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As expected, Siltronic AG’s business performance in Q2 2024 was again characterized by weak demand in the wafer market, which resulted from continued increased inventories in the chip industry. Due to the lower wafer area sold, half-year sales of EUR 694.8 million were significantly lower than in the same period of the previous year (H1 2023: EUR 808.2 million). However, at EUR 351.3 million, sales in Q2 2024 slightly exceeded the previous quarter (Q1 2024: EUR 343.5 million) by 2.3 percent.
“Q2 was in line with expectations. On a positive note, the end markets, partially driven by Artificial Intelligence, will grow this year. However, this is not yet reflected in our order situation due to still elevated inventory levels. We are pleased that we were able to slightly increase our sales in Q2 compared to the previous quarter and continued to achieve a solid EBITDA margin of 25.8 percent,” comments Dr. Michael Heckmeier, CEO of Siltronic, on the development.
Business development in H1 2024 influenced by weak demand, sales prices almost stable
In Q2 2024, Siltronic generated sales of EUR 351.3 million, up 2.3 percent on the previous quarter (Q1 2024: EUR 343.5 million) due to the increase in wafer area sold. Sales prices were almost unchanged quarter-on-quarter. Sales of EUR 694.8 million were generated in H1 2024 (H1 2023: EUR 808.2 million). The decline is primarily due to the lower sales volume. Price and currency effects had no significant impact in the half-year comparison.
On the cost side, the increase in wafer area sold and higher depreciation due to investments had a particularly noticeable impact on the quarter-on-quarter comparison. As expected, a small loss from currency hedging transactions was recognized in the other operating result in Q2.
As a result, EBITDA in Q2 2024 remained almost unchanged compared to the previous quarter at EUR 90.6 million (Q1 2024: EUR 90.8 million) despite a slight increase in sales. At 25.8 percent, the EBITDA margin remained at a solid level (Q1 2024: 26.4 percent). In a half-year comparison, EBITDA fell to EUR 181.4 million (H1 2023: EUR 243.8 million), mainly due to lower demand, and reached a margin of 26.1 percent (H1 2023: 30.2 percent).
The decline in costs due to the lower sales volume was mitigated by a lower fixed cost dilution, and a lower currency hedging result was also noticeable in the half-year comparison. In addition, H1 2024 saw an increase in depreciation and amortization.
Net profit for the period fell from EUR 27.7 million in Q1 2024 to EUR 22.4 million in Q2 and from EUR 133.9 million in H1 2023 to EUR 50.1 million in H1 2024. In addition to the effects described above, a lower financial result due to investments contributed to the reduction. Earnings per share amounted to EUR 0.73 in Q2 2024 and EUR 1.59 in H1 2024.
Net assets and financial position still affected by high investments
With an equity ratio of 46.5 percent as of June 30, 2024, Siltronic continues to have a good balance sheet quality (December 31, 2023: 46.6 percent). Cash and cash equivalents and short-term financial investments fell by EUR 129.5 million to EUR 327.4 million in H1 2024.
This was due to net payments for investments of EUR 411.2 million with a focus on the new 300 mm fab in Singapore and the dividend payment of EUR 36.0 million to Siltronic AG’s shareholders. In the same period, these payments were opposed by cash inflows of EUR 171.4 million from operating activities and cash inflows of EUR 150.0 million from a loan that was partially drawn.
Due to the high level of investments, the net cash flow fell to EUR -252.8 million and was negative, as expected. Accordingly, net financial debt increased by a total of EUR 283.5 million to EUR 639.2 million compared to December 31, 2023.
Guidance for 2024
The Executive Board of Siltronic AG has specified its guidance published at the end of April and now expects Group sales to decline by a high single-digit percentage compared to the previous year. With a view to the financial year 2024, this is primarily due to lower volumes as well as each slightly negative exchange rate- (EUR/USD 1.10), price- and product mix effects.
The EBITDA margin is expected to be at the upper end of the previously communicated range of 23 to 25 percent. However, the EBITDA margin in H2 will not reach the level of H1. Profitability in H2 will be impacted by both slightly negative price and product mix effects as well as ramp costs for the new Singapore fab, which will start to impact earnings in Q4.
In addition, one production line is scheduled for maintenance in Q4, which will be bridged by inventory reductions and will also have a negative impact on the margin. Capex is expected to be in the range of EUR 500 million to EUR 530 million, with depreciation and amortization below EUR 300 million.
