-
Siltronic AG continued to be affected by weak demand in Q1 2024 due to increased customer inventory levels, with sales declining nearly 4 percent compared to Q4 2023, primarily due to product mix shifts.
“The start of the year continues to be characterized by weak demand due to increased inventories at our customers. It is still not possible to predict when inventories will return to a normal level. Therefore, 2024 will probably be a transition year on the way to profitable growth,” comments Dr. Michael Heckmeier, CEO of Siltronic AG on the development.
Business Development in Q1 2024
Siltronic generated sales of EUR 343.5 million in Q1 2024, which corresponds to a decrease of 3.7 percent compared to Q4 2023. This development is in line with expectations. While the wafer area sold and sales prices remained nearly stable compared to the previous quarter, the product mix in particular had a slightly negative impact. The Euro/US dollar exchange rate, which averaged 1.09 in Q1 2024 (Q4 2023: 1.08), also impacted sales slightly on a quarterly basis.
Cost of sales decreased by 1.4 percent compared to the previous quarter and therefore could not be reduced at the same level as sales.
As a result, the gross profit in Q1 2024 decreased by EUR 9.1 million compared to the previous quarter. The gross margin decreased from 22.2 percent (Q4 2023) to 20.4 percent (Q1 2024).
The decrease in gross profit was largely offset by positive FX effects and lower selling, administration, and research and development expenses. The FX effects reported in the balance of other operating income and expenses amounted to EUR 5.4 million after EUR -0.8 million in Q4 2023.
EBITDA in Q1 2024 (EUR 90.8 million) was therefore on par with the previous quarter (Q4 2023: EUR 91.1 million). Due to the decline in sales, the EBITDA margin improved from 25.5 percent to 26.4 percent.
EBIT amounted to EUR 36.0 million in Q1 2024 compared to EUR 36.8 million in Q4 2023. The marginal decline is mainly due to a higher depreciation.
Despite continued weak demand, a EUR 27.7 million result for the period was achieved after EUR 32.3 million in the previous quarter. Of this amount, EUR 25.7 million is attributable to the shareholders of Siltronic AG, resulting in earnings per share of EUR 0.86.
Development of equity, net cash flow and net financial assets
With an equity of EUR 2,152.9 million as of March 31, 2024 and an equity ratio of 46.5 percent, Siltronic continues to have a solid balance sheet quality (December 31, 2023: 46.6 percent).
Loan liabilities increased by EUR 53.4 million, mainly due to the partial draw down of a loan. In addition, other provisions and liabilities increased by EUR 31.4 million, mainly due to an investment grant received.
The decrease in cash flow from operating activities compared to the previous quarter is mainly due to reporting date effects in the inflow of trade receivables. In Q4 2023, payments were received from customers shortly before the reporting date, and in Q1 2024 shortly after the reporting date.
In the quarter under review, Siltronic made net payments of EUR 198.7 million for capex including intangible assets. Due to the high capex at the end of 2023, some of which was not due for payment until 2024, capex payments significantly exceeded additions to the balance sheet in the quarter under review. The payments and balance sheet additions were mainly related to the new fab in Singapore.
Due to the change in working capital and the continued high level of investments, both the free cash flow of EUR -137.2 million and the net cash flow of EUR -158.4 million were negative in Q1 2024. As a result, cash and cash equivalents and financial investments decreased by EUR 88.9 million, while loan liabilities increased at the same time. Accordingly, net financial debt increased from EUR 355.7 million at the end of 2023 to EUR 501.0 million as of March 31, 2024.
Outlook: Mid-term targets for 2028 unchanged, 2024 will be a transition year
Driven by several megatrends, Siltronic expects a significant increase in demand in the medium and long term. However, the start to the 2024 financial year was subdued. Although demand for wafers is increasing in the end markets, Siltronic continues to face weak demand in the coming quarters. This is due to higher customer inventories and the associated further postponement of delivery volumes, which will now primarily affect the second half of the year. Customers’ persistently high inventories are recovering slower than originally expected. As a result, the impact of these elevated inventories is expected to be felt throughout 2024, although visibility remains limited.
In an ad hoc announcement on April 26, 2024, Siltronic therefore adjusted its forecast and expects Group sales to be roughly 10 percent below the previous year. This is mainly due to lower volumes and both slightly negative FX- (EUR/USD 1.10) and price effects. The EBITDA margin is forecast to be between 21 and 25 percent. Capital expenditure will decrease compared to the previous guidance and is expected to be slightly below EUR 550 million. Depreciation and amortization is expected to be below EUR 300 million.
