Search Results

Search Results

keyword


Sort by


Date Range

Resource Types


Research Fields


Filter by Keyword(s)




keyword:Forrest Chen7 result(s)

Press Releases
Shanghai and Kunshan Pandemic Lockdowns Clog Supply Chain Logistics, Exacerbates Component Mismatch in ODMs, Says TrendForce

2022/04/12

Semiconductors

Due to the explosion of the COVID-19 pandemic in China, Shanghai has adopted a rolling lockdown policy since March and Kunshan City, a major production hub for the electronics industry near Shanghai, has also felt the impact According to TrendForce, limited manpower and logistics and suspended transportation options mean neighboring OEMs and ODMs can only rely on onsite inventory to barely meet the needs of production lines, further exacerbating component mismatches Concurrently, a short-term surge in finished product shipments and demand for material replenishment after the various lockdowns are lifted may gridlock customs authorities, with delivery delays potentially lasting until the end of April before there is any chance for improvement TrendForce further indicates, starting from 4Q21, demand for consumer specification products, which account for the bulk of products sold by MLCC suppliers in Taiwan, Korea and China, weakened as customers continue to adjust their inventories Although ODMs currently predict the demand for consumer specification MLCC will recover month by month in 2Q22, emergency lockdowns caused by the pandemic are bound to impose delays on logistics Likewise, OEMs’ supply of key direct buy components will also be interrupted due to the Shanghai lockdown  Shortages of CPU, battery module, and panel materials will impact production lines because materials cannot be delivered to relevant factory warehouses, exacerbating ODM component mismatch issues On the other hand, the focus of downstream branded customers remains on low visibility and weak demand in the 2Q22 end market MCLL supplier production centers in China including those located in Tianjin, Suzhou, Wuxi, and Guangdong, have yet to be locked down but inter-provincial logistics and transportation have clearly felt the escalation of inspection and supervision since the end of March, resulting in prolonged transportation timetables However, the biggest problem for MLCC suppliers at this stage is they cannot deliver materials to Shanghai and Kunshan There are a number of large ODM plants at these two locations, such as Quanta Shanghai Manufacture City in the Songjiang District of Shanghai and the Compal, Wistron, and Pegatron campuses in Kunshan At present, ODMs’ average inventory level for consumer specification products sits at 3 to 4 weeks, which is sufficient to meet the needs of short-term production However, stocks of certain high-voltage automotive MLCC of 250V or higher specifications and high-end server MLCC size 0805/1206/1210 items may be in danger of depletion Looking to 2Q22, the lockdowns of Shenzhen, Dongguan, and Shanghai that began in March have hobbled China's manufacturing industry and sent it into a period of contraction In addition, the Russian-Ukrainian war and rising inflation continue to slow demand growth for mainstream consumer electronics, potentially risking recession With so many unfavorable factors, ODMs must still observe an easing of component mismatching before further considering MLCC stocking momentum after restrictions are lifted If the pandemic in China cannot be effectively brought under control in the short term, overall ODM inventories will continue to be maintained at a high level for approximately 1 to 15 months to prevent similar sudden lockdowns disrupting operations However, TrendForce believes that it will be difficult for MLCC suppliers to surmise the visibility of customers' real demand Once the purchase order situation reverses, they will be unable to respond quickly with capacity adjustments, thus becoming a primary focus of MLCC manufacturers’ risk management in 2Q22 For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Demand for Consumer Electronics Weak, Supply Chain Shortages Ease in 1H22, Says TrendForce