Original – Siltronic
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Navitas Semiconductor released its 4.5 kW AI data center power supply reference design, with optimized GaNSafe™ and Gen-3 ‘Fast’ (G3F) SiC power components. The optimized design enables the world’s highest power density with 137 W/in3 and over 97% efficiency.
Next-generation AI GPUs like NVIDIA’s Blackwell B100 and B200 each demand over 1 kW of power for high-power computation, 3x higher than traditional CPUs. These new demands are driving power-per-rack specifications from 30-40 kW up to 100 kW.
Navitas announced its AI Power Roadmap in March 2024, showcasing next-generation data center power solutions for the growing demand in AI and high-performance computing (HPC) systems. The first design was a GaNFast-based 3.2 kW AC-DC converter in the Common Redundant Power Supply (CRPS) form factor, as defined by the hyperscale Open Compute Project. The 3.2 kW CRPS185 (for 185 mm length) enabled a 40% size reduction vs. the equivalent legacy silicon approach and easily exceeded the ‘Titanium Plus’ efficiency benchmark, critical for data center operating models and a requirement for European data center regulations.
Now, the latest 4.5 kW CRPS185 design demonstrates how new GaNSafe™ power ICs and GeneSiC Gen-3 ‘Fast’ (G3F) MOSFETs enables the world’s highest power density and efficiency solution. At the heart of the design is an interleaved CCM totem-pole PFC using SiC with full-bridge LLC topology with GaN, where the fundamental strengths of each semiconductor technology are exploited for the highest frequency, coolest operation, optimized reliability and robustness, and highest power density and efficiency. The 650 V G3F SiC MOSFETs feature ‘trench-assisted planar’ technology which delivers world-leading performance over temperature for the highest system efficiency and reliability in real-world applications.
For the LLC stage, 650 V GaNSafe power ICs are ideal and unique in the industry with integrated power, protection, control, and drive in an easy-to-use, robust, thermally-adept TOLL power package. Additionally, GaNSafe power ICs offer extremely low switching losses, with a transient-voltage capability up to 800 V, and other high-speed advantages such as low gate charge (Qg), output capacitance (COSS), and no reverse-recovery loss (Qrr). High-speed switching reduces the size, weight, and cost of passive components in a power supply, such as transformers, capacitors, and EMI filters. As power density increases, next-gen GaN and SiC enable sustainability benefits, specifically CO2 reductions due to system efficiency increases and ‘dematerialization’.
The 3.2 kW and 4.5 kW platforms have already generated significant market interest with over 30 data center customer projects in development expected to drive millions in GaN and SiC revenue, ramping from 2024 into 2025.
Navitas’ AI data center power supply reference designs dramatically accelerate customer developments, minimize time-to-market, and set new industry benchmarks in energy efficiency, power density and system cost, enabled by GaNFast power ICs and GeneSiC MOSFETs. These system platforms include complete design collateral with fully tested hardware, embedded software, schematics, bills-of-material, layout, simulation, and hardware test results.
“AI is dramatically accelerating power requirements of data centers, processors and anywhere AI is going in the decades to come creating a significant challenge for our industry. Our system design center has stepped up to this challenge delivering a 3x increase in power in less than 18 months”, said Gene Sheridan, CEO of Navitas Semiconductor. “Our latest GaNFast technology, combined with our G3F SiC technology are delivering the highest power density and efficiency the world has ever seen…the perfect solution for the Blackwell AI processors and beyond.”
Original – Navitas Semiconductor
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Renesas Electronics Corporation announced consolidated financial results in accordance with IFRS for the three and six months ended June 30, 2024.