Klaus Buchwald to be appointed Chief Operating Officer as early as June 1, 2024
Klaus Buchwald will take up his position as a new member of the Executive Board and Chief Operating Officer (COO) of Siltronic AG on June 1, 2024, two months earlier than originally announced. He will be responsible for Operations and Supply Chain, Engineering as well as IT.
Original – Siltronic
-
The U of A celebrated a milestone with the topping-out of the Multi-User Silicon Carbide Research and Fabrication Facility.
More than 100 students, faculty, state leaders and citizens were on hand to sign the steel topping-out beam and hear remarks from Kim Needy, dean of the College of Engineering, and Alan Mantooth, Distinguished Professor of electrical engineering.
The new semiconductor research and fabrication facility will produce microelectronic chips made with silicon carbide, a powerful semiconductor that outperforms basic silicon in several critical ways. The facility will enable the federal government – via national laboratories – businesses of all sizes and other universities to prototype with silicon carbide, a capability that does not presently exist elsewhere in the United States.
Work at the research and fabrication facility will bridge the gap between traditional university research and the needs of private industry and will accelerate technological advancement by providing a single location where chips can go from developmental research to prototyping, testing and fabrication.
The 21,760-square-foot facility, located next to the National Center for Reliable Electrical Power Transmission at the Arkansas Research and Technology Park, will address obstacles to U.S. competitiveness in the development of silicon-carbide electronics used in a wide range of electronic devices, circuits and other consumer applications. The building will feature approximately 8,000 square feet of clean rooms for fabrication and testing.
Education and training within the facility will also accelerate workforce development, helping supply the next generation of engineers and technicians in semiconductor manufacturing.
Original – University of Arkansas
-
To provide higher efficiency and power density for telecom, industrial, and computing applications, Vishay Intertechnology, Inc. introduced its first fourth-generation 600 V E Series power MOSFET in the new PowerPAK® 8 x 8LR package.
Compared to previous-generation devices, the Vishay Siliconix n-channel SiHR080N60E slashes on-resistance by 27 % and resistance times gate charge, a key figure of merit (FOM) for 600 V MOSFETs used in power conversion applications, by 60 % while providing higher current in a smaller footprint than devices in the D²PAK package.
Vishay offers a broad line of MOSFET technologies that support all stages of the power conversion process, from high voltage inputs to the low voltage outputs required to power the latest high tech equipment. With the SiHR080N60E and other devices in the fourth-generation 600 V E Series family, the company is addressing the need for efficiency and power density improvements in two of the first stages of the power system architecture — power factor correction (PFC) and subsequent DC/DC converter blocks.
Typical applications will include servers, edge computing, super computers, and data storage; UPS; high intensity discharge (HID) lamps and fluorescent ballast lighting; telecom SMPS; solar inverters; welding equipment; induction heating; motor drives; and battery chargers.
Measuring 10.42 mm by 8 mm by 1.65 mm, the SiHR080N60E’s compact PowerPAK 8 x 8LR package features a 50.8 % smaller footprint than the D²PAK while offering a 66 % lower height. Due to its top-side cooling, the package delivers excellent thermal capability, with an extremely low junction to case (drain) thermal resistance of 0.25 °C/W.
This allows for 46 % higher current than the D²PAK at the same on-resistance level, enabling dramatically higher power density. In addition, the package’s gullwing leads provide excellent temperature cycle capability.
Built on Vishay’s latest energy-efficient E Series superjunction technology, the SiHR080N60E features low typical on-resistance of 0.074 Ω at 10 V and ultra low gate charge down to 42 nC. The resulting FOM is an industry-low 3.1 Ω*nC, which translates into reduced conduction and switching losses to save energy and increase efficiency in power systems > 2 kW.
For improved switching performance in hard-switched topologies such as PFC, half-bridge, and two-switch forward designs, the MOSFET released today provides low typical effective output capacitances Co(er) and Co(tr) of 79 pF and 499 pF, respectively. The package also provides a Kelvin connection for improved switching efficiency.
The device is RoHS-compliant and halogen-free, and it is designed to withstand overvoltage transients in avalanche mode with guaranteed limits through 100 % UIS testing.
Original – Vishay Intertechnology
-
Magnachip Semiconductor Corporation announced financial results for the first quarter 2024.
YJ Kim, Magnachip’s Chief Executive Officer, commented, “In Q1 we started the initial revenue ramp for OLED DDICs for the after-service market, and we were awarded two new designs targeted for a leading China smartphone OEM and also for a leading European EV maker. Our Power Analog Solutions (PAS) business revenue grew 12% sequentially driven by smartphones, e-motors, consumer appliances and server power applications, and we now are launching a slate of next-gen power products to help sustain our momentum. We also are encouraged that the power channel inventory showed signs of improvement in the first quarter.”
