Semiconductor talent shortage worsens | Solar panel price war looms | PwC under fire in Australia

Welcome to Portfolio Intelligence Daily, where we spotlight under the radar investment themes and idiosyncratic risks, often involving emerging markets, supply chain issues, ESG risks, and the impact of regulatory changes.

Today:?

• Semiconductor talent shortage worsens
• Solar panel price war looms
• PwC under fire in Australia?

Theme summaries are curated by Auquan’s analyst team using our Portfolio Intelligence Engine to uncover investment insights at scale using NLP and generative AI.?

Taiwan’s semiconductor talent shortage worsens

The global semiconductor industry growth is hampered by severe talent shortages worldwide, with Taiwan’s situation worsening as universities struggle with student enrollment and tech companies step up efforts to poach talent.

• Google and other tech companies have been poaching engineers from Taiwanese semiconductor companies, such as MediaTek and TSMC, by offering higher salaries.
• The talent shortage is having a negative impact on the Taiwanese economy, making it difficult for companies to expand their businesses and create new jobs.
• The Taiwanese government is taking steps to address the talent shortage. It is offering subsidies to companies that hire Taiwanese engineers and it is working to improve the education system in Taiwan.
• Increasing US investment in semiconductor manufacturing is exacerbating talent shortages in the industry
• Smaller companies may face significant challenges in attracting and retaining talent in an intensely competitive job market
• Impacted companies + entities: Intel, Samsung, TSMC, IBM, GlobalFoundries; Korean semiconductor industry

Select timeline

• May 29, 2023 | Taiwan hits snags in cultivating high-level semiconductor talent (DigiTimes Asia)
• November 22, 2022 | Semiconductor Industry Faces Talent Shortage [Empowering Brands Electronic Products]
• December 9, 2021 | Report: Critical talent shortage for over 70,000 semiconductor manufacturing jobs [Venturebeat]

Tags: #semiconductor #tsmc #intel #samsung #ibm #globalfoundries #portfoliomanagement #riskmanagement #google

Solar panel price war looms

Chinese solar panel maker Longi Green Energy Technology Co. is cutting the cost of its silicon wafers, which could spark a price war in the solar industry.

• Longi Green Energy Technology Co. is the world's largest maker of silicon wafers, which are used to make solar panels
• The company is cutting the cost of its silicon wafers by 10%, which may lead other solar panel makers to cut their prices
• This could lead to lower prices for solar panels, which could make solar energy more affordable
• The rapid growth of China's solar sector and new industry entrants has led to concerns about overcapacity and price wars
• The war in Ukraine has led to a surge in investment in renewable energy, with solar power receiving more investment than oil for the first time (in 2022)

Select timeline

• May 30, 2023 | World's Largest Solar Manufacturer Longi Fueling Price War With Wafer Cost Cut (Bloomberg)
• May 29, 2023 | For the first time, more money is going into solar power than oil (CBS News)
• February 15, 2023 | As new entrants muscle their way into Chinaa??s solar sector, overcapacity and price war concerns mount (SCMP)

Tags: #solar #renewables #ukraine #longi

PwC under fire in Australia?

The Australian government is reviewing its use of PricewaterhouseCoopers (PwC) as its auditor after the accounting firm was fined for its role in a scandal involving the Commonwealth Bank of Australia.

• The Australian government has been using PwC as its auditor since 2012
• PwC was fined $645 million in 2022 for its role in a scandal involving the Commonwealth Bank of Australia charging fees for services that were not provided.
• The government is concerned that PwC may not be able to provide independent and objective audits and is reviewing its options for a new auditor.
• In addition, PwC suspended nine partners and pledged to publish the findings of an internal review later this year as it works to contain a tax leak scandal engulfing its Australian operations
• The scandal involved the use of confidential information about changes to tax laws from the government to win new business
• The scandal has raised questions about the integrity of the consulting industry

Select timeline

• 30 May 2023 | Australia to Examine Use of PwC as Auditor Amid Scandal (Bloomberg)
• 29 May 2023 | PwC suspends 9 partners over Australian tax leak scandal (FT)
• 29 May 2023 | PwC failing to name all 53 partners in tax leak scandal would amount to a cover up,, Labor senator says (The Guardian)

Tags: #pwc #australia #esg?

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