'The hot spot' is affected by the bit continental? Nvidia's mining business will be dramatically reduced by 2/3

1. Impacted by Bit Continental? Nvidia's mining business will be cut sharply by two-thirds; 2. SensL acquires SensL, a supplier of sensing products; 3. EUV EUV is hard to find! TSMC's first reveal of 5nm: frequency only increases by 15%; 4. The annual growth rate is 15%, and the automobile will be the fastest growth point of CMOS in the next five years! 5. The daily trading performance is expected to rise quarter by quarter. Passive components may be out of stock fearing next year.

1. Affected by the Bit Continental? The mining business of Nvidia will be drastically reduced by 2/3;

According to micro-blog news, on the 10th, Nvidia announced its first fiscal quarter revenue for the fiscal year 2019 as of April 29, 2018. Its operating revenue reached a record high of US$3.21 billion, a year-on-year increase of 66%, and an increase of 10% from the previous quarter. It is noteworthy that the quarterly OEM and IP operating revenue surged by 148% year-on-year, of which approximately 75% were related to digital currency mining. Nvidia expects second-quarter digital currency revenue to decrease by two-thirds from the previous quarter.

In addition, non-GAAP net profit increased by 141% year-on-year to US$1.285 billion, and net profit under GAAP increased by 145% YoY to US$1.244 billion. Non-GAAP and GAAP gross margin were 64.7% and 64.5%, respectively. This is Nvidia's 11th consecutive profit. A quarterly profit exceeded market expectations. Nvidia's second-quarter revenue is also expected to exceed market expectations. It is expected to be within ±2% of revenue of $3.1 billion, which is higher than market expectations of $2.95 billion.

In the first fiscal quarter of NVIDIA, revenue from OEM and IP business grew dramatically, which was a 115% increase from the previous quarter and a 148% year-on-year increase to US$387 million. Nvidia points out that there are US$289 million in revenue and encryption figures. Related to currency mining. This means that in the most robust growth of Nvidia's first quarter, the demand for digital currency mining contributed about 75% of business revenue.

This is Nvidia's first disclosure of mining-related business revenues, Nvidia CEO Huang Renxun said, digital currency miners purchased a large number of GPUs, driving prices soaring, and many game players can not even buy new GeForce chips.

Another major graphics card vendor, AMD, said in last month’s earnings report that digital currency mining revenue accounted for approximately 10% of overall revenue. AMD Q1’s camp revenue reached US$1.65 billion, which means mining sales amounted to approximately US$165 million. , well below NVIDIA's $289 million.

Although the mining business boom did not retreat, Nvidia apparently questioned the future of this market. For the second fiscal quarter, Nvidia executives expect mining business revenue will be only 1/3 of the first quarter .

Nvidia Mining's mining business was drastically reduced. In addition to the impact of bitcoin prices falling sharply and other fluctuations, another major factor was the impact from Bitland. Bitland has released the E3 mining machine E3 using its own ASIC chip last month. Shipments in the second quarter. Bitcoin ASIC chip developed by Bitland, mining efficiency is far better than GPU, ASIC has long been the mainstream of bitcoin mining. Before that, Ether has no proprietary ASIC chip, miners can only use GPU mining. Now the strong entry of Bit Continental will change this pattern and erode the market space that was originally dominated by NVIDIA and AMD's GPUs.

In addition, artificial intelligence ASIC chips such as Google TPU 2 are also weakening the GPU market for artificial intelligence.

The stock market has repeatedly reflected the market's expectations for Nvidia. After the financial report was released, Nvidia's stock price once fell, has fallen more than 1%, then recovered, rose more than 1%, refreshed historical highs, then turned lower, once falling over 3%. Since the beginning of this year, Nvidia's stock price has risen by more than 30%. Analysts believe that the stock price of Nvidia's shares fell afterwards because the company has not demonstrated a strong growth momentum beyond the digital currency.

Kevin Cassidy, an analyst with Stifel Nicolaus, an investment banking and brokerage firm, believes that Nvidia’s first-quarter revenue is higher than market expectations mainly due to digital currency-related income. For a stock with an estimated 40-fold P/E, this Performance is not good enough. (Proofreading / Xiaoqiu)

2. ON Semiconductor acquires SensL, a supplier of sensing products;

ON Semiconductor Corporation announced the acquisition of SensL Technologies Ltd (hereafter referred to as 'SensL'). The acquisition is expected to immediately increase ON Semiconductor's non-GAAP EPS. SensL is headquartered in Ireland and is designed for automotive applications. , Medical, Industrial and Consumer Markets offers silicon photomultipliers (SiPMs), single photon avalanche diodes (SPADs), and a technology leader in Lidar (LiDAR) sensing products.

