Weekly News  043

 Contents:  

1. Around 7.97 billion display driver chips to be shipped globally in 2024, rising by 5.7%.

2. BYD and Li Auto report a bumper result, with an electric vehicle penetration of over 40%.

3. Demand for computers will improve quarterly with the growth of the computer revenue.

4. Robotics concept soars on new policy.

5. Vietnam eyes first semiconductor plant.

1. Around 7.97 billion display driver chips to be shipped globally in 2024, rising by 5.7%.

The display driver chip market experienced nearly six quarters of inventory adjustment, shocked by the depressed economy and demand. At present, the market is gradually restoring itself in the face of a bump in demand. Reportedly, IC design vendors are prudent to raise tape-out chips quarter by quarter from the second quarter of 2023 onwards.

Next year will see an about 7.8% supply-demand ratio and around 77.9% capacity utilization of high-voltage processes in major global foundries, which marks a relatively loose supply-demand relationship across the world. China’s mainland is set to witness roughly 7.1% of the OLED driver chip supply and demand ratio, tighter than the globe.

Comment:

As inventory levels of display driver IC design vendors are progressively declining, it is expected that industry inventories can shrink to normal levels in the first to second quarter of 2024. Prices of driver ICs are hitting bottom and are likely to stabilize by 24H2.

                                                                                                                                                                                                                                                                                                                                      

2. BYD and Li Auto report a bumper result, with an electric vehicle penetration of over 40%.

From October 16 to October 22, total Chinese passenger car sales were 397,000 units, of which 165,000 new energy vehicles were sold, with a penetration rate of 41.6%. Chinese carmakers performed well. BYD's monthly sales exceeded 300,000 units for the first time, with exports holding 10% of the total, while other new energy car companies hit new monthly delivery highs, including Li Auto, Xiaopeng, Leapmotor, Zeekrlife, Voyah, Immotors, and Avatr.

Driven by car companies as well as market demand, new energy vehicles incrementally scramble the market share from fuel vehicles. China’s new energy vehicle penetration rate which was just over 30% in the first six months of this year, has realized a single-week 40%, and a roughly single-month 37%.

Comment:

Noticeably, the proportion of battery vehicles is creeping up from about 47% in January to 55% in October and growing to dominate the vehicle market with the advancement of fast charging technology as well as charging pile infrastructure.

                                                                                                                                                                                                                                                                                                                                      

3. Demand for computers will improve quarterly with the growth of the computer revenue

In the computer industry, although plagued by the downward macroeconomy, the overall revenue still maintained year-on-year/quarter-on-quarter growth in the third quarter of 2023. However, by that time, Demand for computers was still in a weak recovery. The computer industry is expected to enter the upward demand cycle with the improvement of the macroeconomy in the future.

Comment:

The blessing of AI has evoked the market's passion for the computer industry. The PC market is likely to usher in a major replacement cycle due to AI PCs.

                                                                                                                                                                                                                                                                                                                                      

4. Robotics concept soars on new policy.

To promote the high-quality progress of the humanoid robot industry, the Chinese Ministry of Industry and Information Technology issued the Guidelines for the Innovative Development of Humanoid Robots, proposing, by 2025, the initial establishment of a humanoid robot innovation system, breakthroughs in robotic "brain, cerebellum, and limb" technologies, as well as safe and effective supply of critical components.

According to the International Association of Robotics predicts that from 2021 to 2030, the global humanoid robot market size will be as high as 71% at a compound annual growth rate, to reach 100 billion yuan.

Comment:

A humanoid robot consists of software + hardware. Its basic components cover special sensors, high-power density actuators, ASICs, as well as energy-efficient and special power components.

                                                                                                                                                                                                                                                                                                                                       

5. Vietnam eyes first semiconductor plant.

Vietnam already hosts U.S. giant Intel's (INTC.O) largest semiconductor packaging and testing plant worldwide and is home to several chip-designing software firms. It is working on a strategy to attract more semiconductor investment, including foundries like GlobalFoundries and TSMC. The Vietnamese government has said it was prone to build its first chip manufacturing plant by 2030, with chip companies benefiting from "some of the most preferential incentives in Vietnam."

Comment:

Vietnam is holding talks with chips companies with the aim of boosting investment in the country and possibly building its first chipmaking plant, or fab, two business executives said, despite warnings from U.S. industry officials about high costs.