Behind the suspension of the Renesas Electronics Factory, the 2019 in the semiconductor industry is hard to add.
Unclear trade prospects, slower smartphone sales, and data center construction boom will also cool, and the semiconductor industry is facing a difficult cycle.
According to the Nihon Keizai Shimbun, Japanese semiconductor company Renesas Electronics has announced that it will suspend the production lines of 13 factories at home and abroad for up to two months to achieve a target of nearly 10% reduction in production in 2018. The decrease was mainly due to the unexpected drop in shipments to mainland China and forced to cut production to clear inventory.
Renesas Electronics officially said that it is indeed considering the adoption of corresponding control measures, which will temporarily suspend production according to future demand. Specific measures include: temporary shutdown of the pre-process plant for up to two months, and post-process plants on a weekly basis for multiple shutdowns. Any specific number of days of temporary suspension will be determined based on future demand trends and customer-facing delivery.
Renesas Electronics is a new company formed by NEC Electronics and Renesas Technology in 2009. It mainly produces microcontrollers, analog power devices and SoC products. According to data released by Gartner, Renesas Electronics is the eleventh largest semiconductor company in the world by 2018.
Renesas Electronics discontinued production is only a microcosm of the semiconductor industry's dilemma, through the latest earnings reports of Samsung Electronics, SK Hynix, Intel, Texas Instruments, Qualcomm, NXP Semiconductors, Infineon and Renesas Electronics, eight major semiconductor manufacturers, eight companies Total net profit has continued to grow since 2016, reaching a peak of $25.4 billion in the third quarter of 2018, but decreased to $18.6 billion in the fourth quarter. Six companies except Qualcomm and Infineon are in a situation of falling profits or losses.
According to the World Semiconductor Trade Statistics Association (WSTS), the global semiconductor market grew by 14% year-on-year in 2018, to $468.8 billion. It is predicted that there will be a recession in 2019. According to data from consulting firm Gartner, the revenue growth of semiconductor industry in the whole industry in 2018 is 13.4%. It is estimated that the industry growth in the whole industry will be only 2.6% in 2019.
The memory chip has become the "culprit" of pulling the back leg. Gartner senior research director Deng Yajun explained that DRAM (dynamic random access chip, mainly used for computer and mobile phone memory), which accounts for about 22% of the market in the semiconductor market, has a market revenue of about $3 billion in 2018, and in 2019. It will fall by 21 billion US dollars.
Memory is a cyclical industry, and prices fluctuate cyclically as supply and demand change, and are currently in a down cycle. "From the past few quarters, the memory chip has a clear prosperity. Now it has not turned, but the growth rate has slowed down." Deng Yajun said.
Due to oversupply and memory prices continue to decline, the memory industry research report released by Jibang Technology Semiconductor Research Center shows that most of the transactions in the DRAM memory industry have been changed to monthly knots to shorten the trading cycle. Usually this happens only when the price of the commodity changes drastically. Deng Yajun expects that DRAM prices will fall by more than 20% in 2019.
These chips for smartphones, computers and servers account for the bulk of chip shipments and have pushed the semiconductor market to a new high. They have also helped Samsung Electronics to surpass Intel to become the largest semiconductor company, but in the economically cold environment, it has been hit. maximum. According to the fourth quarter of 2018 released by Samsung Electronics on January 31, 2019, its semiconductor division operating profit was 7.77 trillion won, accounting for 72% of total operating profit. However, Samsung Semiconductor's operating profit decreased by 28.7% and 43.1 respectively. %.
When the sales of computers and mobile phones, which account for the bulk of semiconductor usage, slow down, finding new growth points has become an important issue in the semiconductor industry. Automotive and industrial chips have become two important directions, both of which correspond to today's hot unmanned and IoT, accounting for 9% and 9.9% of the overall market share of the semiconductor market. "The car is getting smarter, who makes it smarter, is a semiconductor." Deng Yajun said.
Gartner predicts that by 2022, the industrial chip market share will reach 13.1%, automotive electronic chips will reach 11.9%, and the compound annual growth rate is 11.5% and 10.4%. In comparison, the compound annual growth rate for computers and smartphone chips is only 1.8% and 2.0%.