The acquisition has enabled ON Semiconductor to expand its market leadership in advanced driver assistance systems and auto-sensing automotive sensing applications to broaden its capabilities in imaging, radar and Optima.

Combined with the acquisition in Ireland and the radar technology and design center previously acquired in Israel and the United Kingdom, ON Semiconductor has unique advantages in providing comprehensive sensor solutions for the next generation of highly automated vehicles, as well as consolidating the company’s image sensing and Ultrasonic parking assistance leading position.

Daner Ozcelik, senior vice president and general manager of the Image Sensors Division, said: “The entire SensL team founded by Carl Jackson and led by Bryan Campbell has done a great job of pushing SiPM into the market. We look forward to expanding their success in the market and continuing their LiDAR, The portfolio of medical imaging and radiation detection. The demand for automotive sensor fusion is accelerating, and more sensor technologies are needed from the SensL team. ' China Electronics News

3.EUV EUV is hard to find! Taiwan Semiconductor Manufacturing Co., Ltd. unveiled 5nm for the first time: the frequency only increased by 15%;

Intel 10nm technology is still struggling. Taiwan Semiconductor Manufacturing Co., Ltd. and Samsung Electronics Co., Ltd. have already begun mass production of 7nm. The next step is naturally 5nm. TSMC recently released some key indicators for 5nm for the first time. It does not look very optimistic.

Next year, TSMC's second-generation 7nm process will attempt to use the EUV EUV lithography system for the first time on some non-critical levels. The process node is upgraded from CLN7FF to CLN7FF+, claiming that transistor density can be increased by 20%, and at the same density and frequency Power consumption can be reduced by 10%.

TSMC 5nm (CLN5) will continue to use the Dutch ASML Twinscan NXE: 3400 EUV lithography system to expand the use of EUV, which can increase by 80% compared to the density of the first generation 7nm transistors (in comparison to the second generation it is an increase of 50 %).

It seems to be very powerful, but the actual frequency increase that can be brought is only 15%, but the power consumption can only be reduced by 20% at the same density and frequency, compared to the second generation 7nm upgrade is even more limited.

However, TSMC also provided an option called 'Very Low Threshold Voltage' (ELTV), which claims to increase the frequency increase rate to 25%, but did not explain how this is done.

The process is continuously evolving, but the improvements brought about by it are becoming more and more limited. It is enough to show that the semiconductor technology has a sharp increase in complexity and complexity. Certainly it does not rule out that TSMC has been too capricious in terms of process naming over the past few years and it is not as honest as Intel.

With such a limited improvement, we do not know whether we can attract customers to follow up. After all, we must fully consider the cost. The good news is that these new generations of TSMC technology are all 'likes', such as 7nm to the end of this year will have more than 50 chip streams Sheets, covering everything from high performance to embedded.

At present, the basic IP of TSMC EUV 7nm process has been verified by the chip, but key modules such as embedded FPGAs, HBM2, and GDDR5 will not be completed until the end of this year or early next year, and the 5nm version will be completed in July of this year. Version 0.5, a large number of IP modules such as PCI-E 4.0, DDR4, USB 3.1 will wait until 2019.

On the equipment side, TSMC will open a new fab Fab 8 for 5nm and introduce multiple new lithography machines. However, the current average daily power of EUV lithography machines is only 145W, and some of them can last for 250W in several weeks. Commercial use is expected to reach 300W later this year, and further improvement is still needed.

There is also the problem of EUV lithography mask material, the current ultra-ultraviolet transmittance is only 83%, will be more than 90% next year.

4. The annual growth of 15%, the car will be the fastest growth point of CMOS in the next five years!

According to the micro-network news, IC Insights' latest report indicates that the application of CMOS image sensors in automotive, security, machine vision, medical, virtual reality and other new areas has offset the impact of slow growth in the smartphone market.

With the increasing use of digital cameras in automotive, machine vision, face recognition, and security systems, these areas are becoming the market's driving force behind smartphone cameras. The IC Insights report states that these are mentioned above. In the field, this year will boost sales of CMOS image sensors by 10% to reach 13.7 billion US dollars, which is the eighth highest level in history.

The report also pointed out that until 2022, the CMOS image sensor market will continue to maintain a record annual sales. (Figure 1)

Figure 1

The report believes that with the expansion of embedded digital imaging capabilities into a wider range of application markets and systems, CMOS image sensors will grab more market share of the electric coupling device (CCDS).

Although the smart phone market matured in 2016, the sales growth rate of CMOS image sensors slowed to 6%, but the demand for other applications was strong. Therefore, in the past 2017, the image sensor revenue increased by 19%. 12.5 billion U.S. dollars.

According to the latest report of IC Insights, sales of CCD and other image sensor technologies increased by 5% in 2016 to reach US$1.6 billion, but dropped by 2% in 2017.

