The three major semiconductor manufacturers announced their second-quarter financial results, and the impact of the epidemic began to stabilize
Intel
Intel announced its revenue for the second quarter of 2020 on July 23. Total revenue for the Q2 quarter was US$19.7 billion, an increase of 20% over the same period, gross profit margin was 53.3%, and net profit was US$5.1 billion, an increase of 22% over the same period. Among them, the data-centric business revenue was 10.2 billion yuan, and the PC-centric business revenue was 9.5 billion U.S. dollars, a certain increase compared to Q2 last year.
The total revenue of the data center department was US$7.1 billion, an increase of 43% over the same period, the total revenue of the NVM solution department was US$1.7 billion, an increase of 76% over the same period, and the total revenue of the programmable solution department was US$500 million, an increase of 2% over the same period. However, the revenue of the Internet of Things business has declined compared with last year. Among them, the revenue of the IOT segment was US$670 million, a 32% year-on-year decline, and the revenue of Mobileye was US$146 million, a year-on-year decline of 27%. Intel claimed that both businesses were affected by the epidemic. , The IOT department was also affected by the release of the US Entity List.
Intel announced its revenue for the second quarter of 2020 on July 23. Total revenue for the Q2 quarter was US$19.7 billion, an increase of 20% over the same period, gross profit margin was 53.3%, and net profit was US$5.1 billion, an increase of 22% over the same period. Among them, the data-centric business revenue was 10.2 billion yuan, and the PC-centric business revenue was 9.5 billion U.S. dollars, a certain increase compared to Q2 last year.
The total revenue of the data center department was US$7.1 billion, an increase of 43% over the same period, the total revenue of the NVM solution department was US$1.7 billion, an increase of 76% over the same period, and the total revenue of the programmable solution department was US$500 million, an increase of 2% over the same period. However, the revenue of the Internet of Things business has declined compared with last year. Among them, the revenue of the IOT segment was US$670 million, a 32% year-on-year decline, and the revenue of Mobileye was US$146 million, a year-on-year decline of 27%. Intel claimed that both businesses were affected by the epidemic. , The IOT department was also affected by the release of the US Entity List.
Q2 revenue of Intel's data center business / Intel
Intel is still accelerating the transformation of 10nm products, but the R&D of 7nm products has encountered some obstacles and will be delayed for about 6 months based on the original plan. This delay is mainly due to the 7nm process. According to Intel’s latest survey data, its process progress is 12 months behind.
When asked when Intel will outsource more products to foundries such as TSMC, Intel CEO Bob Swan replied: “Intel will make full use of the advantages of the IDM model and use its own process technology in its main products as much as possible. We are very confident about our product plans for 2020, 2021 and 2022. If we choose to outsource, how to reduce the average price of goods and how to control costs are all issues that need to be considered. We call this an emergency plan. We are still evaluating 2023. Production options after the year."
Intel also pointed out that Q2's cloud and communication services business achieved a strong growth of more than 40%, due to the accelerated development of cloud and 5G applications. Top cloud service providers such as Alibaba, Baidu, Facebook, and Tencent have all announced that they will use third-generation Intel Xeon processors in basic equipment and services. At the same time, Microsoft Azure has launched several new Xeon virtual machines this quarter.
In the Q2 earnings conference call, Bob Swan mentioned that the demand for computing power is also shifting from the cloud to the edge, giving birth to a series of new applications and market opportunities. Intel will focus its edge computing on the travel business. It is estimated that the potential market size based on ADAS, data and travel service technologies will reach 230 billion US dollars in 2030. Intel will make full use of the recently acquired Moovit and become a complete travel service provider with the support of Mobileye's ADAS and AV technology.