2022/04/12

Semiconductors / Consumer Electronics

According to TrendForce, the consumer electronics market will feel the brunt of the weakening stay-at-home economy, the pandemic in China, international tensions, and rising inflation in 1H22 Coupled with the traditional off-season, demand for relevant applications such as PCs, laptops, TVs, and smartphones has cooled significantly and downstream customers have successively downgraded their shipment targets for the year, while demand for automotive, Internet of Things, communications, and servers products remain good At the same time, the supply chain will build higher inventories in general to mitigate the risk of material shortages due to transportation impediments induced by the spread of the pandemic and the ongoing war between Russia and Ukraine 1 Foundries Due to the prolonged lead-time of semiconductor equipment and limited new capacity in 1Q22, the overall foundry capacity utilization rate remains fully loaded, in particular, component mismatch issues continue for parts produced at mature nodes (1Xnm~180nm) Looking forward to the second quarter, although growth in global wafer production capacity remains limited, due to weak demand for end products, continuing international tension, and China's forced lockdowns and supervision due to the recent spread of the pandemic, there is an opportunity for the supply chain to obtain a more adequate supply of wafers that were previously squeezed by production capacity 2 Servers The overall supply of key server materials improved slightly in 1Q22 In addition, due to increasing orders from ultra-large data centers, the general supply cycle of NetCom chips such as LAN IC/chip remains as long as approximately 40 weeks but the demand gap can be bridged by instituting urgent order fees, mitigating actual impact As the aforementioned situation eases, additional orders for ODM motherboard production are moving briskly, prompting continued stocking of FPGAs and PMICs materials NetCom chips are also overstocked and the overall market has a reached a "rich get richer" mindset Material shortages at second-tier ODMs still stifle the production of motherboards for a small number of customers but does not affect the overall server market supply With improvements in material supply, server shipments will increase significantly in 2Q22, growing an estimated 158% QoQ to 36 million units 3 Smartphones Affected by sluggish seasonal demand, the Russian-Ukrainian war, and rising inflation, market demand has cooled Thus, material delivery issues in the supply chain have eased compared to 2H21 Although there is still a shortage of certain components, most of these shortages are concentrated in mid/low-end smartphone products The lead time for 4G and low-end 5G SoCs is approximately 30 to 40 weeks, which is limited by production capacity planning Since last year, the demand of the mid/low-end mobile phone market has not been met This is followed by A+G sensors with a lead time of approximately 32~36 weeks and OLED DDIC and Touch IC with a lead time of 20~22 weeks The production volume of smartphones in 2Q22 will be affected by the interaction of the aforementioned factors with a forecast production volume of 323 million units, or only 6% QoQ, which is lower than the performance of previous years 4 Notebooks Also affected by weakening end market demand, discounting client SSDs that are no longer oversupplied, Type C IC, WiFi, and PMIC all currently boast long lead times, with Type C IC the lengthiest at 20~25 weeks However, compared with TrendForce’s assessment at the beginning of this year, the delivery cycle has not grown longer, so the lead time of these three types of products is expected to improve by the end of 2Q22 As supply chain backlog continues to improve, shipments of notebook computers (including Chromebooks) is expected to reach approximately 551 million units in 2Q22, down 07% QoQ 5 MLCC Passive Components From the perspective of other key components, taking MLCC as an example, demand for major consumer electronic products such as mobile phones, laptops, tablets, and TVs declined significantly in 1Q22, resulting in high consumer product specification MLCC inventory levels held by original suppliers and channel agents and this situation may continue into 2Q22 At present, the stocking momentum for automotive and industrial MLCCs has steadily increased, while consumer specification products have yet to escape the pattern of oversupply In 2Q22, the MLCC market has the opportunity to alleviate its component mismatch issues through gradually increased production capacity and automotive and server ICs supplied by semiconductor IDM companies, driving stocking momentum at automotive power, server, fast charging, and charging/energy storage equipment OEMs Vehicle and industrial MLCCs have the opportunity to become primary growth drivers in 2Q22 with Murata, TDK, Taiyu and Yageo as the primary beneficiaries Consumer specification products, which account for the bulk of MLCC production from suppliers in Taiwan, South Korea, and China, may face continued market demand weakness in 2Q22 due to a slowdown in demand for mobile phones and laptops and continuing inventory adjustment by branded companies and ODMs Looking forward to 2Q22, not including servers, demand for end products related to the consumer category remains weak Components that were originally oversupplied will face more severe price tests due to the imbalance between supply and demand In terms of materials in serious short supply, more output will be transferred to products with strong demand through the deployment of internal production capacity TrendForce believes that from the changes in PC market conditions, it can be seen in rapid changes in demand, purchasing behavior has quickly switched from the former over-ordering strategy to actively cutting orders, inducing supply chains to buck the seasonal trends of previous years Due to the accelerated recent spread of Omicron in China and under the country’s dynamic zero-COVID policy, mandatory and sudden lockdown and control measures may cause local manufacturers to face multiple and complex supply chain problems, which will be detrimental to market performance For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
As Pandemic Resurges, Certain Productions Lines Suspended at Murata Fukui Takefu but Yet to Affect Production or Shipping, Says Trendforce