Summary of Consolidated Financial Results (Note 1)
Summary of Consolidated Financial Results (Non-GAAP basis) (Note 2)
Three months ended June 30, 2024 Six months ended June 30, 2024 Billion Yen % of Revenue Billion Yen % of Revenue Revenue 358.8 100.0 710.6 100.0 Gross profit 203.6 56.7 402.9 56.7 Operating profit 110.6 30.8 224.1 31.5 Profit attributable to owners of parent 96.7 26.9 202.5 28.5 EBITDA (Note 3) 132.8 37.0 266.6 37.5 Summary of Consolidated Financial Results (IFRS basis)
Three months ended June 30, 2024 Six months ended June 30, 2024 Billion yen % of Revenue Billion yen % of Revenue Revenue 358.8 100.0 710.6 100.0 Gross profit 200.9 56.0 398.4 56.1 Operating profit 69.7 19.4 147.6 20.8 Profit attributable to owners of parent 59.8 16.7 139.6 19.6 EBITDA (Note 3) 120.6 33.6 246.3 34.7 Reconciliation of Non-GAAP gross profit to IFRS gross profit and Non-GAAP operating profit to IFRS operating profit
(Billion yen)
Three months ended June 30, 2024 Six months ended June 30, 2024 Non-GAAP gross profit
Non-GAAP gross margin203.6
56.7%402.9
56.7%Amortization of purchased intangible assets and depreciation of property, plant and equipment (0.3) (0.5) Stock-based compensation (0.8) (1.2) Other reconciliation items in non-recurring
expenses and adjustments (Note 4)(1.6) (2.7) IFRS gross profit
IFRS gross margin200.9
56.0%398.4
56.1%Non-GAAP operating profit
Non-GAAP operating margin110.6
30.8%224.1
31.5%Amortization of purchased intangible assets and depreciation of property, plant and equipment (28.7) (56.3) Stock-based compensation (9.2) (14.8) Other reconciliation items in non-recurring expenses and adjustments (Note 4) (2.9) (5.4) IFRS operating profit
IFRS operating margin69.7
19.4%147.6
20.8%- Note 1: All figures are rounded to the nearest 100 million yen.
- Note 2: Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS) figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results.
- Note 3: Operating profit + Depreciation and amortization.
- Note 4: “Other reconciliation items in non-recurring expenses and adjustments” includes the non-recurring items related to acquisitions and other adjustments as well as non-recurring profits or losses the Group believes to be applicable.
Original – Renesas Electronics
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STMicroelectronics reported second quarter net revenues of $3.23 billion, gross margin of 40.1%, operating margin of 11.6%, and net income of $353 million or $0.38 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
- “Q2 net revenues were above the midpoint of our business outlook range driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive. Gross margin was in line with expectations.”
- “First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments. Operating margin was 13.8% and net income was $865 million.”
- “During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined.”
- “Our third quarter business outlook, at the mid-point, is for net revenues of $3.25 billion, decreasing year-overyear by 26.7% and increasing sequentially by 0.6%; gross margin is expected to be about 38%, impacted by about 350 basis points of unused capacity charges.”
- “We will now drive the Company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40%.”
Original – STMicroelectronics
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PANJIT introduced latest bridge rectifier packaging: the low-profile GBJA and KBJB. In the ever-evolving world of electronic components, where space efficiency is increasingly in demand, the new low-profile packages offer excellent solutions. When integrated into the PCB, the GBJA can reduce the total height by 34% compared to the GBJ, and the KBJB can reduce it by 36% compared to the KBJ package. This substantial reduction in body height makes them ideal for applications where space is at a premium, responding to the increasing demand for compact and efficient power solutions.
Key Features
Low Body Profile Design: The GBJA and KBJB packages are compact, significantly reducing height without changing pitch angles and body width. When incorporated into the PCB, the GBJA offers a 34% reduction in total height compared to the GBJ, while the KBJB achieves a 36% reduction compared to the KBJ package, offering excellent solutions for space-constrained designs.
Design Compatibility: By keeping the pitch angles and body width the same while just shortening the body height, the new packages remain compatible with the original ones, giving designers the flexibility to either maintain the original PCB layout or shrink the overall design size, including the heatsink. This adaptability ensures easy integration into existing designs and optimizes space utilization for various requirements, while also avoiding the risk of quality issues associated with traditional lead-bending methods to fit the design.Target Applications
GBJA and KBJB series are ideal for high-demand applications where compact power solutions are crucial:
• Slim Power Adapters: Perfect for creating thinner, more portable power adapters.
• Power Supplies for Gaming Consoles: Meet the needs of powerful gaming consoles with sleek, modern designs.
• TV Power Supplies: Ideal for TVs, offering unobtrusive and efficient power solutions.
By adopting the GBJA and KBJB series, manufacturers can create compact, efficient power supplies that meet the growing consumer demand for smaller, portable devices such slim TVs or other modern electronic devices.Bridge Rectifiers in GBJA and KBJB Packages
- KBJB1006
- GBJA1506
- KBJB1008
- GBJA1508
- KBJB1010
- GBJA1510
- KBJB1506
- GBJA2506
- KBJB1508
- GBJA2508
- KBJB1010
- GBJA2510
- GBJA3506
- GBJA3508
- GBJA3510
Original – PANJIT International
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Soitec announced consolidated revenue of 121 million Euros for the first quarter of FY’25 (ended June 30th, 2024), down 23% on a reported basis compared with 157 million Euros achieved in the first quarter of FY’24. This reflects a 24% decline at constant exchange rates and perimeter and a slightly positive currency impact of 1%.
