The Tech Week that was... Mar 25~29

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.?

SK Hynix is reported to be planning to invest up to US$4billion in a new advanced semiconductor packaging plant in Indiana, U.S. to manufacture high end HBM packages. ?The plant is predicted ?to begin operations in 2028. SK Hynix have confirmed they are reviewing plans but said no decision has been made.? At it’s AGM, SK Hynix predicts that it’s sales of HBM will increase significantly this year and be a double digit percentage of it’s overall DRM sales which will help to drive the companies overall profitability.

Samsung is rumoured to be about to receive US$6billion in direct grants from the CHIPS Act from the US Department of Commerce, with TSMC also rumoured to be awarded US$5billion. In 2021 Samsung announced it would invest US$17billion ?in Taylor, Texas in a new Fab near it’s existing Fab, but since then costs have been estimated to have risen to US$25billion due to inflation of building materials.? TSMC has announced it is investing over US$40billion in 2 Fabs in Arizona, U.S. with production at the 1st Fab now expected to start in 2025.

Sony has started operations at it’s new Fab 4 in Pathumthani, Thailand to assemble image sensors for automotive applications and display drivers. Fab 4 is the latest manufacturing facility in Sony Device Technology (SDT) site in Thailand which serves as a production center for the assembly of the main product line within Sony’s Imaging & Sensing Solutions business.

?The Dutch government said this week that it would spend US$2.7 billion to improve transport and other infrastructure in the Eindhoven region to ensure the Netherlands based lithography tool manufacturer ASML?doesn't move its operations abroad.?? ASML said that welcomed the government plan but said it is still in the process of deciding where it will grow in the future.

SIA predicts that the U.S. semiconductor industry’s workforce will grow by nearly 115,000 jobs by 2030 thanks to the CHIPS Act and subsequent investment in manufacturing in the U.S. This is up from approximately 345,000 jobs today to approximately 460,000 jobs by the end of the decade, representing 33% growth. Of these new jobs, we estimate roughly 67,000 of these jobs risk going unfilled at current degree completion rates. Closing the talent gap Is essential for the success of the U.S. economy and the semiconductor industry and SIA proposes that strengthening support for regional partnerships and programs aim at growing the pipeline for skilled technicians as well growing the domestic STEM pipeline for engineers and computer scientists is essential. The 3rd recommendation is to retain and attract more international advanced degree students rather than allowing them to leave the U.S. after completing their degrees.

China is reported to have introduced new guidelines aimed at blocking Intel and AMD chips in government PCs and servers and also seeks to sideline Microsofts Windows operating system and foreign made database software.

The US is urging it’s allies to bar firms from servicing key chipmaking tools for China as it ramps up efforts to weaken China’s chipmaking capabilities.? The U.S. rules made it difficult for U.S. companies to continue servicing tools that Chinese firms bought prior to the export regulations, but the Dutch and Japanese rules did not include similar restrictions.

South Korea’s semiconductor shipments rose 59% in February following January’s 63% rise, as inventory shrank.? The growth in S Korean semiconductor production is expected to continue into March driven by strong external demand for AI memory chips.

Chinese foundry SMIC published it’s annual report showing that revenue fell -8.6% in 2023 to US$6.32billion on signifcantly lower gross margin. SMIC’s average utilisation was 75% in 2023. SMIC is forecasting revenue growth in 2024 will not be lower than the industry average and predicts YoY growth of mid single digits. ?

?In market research news...

Counterpoint Research is forecasting that global smartphone shipments will increase by 3% in 2024 to 1.2billion units. The budget smartphone segment, which declined -11% in 2023, is expected to rebound in 2024 driven by recovery in emerging markets CALA (Caribbean And Latin American), India and MEA (Middle East and Africa) markets.

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