42.3% year-on-year), net loss of $2.7 million
• Key highlights: Inventory reduction has achieved remarkable results
  • Total inventory decrease$62.8 million
  • Distribution inventory days:33 days(QoQ - 4 days)
  • Balance Sheet Inventory Days: MoM - 15 Days
• management judgment: CEO Steve Sanghi believes this quarterThe industry down cycle has hit the bottom, with manufacturing optimization nearing completion, June quarter inventory willSignificantly reduced。

2. Infineon: Revenue fell slightly, orders were strong, and automotive business led the gains

• Core Financials (FY2025 Q2, as of 3/31)
  • Revenue:3.591 billion euros, year-on-year - 1%, month-on-month + 5%
  • Gross profit margin: 38.7% (year-on-year - 1.1pct, month-on-month - 0.5pct)
  • Profit: €601 million, year-on-year - 15%, quarter-on-quarter + 5%
  • Automotive Business: Revenue1.858 billion euros, +6% month-on-month, accounting for over 50% of total revenue
• Business Outlook
  • Order quantityNot slowing down, with a backlog of approximately 20 billion euros
  • Due to the uncertainty of tariff policy,Lowers Q4 revenue forecast for fiscal year 2025 by 10%, full-year revenue is expected to decline slightly

3. Storage market: Samsung officially announces price increase, establishing industry turning point

• Samsung News: Reached with major customers in early MayDRAM price increase agreement
  • DDR4：+20%；DDR5：+5%
  • SK Hynix has previously raised DRAM prices12%
• Price increase logic: Excess supply in 2024,Three major factories collectively reduce productionAfter the supply and demand reversed, the hot demand for AI server HBM exacerbated the shortage.

4. TSMC: AI-driven explosion, April revenue hits record high

• Revenue data (April 2025)
  • Single month:NT$349.567 billion, month-on-month +22.2%,Year-on-year + 48.1%
  • Cumulative (January to April): NT$1,188.821 billion,Year-on-year + 43.5%
• Main reasons for growth：AI chip (H100/MI300, etc.) orders are full, 3nm/5nm advanced process production capacity is fully loaded.

5. MLCC market: consumer electronics is weak and risks are rising during the peak season in the second half of the year

• TrendForce Alert：
  • North American education laptop ordersShipment to Q1 in advance, leading to Q2’s traditional peak season being dull
  • Dell, HP Education Notebook Q2 Pre-OrdersQuarterly reduction of 20%-25%
  • Industrial chainrisk aversion wait and see，Not busy in peak seasonRisks intensify
• Market differentiation：High-end MLCC for AI serversThe demand is strong,Consumer electronicsContinued downturn.

6. Yangjie Technology: 1 billion invested in building SiC automotive grade modules to accelerate import substitution

• Project Overview (Construction started on May 9)
  • Total investment:1 billion yuan, covering an area of 62 acres and a construction area of 112,000 square meters
  • Products:Automotive grade IGBT/SiC MOSFET power module(Third generation semiconductor)
  • Goal:Benchmarking international giants such as Infineon, to achieve import substitution
  • Benefits: Estimated after reaching productionAnnual sales of 1 billion yuan and tax revenue of 30 million yuan
    

Industry Summary and Trends

1. cycle differentiation：AI/High Performance ComputingField (TSMC, high-end MLCC, HBM)High prosperity；General MCU/Consumer Electronics(Microchip, ordinary MLCC)slow recovery。
2. storage inversion：Production reduction + AI demandDriving storage pricesStop falling and rebound, Samsung price increase confirmedIndustry upward turning point。
3. Domestic breakthrough：SiC / automotive grade power devicesinto domestic manufacturersKey breakthrough directions, accelerate high-end chipsDomestic substitution。