Report
Pierre FerraguÊ

Bible 2Q21: Autos – EV momentum and recovery drive record auto semi revenues despite shortages

Our Tech Bible is a must-read for any tech investor. It wraps up all what the >120 companies we track have reported and said and provides an update on our key perspectives and convictions, in light of what we learnt.
We publish today the second section on automotive. Units recovered close to 2019 levels, but production declined throughout the quarter, impacted by production constraints, which will only abate in 4Q21, or 2022. Auto semis recorded record revenues, with all companies claiming long order books and good visibility into long-term demand as secular drivers (EVs) accelerate and OEMs battle to secure chip supply. However, early peak cycle indicators are appearing, with inventories dropping to all-time lows.
Underlyings
Cree Inc.

Cree is a provider of bandgap semiconductor products for power and radio-frequency (RF) applications and lighting-class light emitting diode (LED) products. The company's products are used for applications such as transportation, power supplies, inverters, wireless systems, indoor and outdoor lighting, electronic signs and signals and video displays. The company operates in two segments: Wolfspeed, which consists of silicon carbide and gallium nitride (GaN) materials, power devices and RF devices based on silicon and bandgap semiconductor materials; and LED Products, which consists of LED chips and LED components. The company's LED chip products include blue and green LED chips based on GaN and related materials.

INFINEON TECHNOLOGIES AG

Infineon Technologies is a semiconductor manufacturing company. The Automotive segment designs, develops, manufactures and markets semiconductors for use in automotive applications. The Industrial Power Control segment designs, develops, manufactures and markets semiconductors for the generation, transmission and economy in the use of electrical energy. The Power Management & Multimarket segment designs, develops, manufactures and markets semiconductors for power supplies, mobile devices and mobile phone network infrastructures. The Chip Card & Security segment designs, develops, manufactures and markets semiconductor-based security products for card applications and networked systems.

Tesla Inc

Tesla designs, develops, manufactures, sells and leases electric vehicles and energy generation and storage systems, and provides services related to its products. The company operates as two reportable segments: automotive, which includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits; and energy generation and storage, which includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products, services related to such products, and sales of solar energy system incentives.

Provider
New Street Research
New Street Research

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Analysts
Pierre FerraguÊ

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