Highlights of Q3 financial report of IOT TOP10 semiconductor manufacturers

Combined with the Q3 financial reports of major semiconductor companies, we can see that the semiconductor company with the first revenue in the last quarter is still Samsung. In terms of business growth, NVIDIA performed the best, with a year-on-year increase of 57% and 22%. Intel ranked last among the ten companies with a year-on-year increase of only 5% and a year-on-year decrease of 2.2%. In terms of profitability, Texas Instruments still has the highest gross profit margin, while the gross profit margin of the storage industry has the fastest growth. In Q3, only Qualcomm TSMC's gross profit margin fell year-on-year, of which Qualcomm fell the most, which is closely related to the rising costs of the two companies. The following are some conclusions drawn from the Q3 financial report analysis of several major semiconductor manufacturers.

Warehousing business shows high growth, but inventory is still low

Q3 Samsung Semiconductor business revenue was about US $22.4 billion, a year-on-year increase of 40%; Leading the past King Intel by $3 billion.

Samsung's good performance is attributed to the prosperity of the storage market. With the development of edge computing, artificial intelligence, Internet of things and other technologies, the storage demand in data center, transportation, medical treatment, manufacturing, security and other fields continues to remain strong. It can be seen that in addition to Samsung, which is also a storage giant SK Hynix, micron technology ushered in 45% and 37% performance growth in Q3 respectively.

We can see that the gross profit margin of companies with storage business in Q2 this year reached 45% (the specific financial performance of Samsung Semiconductor business is not disclosed and there is no data), with a year-on-year increase of more than 10%. During the booming market cycle, all three companies announced plans to expand production.

In the first half of this year, Samsung has completed the second phase expansion of Xi'an factory, with a total investment of US $15 billion, mainly producing flash memory chips; At the same time, Samsung also announced that it would expand pingze P3 plant and is expected to introduce production facilities in March 2022. For Hynix, Hynix plans to acquire the US NAND business for us $60 billion, which is still waiting for China's approval. In October, micron announced that it would invest more than 150 billion US dollars in memory manufacturing and R & D within 10 years. The source said that Meguiar's plan includes expanding its wafer factory in the United States and possibly establishing a new DRAM chip factory in Japan.

However, in its forecast for the next quarter, micron revised its revenue to $745 million to $7.85 billion, down 8% month on month. Meguiar believes that the shortage of other parts from PC OEM customers will affect the purchase of memory chips, and the shipment of memory chips may decline. At the same time, both Hynix and Meguiar said that the company's inventory was at a low level. Meguiar's inventory value in the third quarter was $4.5 billion, and the turnover days were 84 days, lower than the normal 95-105 days.

Why did the gross profit margins of Qualcomm and TSMC decline?

In addition to TSMC and Qualcomm, the gross profit margins of several major manufacturers are generally rising. The decline of TSMC and Qualcomm's gross profit margin may be related to the business expansion of the two companies.

On November 11, TSMC and Sony jointly announced a new joint venture factory in Japan. In addition to negotiations with the US government on the introduction of wafer factories in Japan, Zhang warned that the cost of building wafer factories in the US and other countries might increase. TSMC's profit in the second quarter was lower than expected year-on-year, and its gross profit margin was only 50%. The decline of TSMC's gross profit margin is closely related to TSMC's recent expansion investment. Morgan Stanley predicted that the expansion investment next year may fall below 50%.

Although TSMC Q3 gross profit margin decreased year-on-year, compared with Q2, TSMC Q3 was not as depressed as analysts expected. TSMC Q3 net profit increased by 16.3% month on month, and gross profit margin increased by 1.3% month on month. It is worth noting that TSMC's smartphone platform business increased by 2 percentage points month on month, which has something to do with Apple's launch of a new product equipped with a15 chip in September.

Qualcomm reported a net profit of $2.798 billion in the fourth quarter (as of the end of September), down 5% year-on-year, but Qualcomm's overall revenue reached $9.336 billion, a new high in the fourth quarter. It is worth noting that Qualcomm's QCT (chip) business revenue reached US $7.733 billion, a year-on-year increase of 56%, and the net profit was US $2.464 billion, a year-on-year increase of 143%.

The mobile phone business still accounts for the highest proportion of revenue in Qualcomm's chip business. In the last quarter, a number of mobile phone manufacturers released new products, resulting in a year-on-year increase of 21% in Qualcomm Xiaolong chip shipments and a year-on-year increase of 56% in mobile phone chip business revenue of US $4.686 billion. However, the Internet of things business has the highest growth rate among Qualcomm's chip business, with IOT business reaching US $1.54 billion, a year-on-year increase of 66%, and the second largest share of Qualcomm's chip business.

It can be said that Qualcomm's overall performance is very bright, and the growth of non mobile phone business in the chip business is also in line with Qualcomm's expectations. The decline in Qualcomm's gross profit margin was mainly due to the increase in costs. Qualcomm's financial report showed that the number of Qualcomm employees increased by about 4000 in fiscal year 2021, and the R & D cost reached US $7.176 billion, a year-on-year increase of 20% - year-on-year. Qualcomm said that it will lay out in the Internet of things business through its advantages in mobile and intelligent connectivity.

Revenue growth of 5%, Intel Q3 is still not the return of the king

This quarter, Intel still did not regain the first place lost in Q2.

The revenue of Intel's client computing business unit was $9.7 billion, down 2% year-on-year. Intel said it lacked core influence, resulting in a decline in shipments. At the same time, Intel's data center business grew at a rate of 10% and its revenue reached $6.5 billion.

After the recovery of the epidemic, the Internet of things market grew strongly, with iotg revenue of US $1.042 billion, a year-on-year increase of 54%, and operating revenue of US $276 million, a year-on-year increase of more than 352%, becoming the fastest-growing iotg institution.

Intel said in its earnings forecast that due to the company's investment plan, the company's gross profit margin will fall to 51% to 53% in the next few years, close to the lowest level in a decade, including idm2 0 plan and advanced process surpass TSMC.


After sorting out the financial reports of major manufacturers, we found that the Internet of things is becoming the next growth point of the semiconductor industry. Therefore, the demand for data center, communication, storage and other related businesses related to the Internet of things market will remain strong. Under this trend, major manufacturers are bound to take the next step.