[Core Information] ON Semiconductor's financial report is higher than expected, and DDR5 gains flattened in the fourth quarter

1. ON Semiconductor’s Q3 revenue was -19.2% year-on-year, but its performance was better than expected

• Revenue:$1.76 billion, year-on-year - 19.2%
• Net profit:$401.7 million, year-on-year - 31%
• Gross profit margin:45.4%, year-on-year - 1.9pct
• The three major businesses (intelligent sensing, analog mixed signal, and power solutions) all declined year-on-year.
• Q4 Outlook: RevenueUS$1.71~1.81 billion, gross profit margin43.9%~45.9%

2. DDR5 price increases slowed down in the fourth quarter, and HBM is bullish in 2025

• Server DDR5 has continued to increase in price.Q4 growth will flatten
• Main reasons: Purchasing momentum weakened, channel inventory increased, and supply gradually improved.
• HBM is driven by AI,Prices clearly set to rise in 2025
• In the long term, the rise in DDR5 is expected to continue until 2025, and it will still maintain a price difference of 3~4 times with HBM.

3. Intel Chengdu packaging and testing base expansion, new server chip packaging and testing

• Started the expansion of Chengdu packaging and testing factory, adding newServer chip packaging and testing capacity
• EstablishCustomer Solution Center, strengthen local customized services
• Improve supply chain efficiency and response speed to support the implementation of digital transformation plans

4. TI Japan’s Aizu plant starts mass production of GaN power devices

• Aizu plant starts GaN production, supports900V and higher voltage resistance
• With the addition of Dallas production capacity in the United States, the total GaN production capacity has expanded to4 times
• Achieved 300mm GaN process, 2030 internal production rate target95%+

5. AMD’s Q3 revenue reached a record high of US$6.82 billion, and its stock price fell sharply after the market closed.

• revenue$6.82 billion, +18% year-on-year, slightly exceeding expectations
• Growth drivers: EPYC server processors, Instinct AI accelerator cards, Ryzen desktop processors
• Q4 outlook approx.$7.5 billion, slightly lower than market expectations
• The full-year forecast for AI chips is lower than the market’s optimistic expectations.Shares fell more than 7% after hours