2022/01/18

Semiconductors

The allocation of Murata's primary production hubs and production capacity is as follows: 56% in Japan, 36% in China, 3% in Singapore, and 5% in the Philippines, according to TrendForce’s investigations Recently, a cluster of employees at Murata's Fukui Takefu Plant tested positive for the COVID-19 virus Since production diversion management had been strengthened and anti-pandemic measures implemented in advance, only some categories of production capacity have been reduced or suspended and this incident has not halted production for the entire factory According to TrendForce, the Fukui Takefu Plant accounts for 207% of the company's production capacity, mainly producing high-end consumer MLCCs The current production reduction or suspension of some items will affect the supply of products such as servers and high-end smartphones Fortunately, Fukui Takefu still retains 4~ 6 weeks of inventory and this incident should not tighten market supply in the short term Decentralized production hubs and off-site backups are major issues for MLCC suppliers after the pandemic In addition, according to data released by the National Health Commission of the People’s Republic of China on January 17, the cumulative number of COVID-19 cases as of January 16 reached 163, including 80 in Tianjin and 9 in Guangdong, distributed among the production center of suppliers such as SEMCO, TAIYO, WALSIN, FENGHUA, and VIIYONG The current situation will once again test the operation and risk management of MLCC suppliers as they disperse production hubs and back each other in terms of production capacity  These plans have become an important 2-3 year strategy for MLCC suppliers It is worth noting that the recent pandemic outbreak in Tianjin, China is intensifying Samsung, which is located in the Tianjin Economic-Technological Development Area, is currently operating normally However, as the Winter Olympics opening ceremony draws near, China has stepped up its zero-COVID policy In order to avoid a situation in which employees are unable to return to the factory due to a positive COVID test in the area where they reside, some production line employees have been temporarily living in the factory Korean executives are also living in the factory to enhance response times to rapidly developing circumstances In addition, the Philippines, one of the major production centers of MLCC in Southeast Asia, has also experienced a sharp increase in the number of confirmed COVID-19 cases since January this year Murata and Samsung, who currently have factories in the region, have not reported the impact of the local pandemic and TrendForce will continue to monitor these two industry players moving forward For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Annual Automotive MLCC Demand for 2021 Expected to Reach 449 Billion Pcs, with Potential for Additional Growth Next Year, as Suppliers Compete Over Shares in Automotive Market, Says TrendForce

2021/11/08

Semiconductors

Various MLCC suppliers’ book-to-bill ratios as well as quarterly shipments for 4Q21 now show signs of decline, according to TrendForce’s latest investigations Not only has the demand for consumer electronics slowed, but ODMs’ clients have also eased their procurement activities due to issues including the global chip shortage, mismatched component availabilities, and China’s power rationing Demand in the automotive market, on the other hand, has remained strong since 3Q21 Automotive applications have therefore become an important point of focus in MLCC suppliers’ latest product planning and capacity expansion efforts Thanks to these in-demand applications, annual MLCC demand from the automotive market for 2021 is expected to reach 449 billion pcs, a 20% YoY increase TrendForce further indicates that the growth of the EV market and improvements in ADAS specifications have resulted in a twofold increase in automotive MLCC consumption While EVs’ electrified drivetrain and high safety requirements represent a high barrier to entry for MLCC suppliers, these hurdles have also in turn raised MLCC products’ ASP and profitability Hence, the automotive electronics industry has been increasing its annual MLCC demand by double-digits in recent years In particular, an analysis of different vehicles and their respective MLCC consumption reveals the following: a conventional EV requires 22 times the MLCC usage of a conventional gasoline vehicle, an ADAS-equipped EV requires 27 times, and an autonomous EV requires as much as 33 times Regarding MLCC suppliers, Japanese companies including Murata, TDK, and Taiyo Yuden continue to dominate the automotive MLCC market These suppliers will expand their production capacities for automotive applications in overseas facilities in China, Philippines, and Malaysia next year, with powertrains, ADAS, and connected systems being among the most significant of the aforementioned applications Korea-based Samsung, on the other hand, specializes in powertrain applications by leveraging its MLCC offerings’ small form factor, high capacitance, and high voltage Finally, Taiwanese suppliers, such as Yageo and Walsin, are actively invested in developing automotive products and High-Q products for RF applications in an effort to increase their presence in the infotainment system market and EV charging station market Looking ahead to 2022, TrendForce expects annual automotive MLCC demand to reach 562 billion pcs, a 25% YoY increase, primarily attributed to the continued electrification of vehicles While the global implementation of carbon-neutral policies and excellent sales performances of Tesla vehicles bring about widespread adoption of EVs, various countries have successively set concrete dates for the termination of gasoline vehicle sales Hence, EVs are gradually becoming not only the mainstream option in the automotive market, but also the primary driving force behind the future growth of the MLCC industry For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

