Core Viewpoint - UBS reports a positive trend in the semiconductor industry regarding inventory and pricing, particularly noting the continuous digestion of MCU inventory, which alleviates concerns about supply-demand imbalance [1] Group 1: Inventory Trends - Global semiconductor inventory showed stable adjustments in July, with the exception of capacitors and sensors, which saw a month-on-month increase of 6%. Other categories either remained flat or decreased by 2% [2] - MCU inventory has been consistently decreasing since February, with a month-on-month decline of 1% in July, although this is a slowdown from the previous month's 5% drop [2][4] - Overall, the semiconductor inventory is still high compared to January 2023, but the industry is moving towards supply-demand balance [1][4] Group 2: Pricing Trends - Average pricing across all categories increased by 1% month-on-month and 14% year-on-year, primarily due to product mix adjustments [2] - Transistor prices rose by 1% month-on-month and surged by 18% year-on-year, driven mainly by bipolar transistors [2][4] - Capacitors, diodes, and sensors saw month-on-month price increases of 2%-3%, while other categories remained stable or increased by 1% [2] Group 3: Key Product Dynamics - MCU prices remained stable month-on-month, with a year-on-year increase of 1%, despite high inventory levels compared to January 2023 [4] - Transistor inventory decreased by 2%, with prices increasing by 1% month-on-month and 18% year-on-year [4] - Sensor prices increased by 18% year-on-year and 2% month-on-month, with inventory showing significant fluctuations [4] Group 4: Company Observations - The weighted average pricing across companies increased by 3% year-on-year in July, with stable inventory levels overall [5] - MCU inventory digestion has slowed, previously driven by Microchip Technology and STMicroelectronics, while Infineon’s MCU inventory share has risen from an average of 2.6% to 4%, indicating signs of inventory accumulation [5]

Core Viewpoint - Samsung Electro-Mechanics has been approved to supply multilayer ceramic capacitors (MLCC) to BYD, indicating a strategic partnership in the electric vehicle supply chain [1] Group 1 - Samsung Electro-Mechanics is also supplying MLCC to Tesla, showcasing its role in the growing electric vehicle market [1]