Overall, CMOS image sensors accounted for 89% of the total image sensor sales in 2017, and this figure was only 54% in 2007 and 74% in 2012. In 2017, the unit shipment of CMOS imaging equipment The volume accounted for 81% of the total shipments, which was 63% in 2007 and 64% in 2012.

The new CMOS design is also constantly improving, such as high-speed imaging, higher resolution, and integrating more functions for security applications, machine identification, automotive, face recognition, virtual reality, medical and other new applications. .

At the same time, in smart phones, CMOS image sensors have also shown new growth momentum. The wide application of dual cameras will enhance the application of CMOS in mobile phones.

The report predicts that in 2017, cellular smart phones will account for 62% of CMOS image sensor sales, and by 2022 this figure will decline to 45%.

The report also predicts that the automotive CMOS image sensor market will be the fastest growing market in the next five years. By 2022, the compound annual growth rate will increase by 38.4% to 15%. Meanwhile, the annual revenue of mobile phone cameras will be only 2.2% compound annual growth rate, reaching 8.6 billion US dollars in annual revenue.

For more details, please refer to the IC Insights report. (Proofreading / Fan Rong)

5. Japan's e-commerce performance looks higher quarter by quarter, passive components out of stock fear of next year

Passive component dealers traded in the Vietnam and Malaysia markets and continued to buy and sell strategies. It is expected that the passive components will be out of stock until 2019. The legal person estimates that the daily trading performance of this year will go higher quarter by quarter, and the off-season in the second quarter will not be light.

Japan Electronics Trading Co., Ltd. (5/11) was invited to participate in the legal briefing held by Guoti Securities today.

Looking ahead to future operations, Yu Yaoguo, executive vice president of Japan Telecom International, pointed out that the company has continued to deepen its niche and high-margin markets including medical, automotive, industrial control, electromechanical, and green energy, expanding its product line, and providing one-stop shopping. A variety of capacitive services, and strengthen the long-tail effect. Japan Electronics trade capacitor products, covering almost all capacitive items.

Yu Yaoguo stated that Japan Telecom traded actively in Vietnam and Malaysia, and cooperated with local manufacturers to improve its gross profit performance. In the acquisition strategy, Yu Yaoguo pointed out that the acquisition plan will continue.

Looking at the passive component market conditions, Yu Yaoguo stated that it will continue to be out of stock this year, and the out-of-stock condition may continue into 2019. Among them, solid-state capacitors and aluminum electrolytic capacitors have a delivery period of about 6 months. It is also difficult to make temporary orders. , Including capacitors and multilayer ceramic capacitors (MLCC) and other product prices will continue to rise. Observe the inventory level, Yu Yao pointed out that the Japan Trade Fair will maintain a relatively reasonable water level.

Looking forward to the operating performance this year, the legal person estimates that the gross profit margin of Japan Electronics Trading Group in the second quarter of this year will not be significantly reversed, and can still maintain a relatively high grade. The performance is not weak in the off-season, and this year's results can rise up quarter by quarter, and the peak falls in the 4th. Quarter. The current inventory level of the daily trading is about 1.3~1.6 months.

Nippon Electric Co., Ltd. is mainly engaged in electrolytic capacitors, solid capacitors, switches, current sensors, multilayer ceramic capacitors, thin film capacitors, etc. The products include Nippon Chemi-Con, Matsushita Electronic, Hitachi AIC, Alps. Fujitsu, Samsung Electro-Mechanics, AVX/Kyocera, Epcos, Kemet et al.

From the product distribution perspective, ceramic capacitors accounted for about 28.6%, electrolytic capacitors accounted for about 21.9%, solid-state capacitors accounted for about 14%, semiconductor ICs accounted for about 16%, LED light-emitting diodes accounted for about 9%.

Japan Electronics Trading Group consolidated revenue of NT$951 million in April, which was a 40.3% increase from the same period last year of 677 million yuan. Accumulatively, it consolidated revenue of 3.535 billion yuan in the first four months of this year, a 31.8 increase from 2.682 billion yuan in the same period of last year. %. The legal person stated that the monthly revenue of the Japanese electronics trade reached a record high in the same period in April.

In the first quarter of Japan Telecom, the consolidated revenue was 2.584 billion yuan, up 28.9% from 2.004 billion yuan in the same period of last year, and the net profit after taxation in the first quarter was 347 million yuan, a 163% increase from the 1.32 billion yuan in the same period of last year. The first quarterly share tax Post-pure 2.08 yuan, better than last year's EPS of 0.8 yuan. Legal persons pointed out that the first quarter of the daily income and profit of China Telecom reached a single-quarter high in the calendar year.

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