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Tag: semiconductor

  • China’s Top Chipmaker YMTC Gets State-Backed $7 Billion Infusion

    China’s Top Chipmaker YMTC Gets State-Backed $7 Billion Infusion

    China is pulling out all the stops to boost its semiconductor industry, with its top firm receiving a major infusion from state-backed investors.

    The US and its allies have been working to cut China off from advanced semiconductor tech. Some sources say this has resulted in driving the country’s chipmaking industry to the verge of collapse. In response, China committed to a $143 billion investment package to help its semiconductor industry become more self-sufficient.

    According to the South China Morning Post, state-backed investors have sunk $7.1 billion (49 billion yuan) into the company. This brings the company’s registered capital to more than 105 billion yuan.

    Interestingly, high-performance computing, quantum computing, and advanced integrated circuit design and fabrication are three of the seven areas where the US still has a technological lead over China, out of a total of 44 areas. China is clearly willing to spend the necessary money to close that gap.

  • UK Plans to Subsidize Domestic Semiconductor Production

    UK Plans to Subsidize Domestic Semiconductor Production

    The UK plans to subsidize its semiconductor industry in an effort to bring more production in-country.

    Semiconductors have become one of the most sought-after commodities in recent years, with countries increasingly worried about the semiconductor supply chain and its impact on national security.

    The UK is home to Arm Holdings, one of the major players in the semiconductor market, but the country wants to ensure the integrity of its chip industry and is willing to pay to do so, according to Bloomberg:

    An overall figure has not been agreed with the Treasury but it is expected to be single figure billions of pounds, one person familiar with the plans said.

    According to an earlier report by the outlet, the UK government is interested in reducing its reliance on Taiwan over concerns of Chinese aggression.

    In the meantime, the UK government has declined to comment, saying it will reveal its strategy “in due course.”

  • Semiconductor Delivery Times Shrink by Four Days

    Semiconductor Delivery Times Shrink by Four Days

    The tech industry received some of the best news it’s had in years, with delivery times for semiconductors shrinking by four days in September.

    The tech industry, automotive industry, and countless others have been plagued by a shortage of semiconductors amid wider supply chain issues. According to Bloomberg, the shortage may finally be easing, with a four-day delivery time reduction that is the largest in years.

    In many ways, the semiconductor industry was a victim of its own success. As the pandemic forced record numbers of employees to work from home, the demand for computers, smartphones, and tablets skyrocketed at a time when production was experiencing slowdowns as a result of lockdowns.

    As the pandemic has eased, demand for electronics has dropped and a decrease in lockdowns has helped supply catch up. While there’s still a long way to go, a reduction of this size is the biggest reason for hope those in the industry have had for a long time.

  • Analyst: US Sanctions Have ‘Collapsed’ China’s Semiconductor Industry

    Analyst: US Sanctions Have ‘Collapsed’ China’s Semiconductor Industry

    The Biden Administration has been cracking down on China’s semiconductor industry, utterly crippling it, according to one analyst.

    The Biden Administration has largely kept and extended Trump-era measures to limit China’s access to advanced semiconductors, as well as limit their ability to make their own. The measures appear to be having a devastating effect, according to Jordan Schneider, an analyst at Rhodium Group.

    According to Schneider’s lengthy series of tweets, the Biden Administration gave Americans working in China’s semiconductor industry the choice between quitting or losing their American citizenship. The result was a mass walkout on the part of the engineers, leaving China’s industry reeling.

    Only time will tell if China will be able to recover, but Schneider believes there is “no chance of survival.”

  • Semiconductor Bill Passes the House

    Semiconductor Bill Passes the House

    The $280 billion semiconductor bill, aimed at helping revitalize the US chip industry, has overcome its final hurdle, passing in the US House.

    The bill, formerly known as the CHIPS and Science Act, has been widely supported by Intel and other tech companies. The bill includes more than $52 billion to assist semiconductor makers’ efforts to establish foundries and factories in the US.

