In the industrial sector, the global manufacturing PMI is weak, the growth rate of new energy vehicle penetration in the automotive market has slowed down, and the consumer electronics market is in a slack season at the beginning of the year. The resonance of multiple markets has hindered the recovery pace of IC enterprises. The favorable opportunity lies in the expansion of the scale of AI servers, which is beneficial to major power device and SiC manufacturers such as Infineon and ON Semiconductor. The recovery of the simulated IC cycle has led TI's performance to bid farewell to the downward trend, but the inventory level remains high.
Major original equipment manufacturers (Oems) have generally initiated transformation measures such as layoffs and capacity optimization to achieve cost reduction and profit improvement. In line with the trend, local production has become an important layout point. Major original equipment manufacturers such as ST, NXP, and Infineon have all set up local production capacity in China.
The competition in the basic MCU and analog chip markets is fierce. IC original manufacturers are gradually shifting towards high-end product lines. TI is focusing on analog chips and automotive-grade products. ST, Infineon, and ON Semiconductor are developing SiC product lines, concentrating on high-end automotive and AI markets. NXP is continuously updating its high-end MCU and MPU product lines, expanding its influence in the edge AI market.

The accumulation of cyclical inventory has intensified uncertainty, and the performance of IC original equipment manufacturers has continued to adjust, remaining within a reasonable range. Overstocked inventory, weak demand, intensified competition and macro-level fluctuations still pose significant challenges to enterprises. For the second quarter, the tariff game between China and the United States went through a process from unfolding to hitting the "pause button", which will also have a profound impact on the performance of IC original equipment manufacturers. However, the opening of the buffer period is undoubtedly beneficial to the entire industry, and the pressure borne by enterprises can be alleviated to some extent.

At the macro level, the electronics industry's demand for supply chain security has further increased. Currently, the measures taken by IC original equipment manufacturers (Oems), such as the transformation to large-sized wafers and local production, are in line with the needs of overall cost reduction and enhanced supply flexibility at the application end. Facing the new competitive landscape, the success of an enterprise depends on stronger strategic agility and execution ability, achieving a balance between cost optimization and new investment, and constantly improving the level of risk management.