STMicroelectronics
STMicroelectronics’ total Q2 revenue this year was US$2.09 billion, a 4% decline over the same period, gross profit margin was 35%, and net profit of US$90 million fell 43.7% over the same period. The financial report pointed out that the decline in revenue was mainly attributed to the impact of sales of automotive, analog and imaging products, but the business revenue of microcontrollers and digital ICs increased by 24.1%. Profits have been affected by both the epidemic and price pressures
Intel is still accelerating the transformation of 10nm products, but the R&D of 7nm products has encountered some obstacles and will be delayed for about 6 months based on the original plan. This delay is mainly due to the 7nm process. According to Intel’s latest survey data, its process progress is 12 months behind.
When asked when Intel will outsource more products to foundries such as TSMC, Intel CEO Bob Swan replied: “Intel will make full use of the advantages of the IDM model and use its own process technology in its main products as much as possible. We are very confident about our product plans for 2020, 2021 and 2022. If we choose to outsource, how to reduce the average price of goods and how to control costs are all issues that need to be considered. We call this an emergency plan. We are still evaluating 2023. Production options after the year."
Intel also pointed out that Q2's cloud and communication services business achieved a strong growth of more than 40%, due to the accelerated development of cloud and 5G applications. Top cloud service providers such as Alibaba, Baidu, Facebook, and Tencent have all announced that they will use third-generation Intel Xeon processors in basic equipment and services. At the same time, Microsoft Azure has launched several new Xeon virtual machines this quarter.
In the Q2 earnings conference call, Bob Swan mentioned that the demand for computing power is also shifting from the cloud to the edge, giving birth to a series of new applications and market opportunities. Intel will focus its edge computing on the travel business. It is estimated that the potential market size based on ADAS, data and travel service technologies will reach 230 billion US dollars in 2030. Intel will make full use of the recently acquired Moovit and become a complete travel service provider with the support of Mobileye's ADAS and AV technology.
STMicroelectronics
STMicroelectronics’ total Q2 revenue this year was US$2.09 billion, a 4% decline over the same period, gross profit margin was 35%, and net profit of US$90 million fell 43.7% over the same period. The financial report pointed out that the decline in revenue was mainly attributed to the impact of sales of automotive, analog and imaging products, but the business revenue of microcontrollers and digital ICs increased by 24.1%. Profits have been affected by both the epidemic and price pressures
STMicroelectronics 2020Q2 Revenue Overview / STMicroelectronics
As automakers and suppliers were affected by the epidemic, Q2 was at a low market. The clearing of the Chinese market slightly compensated for part of the impact of the deterioration of the European and American markets. In terms of automotive electrification, STMicroelectronics has achieved many advantages with its new design of new silicon nitride MOSFET technology. In terms of automotive digitalization, STMicroelectronics provides a series of driver assistance, autonomous driving, and V2X communication solutions to support the new automotive architecture.
In ADAS, STMicroelectronics has seen the popularity of L2 and L3 autonomous driving in low-end and low-end models. It is expected that one-third of the models in 2021 will use the vision system built with ST technology. The business on the autonomous driving microcontroller is also continuing to develop, including the 77GHz radar solution.
In the conference call, an investor asked whether STMicroelectronics can achieve 100 days of inventory turnover by the end of the year, and how much impact did the Huawei incident have on STMicroelectronics' business? Lorenzo Grandi, chief financial officer of STMicroelectronics, mentioned that the inventory turnover days at the end of the quarter was about 129 days, and it is expected to achieve 115 to 120 days in Q3 and 95 to 100 days in Q4. STMicroelectronics and Huawei have cooperated on customized solutions and specific and general products. The entity list event has no impact on Q2 and Q3 business, but it has a certain impact on Q4 business.
Samsung
Samsung Electronics announced the revenue details for the second quarter of 2020 on July 30. Its comprehensive revenue reached 52.97 trillion won, which was a certain decline compared with the previous quarter and the same period last year, but its net profit reached 5.56 trillion. The Korean won has improved considerably.
Among Samsung’s three main businesses, the quarterly revenue of consumer electronics was 10.17 trillion won, a decline of 6% compared to the same period last year, and the revenue of IT and mobile communications business reached 20.75 trillion won, a decline of 20% over the same period. Display panel business Revenue reached 25.05 trillion won, down 6% year-on-year.