    The bill was seen as a major factor in some companies’ decision-making process. Samsung is rumored to be considering a $200 billion investment in 11 factories in Texas, but it’s believed the company wanted to wait and see if the bill passed. Other companies were known to be holding off on their decision-making process until the bill’s future was certain.

    With the bill now passing the House, it will go to President Biden to be signed into law.

    “This bill includes important guardrails to ensure that companies receiving tax payer dollars invest in America and that union workers are building new manufacturing plants across the country,” Biden said in a statement.

    “I look forward to signing this bill into law and continuing to grow our economy from the bottom up and middle out for working families all across the country.”

  • Skilled Labor: The Next Supply Chain Issue for Chipmakers

    Skilled Labor: The Next Supply Chain Issue for Chipmakers

    The last two years have been difficult for the semiconductor industry, but chipmakers are facing one of their biggest challenges yet: a skilled labor shortage.

    Chipmakers the world over have been struggling to keep up with demand since the outset of the global pandemic. Lockdowns in regions of China responsible for much of the industry’s manufacturing took their toll, as did general, pandemic-fueled supply chain issues.

    According to The Wall Street Journal, via AppleInsider, the industry is now facing a shortage of skilled labor. As with supply chain issues, the labor shortage is being driven by the pandemic.

    Eager to avoid the kind of issues that arose at the outset of the pandemic — and with cybersecurity increasingly becoming a national security issue — many governments are wanting to promote local semiconductor production. Unfortunately, because the industry has been focused in China and Asia for decades, there is a shortage of skilled workers outside that region. The WSJ estimates 70,000 to 90,000 silicon workers will be needed by 2025 in the US alone.

    To make matters worse, the labor shortage comes at a time when demand for workers is at a high across many different industries. As a result, employees are becoming far more selective about the jobs they take and are leaving undesirable jobs. This trend has been so widespread it has been called the “Great Resignation.”

    The WSJ says chipmakers are “stepping up [their] game” in an effort to attract more talent, increasing wages, improving recruitment, and developing closer ties with universities. With software and services getting all the limelight, however, it remains to be seen if these measures will be effective.

  • Samsung May Spend Almost $200 Billion on 11 Texas Plants

    Samsung May Spend Almost $200 Billion on 11 Texas Plants

    Samsung may be looking to significantly ramp up its chip production, with a possible $200 billion investment in 11 Texas plants.

    Samsung is one of the world’s leading chipmakers. The company manufactures its own line of Exynos mobile chips, and provides foundry services to other companies, such as Intel and Qualcomm.

    According to The Wall Street Journal, Samsung is now considering the possibility of investing almost $200 billion over the next two decades to build additional semiconductor plants in Texas. The move would be a massive boost to the chip-making industry within the US, and would further boost Texas’ efforts to lure tech companies to the state.

    The $50 billion chip manufacturing subsidy bill, currently being considered by Congress, is likely a major factor in Samsung’s decision-making progress. As WSJ points out, other chipmakers are hedging their bets and moving slowly with expansion plans until the bill passes.

    “It all boils down to incentives for Samsung to move a big part of their production to the U.S., and even within the U.S., very specific areas,” Wayne Lam, senior director of research at CCS Insight, told WSJ. “Why go to the U.S. when they could do it just as cheaply and with a ready workforce in South Korea?”

  • GM Shutting Down Indiana Pickup Truck Plant Over Chip Shortage

    GM Shutting Down Indiana Pickup Truck Plant Over Chip Shortage

    GM is shutting down its Fort Wayne, Indiana pickup truck factory for two weeks as a result of the semiconductor shortage.

    Despite chipmakers’ efforts to boost production, the semiconductor shortage continues to take a toll on various industries, with automakers especially susceptible to supply and demand issue. According to the Houston Chronicle, this is now causing GM to halt production at the Fort Wayne facility.

    “There is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward,” GM said Friday.

    Unfortunately for the industry, there doesn’t appear to be a quick resolution in sight. In fact, the Russian invasion of Ukraine threatens to exacerbate the situation even more, as Ukraine is responsible for 90% of the neon gas used in semiconductor manufacturing.

