The production capacity of Tongxin Power was damaged due to sudden fire; Memory chips continued to plummet; Global semiconductor shipments shrank for the first time

• The price of memory chips continued to drop, and the 1TB version of Samsung 980 and other memories fell below 700 yuan

• The CMOS image sensor (CIS) sealing and testing plant, Tongxin Radio Station, suffered from a fire in the north plant area, and the production capacity was affected

• In the first eight months of 2022, the profit of industrial enterprises above designated size nationwide decreased by 2.1% year on year

• Due to supply chain constraints, the delivery volume of Ideal Cars in the third quarter was reduced to 25500 vehicles

• Counterpoint: MediaTek ranked first in Q2 mobile phone chip shipments and Qualcomm ranked first in revenue

• The demand for semiconductors suddenly stepped on the brake, and global shipments shrank for the first time in 32 months

• Rouyu Technology and its legal representative Liu Zihong are restricted from consumption

• The market situation of semiconductor 8-inch wafers has “turned down sharply”, and customers have started to adjust their inventory

• TSMC may adjust its sales prospects in January next year due to customers’ order reduction

• JPMorgan Chase: Apple will transfer 25% of the production of iPhone to India by 2025 and continue to reduce the price of storage chips. The 1TB version of Samsung 980 and other memories will fall below 700 yuan

• CCTV Finance reported that last year, the price of memory chips continued to rise, but this year, the price has gone down all the way. According to a digital electronics mall in Hongkou District, Shanghai, the price of Samsung 980, a 1TB M2 interface memory, rose to about 1400 yuan last year, and is now less than 700 yuan.

• Merchants said that since November last year, the price of memory has been declining all the way. According to the latest research report of Taiwan Investment Bank of China, it is estimated that the supply and demand ratio of DRAM this year and next year will reach 107% and 111%, which will lead to a serious oversupply of DRAM. This will cause the DRAM price to fall 15%, 15%, 10% and 10% again from Q3 this year to Q3 next year, and it is not expected to stop falling until Q3 next year. (CCTV Finance and Economics, Aijiwei)
  ❑ CMOS image sensor (CIS) sealing and testing plant Tongxin Radio Station north plant fire, capacity affected

• On September 26, Tongxindian, a CMOS image sensor (CIS) sealing and testing factory, announced that a fire broke out in its Taipei factory in the morning of September 26, and the fire was controlled at 5 a.m. on the same day. It was estimated that the fire would affect the electroplating capacity of ceramic substrates, and it has started to coordinate other factories to fill in the capacity to minimize the damage. Tongxin Electric estimated that the pulling of ceramic substrates in the third quarter will still slow down, but it is expected to return to normal in the fourth quarter. （MoneyDJ）
  ❑ In the first eight months of 2022, the profit of industrial enterprises above designated size nationwide decreased by 2.1% year on year

• From January to August, the total profit of industrial enterprises above designated size nationwide was RMB 5525.40 billion, down 2.1% year on year.

• In January August, among industrial enterprises above designated size, state-owned holding enterprises achieved total profits of 1901.1 billion yuan, up 5.4% year on year; The total profit of joint-stock enterprises was 4062.36 billion yuan, up 0.8%; The total profit of foreign-invested enterprises, Hong Kong, Macao and Taiwan invested enterprises was 1279.7 billion yuan, down 12.0%; The total profit of private enterprises was 1495.55 billion yuan, down 8.3%. (CCTV News)
  ❑ Due to the supply chain constraints, the ideal car reduced the vehicle delivery in the third quarter to 25500 vehicles

• On September 26, Ideals announced on the Hong Kong Stock Exchange that it is expected that the vehicle delivery volume in the third quarter will be about 25500 vehicles, while the previous delivery volume is expected to be 27000 to 29000 vehicles. Ideal Auto said that the update was mainly caused by supply chain constraints, and the potential demand for the company’s vehicles remained strong. (per network)

• ❖ Counterpoint: the shipment volume of mobile phone chips in Q2 of 2022 ranked first in MediaTek, and the revenue of Qualcomm ranked first

• According to the latest report of Counterpoint, a market research organization, MediaTek has the largest chip shipment, accounting for 39% of the global market. However, compared with the previous quarter, orders from major OEMs in China decreased slightly. However, Qualcomm still has the highest income. Although the smartphone market has been affected by the overall environment, Qualcomm chips still occupy the high-end market. (Pacific Computer Network)
  ❑ The demand for semiconductors suddenly stepped on the brake, and the global shipment volume shrank for the first time in 32 months

• According to the Nikkei News, the semiconductor business cycle has fallen into recession again since the second half of 2018 due to the reduction of domestic economic demand and the slowdown of China’s main market for smart phones. According to the data released by the World Semiconductor Trade Statistics Association (WSTS), the global semiconductor shipment in July 2022 fell 1.8% from the same period last year to $44.4 billion, the first contraction in 32 months (since November 2019). （MoneyDJ）

• ❑ Rouyu Technology and its legal representative Liu Zihong are restricted from consumption
  IT Home reported on September 26 that recently, Shenzhen Ruoyu Technology Co., Ltd. and its subsidiary Shenzhen Ruoyu Display Technology Co., Ltd. added a new consumption restriction order, which also restricted the consumption of Liu Zihong, the legal representative of the two companies. (IT Home)

• ❑ The market situation of semiconductor 8-inch wafers has turned “sharply downward”, and the customer has started to adjust the inventory

• IT Home reported on September 26 that Taiwan Economic Daily quoted insiders as saying that the market situation of 8-inch wafers has taken the lead in the recent reversal, “turning sharply downward”. It is expected that in the later period, it will spread to 12 inch memory chip wafers, and then to 12 inch logic IC applications. It is expected that the client will carry out inventory adjustment from the fourth quarter to the first quarter of next year.

• In addition, the source also mentioned that some wafer manufacturers have agreed to the requirements of some downstream long-term customers, delaying the delivery schedule, while some wafer manufacturers have not yet made concessions to customers. (IT Home)

• ❑ TSMC may adjust its sales prospects in January next year due to customer order reduction
  According to the report of Taiwan media DigiTimes, according to insiders, TSMC’s main customers have cut orders for OEM production, which may prompt TSMC to modify its sales prospects at the investors’ meeting in January next year.

• The source said that IC design company has cut the order with the second-line foundry next year. This move to reduce the order with TSMC may show that the industry inventory adjustment cycle is longer than expected. (Aiji WeChat)

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  ❑ JPMorgan Chase: Apple will transfer 25% of iPhone production to India by 2025
  According to DigiTimes, India has revised a multi billion dollar semiconductor and display incentive policy to encourage investment in advanced and mature technologies. TechCrunch quoted JPMorgan Chase’s estimate that Apple has asked EMS suppliers to produce up to 1 million iPhone14/14Plus per month in India by the fourth quarter of 2022, and may increase the production share of iPhone in India to 25% by 2025.