YJ continued, “Looking forward, we expect sequential revenue growth in Mixed-Signal Solutions (MSS) and PAS to continue in Q2 and we reiterate our prior full-year guidance for double digit growth in both MSS and PAS businesses.”
Financial Highlights
- Q1 consolidated revenue was $49.1 million, within our guidance range of $46-51 million.
- Q1 standard product business revenue was up 10.6% sequentially.
- Q1 consolidated gross profit margin was 18.3%, within our guidance range of 17-20%.
- Q1 standard product business gross profit margin was down 170 basis points sequentially, mostly due to lower Gumi fab utilization driven by the wind-down of Transitional Foundry Services.
- Ended Q1 with $29.7 million in long-term borrowing and $171.6 million in cash.
- Repurchased approximately $4.1 million or 0.6 million shares during the quarter.
Operational Highlights
- Secured a new high-end smartphone OLED DDIC design for a top tier China smartphone OEM.
- Secured a new EV automotive OLED DDIC design win for a leading European automaker.
- Began operations of our new China entity called Magnachip Technology Company (MTC). Our China headquarters is now up and running.
- Started initial ramp in Q1 for our first-generation OLED DDIC chip for China for the after-service market.
- Captured our first medium voltage MOSFET automotive design-win for an electric cooling fan with a China-based SUV supplier, as well as an additional automotive power steering related win in Korea.
- Began to see initial signs of inventory reductions in the distribution channel for our Power Analog Solutions products.
Original – Magnachip Semiconductor
- Q1 consolidated revenue was $49.1 million, within our guidance range of $46-51 million.
-
SemiQ has begun a known-good-die (KGD) screening program that delivers high-quality, electrically sorted and optically inspected advanced SiC MOSFET technology ready for back-end processing and direct die attachment.
Known-good-die from SemiQ ensures consistent electrical parameters, enabling customers to rely on repeatable performance for high end-of-line yield when building equipment such as high-voltage supplies, traction inverters, and power conditioning systems. Uniform die parameters also simplify the connection of multiple devices in high-power modules.
“SiC is a powerful technology aiding the global drive for sustainability and our known-good-die SiC MOSFETs from SemiQ provide important performance advantages, such as near-constant junction capacitance, low insertion loss, and high isolation needed for high-frequency applications,” says Michael Tsang, VP, Product Engineering and Operations at SemiQ. “Thanks to this program, customers can receive quality-assured dies that will streamline and improve productivity and deliver predictable and repeatable performance in high-efficiency applications.”
The KGD program is active now and applies to the complete portfolio of SemiQ’s QSiC™ 1200V SiC MOSFETs, ranging from 20mΩ to 80mΩ. This portfolio supports robust and efficient electrification across automotive, eMobility, renewable energy, industrial power, and other applications.
KGD devices are supplied post-singulation on a choice of carrier media including blue tape, pre-cured UV tape, and tape and reel to ease integration with customers’ processes. For more information, please visit SemiQ’s KGD page.
Original – SemiQ
-
Wolfspeed, Inc. announced its results for the third quarter of fiscal 2024.
Quarterly Financial Highlights (Continuing operations only. All comparisons are to the third quarter of fiscal 2023):
- Consolidated revenue of approximately $201 million, compared to approximately $193 million
◦ Mohawk Valley Fab contributed approximately $28 million in revenue, over a 2x increase from the prior quarter
◦ Materials revenue of approximately $99 million – second highest quarter on record - Power device design-ins of $2.8 billion
- Quarterly design-wins of $0.9 billion – 70% related to EV applications
- GAAP gross margin of 11%, compared to 31%
- Non-GAAP gross margin of 15%, compared to 34%
◦ GAAP and non-GAAP gross margins for the third quarter of fiscal 2024 include the impact of $30 million of underutilization costs, representing approximately 1,500 basis points of gross margin. See “Start-up and Underutilization Costs” below for additional information.
“We are pleased with the significant operational milestones achieved in the quarter for Wolfspeed as we continue to be the world’s first fully, vertically integrated 200-millimeter silicon carbide player at scale,” said Wolfspeed CEO, Gregg Lowe.
