TV panel prices have reached relatively high levels after nearly two-quarters of increases. Brand customers face the dual pressures of weak demand and rising procurement costs, leading to early adjustments in their purchasing strategies. Third-quarter TV panel procurement has been revised down from the previous estimated 6-7% quarterly growth to near-flat levels. Fourth-quarter demand is also expected to decrease, requiring panel manufacturers to prepare for the off-season. Panel prices are anticipated to stabilize in late September.

Monitor panel demand surged in the second quarter, but third-quarter shipments are only expected to grow by 1~2%. As we approach the fourth quarter, brand customers will feel more pressure to adjust their demand. After a few months of slight price increases, monitor panel prices are expected to stabilize across the board in September.

Notebook panel demand peaked in August of the third quarter and is expected to dip slightly in September. However, overall third-quarter shipments are set to grow slightly compared to the second quarter. Some panel manufacturers aim to maintain price increases. With major brands increasing safety stock levels or working toward year-end goals, a marginal USD 0.1 increase in notebook panel prices is expected in September.

Report to Voice, After the release of the Huawei Mate 60 Pro, various components have begun to experience the long-lost sensation of surging demand, replenishment, and stockpiling. With the launch of the Apple iPhone 15, the once sluggish global consumer electronics market has suddenly come back to life. The current mindset among storage manufacturers is clear: regardless of whether there is a real or perceived shortage, the goal before the year-end is to raise prices until they are no longer incurring losses.

Leading storage giants have gone through a series of price drops, losses, and production reductions, and are now officially entering the “price hike” phase. Samsung, SK Hynix, Micron, and others have already expressed their intention to raise NAND Flash contract prices.

According to TrendForce latest price projection on NAND Flash, in response to persistent softening in demand, Samsung has taken a decisive step: a sweeping 50% production cut from September, with the focus mainly on processes under 128 layers. Other suppliers are also expected to follow suit and increase their production cutbacks in the fourth quarter to accelerate inventory reduction. With this maneuver in play, Q4 NAND Flash average prices are projected to either hold firm or witness a mild surge, possibly in the ballpark of 0~5%.

YMTC now is facing surging demand from both smartphone and module manufacturers. It is reported that the production capacity for the period up to 1H24 has already been fully booked, with PC and server manufacturers sharing the capacity, while module manufacturers may receive a smaller share.

The current NAND Flash market situation is such that trying to negotiate increased supply with NAND Flash manufacturers like Samsung, Micron, and YMTC may yield little new capacity, and accepting higher prices may be inevitable.

The sudden pre-sale launch of the Huawei Mate 60 Pro has undoubtedly acted as a major catalyst for the current smartphone market. Without it, many smartphone supply chain companies believed that the smartphone market wouldn’t recover until the second half of 2024, and the most pessimistic among them even doubted if it would improve by 2024. The release of the Huawei Mate 60 Pro and the Apple iPhone 15 has injected a long-awaited warmth into the global smartphone market, reinvigorating the entire smartphone component supply chain.

In recent times, the top-tier iPhone 15 Pro Max from Apple’s iPhone 15 series is expected to be available only in November, which some interpret as a sign of strong demand. However, it is more likely due to production bottlenecks, particularly related to technologies like CIS, which have resulted in limited shipments of the iPhone 15 Pro Max. Overall, the estimated shipment volume for the iPhone 15 series may still reach up to 80 million units.

Is this resurgence in smartphone demand a lasting trend with increased consumer willingness to upgrade, or is it a temporary phenomenon? Optimists and conservatives hold differing views, but what is certain is that the global smartphone shipment volume has entered a mature phase, with limited room for significant growth driven solely by new features. However, the storage capacity in each smartphone continues to increase, providing substantial opportunities for existing supply chain manufacturers.

While new opportunities like automotive and AI have emerged, there is still no demand in any new field that can entirely replace the massive smartphone market. Therefore, the consensus within the global tech industry is that for the economy to rebound, the consumer electronics sector, particularly smartphones, is indispensable at this stage. AI and electric vehicles alone cannot take the place of smartphones. (Image credit: YMTC)

(Source: https://mp.weixin.qq.com/s/cb0kRUpWU6MElLNh9CR9eA)

Report to InfoTimes, Chinese electric vehicle giant BYD is making impressive strides in Southeast Asia, not only leaving strong rivals like Tesla far behind but also dominating the market share in the region. Currently, in the local market, at least one out of every four electric vehicles is a BYD.

Industry analysts point out that BYD’s competitive advantage lies in its affordability and high value for money. Early on, the company partnered with large enterprises and conglomerates in Southeast Asia, adopting a distribution model to sell its vehicles. This approach allowed BYD to gradually expand its influence, understand the preferences of Southeast Asian car owners, and navigate the complex local regulations without running afoul of them.

According to TrendForce, in Q2, BEVs alone posted sales of 2.151 million units, marking 39.3% growth YoY. While Tesla maintains the lead with a market share of 21.7%, but BYD trails closely behind with a boosted share of 16.2%. In PHEVs, with the registering sales of 876,000 units in Q2—a striking 52.9% YoY increase. Astonishingly, about 66% of these sales hailed from the Chinese market. In this segment, BYD continued its lead with a whopping 36.5% market share.

