This original price of 20 yuan car chip, was fried to 2800 yuan, the big manufacturers are too profitable

Source: Electronics enthusiast

Cover: Figureworm Creative

The shortage of automotive chips has not eased since entering 2022, and the market price increase is still the same. In a recent CCTV report, ST's L9369 chip was speculated to 2800 yuan in the Shanghai SEG electronics market, while the original price of this chip was only about 20 yuan, an increase of 14,000%. The outrageous price projects that the current chip supply situation in the market is still very severe, and the demand continues to rise.

In this context, the performance of large automotive chip manufacturers in 2021 ushered in a substantial increase, and even a number of revenues hit record highs.

STMicroelectronics

In its previously announced full-year 2021 financial report, ST achieved sales revenue of US$12.76 billion, an increase of 24.9% year-on-year; an operating margin of 19%, and a gross profit margin of 41.7%.

Among them, the Automotive Products and Discrete Products Division (ADG) achieved net revenue of $1.22 billion in the fourth quarter, an increase of 28.6% year-on-year. Among ST's three main businesses, ADG is the fastest growing, while profit margins have also increased significantly. ADG operating profit increased 129.5 percent to $216 million in the fourth quarter of last year, representing an operating margin of 17.6 percent, compared to 9.9 percent in the year-ago quarter.

Faced with a shortage of supply, ST said it expects capital expenditures of about $3.4 billion to $3.6 billion in 2022 to further increase the company's production capacity and advance the implementation of the strategic plan, including the commissioning of the first production line at the new Agrate 300 mm (12 in) wafer plant in Italy. Meanwhile, ST's full-year 2022 revenue target is $14.8 billion to $15.3 billion.

Texas Instruments

Texas Instruments' full-year 2021 revenue was $18.344 billion, up 26.85% year-over-year, and net profit was $7.769 billion, compared to $5.595 billion in the previous year. Texas Instruments said at the earnings briefing that automotive and industrial sales accounted for more than 60% of its revenue in 2021, and by terminal market, the industrial market accounted for about 41% of the company's annual revenue, an increase of about 40% year-on-year; the automotive market accounted for about 21% of the company's annual revenue, growing in high single digits.

And in 2022, Texas Instruments said that with a strategic focus on industry and automotive, customers in the industrial and automotive sectors are increasingly using analog and embedded technologies to make products smarter, safer, more connected and more efficient, and these trends will continue to drive the growing demand for chips in each subdivision application.

NXP

NXP's full-year 2021 revenue was $11.06 billion, up 28% year-over-year and the company's high. CEO Kurt Sievers specifically mentioned that demand in all key end markets will increase significantly in 2021. Among them, the automotive business is the largest growth, NXP's annual revenue in 2021 reached $5.493 billion, an increase of 44% year-on-year, accounting for nearly 50% of total revenue.

NXP said the growth in the automotive end market is due to a significant increase in demand for NXP's embedded automotive processing solutions, including solutions that address the shift to domain and regional processing. In addition, customer adoption of NXP radar products for ADAS safety products and a rebound in demand for advanced analog products, including demand for solutions to support electric vehicle powertrains, contributed to strong year-over-year growth. From a channel perspective, NXP's distribution partners in Greater China and Asia Pacific, the Americas and Japan were the main reasons for the year-over-year increase.

Ansemy

ON Semiconductor's 2021 revenue was $6.74 billion, up 28.3% year-over-year, and this performance also set a company record. From the financial report, it can be found that ON Semiconductor gradually exited the unstable and highly competitive non-core business last year, focusing various resources on businesses such as electric vehicles, ADAS and industrial automation, which has led to a slight increase in the proportion of its automotive and industrial businesses in total revenue. Industrial revenue increased from 24.5% in Q4 2019 to 28.3% in Q4 2021, and automotive revenue accounted for 34.7% of total revenue in Q4 2021.

ON Semiconductor previously expected a compound annual growth rate of 17% in the automotive industry and 7% in the industrial sector from 2021 to 2025, which is also an important reason why the company will focus on the automotive and industrial sectors. ON Expect automotive and industrial to account for around 75% of total revenue over the next 5 years, compared to 63% in Q4 2021.

5/ Renesas

Renesas' revenue for the full year 2021 was JPY 994,418 million, up 38.9% year-on-year, and operating profit was JPY 183,601 million, up 181.8% year-on-year.

Among them, the automotive business plays an important role in the overall growth. Renesas' 2021 automotive business revenue was JPY 462.3 billion, up 35.6% year-on-year and accounting for 46.5% of total revenue. The largest financial indicator of growth was profit, and the financial report showed that Renesas' non-GAAP operating profit for the automotive business in 2021 was 122.4 billion yen, an increase of 153.2% year-on-year.

For Renesas, the continued upward demand for automotive chips will continue to drive its performance growth in 2022. After the COVID-19 pandemic and the global shortage of automotive chips, car inventories are currently at historic lows. According to the forecasts of all walks of life, automobile production and chip supply will rebound this year, while the popularity of electric vehicles will further enhance the demand for automotive chips. This year, for Renesas and other automotive chip manufacturers, revenue and profit will usher in a new breakthrough almost without suspense.

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