Mar 15, 2022 6:16:25 PM

Fusion Worldwide has reviewed semiconductor manufacturers’ quarterly earnings call transcripts to gain perspective on the following:

  • supply and the state of constraints
  • demand
  • capacity expansion

The table below provides a summary of key takeaways from April 14, 2022 through July 12, 2022: 




Texas Instruments

COVID-19 related restrictions in China have impacted manufacturing operations but is expected to lessen during Q2. The annual operating tax rate for 2022 is predicted to remain at 14% and Texas Instruments’ (TI) effective tax rate will be about a point lower.  

To mitigate impact of reduced operations TI decreased the midpoint of Q2 by 10%, bringing revenue from $5 billion to $4.5 billion. 

Incremental additions to capacity have been added to better utilize TI’s factories. Next steps will be beginning production of RFAB2 in the second half of 2022 and LFAB in Q1 of 2023. The Sherman factory will be breaking ground later in 2022. 

Inventory is still below preferred levels but rose to $150 million in the last quarter. 


Microchip factories were impacted by COVID-19 shutdowns, but ramped up capacity and suspension of shipments to Russia allowed revenue to remain just below the high end of guidance for the quarter.

Customer backlog remains stretched to the highest company levels in Microchip’s history and extended from March into April. Microchip’s supply chain partners are still dealing with lockdowns that are affecting manufacturing capacity. These constraints, combined with the existing backlog, will affect supply into 2023. 


Key trends for the upcoming quarter include electric vehicles, ADAS, energy infrastructure and factory automation. In particular, demand for focus end markets of automotive and industrial will be important revenue drivers.

Lead-times are flat quarter over-quarter with no expected cancellation trends.

To avoid any impact from Covid-19 related shutdowns in Shanghai, ONSemi has begun transferring production capacity to Manila and Singapore locations.

ONSemi is on schedule to ship double the number of 300-millimeter wafers this year in comparison to 2021.

ADAS applications delivered favorable results in light vehicles, and ONSemi is tracking applications of image sensors in the industrial market for warehouse automation, autonomous delivery robot and agriculture applications. 


Q1 saw robust demand in automotive, driven by increased electrification and digitalization. A key component of this trend is silicon carbide devices.

Backlog visibility is above 18 months.

Trends in industrial demand were driven by factory automation, power, energy, plus building and home control.

Another key contributor to revenue was accessories for connected devices like wearables with health features built in, tablets, and true wireless stereo headsets. 


EV demand has grown production levels to 19% and is expected to rise to 23% in 2022. 2023 is expected to see 30%.

“The Ukraine war has disrupted predominantly European Tier 1 suppliers and OEMs with shortages of wiring harnesses.”

Tier 1s and OEMs are continuously challenged by a lean auto supply chain and kitting issues for complete module and vehicle assemblies.

NXP’s Tianjin back-end facility in China has resumed maximum capacity production. 


To lessen the pressure on Intel’s supply chain, investments are underway for expansion in Europe while a new top of the line facility was opened in Oregon.

The semiconductor industry is expected to feel the effects of shocks, such as the lockdowns in Shanghai and the war in Ukraine, for the foreseeable future. Most likely the impact will stretch into 2024 in areas like foundry capacity and tool availability.

Intel fabs and substrate supply has increasing manufacturing capacity and is approaching being able to match customer’s demand.

Intel partnered with Meta to improve its Xeon supply and meet resource needs.

Hyperscaler and enterprise performed well during the last quarter, with the market predicted to grow double digits due to AI and security applications.

Ethernet has seen limited end system shipments because of ecosystem supply limitations.

Almost 4 million units of Intel’s third-generation Scalable processor Ice Lake have shipped and Amazon Web Services stated that the EC2 I4i for storage and I/O intensive workloads has more broad availability.


Logistics issues continue to impact manufacturing capacities, with shortages of supply persisting into the new quarter.

Light vehicle inventory remains low.

Electrification trends are driving growth, as well as industrial automation, robotics and green initiatives.

Additional sectors predicted to see increased demand: 

  • Oil and gas
  • Military
  • Commercial aviation
  • Medical devices 

Increased manufacturing capacities are focused on resistor chips, power wire wounds and specialty resistors. To that end, Vishay recently acquired ATP and Barry Industries.

MOSFETS have seen a growing market position, particularly within automotive.

Vishay is building a 12-inch wafer fab in Itzehoe, Germany. This will be adjacent to an already operational 8-inch fab. This project will increase in-house wafer capacity by 70% within three to four years. 


During Q1, Diodes acquired Onsemi South Portland, ME Wafer Fabrication Facility and Operation, which adds an extra 200-millimeter wafer capacity. This will support production for automotive and industrial end markets.

Production capacity was impacted by lockdowns in China, which will extend the remaining backlog from last quarter.

Revenue rose 26% year-over-year and 9% sequentially in the automotive market.

