MCU market remains in chaos

STMicroelectronics’ full-year 2024 revenue declined by 23.2% year-on-year, and its overall net profit plunged 63%. By business segment, microcontroller (MCU) revenue fell most sharply—by 30.2%—in Q4 2024, despite declines across all segments and end markets. Its operating profit for the quarter stood at $127 million, down 66.4%; operating margin was 14.3%, versus 29.8% a year earlier. STMicroelectronics expects Q1 2025 revenue to decline approximately 27.6% year-on-year (and 24.4% quarter-on-quarter) to $2.51 billion—below market expectations. Owing to high inventory levels and weak demand—which worsened 2024 results and led to a below-consensus Q1 2025 outlook—the company announced plans to temporarily shut down multiple wafer fabs this fiscal year and cut ~3,000 jobs (~6% of its workforce). Infineon: Delays Phase II construction of Kulim fab and cuts investment by 10% Infineon’s FY2024 (ended September 30, 2024) total revenue amounted to €14.955 billion, down 8% year-on-year; profit totaled €3.105 billion, with a profit margin of 20.8%. During its earnings call, Infineon stated that, due to shifting market demand and potential macroeconomic uncertainty, it has decided to postpone Phase II construction of its ‘mega-fab’ in Kulim, Malaysia, and reduce related investment by 10%. Infineon’s CEO noted that cyclical market weakness persists and recovery remains sluggish across many end markets. Texas Instruments: Q1 2025 revenue and net profit to continue declining Texas Instruments recorded year-on-year declines in both revenue and profit every quarter in 2024, resulting in full-year revenue of ~$16 billion—down 12% from 2023—and net profit of ~$4.8 billion—down 26% from 2023. Its guidance for Q1 2025 indicates continued declines in both revenue and net profit: expected revenue is $3.7–$4.0 billion; EPS is projected at $0.94–$1.16 (versus $1.30 in Q4 2024). TI attributes sluggish semiconductor demand—including in industrial and automotive sectors—to slower-than-expected recovery. MCU chips, once central to countless electronic products and pivotal in the market, are now mired in stagnation. This downturn is no accident—it stems from a confluence of factors on both demand and supply sides. On the demand side, consumer electronics, automotive electronics, and industrial control—the three largest MCU application areas—are all showing signs of weakness, directly undermining MCU market vitality. On the supply side, global chip shortages during 2020–2021 drove MCU prices skyward, prompting manufacturers to aggressively expand capacity. However, as supply chains normalized, oversupply emerged—leading to falling prices and mounting inventory. Meanwhile, as MCU technology matured, numerous domestic Chinese manufacturers entered the market, intensifying competition.

Once suffered nearly $1 billion in losses! Celanese repeatedly shuts down facilities—accelerating the eastward shift of its engineering plastics footprint?

Source: Celanese The Ulsan plant in South Korea serves as Celanese’s key engineering plastics compounding facility in the Asia-Pacific region. It produces four categories of engineering plastics—Rynite PET, PBT, PA, and HTN high-temperature nylon—used in automotive, electronics & electrical, and consumer goods applications. Following its shutdown, part of its capacity will be reallocated to Celanese’s Nanjing and Shenzhen plants in China, and its Silvassa plant in India. All three承接 facilities possess advanced compounding capabilities and are strategically located near core automotive, electronics, and home appliance consumption markets in China and India. Celanese has pledged full fulfillment of existing orders, implementing a phased, smooth transition with zero supply interruption, and will provide Rynite material substitution technical support via its local technical centers in China. Next, let’s delve deeper into Celanese’s engineering plastics business. Q2 Earnings: $2.8 billion in revenue; Engineering Materials turns profitable Financial results clearly reflect the initial success of Celanese’s strategic adjustments. In Q2 2026, Celanese reported net sales of $2.8 billion—a 18% sequential increase—with volume up 4% and pricing up 14%. Adjusted EPS reached $2.45—the highest in three years. Consolidated operating profit stood at $276 million; adjusted EBIT was $470 million; and operating EBITDA totaled $649 million—corresponding to margins of 10%, 17%, and 24%, respectively. Engineering Materials net sales were $1.45 billion—up 9% sequentially—with operating profit of $156 million and adjusted EBIT of $234 million. Acetyl chain net sales totaled $1.33 billion—up 28% sequentially—with operating profit of $237 million. Both core segments posted strong, simultaneous improvements in volume and pricing, driving overall profitability recovery. Sustained growth in medical and electronics end markets contributed significantly. Looking ahead, Celanese provided clear forward guidance: Q3 adjusted EPS is expected to range between $1.35 and $1.75; full-year adjusted EPS remains guided at ~$6.00, with free cash flow forecast at $700–800 million. Engineering Materials previously incurred nearly $1 billion in losses In Q3 2025, Celanese’s Engineering Materials business posted an operating loss of $1.327 billion, with a margin of -96%. The primary cause was non-cash asset impairment charges triggered by the company’s annual goodwill and intangible assets impairment test—totaling ~$1.5 billion, including ~$1.1 billion in goodwill impairments primarily tied to Zytel nylon product lines’ trademarks and goodwill. As a result, Engineering Materials’ full-year 2025 operating loss reached $958 million. The company’s full-year net loss was $1.165 billion, with special items totaling $1.639 billion—of which $1.572 billion impacted the Engineering Materials business. This represents Celanese’s largest-ever asset impairment since acquiring DuPont’s M&M business. From massive losses to profitability—the turning point occurred in Q1 2026. Engineering Materials posted operating profit of $221 million in Q1 and sustained profitability at $156 million in Q2. Two consecutive quarters of profitability mark the successful completion of a key phase in the Engineering Materials business’s restructuring. This turnaround is directly linked to the company’s ongoing facility shutdowns and cost-optimization initiatives.