Applied materials: the demand for car core is still strong, and China will be the largest contributor
Time:2023-02-21
Views:1213
After the afternoon of Thursday, Applied Materials, the largest semiconductor equipment manufacturer in the United States, released its financial results for the previous quarter, and expected that the company could still achieve strong sales data in the next fiscal quarter, driven by strong demand for automotive and industrial chip manufacturing equipment.
Applied Materials expects that despite the overall downturn of the chip industry, the equipment sales of automotive chips and other low-end chips will continue to grow, and China will become its biggest driver.
Auto chip demand remains strong
According to the financial report, the net sales of applied materials in the first fiscal quarter up to the end of January this year was 6.739 billion US dollars, up 7% year on year; Net profit was $1.717 billion, down 4% year on year, and diluted earnings per share was $2.02.
The company expects its sales to be about $6.4 billion in the second fiscal quarter. This exceeded the analysts‘ average expectation of US $6.3 billion and pushed the stock price of Applied Materials to rise 1.53% in after-hours trading.
In fact, as the chip industry is still in a state of general oversupply, many chip giants have cut their budgets for new factories and equipment this year. However, the latest outlook of applied materials is optimistic that there are still bright spots in some chip industries, including automotive chips.
Gary Dickerson, CEO of the company, said that although such products (automobile chips, etc.) are usually produced on machines using mature technology, customers are increasing production capacity to meet demand.
"People underestimated the actual demand for chips in this industry," he said. "Our positioning is to beat the market more tenaciously in 2023."
In addition to application materials, chip manufacturers such as Analog Devices Inc. and GlobalFoundries Inc. also said that there was still a shortage of certain types of semiconductors, especially those used in automobiles, factory equipment and intelligent networking appliances.
TSMC has also said that the company will have to expand its capacity to produce such parts.
China will still become the largest driving force for the demand growth of car core equipment
Although the demand for automotive chips is still strong, overall, the global chip industry is still generally in a downturn.
Dixon, CEO of Applied Materials, also admitted that he was not optimistic about the overall market this year, but was still optimistic about the longer-term market prospects.
Applied Materials said that due to the chip restrictions imposed by the United States on China, the company expects to lose up to US $2.5 billion in revenue in the 2023 fiscal year. If the US government is willing to relax the restrictions, the company‘s losses may fall to $1.5 billion to $2 billion.
Applied Materials expects that China will become the largest contributor to the sales growth of equipment needed for global automotive chips and other low-end components. This will not be affected by further trade restrictions imposed by the US government.
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