Winbond: The revenue share of automotive chips continues to increase, optimistic about the niche market
Winbond, a major memory chip manufacturer, continues to benefit from the automotive market. Previously, niche DRAM entered the automotive camera market. In 2022, Nor Flash also entered the first-line international manufacturers, which can be used in auto drive system and in vehicle entertainment systems. Winbond stated that the revenue share of the automotive+industrial market has increased from 18% to 19% in the past to the current level of 27% to 28%. And automotive chips are mainly made of high-density products, which helps improve product structure.
In terms of revenue structure, Winbond contributes the most to the automotive market, followed by industrial products, including infrastructure and automation applications. Winbond's annual revenue decline has continued to converge in the second half of this year, and the annual decrease in monthly revenue in the third quarter has decreased to 13-14%. This reflects the gradual recovery of the company's performance this year.
Winbond believes that AI servers have pushed up the demand for high bandwidth memory HBM, causing the three major manufacturers (Samsung, SK Hynix, and Micron) to focus on this area and instead relaxing their focus on niche markets. Winbond stated that the growth of AI demand is conducive to improving the supply and demand structure of the DRAM market in the long term.
Winbond believes that AI servers have pushed up the demand for high bandwidth memory HBM, causing the three major manufacturers (Samsung, SK Hynix, and Micron) to focus on this area and instead relaxing their focus on niche markets. Winbond stated that the growth of AI demand is conducive to improving the supply and demand structure of the DRAM market in the long term.