The Tech Week that was... June 24~28

Welcome to the latest edition of my weekly newsletter bringing you all the key semiconductor and technology news from around the world in one easy read.?

ASE sees improved growth in 2H 2024 thanks to increased demand from Artificial Intelligence (AI) applications and industrial control and computing applications.? It also plans to open a high-end chip testing facility in the US to better serve US customers, particularly California based AI customers.? The 5942m2 facility run by ASE’s subsidiary ISE Labs was acquired last year in San Jose, will open on July 12th.? ASE is also looker at broader global expansion plan and is scouting potential sites to deploy advanced chip packaging capacity in the US, Japan and Mexico.? Whilst in Malaysia ASE is looking to expand capacity in Penang.

TSMC obtained Taiwan government approval this week to inject an additional US$10.26 billion to finance the construction of its second fab in Kumamoto, Japan, and a second fab in Arizona, using advanced process technologies.? The Department of Investment Review approved TSMC’s investment applications on the basis that Taiwan remains a major technology and manufacturing hub for TSMC.? The latest capital injections ofUS$5.26 billion for its Japanese venture Japan Advanced Semiconductor Manufacturing Inc and US$5 billion for TSMC Arizona Corp would help the chipmaker deepen its partnerships with local supply chains and recruitment of skilful talent, the department said in a statement.

The South Korea government has approved a project to inject US$200 million into a state-run R&D project for semiconductor packaging technology which will last until 2031.? The government spending aims to narrow the gap with Taiwan, China and the US in the semiconductor back-end process market, where Korea controls less than 10%.

The South Korean government will begin awarding aid to chipmakers from July, kicking off a USS$25 billion package of financial support pledged towards boosting the Korean semiconductor industry.? The government will start with a. 17billion package of measures including preferential loans and investment capital.

?According to Digitimes, Chinese memory manufacturer CMXT has received. Government approval to build a new Fab in Shanghai.? The new Fab is expected to start construction on a 280,000 sq meters site in Pudong in mid 2024 and is expected to be completed within 3 years.

Singaporean based chiplet assembly manufacturer Silicon Box has selected Piedmont near Novara, Italy to build it’s next advanced packaging facility.? ?Construction of the US$3.6billion facility is scheduled to start in mid 2025 with production in 2028.? The facility will be partly funded by the Italian government subject to European Commission approval being given.

Nexperia has announced it will spend US$200million to expand it’s Hamburg site.? The capex will be used to develop and establish production capacity for the next generation of wide bandgap semiconductors (WBG) using silicon carbide (SiC) and gallium nitride (GaN) technology.? In addition, capacity of its silicon discrete line will be increased.? The announcement was made at the 100th anniversary of production at the Hamburg site.

SMC Diode Solutions has opened it’s 2nd discrete Fab in Nanjing China.? The new 300,000sqft Fab started construction 21months ago in Sept 2022 and will begin shipments to customers in Q4’24 of high power and high voltage rectifiers and MOSFET 6-inch and 8-inch wafers. ?Capacity of the new Fab will be 1.2million silicon wafers and 60,000 SiC wafers per year increasing SMC’s production by 4 times.

In market analysis news..

According to Yole, wafer fab equipment revenue will increase +1.3% in 2024 this is despite the sector seeing a -12% revenue drop in Q1’24.? They are forecasting wafer Fab equipment ?revenue on 2024 grow to US$108billion.? In the longer-term revenue will grow with a CAGR of 4.3% until 2029, reaching US$134billion in 2029.

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?Stay safe and healthy... bye