Several IC design factories meet short-term urgent orders, and customers are not willing to make long orders
28 August 2023
Recently, part of the inventory has been gradually reduced, and small inventory replenishment needs have emerged in the applications related to laptops and mobile phones. According to the report of Taiwan, China Economic Daily, Yilong, the leader of the touch chip for laptops in Taiwan, and Novatek, FocalTech, and Weltrend, the second tier IC design plants, have started to have short-term, small and urgent orders, becoming a small warm current under the low market conditions.
Relevant manufacturers said frankly that although the market situation has warmed up, there are at least some orders at the beginning. Even if the quantity is not large, reducing inventory is still a priority goal. The collected urgent orders of each company are as follows:
1. Drive IC manufacturers Novatek and Tianyu had urgent orders for TV applications in Q4 last year. Novatek revealed that there were urgent orders for high-end applications in the field of laptop and IT in this quarter. Although Q1 was the traditional off-season, the company estimated that the revenue of the single quarter was expected to be flat or even slightly higher than that of the previous quarter.
2. Recently, many product lines of the pen IC design factory Yilong have also received urgent short orders. It is expected that the shipment of this quarter, including the pen touch panel module, touch screen IC and fingerprint identification product lines, will grow compared with the previous quarter.
3. FocalTech product line mainly focuses on mobile applications, and recently received the urgent order of HD version touch and drive integrated IC (TDDI). The report pointed out that although the company's TDDI price is still declining, the decline has slowed down.
4. Weltrand's business is based on USB-PD chips and mainly on three major applications, including laptop, mobile phone and game console. Among them, the sales force of game console applications is stable, and there are urgent orders for new specifications of laptop applications in the near future, but the momentum of mobile-related applications is still weak.
Previously, the inventory level rose sharply with the decline of demand. The manufacturer frankly said that even though the industry has adjusted for several quarters, the visibility is still limited. Most customers are willing to place urgent orders rather than long orders. Therefore, the current attitude of some IC design factories is to let customers wait after placing orders, and not prepare too much inventory first, lest the market situation suddenly fluctuate again.
In terms of chip placement strategy, some IC design manufacturers are relatively conservative. The company will only launch products based on customers' demand for new products. If there are existing products in stock, it will not easily place orders for production at this time.
IC design manufacturers mentioned that the unsealing of Chinese Mainland should help the market to warm up. Follow up observation will see if there will be a wave of retaliatory consumption brought about by previous repression.
Relevant manufacturers said frankly that although the market situation has warmed up, there are at least some orders at the beginning. Even if the quantity is not large, reducing inventory is still a priority goal. The collected urgent orders of each company are as follows:
1. Drive IC manufacturers Novatek and Tianyu had urgent orders for TV applications in Q4 last year. Novatek revealed that there were urgent orders for high-end applications in the field of laptop and IT in this quarter. Although Q1 was the traditional off-season, the company estimated that the revenue of the single quarter was expected to be flat or even slightly higher than that of the previous quarter.
2. Recently, many product lines of the pen IC design factory Yilong have also received urgent short orders. It is expected that the shipment of this quarter, including the pen touch panel module, touch screen IC and fingerprint identification product lines, will grow compared with the previous quarter.
3. FocalTech product line mainly focuses on mobile applications, and recently received the urgent order of HD version touch and drive integrated IC (TDDI). The report pointed out that although the company's TDDI price is still declining, the decline has slowed down.
4. Weltrand's business is based on USB-PD chips and mainly on three major applications, including laptop, mobile phone and game console. Among them, the sales force of game console applications is stable, and there are urgent orders for new specifications of laptop applications in the near future, but the momentum of mobile-related applications is still weak.
Previously, the inventory level rose sharply with the decline of demand. The manufacturer frankly said that even though the industry has adjusted for several quarters, the visibility is still limited. Most customers are willing to place urgent orders rather than long orders. Therefore, the current attitude of some IC design factories is to let customers wait after placing orders, and not prepare too much inventory first, lest the market situation suddenly fluctuate again.
In terms of chip placement strategy, some IC design manufacturers are relatively conservative. The company will only launch products based on customers' demand for new products. If there are existing products in stock, it will not easily place orders for production at this time.
IC design manufacturers mentioned that the unsealing of Chinese Mainland should help the market to warm up. Follow up observation will see if there will be a wave of retaliatory consumption brought about by previous repression.