Pierre Barnabé, Soitec’s CEO, commented: “The low point reached in the first quarter of our fiscal year 2025 was anticipated and is in line with our expectations, in a challenging market environment. The absorption of our customers’ RF-SOI inventories is progressing and should be completed towards the end of the first half of our fiscal year 2025. Beyond this quarter, the gradual recovery in RF-SOI deliveries and the continued growth of our increasingly diversified product portfolio will underpin the revenue increase throughout the second part of fiscal year 2025. We therefore reiterate our full year guidance.
Looking ahead, Soitec’s organic growth will be underpinned in all three of its end markets by increasingly powerful megatrends: 5G expansion and the continued premiumization of smartphones, the ongoing digitization and electrification of the automotive sector, the proliferation of edge AI devices, and the expansion of cloud AI computing power capabilities in a more sustainable way. Our innovation and industrial roadmaps are designed to reinforce our leadership in SOI while accelerating the diversification of our portfolio of engineered substrates with new compound semiconductors, beyond SOI.”
Original – Soitec
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Texas Instruments Incorporated (TI) reported second quarter revenue of $3.82 billion, net income of $1.13 billion and earnings per share of $1.22. Earnings per share included a 5-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and increased 4% sequentially. Industrial and automotive continued to decline sequentially, while all other end markets grew.
- “Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.0 billion in capital expenditures and returned $4.9 billion to owners.
- “TI’s third quarter outlook is for revenue in the range of $3.94 billion to $4.26 billion and earnings per share between $1.24 and $1.48. We continue to expect our effective tax rate to be about 13%.”
Original – Texas Instruments
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NXP Semiconductors N.V. reported financial results for the second quarter, which ended June 30, 2024.
“NXP delivered quarterly revenue of $3.13 billion, consistent with our guidance, with all our focus end-markets performing in-line with our expectations. With our second quarter results and guidance for the third quarter NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth. We continue to manage what is in our control enabling NXP to drive resilient profitability and earnings in a challenging demand environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
Key Highlights for the Second Quarter 2024:
- Revenue was $3.13 billion, down 5% year-on-year;
- GAAP gross margin was 57.3% , GAAP operating margin was 28.7% and GAAP diluted Net Income per Share was $2.54;
- Non-GAAP gross margin was 58.6%, non-GAAP operating margin was 34.3%, and non-GAAP diluted Net Income per Share was $3.20;
- Cash flow from operations was $761 million, with net capex investments of $(184) million, resulting in non-GAAP free cash flow of $577 million;
- During the second quarter of 2024, NXP continued to execute its capital return policy with the payment of $260 million in cash dividends, and the repurchase of $310 million of its common shares. The total capital return of $570 million in the quarter represented 99% of second quarter non-GAAP free cash flow. On a trailing twelve month basis, capital return to shareholders represented $2.4 billion or 81% of non-GAAP free cash flow. The interim dividend for the second quarter 2024 was paid in cash on July 10, 2024 to shareholders of record as of June 13, 2024. Subsequent to the end of the second quarter, between July 1, 2024 and July 19, 2024, NXP executed via a 10b5-1 program additional share repurchases totaling $69 million;
- On April 9, 2024, NXP announced the 5nm S32N55 processor, the first device in the S32N family of vehicle super-integration processors. As the heart of the recently announced S32 CoreRide central compute solution, it offers scalable combinations of safe, real-time and applications processing to address automakers’ diverse central compute needs;
- On June 4, 2024, NXP announced a collaboration with ZF Friedrichshafen AG (“ZF”), a global leader in e-mobility, on next-generation SiC-based traction inverter solutions for electric vehicles (EVs). ZF will adopt NXP’s advanced GD316x high-voltage isolated gate drivers, to accelerate the adoption of 800-V and SiC power devices for next generation all electric vehicles; and
- On June 5, 2024, NXP and Vanguard International Semiconductor Corp. (“VIS”) announced the plan to create a manufacturing joint-venture VisionPower Semiconductor Manufacturing Company Pte Ltd (“VSMC”) which will build a new 300mm semiconductor wafer manufacturing facility in Singapore. The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies are planned to be licensed and transferred to the joint venture from TSMC.