“We are making progress on our Mohawk Valley ramp, more than doubling revenue sequentially in the quarter and reaching more than 16% wafer start utilization in April, giving us confidence in our ability to achieve our 20% utilization target in June 2024. Construction continues at the JP, our 200mm materials factory in North Carolina. During the quarter, we started installing furnaces and connected the facility to the power grid, and we recently hosted our topping out ceremony. As we’ve said before, Mohawk Valley will be the flywheel of growth for Wolfspeed, and the JP will be instrumental in supplying it with high-quality materials. We are encouraged by the operational progress these facilities have made and how it will support our long-term growth trajectory.”
Lowe continued, “While there have been headlines around general demand weakness in EVs, we still have more demand than we can supply for the foreseeable future. Our second highest quarter of design-ins to date and more than $5 billion of designwins so far this fiscal year, tell a compelling story. While the industrial and energy end markets pose short-term headwinds to our results, we firmly believe in the strength of our long-term prospects as the electrification of all things continues across a broad set of applications.”
Original – Wolfspeed
- Consolidated revenue of approximately $201 million, compared to approximately $193 million
-
Qorvo® announced financial results for the Company’s fiscal 2024 fourth quarter ended March 30, 2024.
Strategic Highlights
- Grew quarterly revenue 49% year-over-year and exceeded the mid-point of revenue guidance by $16 million
- Completed acquisition of Anokiwave, a leading supplier of high-performance silicon integrated circuits for intelligent active array antennas for Defense, SATCOM, 5G, and other beam forming applications
On a GAAP basis, revenue for Qorvo’s fiscal 2024 fourth quarter was $941 million, gross margin was 40.6%, operating income was $30 million, and diluted earnings per share was $0.03. On a non-GAAP basis, gross margin was 42.5%, operating income was $147 million, and diluted earnings per share was $1.39.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered year-over-year revenue growth in the March quarter in each of our three operating segments. There are global macro trends supporting our markets that are increasing customer requirements for efficiency, latency, throughput, and other critical performance metrics where Qorvo delivers significant competitive advantage.
“During the quarter, we acquired Anokiwave, and we are excited to accelerate the adoption of their technology while developing more highly integrated system solutions that leverage our D&A and power management portfolios. Qorvo continues to expand our technology portfolio to drive growth and diversify our business across markets, customers and product categories.”
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, “In fiscal 2024, Qorvo achieved significant content gains with key mobile customers and robust revenue growth in our defense and aerospace business. As we begin fiscal 2025, flagship smartphone ramps and large defense programs are down seasonally, and we expect product mix to trend toward mass market 5G products and associated higher-cost inventories in the June quarter. In the September quarter, we anticipate substantial sequential gross margin improvement. For full-year fiscal 2025, we expect modest revenue growth and margin improvement compared to fiscal 2024. We continue to take proactive steps to reduce capital intensity and structurally enhance our gross margin profile.”
Qorvo’s current outlook for the June 2024 quarter is:
- Quarterly revenue of approximately $850 million, plus or minus $25 million
- Non-GAAP gross margin between 40% and 41%
- Non-GAAP diluted earnings per share between $0.60 and $0.80
Original – Qorvo
-
Axcelis Technologies, Inc. announced financial results for the first quarter ended March 31, 2024.
The Company reported first quarter revenue of $252.4 million, compared to $310.3 million for the fourth quarter of 2023. Gross margin for the quarter was 46%, compared to 44.4% in the fourth quarter. Operating profit for the quarter was $56.5 million, compared to $79.1 million for the fourth quarter. Net income for the quarter was $51.6 million, or $1.57 per diluted share, compared to $71.1 million, or $2.15 per diluted share in the fourth quarter.
President and CEO Russell Low commented, “Axcelis is off to a good start in 2024. The Company delivered strong financial results in the first quarter, as a result of continued execution by the Axcelis team combined with strength in the implant intensive power device segment and robust shipments to China. The power device segment, particularly silicon carbide, continues to drive our business. We continue to win business from new customers globally as well as expand our product footprint with existing customers, with our highly differentiated and enabling Purion™ Power Series product line.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with our first quarter results and look forward to a solid 2024. Our revenue, gross margin and earnings per share finished above our guidance for the period, and we ended the quarter with robust cash flow and a strong balance sheet. We are monitoring the recovery in our memory and general mature markets and continue to expect revenue levels in the second half to increase over our anticipated revenues in the first half of the year.”
Business Outlook
For the second quarter ending June 30, 2024, Axcelis expects revenues of approximately $245 million. Gross margin in the second quarter is expected to be approximately 43.5%, as we anticipate closing several evaluations in the period, which typically carry lower gross margins. For the full year we expect gross margins to improve year over year. Second quarter operating profit is forecast to be approximately $47 million with earnings per diluted share of around $1.30.