In this financial report, Samsung pointed out that due to the impact of the epidemic, the demand for memory in the mobile phone market is still in a weak state, but the demand for memory in data centers is still very high. With the support, it will further improve market competitiveness and at the same time realize the full application of EUV lithography. In the large-scale system integration business, due to the reduced demand for mobile phone components of major customers, revenue has also decreased.
Due to the reduced demand for smartphones in developed markets (the United States, Europe), the revenue of mobile phone display panels is not ideal. There are also the Tokyo Olympics and the European Cup, which were affected by the epidemic, which reduced the demand for TV, but home office learning The prevalence of monitors increased the sales of monitors, slightly offsetting the decline in sales of the former.
Due to the closure of many offline stores due to the epidemic, the demand in the overall market has declined compared with the previous quarter. Therefore, mobile phone shipments in this quarter have also dropped a lot from the previous quarter. But Samsung is very optimistic about the third quarter's revenue, mainly due to the new Galaxy Note mobile phone and folding mobile phone released this week.
As automakers and suppliers were affected by the epidemic, Q2 was at a low market. The clearing of the Chinese market slightly compensated for part of the impact of the deterioration of the European and American markets. In terms of automotive electrification, STMicroelectronics has achieved many advantages with its new design of new silicon nitride MOSFET technology. In terms of automotive digitalization, STMicroelectronics provides a series of driver assistance, autonomous driving, and V2X communication solutions to support the new automotive architecture.
In ADAS, STMicroelectronics has seen the popularity of L2 and L3 autonomous driving in low-end and low-end models. It is expected that one-third of the models in 2021 will use the vision system built with ST technology. The business on the autonomous driving microcontroller is also continuing to develop, including the 77GHz radar solution.
In the conference call, an investor asked whether STMicroelectronics can achieve 100 days of inventory turnover by the end of the year, and how much impact did the Huawei incident have on STMicroelectronics' business? Lorenzo Grandi, chief financial officer of STMicroelectronics, mentioned that the inventory turnover days at the end of the quarter was about 129 days, and it is expected to achieve 115 to 120 days in Q3 and 95 to 100 days in Q4. STMicroelectronics and Huawei have cooperated on customized solutions and specific and general products. The entity list event has no impact on Q2 and Q3 business, but it has a certain impact on Q4 business.
Samsung
Samsung Electronics announced the revenue details for the second quarter of 2020 on July 30. Its comprehensive revenue reached 52.97 trillion won, which was a certain decline compared with the previous quarter and the same period last year, but its net profit reached 5.56 trillion. The Korean won has improved considerably.
Among Samsung’s three main businesses, the quarterly revenue of consumer electronics was 10.17 trillion won, a decline of 6% compared to the same period last year, and the revenue of IT and mobile communications business reached 20.75 trillion won, a decline of 20% over the same period. Display panel business Revenue reached 25.05 trillion won, down 6% year-on-year.
In this financial report, Samsung pointed out that due to the impact of the epidemic, the demand for memory in the mobile phone market is still in a weak state, but the demand for memory in data centers is still very high. With the support, it will further improve market competitiveness and at the same time realize the full application of EUV lithography. In the large-scale system integration business, due to the reduced demand for mobile phone components of major customers, revenue has also decreased.
Due to the reduced demand for smartphones in developed markets (the United States, Europe), the revenue of mobile phone display panels is not ideal. There are also the Tokyo Olympics and the European Cup, which were affected by the epidemic, which reduced the demand for TV, but home office learning The prevalence of monitors increased the sales of monitors, slightly offsetting the decline in sales of the former.
Due to the closure of many offline stores due to the epidemic, the demand in the overall market has declined compared with the previous quarter. Therefore, mobile phone shipments in this quarter have also dropped a lot from the previous quarter. But Samsung is very optimistic about the third quarter's revenue, mainly due to the new Galaxy Note mobile phone and folding mobile phone released this week.