[Renesas Electronics 2023 Outlook] Comprehensive digitalization and intelligence trends will bring continued growth to chip demand

Even in the semiconductor market, discussions such as "cutting orders" and "destocking" are increasingly heating up, and many industry insiders predict that a down cycle is coming. However, Renesas is still optimistic about the fields of industry, automobiles, infrastructure, IoT, and data centers. First of all, in industry, the pace of intelligent manufacturing is gradually accelerating, driving the growth of industrial intelligent chips; secondly, AI is becoming more and more popular. Under the background of , the Internet of Everything is becoming more and more important for security, reliability and encryption needs, which will also promote the growth of data center, infrastructure and IoT markets. It can be seen that with the development of intelligence and intelligence, the impact of technology on life has penetrated into all aspects. The final focus is on the automotive field. Due to the development of new energy and intelligence in automobiles, the demand for automotive semiconductors will not only increase exponentially, but also require chips to innovate on previous technologies. These innovations include process aspects and architecture aspects. In terms of technology, such as 40nm or 28nm advanced processes will promote automotive innovation, while in terms of architecture, it is the current mainstream advancement from decentralized to centralized control.

The current trend of comprehensive digitalization and intelligence will bring continuous growth to chip demand. Of course, the growth rate will be different in each application field, and there will even be downward adjustments in individual fields. For example, consumer electronics, led by mobile phones, may experience a decline, but still maintain steady growth in areas such as industry, automobiles, and data centers. Overall, long-term demand remains optimistic and prices are relatively stable. Although we cannot expect the huge growth in 2023 from 2021 to 2022, judging from the current situation, there will still be growth in 2023.

There are two main considerations in achieving counter-trend growth under the premise of a sluggish general environment. First, companies should have a complete ecosystem to provide customers with diversified services; second, companies should have rapid innovation capabilities and core competitiveness to help customers create differentiated products. In recent years, Renesas has continued to expand its advantages through mergers and acquisitions. Currently, it has different products from input to output, from various sensing signals to signal movement, storage, computing, and driving, which can be used for different purposes. Adaptation options are provided for customer applications. In order to provide customers with more convenient services, we have also established a professional solution development and support team that can combine Renesas' rich products into various corresponding reference designs for different applications to help customers shorten the development cycle. Achieve innovation quickly.

In addition, Renesas will continue to increase investment in product manufacturing, including product research and development and production capacity. In addition to the packaging and testing factories invested and established in Beijing and Suzhou, the company will continue to work closely with outsourcing factories to expand production capacity. We will use our advantages on the equipment side to create a flexible and elastic supply.