• KeyBanc analyst John Vinh said nine companies were under coverage (Advanced Micro Devices, Inc (NASDAQ: AMD), Cirrus Logic, Inc (NASDAQ: CRUS), Lattice Semiconductor Corporation (NASDAQ: LSCC), Monolithic Power Systems, Inc (NASDAQ: MPWR), NXP Semiconductors N.V. (NASDAQ: NXPI), ON Semiconductor Corporation (NASDAQ: ON), Qorvo, Inc (NASDAQ: QRVO), Skyworks Solutions, Inc (NASDAQ: SWKS), Synaptics Inc (NASDAQ: SYNA)) and reported positive results but mixed guidance.

• The broad-based analog (LSCC, MPWR, NXPI, ON) reported robust results/guidance, and China smartphone-exposed companies (QRVO, SWKS) posted weaker results.

• While the China COVID lockdowns are disrupting both supply and demand, particularly in consumer-facing end-markets, such as P.C./mobile, the impacts appear lesser than we initially had feared following Texas Instruments Inc's (NASDAQ: TXN) report.

• Notably, NXPI indicated that 50% of its customers in China are now fully operational, another 30% are recovering, and 20% remain shut down, which suggests the supply chain in China is healing nicely.

• By end-markets, automotive, industrial & IoT, and data center demand remains strong; with softening consumer P.C., industry shipments in 2022 are likely to decline HSD% vs. flat to down LSD% previously, as enterprise strength continues to offset consumer/Chromebook weakness.

• Mobile demand, especially in China, is being negatively impacted by the recent COVID lockdowns, with QRVO signaling a multi-quarter inventory correction in handsets and tempering 5G industry smartphone shipments in 2022 from 725 million (+32%) to 662 million (+20%).

• Conversely, the iPhone and high-end smartphone demand remain resilient.

• Vinh saw that broad-based and auto-exposed companies Microchip Technology Inc (NASDAQ: MCHP) and Indie Semiconductor, Inc (NASDAQ: INDI) are likely to post solid results and guidance this week.

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