  • Nvidia May Use Intel’s Foundry Services

    Nvidia May Use Intel’s Foundry Services

    Intel may score a major foundry customer in the form of Nvidia, one of the biggest semiconductor purchasers in the industry.

    Intel has been working overtime to reinvent itself under CEO Pat Gelsinger. Gelsinger is intent on bringing the company back to its roots as a chipmaker, first and foremost. In addition to its own chips, Intel is investing heavily in foundries aimed at manufacturing chips for other companies. Many of the biggest names in tech, including Apple, Qualcomm, Nvidia, and AMD, rely on outside companies to manufacture their semiconductors, making Intel one of the only companies that provides the entire range of services, from design to production.

    Nvidia may be interested in diversifying its manufacturing, instead of relying solely on TSMC and Samsung, according to Bloomberg.

    “We’re very open-minded to considering Intel,” Nvidia CEO Jensen Huang said. “Foundry discussions take a long time. It’s not just about desire. We’re not buying milk here.”

    At the same time, Huang cautioned that Intel had a challenging road ahead of it if it wants to successfully compete with the two Asian firms.

    “Being a foundry at the caliber of TSMC is not for the faint-hearted,” he added. “TSMC dances with the operations of 300 companies worldwide.”

    Gelsinger has made no secret of his desire to compete at that level, and all indications are that Intel is certainly headed in that direction. Nonetheless, given the company’s recent quality and supply chain issues in recent years, Intel will have to deliver on its promises if it wants to gain serious traction in the market.

  • Intel Working to Buy Tower Semiconductor For $6 Billion

    Intel Working to Buy Tower Semiconductor For $6 Billion

    Intel is preparing to purchase Tower Semiconductor for $6 billion, the latest move in the company’s attempt to regain its standing in the industry.

    Intel was once the king of the semiconductor industry, but has been eclipsed by AMD and, especially, TSMC. TSMC has become the world’s largest chipmaker, and manufacturers semiconductors for Nvidia, Qualcomm, Samsung, Google, and Apple. Apple, in particular, is a sore point for Intel, as the Cupertino company opted to ditch Intel in favor of its own TSMC-manufactured chips.

    In its latest effort to reclaim the top spot, Intel is looking to buy Israeli firm Tower Semiconductor, according to Reuters. It’s believed Intel is interested in the company as a way of improving its contract semiconductor manufacturing. While Intel is known primarily for its own chips, the company wants to expand its contract manufacturing operations, offering companies an alternative to dependence on Asia. CEO Pat Gelsinger has even said he wants to regain Apple as a customer, manufacturing its M1 chips instead of TSMC.

    Although neither company would confirm talks, Reuters’ sources say an official announcement could come as early as this week.

    **An earlier version of this story mistakenly cited the deal at $5 billion.

  • Nvidia Likely Abandoning Arm Acquisition

    Nvidia Likely Abandoning Arm Acquisition

    After months of intense scrutiny and delays, it appears Nvidia is preparing to abandon its attempts to acquire Arm Holding.

    SoftBank first signaled in July 2020 that it was looking sell off its share of Arm Holding, or take the company public, with Nvidia announcing in September of that year that it would acquire Arm for $40 billion. Almost immediately, the deal received widespread criticism, with Arm’s co-founder calling it an “absolute disaster.”

    Governments around the world expressed antitrust concerns, opening investigation into the acquisition. The UK signaled it may try to block Nvidia’s efforts, the EU regulators launched an investigation, and the FCC filed a lawsuit to block the deal.

    According to a report by Bloomberg, it appears Nvidia may be ready to abandon the deal altogether. According to Boomberg’s source, while the company publicly says it is still trying to make it happen, it is privately telling partners that it doesn’t expect the deal to go through.

    Many countries and industry experts were concerned that Nvidia would keep Arm’s best innovations to itself, giving it a competitive advantage. Given Arm’s long-standing practice of licensing its semiconductor designs to anyone who wanted to use them, any change in how the company might operate under Nvidia could cause massive ripple effects throughout the industry.

