The Tech Week that was.. Mar 17~21
Welcome to the latest edition of my weekly newsletter, which curates the most significant global semiconductor and technology news from last week.
This week, Japanese investment firm SoftBank announced its intention to acquire Santa Clara, California-based Ampere Computing in an all-cash deal valued at US$6.5 billion. Ampere Computing is a semiconductor design company specializing in cloud computing, artificial intelligence inference, and edge applications based on the Arm compute platform. Founded in 2018, Ampere has established nine design locations globally. Following the acquisition, Ampere will operate as a wholly owned subsidiary of SoftBank Group while retaining its current name. As part of the transaction, Ampere’s current lead investors, Carlyle and Oracle Corporation, will divest their respective interests in the company.
Chinese Apple supplier, Luxshare Precision Industry announced that it will acquire core assets from Wingtech Technology's consumer electronics system integration unit. The all-cash deal worth approximately US$634million transaction covers equity stakes in eight Wingtech subsidiaries, including Kunming Wenxun, Huangshi Wingtech, Shenzhen Wingtech, Wuxi Wingtech, and international operations in Hong Kong, Indonesia, and India The acquisition aligns with Luxshare's broader strategy to expand global operations whilst allowing Wingtech to exit its ODM and EMS businesses entirely and focus on semiconductors.
This week, SEMI and ESIA (European Semiconductor Industry Association) convened with the European Parliament to advocate for the creation of a novel European semiconductor strategy. The organizations underscored the growing need to enhance the technological capabilities and expedite innovation within the European semiconductor ecosystem and build on the provisions of the 2023 European Chips Act.?
Andreas Urschitz, Infineon chief marketing officer said this week that the company plans to double it’s workforce in India to 5,000 employees over the next 5 years focused on research and development strengthening it’s R&D capabilities in the country.
Qatar Airways has introduced a new service called TechLift, specifically tailored to cater to the unique handling and logistics needs of the semiconductor industry.
Micron reported FY Q2’25 revenue of US$8.05 billion for the quarter ending Feb 27th. This is up 47% year on year and down -8% sequentially.? Strong AI demand has significantly boosted demand for Micron’s high-bandwidth memory (HBM) chips, with DRAM demand growing 47% YoY and accounting for 76% of revenue. Micron is expecting sequential growth throughout 2025 as the company ramps capacity for HBM chips.? Micron expects smartphone segment revenue to grow in low single digits, whilst the PC segment is expected to grow in mid-single digits in 2025.? For FY Q3’25, they forecast revenue at a midpoint of US$8.8 billion.?
In Market Research News..
Counterpoint Research reported that the global foundry industry’s revenue experienced a 26% year-over-year (YoY) growth and a 9% quarter-over-quarter (QoQ) increase in Q4 2024. This growth was primarily attributed to the robust demand for artificial intelligence (AI) technologies and the continued recovery of the Chinese economy.? Leading-edge node capacity utilization remained high due to the benefits of AI and flagship smartphone demand benefitting TSMC, which saw its market share increase to 67%. Advanced packaging demand also remained strong, prompting TSMC to prioritize the expansion of CoWoS-L capacity to address industry concerns.? Mature node global capacity utilization exhibited relatively low rates of approximately 65~70% with 12” wafer capacity fairing better than 8”. Mature node applications, such as consumer electronics and PC semiconductors, experienced some increased demand, driven by tariff-related prebuild orders from the United States and subsidy-related demand from China. Whilst demand in the automotive and industrial segments remained subdued.?
Trendforce’s latest report reveals that the combined revenue of the world’s top 10 fabless integrated circuit (IC) design companies grew to approximately US$249.8 billion in 2024, marking a substantial 49% year-on-year (YoY) increase. Notably, the top five design companies collectively accounted for a remarkable 90% of the total revenue generated by the top 10. Nvidia solidified it’s leading design company position, reporting US$124 billion in revenue, representing a substantial 125% YoY growth. This significant increase can be attributed to the thriving artificial intelligence (AI) industry. Qualcomm secured the second position with US$39 billion in revenue, followed by Broadcom with US$31 billion. AMD and Mediatek completed the top five.?
Digitimes reports that technological advancements in the Chinese microLED industry are accelerating, propelled by substantial government subsidies aimed at enhancing display manufacturing capabilities. This has enabled Chinese firms to pull ahead of South Korean manufacturers in the sector. To meet rising demand, Chinese companies are now increasing their investments in mass-production equipment. Notably, Sidtek is poised to establish its third Micro OLED factory in Mianyang, Sichuan province. Sidtek’s existing operations encompass an 8-inch factory, while its 12-inch facility commenced operations in 2024.? BOE, a leading LED manufacturer, acquired HC Semitek and constructed a new factory, which successfully commenced mass-production of Micro OLED based on 6-inch wafers at the end of 2024. AUO also intends to repurpose its existing LCD factory into a Micro LED production line, with the goal of achieving mass production by 2025. Furthermore, Foxconn, a prominent partner of Apple, is also considering a 2025 launch for its own Micro LED mass production capabilities
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Stay healthy and safe…bye!