Original – Axcelis Technologies
-
centrotherm international AG looks back on a very satisfactory 2023 financial year. As the Group’s earning power was significantly strengthened by the substantially increased share of business with the semiconductor industry, the Management Board sees this as confirmation that it is on the path to sustainably profitable business development.
centrotherm succeeded in significantly increasing consolidated earnings before interest, tax, depreciation and amortization (EBITDA) from EUR 16.2 million to EUR 19.0 million, thereby meeting the forecast of positive EBITDA in the low double-digit million euro range. This also applies on the basis of the adjusted EBITDA of EUR 15.9 million. In the 2023 financial year, there was a revaluation of centrotherm’s reimbursement claim from the former major project in Algeria (EUR 3.1 million). Consolidated net income increased significantly from EUR 13.0 million to EUR 18.7 million, which equates to improved earnings per share of EUR 0.88 (2022: EUR 0.62).
The Group’s order intake also developed very positively in the 2023 financial year. At EUR 268.8 million, the forecast of EUR 250 to 350 million was met. 82.9% (2022: 65.5%) of orders came from the semiconductor industry and 16.7% (33.9%) from the photovoltaic industry. The re-entry into the US PV market is particularly positive. As at December 31, 2023, the Group order backlog amounted to EUR 539.1 million, which represents a significant increase of 27.3% compared to the previous year’s figure of EUR 423.6 million.
Group revenue amounted to EUR 151.2 million in the 2023 financial year (2022: EUR 180.5 million). International business remained of key importance, accounting for 87.4% of revenue (2022: 91.8%), with a continued strong focus on Asia, where 70.1% (2022: 84.0%) of Group re-venue was generated. Revenue from the sale of production systems totaled EUR 130.9 million (2022: EUR 164.1 million), of which the share attributable to the semiconductor industry increased significantly to EUR 107.1 million (2022: EUR 47.5 million). Revenue from service and spare parts increased from EUR 15.2 million in the previous year to EUR 19.2 million in the 2023 financial year.
As inventories of finished goods and work in progress increased by EUR 45.2 million in the 2023 financial year (2022: decrease in inventories of EUR 62.7 million), the Group’s total operating performance increased to EUR 196.7 million after EUR 118.3 million in the previous year. The fact that the forecast of EUR 220 million to EUR 260 million was not achieved is primarily due to deviating project progress as a result of postponed customer projects.
Jan von Schuckmann, CEO: “We achieved further important successes in 2023 as part of our diversification strategy. For the 2024 financial year, we are very confident that we will continue to benefit from the ongoing positive industry environment, particularly in the semiconductor and microelectronics industry, and thus seamlessly build on the good business performance in 2023. In the medium to long term, we want to open up further attractive sales markets, for example with new innovative solutions for wafer production in the semiconductor industry or in battery production.”
For the 2024 financial year, the Executive Board is forecasting total operating revenue of EUR 200 million to EUR 300 million. EBITDA is again expected to be in the low double-digit million euro range. Incoming orders are expected to reach between EUR 200 million and EUR 300 million.
Original – centrotherm international
-
Ideal Power Inc. announced that the company received an order for SymCool™ power modules and drivers from one of the two Forbes Global 500 leaders in diverse power management markets in Ideal Power’s B-TRAN™ test and evaluation program.
“We are delighted to announce this power management market leader in our test and evaluation program is now ordering SymCool™ power modules. This global customer is evaluating SymCool™ for use in its bidirectional solid-state circuit breaker products for diverse industrial markets,” stated Dan Brdar, President and Chief Executive Officer of Ideal Power.
“Strong momentum continues, and we look forward to design wins and/or custom development agreements for solid-state circuit breaker applications in industrial markets. We expect industrial markets to be the earliest source of our sales ramp beginning in the second half of 2024.”
This global power management market leader is evaluating SymCool™ against IGBT modules for use in solid-state circuit breaker (SSCB) applications. The order for SymCool™ power modules follows the customer’s testing of discrete B-TRAN™ devices as part of the B-TRAN™ test and evaluation program.
Testing confirmed that the B-TRAN™ technology packaged into the multi-die SymCool™ power module has significantly lower conduction losses compared to conventional power semiconductors such as IGBTs, an advantage that is even more pronounced in bidirectional applications. In addition to energy savings, this improved efficiency also results in lower cost and less complex cooling systems, benefits that significantly impact the economics of OEM products such as SSCBs.
In response to this customer’s requests, Ideal Power provided high-volume quotes for SymCool™ power modules. This customer may also evaluate our technology for its other power conversion applications.
Original – Ideal Power