    Meanwhile, the UK was especially concerned about its premier semiconductor company being under the control of a US corporation at a time when the semiconductor industry is being impacted by national security concerns like never before.

    Ultimately, Nvidia has not been able to effectively address these concerns, leading to the current situation.

  • Want Week-Long Battery Life on Your Phone? IBM and Samsung May Deliver

    Want Week-Long Battery Life on Your Phone? IBM and Samsung May Deliver

    IBM and Samsung are working on a new way to stack semiconductor transistors that may result in phones with week-long battery life.

    As phones have become more complex battery life has often been the casualty. Running 4G, 5G, Bluetooth, WiFi, and a slew of background applications takes its toll. Add in talk time and many phones die within a few hours of being charged, or last roughly a day or two on the upper end of the spectrum.

    IBM and Samsung are working on Vertical Transport Field Effect Transistors (VTFET) designs that would stack transistors vertically instead of horizontally. As a result, the new design could use as much as 85% less energy than traditional semiconductors, where the transistors are placed horizontally. IBM and Samsung believe that phones using this semiconductor design would be able to go a week or longer between charges.

    “Today’s technology announcement is about challenging convention and rethinking how we continue to advance society and deliver new innovations that improve life, business and reduce our environmental impact,” Dr. Mukesh Khare, Vice President, Hybrid Cloud and Systems, IBM Research. “Given the constraints the industry is currently facing along multiple fronts, IBM and Samsung are demonstrating our commitment to joint innovation in semiconductor design and a shared pursuit of what we call ‘hard tech.’”

    In addition to improved battery life, the new design would allow the semiconductors to do intensive tasks — such as encryption or cryptomining — while using a fraction of the energy as traditional chips.

    https://youtu.be/OF3Zwfu6Ngc
  • Brexit May Have Cost the UK an Intel Factory

    Brexit May Have Cost the UK an Intel Factory

    Intel has ruled out the possibility of building a factory in the UK, thanks to Brexit.

    Chipmakers and governments are looking to expand semiconductor production outside of Asia. The COVID-19 pandemic demonstrated the danger of having the bulk of the world’s chip supplies coming from a single region. As early lockdowns impacted production, companies around the world struggled to meet demand for laptops, tablets and phones. Multiple industries are still dealing with a semiconductor shortage that had its start in those initial weeks.

    Multiple companies, including Intel, have been opening new foundries outside of Asia in an effort to better insulate production. In addition to two new foundries in the US, Intel has been looking to open a new factory in Europe.

    CEO Pat Gelsinger ruled out any chance of a UK factory, attributing the decision to Brexit, according to BBC.

    The “UK would have been a site that we would have considered,” Gelsinger said, before adding, “Post-Brexit… we’re looking at EU countries and getting support from the EU”.

    Economists and experts warned that Brexit could cost the UK business. Intel is one of the most high-profile examples of that prediction coming true.

  • AMD Ready to Manufacture Arm Chips

    AMD Ready to Manufacture Arm Chips

    AMD is ready to manufacture Arm chips, despite it being a competing platform.

    AMD, once firmly in second place behind Intel, has been making major headway in the semiconductor industry. Recent generations of its chips have surpassed Intel, both in performance and energy consumption.

    Arm, on the other hand, is the undisputed champion of the mobile world, powering smartphones and tablets for most of the major manufacturers. With Apple switching its Mac platform to its Arm-based M1 chips, the company is poised to make major inroads in Intel and AMD’s traditional stronghold. Unlike AMD or Intel, Arm creates semiconductor designs that other companies manufacture — and in some cases customize — for their own use.

    Despite being a competing platform, AMD appears ready to manufacture Arm-based semiconductors, should its customers want it.

    “But I’ll tell you from my standpoint, when you look at compute solutions, whether it’s x86 or ARM or even other areas, that is an area for our focus on investment for us,” AMD CFO Devinder Kumar said, according to Tom’s Hardware. “We know compute really well. Even ARM, as you referenced, we have a very good relationship with ARM. And we understand that our customers want to work with us with that particular product to deliver the solutions. We stand ready to go ahead and do that even though it’s not x86, although we believe x86 is a dominant strength in that area.”

