After the price increase of DRAM, NAND Flash and CIS (image sensor) in the memory market, RF devices also ushered in a price increase signal. Recently, a "** adjustment letter" about the RF giant Zhuosheng Micro has been circulated in the market, which mentions that "some RF devices are affected by the current situation, resulting in a phased increase in demand", so some materials will be adjusted upward. On December 5, the company publicly responded to the price adjustment, saying that "in order to improve the efficiency of resource use more reasonably, it is planned to make ** adjustments for individual models of products", which also confirms the giant's price increase. In addition, some filter manufacturers also revealed that the current capacity utilization rate is high. There have been price increases in many upstream links, and there are obvious signs of bottoming out in consumer electronics. In the eyes of the industry, the global smartphone market is expected to achieve moderate growth in 2024 in a cautious manner. RF is in high demandRecently, there has been a "** adjustment letter" about Zhuosheng Micro in the market. It is mentioned that some RF devices are affected by the current situation, resulting in a phased increase in demand, accompanied by the tight packaging and testing capacity and the extension of the delivery cycle, which leads to the inability to bear the negative gross profit of some materials for a long time, so the original ** can no longer be supported. 
The letter mentioned that in order to ensure stable product quality, meet the long-term strategy and maintain long-term interest coexistence with customers and business partners, some materials will be upgraded. The new ** will be effective from January 1, 2024, and it is reported that the orders that have been previously in effect but have not been delivered, as well as new orders, will be executed with the adjusted new **. The ** adjustment bill of materials involved will be communicated and implemented by the sales and the customer. On December 5th, an investor asked on the public platform "how much impact does the recent RF switch more than 20% have on the company's performance", Zhuosheng Micro responded that in order to improve the company's resource use efficiency more reasonably, the company intends to adjust the product for individual models, but it is expected that the adjustment of this part will have little impact on the company's overall performance. The global RF switch giant with a market value of 70 billion yuan responded like this, which also confirmed its price adjustment. 
It should be noted that Zhuosheng Micro's performance in the third quarter showed signs of recovery. Zhuosheng Micro's revenue in the third quarter was 14100 million yuan, an increase of 80% year-on-year;Net profit attributable to the parent company 4500 million yuan, a year-on-year increase of 94%. The company said that benefiting from the transmission of holiday consumption in the second half of the year, the further optimization of the inventory structure of end customers, and the further expansion of filter modules, the company's operating income in the third quarter increased. Moreover, its inventory level has gradually improved, and as of the end of the third quarter, the company's inventory amount was 139.1 billion yuan, compared with 17200 million yuan dropped sharply. Some industry insiders speculate that after the price increase of RF switches, PA (power amplifiers) and filters are also expected to usher in price increases. It is worth noting that the RF filter manufacturer Maijie Technology also said in a recent institutional survey that the overall capacity utilization rate of the company's magnetic components and RF devices is high, and the corresponding capacity expansion has been carried out for fist products such as integrated inductors. Memory rises firstAs the so-called "Chunjiang Plumbing Duck Prophet", the upstream component industry chain will inevitably feel the warmth of recovery earlier. According to data from Canalys, an independent analyst, global smartphone shipments in Q3 2023 will be close to 300 million units, narrowing to 1% year-on-year, while there has been a double-digit growth quarter-on-quarter. In the third quarter of 2023, shipments in China's smartphone market were flat for two consecutive quarters**, down 5% year-on-year to 66.7 million units. There are clear signs that smartphone sales have bottomed out. In the fourth quarter of 2023, the smartphone market is expected to stop the continuous year-on-year decline. The agency also expects the global smartphone market to grow moderately in 2024 in a cautious manner. At the end of 2023, manufacturers are expected to have relatively healthy inventory levels. In fact, before the price increase of RF devices, the memory market DRAM, NAND Flash, and CIS (image sensor) have taken the lead in raising prices. Entering the fourth quarter of 2023, as the production reduction effect of storage manufacturers gradually takes effect, coupled with the continued strong market demand in some applications, the DRAM and NAND Flash in the memory market have ushered in a comprehensive **, and the rally is expected to continue to the first quarter of next year. According to a survey by market research firm TrendForce, the quarterly increase in mobile DRAM contract prices is expected to expand to 13-18% in the fourth quarter, while for NAND Flash, the contract prices of EMMC and UFS will increase by about 10-15% in the fourth quarter. Looking forward to the first quarter of 2024, the agency expects the overall memory rally to continue, of which the contract prices of Mobile DRAM and NAND Flash (eMMC, UFS) will continue to rise, depending on whether the original manufacturer maintains a conservative production strategy and whether the terminal has substantial purchasing power to support it. CIS immediately followed suitFollowing the announcement of price increases in the memory market, there is also good news in the CIS (CMOS Image Sensor) track, which continues to be sluggish. Samsung, the world's leading CIS manufacturer, took the lead in issuing a price increase notice, announcing that the price increase will start in the first quarter of next year, with an average increase of 25% and a 30% increase for individual products. According to industry analysis, Samsung's increase of more than 32M CIS is mainly due to: first, CIS inventory has been recognized as an inventory loss at the end of this year, and it will return to normal next year, and it is expected that there will be a backlash benefit in the financial report. Second, it is undoubtedly announced to customers in advance that there will be no more low-priced products this year, and drives the client to start inventory replenishment. Jingfang Technology, a domestic CIS wafer-level packaging manufacturer, also said that the downstream has indeed picked up, and its performance in the fourth quarter is expected to be greatly improved. Smartphones are the largest downstream application scenario of CIS, but the main market is occupied by Japanese and Korean manufacturers, and domestic manufacturers urgently need to break through. According to Counterpoint Research, Sony and Samsung accounted for more than 80% of the smartphone CMOS image sensor market in 2022. Since 2009, CIS has ridden the wave of mobile phones, moving from a single rear camera to a dual-camera and multi-camera, and has maintained growth for 12 consecutive years. According to Counterpoint Research, in 2022, the global CMOS image chip market sales revenue will be $19 billion, a year-on-year decline of 7%, which is also the first decline in a decade. In this context, manufacturers choose to find another way to develop the automotive CIS market. Weir shares (the parent company of Haowei Technology) in October research minutes revealed that at present, the automotive CIS is in the process of climbing and increasing the volume, and it is expected that in some areas next year, the sales volume of automobile CIS will be more obvious, and the company's market share is expected to continue to increase. In addition, Geke Micro is also currently in the stage of vehicle specification verification. SmartSens has basically laid out the whole production line, passed the vehicle specification certification, established a complete vehicle specification chip research and development and quality management system, and its CIS products have been mass-produced at BYD, FAW, SAIC, Leap, VOYAH and other customers. Editor: Captain Review: Xu Wen.