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HJPC Technology Market Dynamics - May

2024-06-11

Hot-Selling Inventory - May


BrandModel
ADIADM2582EBRWZ
ADIADM2587EBRWZ
ADIADG704BRMZ
TITMS320C6678ACYPA
TITPS40210DGQR
TITS5A3159DCKR
TITPS2491DGSR
TISN74AVC4T245RGYR
XILINXXCF08PVOG48C
XILINXXCF32PVOG48C
XILINXXC2C256-7VQG100I
NXPFS32K118LAT0MLFR
NXPMKE02Z64VLH4R
NXPMCIMX6D5EYM10AD
MICROCHIPATMEGA128A-AU
MICROCHIPATMEGA128-16AU
MICROCHIPAT90CAN128-16AU
INFINEONBTS50085-1TMA
INFINEONBTS50055-1TMA
ONFDG6332C
ONHGTD1N120BNS9A
QORVOTQP7M9103
TYCO1-1469492-9


Original Factory Updates


Texas Instruments (TI)

In TI's FY2024 Q1 financial report, revenue from analog devices dropped by 14% year-over-year, embedded processors by 22%, and other departments by 33%. The decline in the industrial device market is notably impacting embedded processor revenue. TI's current strategy is to control prices for non-critical models to regain market share, while critical models like analog and embedded devices will maintain profit margin control, making discount applications challenging.

SeriesCurrent Lead TimeLead Time Trend
PMIC (UCCx, TPSx, LMRx, TLx)6-8 weeksSignificantly shortened
DSP (TMS320x)6-30 weeksMost models have significantly shortened lead times
Data Converters (DACx, ADCx, ADSx)6-12 weeksStable
MCU and Processors (MSP430x, SMx)6-16 weeksMost models return to 6 weeks
Logic IC (SN74XX, SN54XX, CD4x, 74Ax)6-12 weeksStable


Analog Devices Inc. (ADI)

Starting April 30, 2024, ADI stopped approving ARROW's new demand for ADI brand devices, effective May 26. This change indicates a trend where large companies prefer distributors to handle order processing and logistics, while critical demand acquisition and key customer follow-ups are managed directly by the manufacturer. ADI's move to direct sales, following TI, aims to enhance operational efficiency and profit margins, better aligning with market demands for long-term growth.

In FY2024 Q2, ADI's revenue fell to $2.16 billion, with a gross margin decrease of 11% year-over-year to 54.7%. The industrial sector gross margin dropped the most to 47%, remaining the largest business line, while automotive gross margin increased by 8% to 30%, maintaining the second position.


SeriesCurrent Lead TimeLead Time Trend
Interface Isolation IC (ADMx, ADUMx, ADGx)13-15 weeksReturning to normal
Amplifier IC (ADA4x, ADLx, AD8x)12-31 weeksAverage reduction of 3-5 weeks
Linear Products (ADRx, LT10x, 16x, 66x, 67x)15-28 weeksShowing signs of lengthening
MAXIM Products10-36 weeksRelatively shortened, some products' lead times extended


XILINX

Since announcing the planned discontinuation of some older products last December, XILINX's orders have slightly increased. Customers are not yet in a hurry to place orders, given the remaining time before the cutoff. XILINX encourages customers to stock up, with proactive discount price applications and lead time reductions. Most general-purpose materials' production capacity has returned to normal.


SeriesLead TimeLead Time Trend
FPGA 16nm AU/KU/VU (XCAU7P, KU5P, VU3P)12-35 weeksReturning to normal
FPGA 20nm KU/VU (XCKU035, 065)12-48 weeksMost still require 40 weeks lead time
FPGA 28nm 7 Series (XC7S/7A/7K/7V)12-30 weeksReturning to normal
FPGA 45nm 6S Series (XC6S)17-50 weeksSome models' lead times have eased
SoC (XC7Z/ZU)20-48 weeksMostly returning to normal


NXP

NXP is focusing on the automotive sector, with production capacity leaning in that direction. Recently, they launched the world's first 5nm automotive MCU, S32N55, for body, chassis, and gateway applications. High integration and computational power in MCUs are the future trend. Non-automotive products may face quality declines or discontinuation. Delivery cycles for 8/16/32-bit MCUs and DSPs have improved, but some automotive and industrial MCUs remain restricted.


SeriesLead TimeLead Time Trend
Traditional 16-bit MCU (S912x)13-25 weeksFurther shortened
Traditional 32-bit MCU (MK64x, MK70x)18-54 weeksUnstable lead time
General-purpose MCU (LPC17x)13-50 weeksFurther shortened
Automotive MCU (MP5x, FS32x, MCFx)36-54 weeksNo significant change
Interface IC (TJAx)12-16 weeksReturning to normal


Microchip

Microchip's Q2 revenue forecast is below market expectations due to the automotive chip market still adjusting inventory levels. The excess inventory from previous overestimations requires a longer period to clear, with positive revenue growth expected in Q3. High demand in automotive, AI, and new energy sectors occupy most of their production capacity. Microchip acquired VSI and Neuronix AI Labs in April to expand their automotive and AI market presence.


SeriesLead TimeLead Time Trend
8-bit MCU (PIC16x, AT89x, ATMEGA25x)6-12 weeksGenerally normal
16-bit MCU (PIC24x, DSPIC3x)6-30 weeksSome models' lead times significantly shortened
32-bit MCU (ATSAMA5x, PIC32x)4-14 weeksMost lead times shortened, some remain long
Ethernet Switch IC (KSZ9x, LAN8x)4-24 weeksLead times shortened
Interface IC (MCP2x)4-24 weeksLead times shortened
EEPROM (AT24x, 24LCx)4-24 weeksLead times shortened


Customer TrendsHot Topics: Inventory Reduction, Cost Reduction, Low Immediate Demand


New Energy Vehicles: 

Most switch to non-automotive-grade models for cost considerations, reducing demand for automotive-grade models, leading to excess inventory. Automotive electronics demand for power devices and power management chips grows with vehicle intelligence and electrification. Future autonomous driving will require many computing chips, vision chips, radars, memory, and control-related chips.

Communications, Industrial, Medical, Consumer Sectors: 

Currently in slow recovery, with demand growth under 10%. Some industries show negligible changes with no significant growth expectations yet.

HJPC Technology is a global, hybrid, Franchise/Full Service Distributor of electronic components and peripherals. As a hybrid distributor, we not only have a diverse range of Franchise lines, but we are also one of the world's largest top-quality open market FACTORY ORIGINAL suppliers of Electronic Components and Peripherals.
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