Original – NXP Semiconductors
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onsemi has signed a multi-year deal with Volkswagen Group to be the primary supplier of a complete power box solution as part of its next-generation traction inverter for its Scalable Systems Platform (SSP). The solution features silicon carbide-based technologies in an integrated module that can scale across all power levels – from high power to low power traction inverters to be compatible for all vehicle categories.
“By offering a complete power system solution that encompasses the entire power sub-assembly, we provide Volkswagen Group with a single, simplified modular and scalable platform that maximizes efficiency and performance for their vehicle lineup,” said Hassane El-Khoury, president and CEO of onsemi. “This new approach allows for the customization of power needs and the addition of features for different vehicles without compromising on performance, all while reducing cost.”
Based on the EliteSiC M3e MOSFETs, onsemi’s unique power box solution can handle more power in a smaller package which significantly reduces energy losses. The inclusion of three integrated half-bridge modules mounted on a cooling channel will further improve system efficiency by ensuring heat is effectively managed from the semiconductor to the coolant encasement.
This leads to better performance, improved heat control, and increased efficiency, allowing EVs to drive further on a single charge. By using this integrated solution, Volkswagen Group will be able to easily transition to future EliteSiC-based platforms and remain at the forefront of EV innovation.
“We are very pleased to have onsemi as a strategic supplier for the power box of the traction inverter for our first tranche in the SSP platform. onsemi has convinced us with a deeply verticalized supply chain from the growth of the raw material up to the assembly of the power box,” said Mr. Dirk Große-Loheide, Member of the Extended Executive Committee Group Procurement and Member of the Board Volkswagen Brand for “Procurement”.
Mr. Till von Bothmer, Senior Vice President VW Group Procurement for Powertrain added, “On top of the verticalization, onsemi has furthermore provided a resilient supply concept with regional silicon carbide fabs across Asia, Europe and the U.S. In addition, onsemi will continuously provide the latest SiC generation to ensure competitiveness.
Volkswagen Group will also benefit from onsemi’s planned investment to expand its silicon carbide manufacturing in the Czech Republic. The investment would establish an end-to-end production facility in Europe for the traction inverter power system. The proximity of onsemi’s facility would fortify Volkswagen Group’s supply chain while improving logistics and allowing for faster integration into the manufacturing process.
Original – onsemi
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Infineon Technologies AG announced that its CoolSiC™ 2000 V modules have been selected by Daihen Corporation for their innovative unit-type power conditioners for grid storage batteries. In the journey towards reducing carbon emissions, both grid storage batteries and the power conditioners that are linked to them play a vital role in facilitating the wider adoption of renewable energy sources like solar and wind power generation.
There has been an increasing demand for higher voltage storage batteries and power conditioners to enhance the effectiveness of power generation, storage, and transmission. Moreover, with the expansion of storage battery systems on a larger scale, finding suitable locations and minimizing construction costs have emerged as significant challenges.
The unit-type power conditioner for grid storage batteries launched by Daihen in March 2024 is the first product in the industry to achieve connection to storage batteries at a high DC link voltage of 1500 V. The higher voltage enables the product to be used with large-capacity storage battery facilities, which has resulted in a 40% reduction in the footprint of grid storage batteries compared to the conventional product.
The high power density is achieved by using Infineon’s 62 mm CoolSiC MOSFET 2000 V module (FF3MR20KM1H). In addition to the characteristics of SiC that enable high voltage, better thermal dissipation and high power density, Infineon’s SiC products feature M1H trench technology that increases the gate drive voltage range and provides high robustness and reliability against gate voltage spikes. Infineon was the pioneer in the industry to introduce the 2000 V class for a SiC module. This innovation has been instrumental in simplifying the inverter circuit configuration. Furthermore, the optimized 62 mm package has led to a substantial reduction in system size, contributing to enhanced efficiency and performance.
Mr. Akihiro Ohori, General Manager, Development Department, Energy Management System Division, Daihen, said, “In order to increase the voltage of power conditioners, the circuit configuration of conventional 1200 V devices had become complicated. However, by adopting Infineon’s 2000 V SiC modules, we were able to achieve a simplified circuit configuration and control design, thereby reducing development resources and the footprint.”
Masanori Fujimori, Marketing Director of the Industrial & Infrastructure Segment at Infineon Technologies Japan, said, “We are very pleased that our pioneering CoolSiC 2000 V module has contributed to the development of the industry’s highest power density power conditioners for grid storage batteries. We believe that Infineon’s SiC technology will address the need for higher efficiency in energy storage systems and will greatly contribute to the growth of renewable energy.”
Original – Infineon Technologies
