THIS ARTICLE IS SYNTHESIZED BY THE SEMICONDUCTOR INDUSTRY (ID: ICVIEWS).
In the second quarter, Chinese mainland's share of applied materials revenue jumped to 43% from 21% a year ago.
Applied Materials, Inc., a major semiconductor equipment manufacturer, announced its financial results for the second quarter of fiscal year 2024 (ended April 28, 2024) after market hours on May 16: revenue of $6.646 billion, slightly higher than $6.630 billion in the same period a year ago, and non-GAAP diluted earnings per share increased 5% year-on-year to $2.09.
MarketWatch reported on the 16th that the market consensus value of FactSet statistics showed that analysts expected Applied Materials' second-quarter revenue and non-GAAP diluted earnings per share to be $6.54 billion and $1.99, respectively.
Applied Materials pointed out on the 16th that the third quarter revenue is expected to reach $6.65 billion (plus or minus $400 million), and non-GAAP diluted earnings per share are in the range of $1.83-2.19 (median $2.01).
Analysts expect third-quarter revenue and non-GAAP diluted earnings per share of $6.59 billion and $1.98, respectively.
According to the earnings press release, Applied Materials' semiconductor system revenue in the second quarter decreased by 1.5% year-on-year to US$4.901 billion. Foundry, logic, and other semiconductor systems accounted for 65% of semiconductor system revenue in the second quarter of fiscal year 2024, down from 84% a year ago. The share of DRAM rose from 11% to 32%, and NAND fell from 5% to 3%.
Chinese mainland's share of Applied Materials' revenue in the second quarter jumped to 43% from 21% a year ago, while South Korea and the United States fell to 15% and 13% respectively from 24% and 17% a year ago.
Gary Dickerson, President and CEO of Applied Materials, pointed out through a press release on the 16th that Applied Materials' revenue and earnings in the second quarter of fiscal year 2024 fell on the upper end of the financial range.
Dickerson said Applied's state-of-the-art materials engineering technology portfolio, which supports chips for the structural transformation of technologies such as artificial intelligence (AI), the Internet of Things (IoT), electric vehicles and clean energy, puts Applied Materials in a strong position to grow with these long-term trends.
Applied Materials said on the 16th that some customers who produce ICAPS (Internet of Things, communications, automotive, power supply, and sensor-related application chips) products have suspended orders.
Applied Materials, a component of the Philadelphia Semiconductor Index, fell 1.59% to close at $214.03 on the 16th, and rose to an intraday high of $218.75, a record high. Applied Materials fell 1.13% to $211.61 after trading on the 16th. Year-to-date (as of the close of trading on the 16th), Applied Materials' stock price is up 32.06%.
The collective performance of domestic semiconductor equipment enterprises will be: sufficient orders
Recently, the semiconductor equipment special session of the collective performance briefing of the subdivided industries of the Science and Technology Innovation Board was officially held, and the participating companies in this issue include 12 listed companies such as Huafeng Measurement and Control, Microconductive Nano, and Huaxing Yuanchuang.
According to reports, when analyzing industry trends and corresponding measures, Cai Lin, director and general manager of Huafon Measurement and Control, introduced at the performance meeting that the semiconductor market has gradually shown signs of recovery since the fourth quarter of last year after a period of destocking, and the prosperity has continued to rise. Up to now, the company's order volume has rebounded significantly, and bulk orders from large customers have increased significantly. As the market warms, overseas markets represented by Taiwan, China and Southeast Asia will also contribute orders one after another to increase the company's performance. The company will continue to focus on the development strategy and direction, according to the development status of the semiconductor industry, on the basis of the existing foundation and advantages, increase technological innovation, R&D investment and overseas market investment, develop new applications and new products, meet the testing needs of customers, and continuously improve market share.
Li Hui, chairman and general manager of Jingsheng Co., Ltd., pointed out that the inventory level of the silicon industry has been reduced to a certain extent. With the demand for high-computing HBM chips for storage and the increase in the localization rate of chips for Huawei's mobile phones, the entire domestic industrial chain has also been greatly promoted. In the past two years, the company has continued to increase its R&D investment in silicon products. The company has upgraded the existing control system of the equipment, and the company also plans to introduce high-end storage polishing wafers and ultra-low oxygen including SOI high-spec silicon wafers to the market this year. In terms of silicon carbide, with the decline of cost and the improvement of yield level, downstream applications are further expanding. The company's domestic customers are working hard to improve the process technology level of 8-inch silicon carbide substrates, and are making corresponding adjustments to the layout of new production capacity. In the future, the company will continue to cooperate with customers to continuously optimize and improve 8-inch silicon carbide growth equipment.
Huang Mingjiu, chairman of Nike Equipment, said in an exchange with investors that due to the impact of comprehensive factors such as geopolitical changes, weak end market demand and cyclical fluctuations in the semiconductor industry, the semiconductor market demand was sluggish in the first two years, resulting in a short-term downward cycle of the industrial chain. However, the semiconductor industry has both growth and cyclical attributes, and although China's semiconductor industry has been affected by the macro environment and other reasons in the short term, China is still the world's largest semiconductor consumer market. Judging from the current contract orders in the first quarter, the market is recovering, and the semiconductor packaging equipment market has been picking up, with an increase of more than 500% over the same period last year. As the market recovers, the company's semiconductor sales are expected to return to pre-volatility levels for the full year. In order to cope with the capacity shortage brought about by the recovery, the company actively promotes the construction of one of the fund-raising projects, the construction of semiconductor packaging equipment new project, the project has been capped, and the comprehensive decoration and follow-up equipment installation stage are carried out, and it is expected that it can be put into trial production before the end of the year.
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