[Core News] The financial reports of the two major MCU original manufacturers fell, and Samsung reported that it would stop production of HBM2E (2025.4.28)

1. Q1 financial reports of the two major MCU giants: weak automotive/industrial demand, profits plummeted

1. STMicroelectronics (ST): Net profit shrank by nearly 90%

• Core Finance (2025 Q1)
  • Revenue:$2.517 billion，Year-on-year - 27.3%, month-on-month - 24.2%
  • Gross profit margin:33.4%, year-on-year - 8.3pct, month-on-month - 4.3pct
  • Net profit:$56 million，Year-on-year - 88.9%, month-on-month - 83.8%(Close to the waist and then cut in half)
  • Operating profit is only$3 million, a year-on-year plunge of 99.5%
• Business and reason
  • Automotive, industrial businessRevenue significantly lower than expected(main reason)
  • Personal electronics incomesmall increase, but it is difficult to offset the decline
  • Deterioration of product mix, insufficient capacity utilization, and falling selling prices have dragged down gross profit margins
• Outlook
  • Q2 revenue guidance$2.71 billion(month-on-month + 7.7%), year-on-year still **-16.2%**
  • 2025 Capital ExpenditureUS$2.0-2.3 billion, focusing on the reshaping of manufacturing layout

2. Renesas Electronics: Net profit fell 31% year-on-year

• Core Financials (FY2025 Q1)
  • Revenue:308.8 billion yen，Year-on-year - 12.2%, month-on-month + 5.5%
  • Gross profit margin:56.7%, year-on-year + 0.1pct, month-on-month + 1.9pct (stable performance)
  • Net profit:73.3 billion yen，Year-on-year - 30.8%(a decrease of 32.6 billion yen)
• Business dismantling
  • Automobile business (accounting for 50%+):155.3 billion yen, year-on-year - 12.8%(MCU/SoC demand weakens)
  • Industrial/Infrastructure/IoT:150.8 billion yen, year-on-year - 12.1%(Operating profit - 42.3%)
• Outlook
  • Q2 revenue302 billion yen(month-on-month - 2%), first half610.8 billion yen
  • worryUS tariffsAffected, full-year sales forecast has been lowered5%

2. Storage: Samsung has made a major strategic shift, discontinued production of HBM2E, and is fully betting on the new generation.

• Dynamic:Samsung willPhased out of production HBM2E(has entered the final procurement period), simultaneously reducing production of HBM3;Comprehensive focus on HBM3E and HBM4

  
• core reasons
  1. Technology is backward: HBM competitivenessWeaker than SK Hynix and Micron, urgent need for technology iteration
  2. Resource concentration: Invest production capacity/R&D intoHigh gross profit HBM3E, HBM4(AI computing power is just needed)
  3. China competition：Changxin StorageDDR5 mass production, low price competition, HBM2E profits are squeezed
• HBM progress
  • HBM3E: Sample has been sentNVIDIAWaiting for customers,Mass production is expected in Q2
  • HBM4：Mass production in the second half of 2025, bandwidth2TB/s(+66% compared to HBM3E)

3. Intel: Q1 revenue remains flat, net loss doubles, foundry and AI become bright spots

• Core Finance (2025 Q1)
  • Revenue:$12.7 billion，Same as last year
  • Gross profit margin:36.9%, year-on-year - 4.1pct
  • Net loss:$800 million，115% year-on-year expansion(Loss of 400 million last year)
• Business Highlights and Weaknesses
  • ✅ Data Center and AI (DCAI): US$4.126 billion,YoY + 8%(The only growth engine)
  • ✅ Foundry Services (IFS): US$4.667 billion,YoY + 7%(Microsoft, Amazon 18A orders implemented)
  • ❌ Client Computing (CCG): US$7.629 billion,Year-on-year - 8%(PC demand is sluggish)
• Outlook
  • Q2 revenueUS$11.2-12.4 billion, promoted by CEO Chen LiwuLayoffs, streamlined structureCost reduction

4. Terminal market: China’s smartphone Q1 +5% year-on-year, Xiaomi returns to first place

• Data (Canalys)
  • Total shipments:70.9 million units，YoY + 5%(State subsidies + consumption recovery)
  • Ranking:
    1. Xiaomi:13.3 million units (+40%），19% share, first in ten years
    2. Huawei: 13 million units (double-digit growth), 18% share
    3. OPPO, vivo, Apple (-8%) ranked 3-5

5. Technology and domestic production: ST acquires edge AI companies to strengthen MCU+AI

• STMicroelectronics acquires Deeplite(Edge AI model optimization)
  • Core technology:AI model compression, quantification, and automated optimization, significantly reducing MCU/NPU computing power requirements
  • Strategy: ComplementAI software shortcomings, integrated with STM32 MCU/NPU to createEdge AI full-stack solution
  • Planning:10 models launched before 2026Integrated with Deeplite technologyAI MCU

6. Industry Summary and Key Trends

1. MCU/Automotive Chip Cycle Bottom: STMicroelectronics and Renesas' performance plummeted,Automotive/industrial destocking deepens, short-term pressure
2. Dramatic changes in storage landscape：SamsungRetiring the old model HBM, sprinting all out for AI high-end storage,HBM3E/HBM4 becomes the main battlefield
3. Intel's transformation pains: PC is weak and losses are widening, butOEM + AI businessBecome a pillar of growth
4. terminal recovery differentiation: China’s mobile phones are recovering moderately,Xiaomi rebounds strongly;PC/industrial electronics still sluggish
5. Edge AI acceleration: ST acquires Deeplite,MCU+AIBecome standard configuration to enhance product added value