Industry News

The price rise of large analog chip manufacturers in the United States has affected industries, automobiles and other fields

Update time : 2022-08-31 11:44:58

Although it was recently reported that ADI would increase the price of the whole line of products, however, ADI also mentioned that economic uncertainty began to affect the booking of products. This makes the market's sentiment towards chip stocks turn pessimistic again. Since late August, the share prices of US stocks and A-share chip stocks have fallen one after another.

According to foreign media reports, the US analog chip giant ADI issued a price adjustment letter to its dealers, saying that "due to the impact of inflation on the supply chain in the past year, although we tried our best to reduce the impact on end customers and did not raise the price, now we must raise the price of some models of chip products to maintain our gross profit rate." ADI stressed that the price increase is not to expand the profit margin.
In addition, according to the price increase letter from the industry, ADI will increase the price of the whole line of products, including new orders and existing reservation demand, but it has not disclosed the specific increase. The price increase will be implemented from September 25, 2022.
From the outside, although ADI stressed that the price increase was not to expand the profit margin. However, this move still makes the market link the signals disclosed in the company's third quarter report released a few days ago. The company's revenue and earnings per share in the third quarter exceeded market expectations, and the revenue of industry, automobile and communication reached a new high.
After all, compared with chip manufacturers closely related to consumers such as micron technology and NVIDIA, ADI mainly produces high-end analog chips that can be used for heat source management and thermal control, and its target markets are mainly industrial and automotive fields. This can avoid the impact to a certain extent under the current weak demand of consumer electronic terminal market.
As we all know, in recent years, adenault has focused on automobile and industrial business. In 2021, adeno purchased maxim, its competitor and the world's seventh largest analog chip company, for us $28 billion. After the merger of the two companies, adenault will be close to the leading Texas Instruments in terms of revenue scale and market share. Therefore, ADI is the US chip stock that received high attention in the year, and before its financial report was released, it was the only large cap stock that realized positive returns in the Philadelphia Semiconductor Index this year.
It is reported that ADI's revenue in the third quarter increased by 77% year-on-year, exceeding US $3 billion for the first time; Adjusted earnings per share increased by 47%, reaching a record high of $2.52, both exceeding analysts' previous estimates. However, ADI also admitted that economic uncertainty began to affect product reservation; ADI's order volume "slowed down" at the end of the second quarter, and the order cancellation volume increased slightly.
After all, there are also reports that the market price of ADI is still declining in general in the near future, and a large number of goods have arrived at the agent end and the client end, resulting in many materials gradually tending to the market price level before the shortage. Even though the overall spot price is still at a high level, the acceptance of customers has been greatly reduced. For example, ad7606bstz, the spot price target of some customers has been set below $7. But even so, ADI is still brewing a new round of price rises.
It is reported that in the past two years, the price of ADI has been strong. However, since April this year, the demand has continued to cool. In May, the demand for hot materials such as adum, ADG, Ad7 and ad8 was strong, but the price of some power management ICs of LTC fell. In June, the drop in demand was more obvious.
Therefore, as ADI expressed its concern about the company's business prospects, the share price of ADI has dropped by more than 10% compared with the peak of the year just set in mid August. In addition, the pessimism of market investors towards chip stocks seems to have further intensified. Since late August, US semiconductor stocks such as Intel, NVIDIA and micron technologies have fallen one after another.
In addition, A-share semiconductor stocks have also fallen since late August. To be exact, it staged a "roller coaster" market in August. In the first ten days of August, individual stocks in the semiconductor industry rose significantly, and the wind chip index rose by more than 12% in the month. However, in the second ten days of August, individual stocks generally retreated.
In any case, for the rebound of semiconductor stocks in early August, some analysts believe that the valuation repair may be the main reason. From the perspective of industrial prosperity, the cyclical inflection point of the semiconductor industry may appear next year. From the perspective of segmented industries, although the valuation of semiconductor equipment and materials sector fell sharply at the beginning of the year due to the impact of the US interest rate increase and the conflict between Russia and Ukraine, the performance still maintained a high growth performance. In the next stage, supported by the triple multiplier effect of accelerated expansion of domestic wafer factories, increased localization rate of equipment and materials, and increased consumption of equipment and materials brought by new technologies, this sector is expected to usher in a three to five-year high performance business cycle.

Previous : The shortage of low-end chips is disrupting the supply chain

Next : JEDEC and CXL Consortium Officially Announce Collaboration