Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into the seasonality and demand trends in China, particularly regarding the automotive and industrial sectors? A: The Chinese New Year impact was within expectations, with some customers having extended shutdowns. We guided a 4.8% decrease for Q1, which is slightly better than usual seasonality. The automotive and industrial sectors are still undergoing inventory rebalancing, especially in Europe, but we are focusing on content expansion and market share gains.
Q: What factors are contributing to the sequential improvement in gross margin? A: The improvement is driven by product mix enhancements and minimizing underloading costs by qualifying more products in our internal facilities. We introduced over 700 new part numbers in 2024, with a significant portion for the automotive market, which supports our margin improvement efforts.
Q: How do you expect revenue to perform across different end markets in Q1? A: Automotive and industrial markets are still facing inventory rebalancing challenges. The compute market may see a slight decline due to the Chinese New Year impact. Consumer and communication markets are not expected to grow in Q1. Overall, we guided a 4.8% decrease for the quarter, which is better than typical seasonality.
Q: What are the current pricing trends, and have you seen any significant changes? A: Pricing remains stable, with typical erosion of 1.5% to 2% per quarter. We see more price competition in the commodity area, which we are strategically defocusing. Our focus on new product introductions helps maintain stable pricing.
Q: What is driving the growth in AI server applications, and how is Diodes positioned in this market? A: Growth in AI server applications is driven by our expanding product portfolio, including PCI Express packet switches that meet the increased demand for additional PCIe ports. The overall market changes and volume growth are beneficial to our expansion in this sector.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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