Major analog companies' quarterly revenue shrank due to the slow recovery of consumer electronics demand.
Leading analog companies witnessed a decline in revenue growth or even negative growth during Q4 of 2022
Among the top ten leading analog chip companies, only four companies, ADI, ST, Microchip, Renesas，achieved month-on-month growth in revenue, and each of their rates was within 5%. Another six companies, TI, Skyworks, Infineon, Qorvo , NXP, Onsemi，saw a quarter-on-quarter decline in revenue, mainly due to weaker demand in consumer electronics markets such as smartphones, PCs, and data centers.
Driven by strong demand in automotive electronics, seven companies, including ADI, Infineon, ST, NXP, Onsemi, Microchip, and Renesas, witnessed an increase in quarterly revenue year on year.
Despite the current cyclical downturn in the semiconductor industry and uncertainties in the macro economy, some analog providers remain optimistic and cautious about their long-term business prospects.
Infineon expects revenue in 2023Q1 to be nearly flat；STMicroelectronics expects in 2023Q1 revenue growth of 18.5% year-on-year；Microchip expects revenue in 2023Q1 to grow by 1%-4% sequentially.
There are three factors that are considered to have a positive impact on the development of the analog chip industry.
Firstly, the development of some End-use application areas is highly certainty. For example, the electrification and intelligentization of automobiles are still the general trends, and the consumption of semiconductors will continue to increase. New energy transformation is also becoming a strong force driving incremental demand for analog chips.
Secondly，the replenishing inventory may begin as supply chain and teminal inventory gradually deplete in the first half of this year. The inventory is at a high level due to the disruption caused by the epidemic last year.
Finally，those companies should to wait for a recovery in the consumer electronics market, which will help support a pick-up in demand for analog chips.
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