According to Taiwan media reports, although the revenue of MCU manufacturers in Taiwan Province of China increased in May, the market situation seems to in a slump, and the support brought by 618(a shopping festival) consumption may be limited. At present, manufacturers are still cleaning up inventory, and customers have basic inventory replenishment needs, however, if the firm want more orders, it only have a small window for this. Intra-industry believes that the process of inventory de-stocking may be deferred to the fourth quarter or even the first quarter of next year.
Customers replenish inventory, long-standing customers are rare.
According to MoneyDJ, the second quarter is the traditional MCU peak season, and some application demands are warming up. From the revenue of Taiwanese manufacturers in May alone, HOLTEK, NUVOTON, SONIX, ENE Technology, HYCON, GENERALPLUS, PADAUK, etc. all pay monthly increase performance, depending on the inventory status of individual customers. However, the MCU market is still in the red, and the previously expected 618 consumption seasons may be difficult to expect.
Some people consider that because of the low price, customers have basic inventory replenishment needs, but long-standing customers are rare. As for June, because the goods have been pulled in April and May, and the consumption strength of 618 is difficult to expect, so it is still not optimistic in the short term, and this passivity will continue to the second half of the year.
On the demand side, there is a gradual warming trend, but the growth rate is not obvious. Therefore, the process of inventory de-stocking may be postponed until the fourth quarter, or even the first quarter of next year, will be more hopeful, but the price side will remain generally stable, depending on the negotiation between individual products and customers. In terms of price, MCU price didn’t rock-bottom price, and the inventory still heavy.
Manufacturers continue to clean up inventory
MCU manufacturers in Taiwan Province, reported the sluggish market situation and continued to clean up their inventory. As some product line customers begun to purchase, the operation of manufacturers rebounded slightly, including NUVOTON, GENERALPLUS, SONIX, HOLTEK and many other operators, and their monthly revenue showed signs of monthly increase in May. However, the cumulative revenue in the first five months of this year, the performance of MCU manufacturers still shows a double-digit annual decline, and the manufacturers continue to adjust their inventory while the demand for consumer electronic products is still sluggish.
Source: Taiwan Media Business Times
Xintang pointed out that due to the overall economy has not recover, among the four major product lines, vehicles are most optimistic, and the tight market supply is relieved. However, the current economic recovery is slower than expected, and with the competition among peers, the market has a better chance to see the market recover in the third quarter.
HOLTEK state that the company is still clearing inventory at this stage, and is negative. As the terminal demand has not yet shown strong demanding, it is expected that the inventory clearing action will last until the end of the year.
SONIX pointed out that the market situation of general-purpose MCU such as small household appliances has not roars back, and the sales situation of 618 Shopping Festival is fall short of the standard. Therefore, the company avoids market competition by improving its product portfolio, such as the sales of multimedia products or niche application products.
Due to the new product line-Server Cooling Fan Motor Control IC, WELTREND shipments continued to grow, and due to the acquisition of UNIVERSAL Microwave, its comprehensive performance appeared, and its revenue in May showed a "double increase" phenomenon of monthly increase and annual increase. WELTREND said that the company's inventory removal was earlier than that of its peers, and it is expected that the inventory will return to normal water level in the third quarter. In addition, the cooling fan motor control IC applied to the server will continue to ship, and it is optimistic that the server is a growing part of the electronic products this year. It is expected that the performance in the second quarter should be better than that in the first quarter.
MEGAWIN believes that the company's inventory has been reduced month by month, and it is expected to return to the normal water level by October. At present, customers of some product lines have been seen, and goods expected to be clean. The company also actively adjusted its product line, and besides rushing into the automotive IC market, it also made some achievements in overseas layout.
In the short term, the gross profit margin performance in the second quarter is not optimistic under the pressure of high-grade cost and price, but the decline is more convergent than before. For Taiwan factories, they can only continue to stabilize their subsequent profit performance through new products. It is generally said in the intra-industry that there are indeed many new products and new cases in progress. Although customers have limited in clean inventory at the initial stage, they are also a few medium and long-term kinetic energy that can be expected.
Adjusting MCU Market, and Inventory Clearing may Continue until Next Year-China exportsemi.com