Press Releases
Potential Worsening of Pandemic in the Philippines May Hinder Production and Shipment of Major MLCC Manufacturers Murata/Samsung, Says TrendForce

2021/08/05

Semiconductors

After Malaysia extended its MCO (movement control order) 30, the Filipino government also announced the implementation of ECQ (enhanced community quarantine) measures in Metro Manila until August 20 in response to the Delta variant’s rapid spread in Southeast Asia that began in July According to the August edition of TrendForce’s MLCC Market Bulletin, Japanese MLCC supplier Murata operates a manufacturing facility in Tanauan City, primarily for large-sized automotive MLCC (006 x 003 inches to 012 x 006 inches) production This facility manufactures capacitors that meet the auto industry’s requirements of high capacitance, high voltage, and high temperature tolerance, and its monthly automotive MLCC production capacity accounts for about 18% of the industry total As demand from the automotive market increases, Murata’s Tanauan-based facility is expected to maintain a high capacity utilization rate going forward Samsung likewise operates an MLCC manufacturing facility in the Philippines, albeit in Calamba City While the Calamba facility is primarily responsible for manufacturing normal MLCC (which are low-end and mid-range MLCC with standardized size/specs), its monthly normal MLCC production capacity accounts for 15% of the industry total and is second only to Samsung’s Tianjin-based facility As well, the Calamba facility operates at a capacity utilization rate of more than 90% TrendForce’s findings indicate that the aforementioned facilities are located approximately 67 km south of Manila and therefore do not fall under the ECQ order as yet The two facilities are operating and shipping as normal However, should the emergency implementation of ECQ in Metro Manila fail to contain the Delta variant, the pandemic would likely to make its way south, in turn affecting the two facilities Both Murata and Samsung are on high alert against such an eventuality On the other hand, given that Malaysia has yet to recover from the ongoing pandemic and lift its MCO 30 restrictions, Taiyo Yuden’s Malaysia-based MLCC manufacturing facility is operating at 80-85% capacity The resultant shortfall of high-end MLCC supply will likely make it difficult for ODMs to procure sufficient high-end MLCC in 3Q21 Various governments in Southeast Asia have implemented nationwide or regional lockdowns as well as movement control orders in order to curb the spread of the pandemic As such, MLCC suppliers including Taiyo Yuden, Murata, and Samsung, all of which have facilities located in Malaysia and the Philippines, are now confronted with an increasing risk of uncertainties regarding their production capacities and shipment schedules Looking ahead into the peak procurement period of 3Q21, TrendForce expects some ODMs to redirect their low-end and mid-range MLCC orders to Taiwanese suppliers such as Yageo and Walsin in the short run Recent reemergence of COVID-19 in China threatens the lifeblood of MLCC production Home to 55% of the world’s MLCC production bases, China has seen a reemergence of the pandemic in August in Nanjing and Zhangjiajie It should be pointed out that Murata and Yageo operate major MLCC manufacturing facilities in Wuxi and Suzhou, which, much like Nanjing, are also located in the province of Jiangsu Should the pandemic continue to worsen in China, the global supply of MLCC would undoubtedly sustain significant damage as a result Despite China’s aggressive efforts to contain the pandemic through comprehensive population testing and movement controls, the spread of the Delta variant still poses a global threat Therefore, aside from the current state of disease containment in Southeast Asia, how China manages its pandemic situation will become another vital point of observation for the MLCC market For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/

  • Page 1
  • 2 page(s)
  • 7 result(s)