For connected driving, which includes ADAS, telematics and infotainment Diodes received new designs for: 

  • Oscillators  
  • Crystals 
  • Clock ICs 
  • Video switches 
  • USB Type C drivers 
  • LDOs power switches 
  • TVs 
  • DC-DC converters  

Higher demand was recorded for USB charging controllers, TVs, MOSFETs and bipolar product for in-vehicle USB type c charging ports and wireless charging applications.

Demand for 80 volt and 100 volt MOSFETS has increased thanks to larger supply of 48-volt battery systems.

SSD MUX also saw robust demand due to enterprise high-capacity SSD modules and SSD controllers.

Diodes has seen positive traction within data center and high-performance computing applications with the PCI Express 5.0 o’clock generators and buffers, switches and read drivers.

Q1 also saw increased attention for combo switches and ReDrivers in docking stations, as well as dongles active cables and TVM applications.


AMD officially closed the acquisition of Xilinx and announced that an acquisition of Pensando is now underway.

Semi-custom sales grew by double-digit percentage year-over-year due to robust demand for Sony and Microsoft consoles, plus Valve’s new Steam Deck.

Server processor revenue year-over-year more than doubled in eight of the last ten quarters. This coincides with demand for  EPYC processors for cloud enterprise and HPC customers.

Q1 demand in Data Center revenue was led by expanded FPGA as a service and smartNIC deployments at Tier 1 hyperscalers, along with low-latency network solutions with fintech companies.

Xilinx Embedded markets automotive, industrial, vision, healthcare and consumer markets drove record pro forma full quarter revenue.

Record quarterly revenue was propelled by legacy products, steady gross margin expansion, record profitability and record cash flow generation.


Wireless saw less growth, with only single digit results, while core software business was steady.

Lead times remained extended due to lean product inventory.

Semiconductor backlog from Q1 close trended upwards by double digits from the prior quarter.

Supply of preamplifiers and re-channels in Nearline hard disk drives is a critical area of growth and contributed to revenue expanding over 20% CAGR throughout the last five years.

Q1 revenue of $2 billion represented 34% of semiconductor revenue.

North American customers drove wireless revenue up 10% sequentially and 4% year-on-year from the peak quarter in fiscal 2021.

Industrial revenue of $243 million represented approximately 4% of Q1 semiconductor revenue.

Q1 resales of $239 million grew 37% year-over-year because of demand in electric vehicles, renewable energy, factory automation and health care industries. Inventory in these channels remains around one month.

Semiconductor solution revenue was up 20% year-on-year and is forecasted to rise to 25% year-on-year.

Silicon Laboratories 

Manufacturing costs have risen alongside price increased from Silicon Laboratories’ suppliers.

Supply has been increased incrementally, however demand continues to rise above available capacity.

Demand remains strong for solutions, as well as design and momentum, which has grown by 79% in the first quarter over the same time frame last year.

Micron Technology

Micron’s SSD and automotive products achieved record revenue – more than 10% of Micron’s revenue is from these end-markets – with continued growth expected across both the automotive and industrial segments over the next decade.
  • This anticipated growth applies for memory and storage with demand stemmed from data centers, intelligence, and growing diversity of user devices.  
  • Electric vehicle production will also be a large revenue contributor moving forward, due to the advanced ADAS and in-vehicle ‘infotainment’ features, which require higher memory and storage capacity. 
Micron reported it had few disruptions due to ongoing global events 
  • Its quick turnaround to get its Xian, China back-end facility back online and output back to normal output levels mitigated any lost production time. 

The noble gas shortage that is anticipated due to Russia’s invasion of Ukraine is not expected to have short-term effects across Micron’s production because of its strategic relationships and accrued supply. However, prices are expected to rise to support procurement of certain raw materials.

Logic and analog semiconductor shortages have hindered auto unit production, resulting in a large gap between demand and supply.

Nonmemory component shortages are improving but predicted to continue because of difficulty with supply and heightened macroeconomic uncertainty.



No delays or impact has been felt from the Russia-Ukraine tensions and production has been unaffected by COVID-19 related shutdowns in China due to Lattice’s primary supply chain being located outside of the country.


Customer demand has remained steady for server end markets. Allegro has been focusing on markets like EV, ADAS and industrial.

Availability of 200-millimeter wafers has been challenging, but strategic relationships with TSMC will support an increased 2023 fiscal growth outlook. Allegro is working closely with foundry partners, but 200 millimeter supply will most likely be in an imbalance to demand for the foreseeable future.


Samsung outpaced market expectations in memory, with record high sales for server thanks to demand from server and PC customers.

Foundry demand was stable across all applications. Increased advanced process portion of production helped Samsung align on a stable yield trajectory.

In Display verticals mobile business contributed to historically high revenue, driven by large smartphone orders and increased sales in gaming.