In fact, this sales model is not something BYD pioneered. Japanese automakers employed a similar strategy decades ago when entering Southeast Asia. Collaborating with local businesses in a united front, as opposed to competing directly with Tesla, set BYD’s marketing approach apart.

Data reveals that BYD has forged partnerships with various Southeast Asian entities, including Sime Darby, a conglomerate with over a century of history in Malaysia and Singapore, Bakrie & Brothers in Indonesia, Ayala, a renowned conglomerate in the Philippines, and Rever Automotive in Thailand.

Automobile sales consultancy firm Urban Science believes that BYD’s collaboration with prominent local conglomerates helps establish a stable foothold before gaining fame. When Southeast Asian consumers have reservations about Chinese-made cars, knowing that well-known large corporations are involved should provide reassurance, particularly in terms of after-sales service.

Recently, BYD has invested nearly $500 million in building a new factory in Thailand. Starting in 2024, it aims to produce 150,000 electric vehicles annually and export them to various Southeast Asian and European countries. AC Motors, a subsidiary of the Philippines’ Ayala Group, plans to establish more than ten BYD service centers in the Philippines within the next 12 months.

AC Motors emphasizes that the initial focus of its operations is on building brand confidence and encouraging more people to consider buying electric vehicles. Some individuals may have concerns about running out of power with electric cars or find their prices too high.

Currently, Tesla has only opened two stores in Singapore, which caters to a higher-income demographic. However, Tesla is also actively recruiting in Thailand and Malaysia. Leveraging Elon Musk’s personal global influence, Tesla can operate directly toward consumers after leaving the United States, a strategy that sets it apart from other automakers.

To increase its visibility, BYD has partnered with Sime Darby Group to launch five BYD by 1826 centers in Singapore, combining car showrooms with delicious restaurants. This innovative approach aims to attract more people to discover the BYD brand through fine dining and, in turn, become part of BYD’s growing community of car owners. (Image credit: BYD)

(Source: https://www.chinatimes.com/cn/realtimenews/20230919001709-260410?chdtv)

According to a report from China Media Jiwei, there are recent rumors suggesting that the Chinese smartphone brand OPPO may restart its chip design business and has begun recruiting former employees from ZEKU. In response, OPPO stated that the company has terminated its ZEKU business and declined to provide further comments.

On May 12th of this year, OPPO announced that due to global economic uncertainties and a volatile smartphone market, the company needed to make strategic adjustments to address long-term challenges. Following a decision by the Executive Management Team, the ZEKU business was terminated. The company is committed to handling all related matters resulting from this business adjustment and will continue to create value through its products.

ZEKU issued a notice stating that the company and its wholly-owned subsidiaries and branches would be dissolved starting from May 12th. They would also legally terminate all labor contracts. Starting on May 19th, they began signing compensation agreements with employees, providing compensation of N+3, and consolidating all May salaries into a single monthly payment. Social insurance and housing fund for May were also processed.

It is worth noting that before the business termination, ZEKU had a workforce of over 3,000 employees, with 2,500 of them based in China. In terms of personnel scale, it was one of China’s top-tier chip design companies. Established four years ago, ZEKU attracted talent from well-known chip design enterprises such as Spreadtrum, Hisilicon, Qualcomm, as well as recruiting numerous talents from renowned domestic microelectronics institutions through campus recruitment efforts.

(Photo credit: OPPO)

According to a report by Taiwanese media TechNews, industry sources have indicated that Microsoft has recently reduced its orders for Nvidia’s H100 graphics cards. This move suggests that the demand for H100 graphics cards in the large-scale artificial intelligence computing market has tapered off, and the frenzy of orders from previous customers is no longer as prominent.

In this wave of artificial intelligence trends, the major purchasers of related AI servers come from large-scale cloud computing service providers. Regarding Microsoft’s reported reduction in orders for Nvidia’s H100 graphics cards, market experts point to a key factor being the usage of Microsoft’s AI collaboration tool, Microsoft 365 Copilot, which did not perform as expected.

Another critical factor affecting Microsoft’s decision to reduce orders for Nvidia’s H100 graphics cards is the usage statistics of ChatGPT. Since its launch in November 2022, this generative AI application has experienced explosive growth in usage and has been a pioneer in the current artificial intelligence trend. However, ChatGPT experienced a usage decline for the first time in June 2023.

Industry insiders have noted that the reduction in Microsoft’s H100 graphics card orders was predictable. In May, both server manufacturers and direct customers stated that they would have to wait for over six months to receive Nvidia’s H100 graphics cards. However, in August, Tesla announced the deployment of a cluster of ten thousand H100 graphics cards, meaning that even those who placed orders later were able to receive sufficient chips within a few months. This indicates that the demand for H100 graphics cards, including from customers like Microsoft, has already been met, signifying that the fervent demand observed several months ago has waned.

(Photo credit: Nvidia)