    With TSMC recently announcing it was raising its prices by the biggest margin in a decade, AMD may well be able to build a successful business manufacture Arm designs for its customers.

  • Intel Wins Pentagon Contract for US-Made Chips

    Intel has won part of a $100 million contract to build US-made chips for the Pentagon, a win for the company’s upcoming foundry division.

    The Pentagon has specific semiconductor needs, needs which security concerns dictate be met by US companies. Intel is currently the only US-based chipmaker that designs and manufactures its own chips, making it a logical choice for the Pentagon’s efforts.

    The company announced in March that it would be investing $20 billion to build two new foundries in Arizona. Intel has also been rumored to be interested in buying GlobalFoundries in an effort to further boost its chipmaking business. The company clearly wants to challenge TSMC, not only building its own chips, but building chips for outside customers.

    The Pentagon’s contract is sure to boost those efforts. Although it’s not clear how much of the $100 million is apportioned to Intel, the company is clearly critical to the Pentagon’s efforts. Intel Foundry Services will work with IBM, Cadence, Synopsys and others to support the Pentagon and US government’s needs.

    “The RAMP-C program will enable both commercial foundry customers and the Department of Defense to take advantage of Intel’s significant investments in leading-edge process technologies,” said Randhir Thakur, Intel Foundry Services president. “Along with our customers and ecosystem partners, including IBM, Cadence, Synopsys and others, we will help bolster the domestic semiconductor supply chain and ensure the United States maintains leadership in both R&D and advanced manufacturing. We look forward to a long-term collaboration with the U.S. government as we deliver RAMP-C program milestones.”

  • Toyota Will Cut Worldwide Production 40% in September

    Toyota Will Cut Worldwide Production 40% in September

    Toyota is the latest automaker to experience issues as a result of the semiconductor shortage, cutting production 40% in September.

    The global semiconductor shortage has impacted a variety of industries, but the automotive industry has been hit particularly hard. Toyota is the latest company to have to alter its plans as a result.

    According to BBC, Toyota initially planned on producing 900,000 vehicles in September, but is scaling that back to a mere 540,000. Toyota had been relatively insulated from the shortage, compared to its rivals, as a result of its decision to take more proactive steps to stockpile components and protect its supply chain. The decision was made in the aftermath of the Fukushima disaster.

    It would seem Toyota may have exhausted, or be close to exhausting, its stockpile of semiconductors. With COVID cases experiencing a resurgence, the pandemic is putting renewed strain on companies and manufacturers, and would seem to indicate there is no immediate relief in sight.

  • Intel Beats Expectations on Q2 Results

    Intel Beats Expectations on Q2 Results

    Intel reported its Q2 results, beating expectations on strong semiconductor demand.

    Intel reported GAAP $19.6 billion in revenue for the second quarter, coming in at $1.24 per share. Much of the revenue was the result of a 33% year-over-year increase in PC platform volumes.

    The company also raised its full-year 2021 guidance to $77.6 billion GAAP, and $73.5 billion non-GAAP. This is an increase of $1 billion over original guidance.

    “There’s never been a more exciting time to be in the semiconductor industry. The digitization of everything continues to accelerate, creating a vast growth opportunity for us and our customers across core and emerging business areas. With our scale and renewed focus on both innovation and execution, we are uniquely positioned to capitalize on this opportunity, which I believe is merely the beginning of what will be a decade of sustained growth across the industry,” said Pat Gelsinger, Intel CEO. “Our second-quarter results show that our momentum is building, our execution is improving, and customers continue to choose us for leadership products.”

    The company still has many challenges ahead, not the least of which is the semiconductor component shortage.

  • Intel May Be Trying to Buy GlobalFoundries

    Intel May Be Trying to Buy GlobalFoundries

    Intel may be making a major play in the semiconductor industry, attempting to purchase GlobalFoundries.