Revenue and profitability for the MX business increased during the quarter despite shortages, geopolitical tensions and impacted revenue. Sales on S22 Ultra, new 5G models, as well as premium tablets and watches were major revenue drivers.

VD revenue and profit grew year-on-year due to increased sales of strategic products like the Neo GLED and large TVs.

Macro uncertainties and logistics issues are predicted to continue for Q2. DX is focusing on growing sales for new smartphones and TV products, along with premium segments.

A key focus for System LSI will be SoCs components and image sensors. 
Foundry will be working on the world’s first mass production of the 3-nanometer gate all around process.

Decreased production of LCD is moving forward as planned.

Increasing shifts to high core CPUs are predicted to increase server demand. 
Samsung plans to increase sales of next-generation interfaces like DDR5 and LPDDR5X 

Monolothic Power Systems (MPS)

MPS secured supply lines despite COVID-19 related lockdowns in China, so the company overall has only seen minor supply constraints thanks to long term planning. 

Marvell Technology

Revenue grew 50% year-on-year to $4.46 billion.

Marvell saw its revenue in cloud, 5G and automotive end markets double from the previous year.

Data center end market revenue for the fourth quarter was $574 million, up 15% sequentially and 113% year-over-year. Growth was driven by cloud and hyperscale customers.

To circumvent supply challenges and meet demand, Marvell is now using active electrical cables (ADCs), which require advanced DSPs.

Marvell introduced the industry’s first 400-gig and 800-gig DSPs for the ADC market, based on PAM4 SerDes technology.


Qualcomm’s patent portfolio, one of the most valuable portfolios in the industry, drove revenue to $1.6 billion. Targets for new patent applications are essential innovations for future releases of 5G and additional products.

Demand for technologies remains strong and continues to outpace supply. Multiple sourcing partners and expansion initiatives are anticipated to make improvements to supply capacity.

QCT EBT dollars have doubled on a year-over-year basis in size of the last seven quarters. The 35% margin was surpassed and rose 10 points year-over-year because of increased revenue and diversification.

Handset revenues of $6.3 billion increased 56% versus a year ago quarter.

Qualcomm added share in Samsung’s flagship device, the Galaxy S22, which supports the success of the Snapdragon processor technology against the competition.

Demand is decreasing for entry-level commodity tablets and transferring to premium connected computing devices, a clear validation of the convergence of mobile and PC.

Steady demand for connectivity and advanced processing pushed industrial IoT to the fastest year-over-year revenue growth within IoT this quarter. 


Video and image applications (VIA market) have been impacted by COVID-19 lockdowns.

Seagate is currently shipping 20-plus terabyte products in high volume and shipments are expected to increase to more than triple quarter-over-quarter in FQ4 to well over a million units.

The top of IT investment priorities for the current market have been digital transformation, AI and machine learning.

Many cloud customers are operating at near record utilization levels and are upgrading to higher capacity drives to meet demand. Seagate is supporting the highest capacity drivers commercially available and is the first to make high volume levels of 20-plus terabyte products.

Video and image applications continues to increase, particularly within high-definition cameras, longer data retention rates, AI and analytics enablement end users for the purpose of identifying patterns amongst months of captured data.

In 2020 network video cameras only had about 15% of embedded AI for analytics, but this is expected to expand to nearly two-thirds of network cameras by 2025. 

Cirrus Logic

Demand continues to outstrip supply due to COVID-19 related shutdowns.

Focus will be on fiscal gains and product development. 


5G, loT connectivity, defense and power were key demand rivers across end markets for the quarter.

Qorvo is seeing the impact of COVID-19 related lockdowns in China, supply constraints and ripple effects from the Russia-Ukraine tensions. 


Supply has been constrained for semiconductors in automotive use, logic, analog and discrete applications.

Prices for steel and other materials are rising, particularly impacting Hitachi Asetmo and Energy.

Productivity is currently back over 90%.

Current risks include economic uncertainty, supply chain disruptions, geopolitical tensions, environmental factors, technology limitations, pandemic related shocks and unpredictable weather patterns.

Taiwan Semiconductor Manufacturing Company (TSMC) 

First quarter revenue was TWD 491.1 billion (USD 17.6 billion), which was higher than guidance due to demand from smartphone and automotive-related applications.

HPC and automotive-related demand are expected to drive Q2 revenue, along with smartphone seasonality.

The industry trends of 5G and HPC-related applications will generate demand. This will support device unit volume growth and semiconductor content enrichment, specifically in HPC, smartphone, automotive and IoT applications.

Suppliers for tool supply are dealing with shortages and prolonged impact of COVID-19, which has resulted in labor component and chip constraints. This has extended delivery lead time for advanced and mature nodes.

Strategic sourcing partnerships and buffer stock of specialty chemicals and gases are predicted to prevent any materials supply related impact on operations. 




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