    GlobalFoundries was created in 2008 when AMD spun off its manufacturing arm when it went fabless. GlobalFoundries has gone on to become the fourth-largest foundry.

    Meanwhile, Intel is working to revive its fortunes under new CEO Pat Gelsinger, making a major acquisition a very real possibility. According to The Wall Street Journal a possible deal could be worth as much as $30 billion.

    GlobalFoundries is denying the report, so it remains to be seen if a deal will happen.

  • Broadcom In Negotiations to Buy SAS Institute

    Broadcom In Negotiations to Buy SAS Institute

    Semiconductor company Broadcom is reportedly in talks to purchase SAS Institute, in a deal worth $15 to $20 billion.

    Broadcom manufactures semiconductors that are used in networking equipment and the wireless industry. The company has been looking to expand beyond equipment manufacturing, trying to break into the more lucrative software market.

    According to The Wall Street Journal, knowledgeable sources have confirmed Broadcom is in talks to purchase SAS for $15 to $20 billion. The deal could be finalized in a matter of weeks, as long as the talks don’t break down.

    SAS is the world’s biggest privately held software company, with its analytics software used by companies around the world. Purchasing SAS would immediately catapult Broadcom, turning it into a major player in the software industry.

  • Qualcomm Wants to Take on Apple’s M1

    Qualcomm Wants to Take on Apple’s M1

    Qualcomm has its sights set on Apple, with plans to take on the company’s M1 processor.

    Apple rocked the computing industry last year when it announced it was transitioning its Mac platform to its own custom silicon, the M1. The company previously relied on Intel to power its computers, but the M1 offered major advantages.

    Apple’s custom silicon is based on designs from Arm Holdings. As one of the original founders of Arm, however, Apple has the broadest license available, giving the company freedom to create truly custom chips. An evolution of the processors Apple has used in the iPhone and iPad for years, the M1 has unrivaled energy use, combined with stellar performance that rivals and exceeds Intel’s best offerings.

    The move has put tremendous pressure on PC makers to deliver a competitive product. Similarly, Microsoft has been migrating Windows to Arm processors to help pave the way for adoption by the PC industry.

    Qualcomm’s new CEO believes his company may have the answer to Apple. The company already creates Arm-based chips, much like Apple does, but Cristiano Amon told Reuters he believes the company needs its own line of custom silicon to help his customers better compete with Cupertino.

    Amon’s efforts are aided by a number of former Apple engineers, including ones who worked on Apple’s chip, that now work for Qualcomm. The engineers came onboard when Qualcomm purchased chip startup Nuvia, a company that was founded by ex-Apple employees.

    If Qualcomm is able to deliver on Amon’s vision, it could find itself in a strong position in the PC industry, building on its already enviable position in the smartphone market.

  • GM’s Sales Increase 40% on Strong Consumer Demand

    GM’s Sales Increase 40% on Strong Consumer Demand

    Despite constrained inventory and a global semiconductor shortage, GM sold 40% more vehicles in its second quarter.

    Like virtually every automaker, GM has been impacted by a global semiconductor shortage, as a result of the COVID-19 pandemic. GM has been forced to halt production at some plants, and has resorted to shipping some trucks without their full complement of fuel economy chips, resulting in 1 MPG less for the life of the vehicle.

    Despite these challenges, GM posted sales of some 688,236 vehicles in the US during the second quarter. This represents an increase of 40% over the year-ago quarter.

    The company’s SUV and EV sales were an especially strong bright spot. The Chevy Bolt EV, along with the Traverse SUV, had its best ever second-quarter and first-half sales.

    “The U.S. economy is accelerating, consumer spending is robust and jobs are plentiful,” said Elaine Buckberg, GM chief economist. “Consumer demand for vehicles is also strong, but constrained by very tight inventories. We expect continued high demand in the second half of this year and into 2022.”

    “The agility and creativity of our supply chain, purchasing, engineering and manufacturing teams, in collaboration with our suppliers and dealers, have helped us continue to satisfy customers and gain market share in some of the highest demand segments of the market,” said Kurt McNeil, U.S. vice president, Sales Operations.