The Tech Week that was... May 9~13

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.??

We are already one third of the way through 2022, and the semiconductor industry continues to see phenomenal growth despite storm clouds from China’s COVID lockdowns, the war in Europe and inflation worries.??This week read about the latest foundry price increase rumours and the latest revenue results from around the world, plus all the other news from around the world.

Foundry wafer prices are reported to be going up again, with both Samsung and TSMC reported to be increasing prices.?The other foundries are sure to follow.?

Samsung is reported to be planning to increase wafer prices by between 15~20% from the 2nd half of this year, according to a report in Bloomberg.?Unlike the rest of foundries, Samsung is reported to not have significantly raised prices last year, and this price increase is a shift away from that policy, as manufacturing costs rise.?

TSMC is also reported to have informed customers that it will raise wafer prices by 6% from January 2023 according to CNA and Nikkei. This follows the up to 20% price rise that TSMC is widely reported to have implemented last year.

In financial news

US wafer Foundry GlobalFoundries reported record revenue in Q1’22, with a 37% yoy increase to US$1.94billion.?GF is forecasting Q2 revenue will be ~US$1.97billion.?CEO Tom Caulfield said that "despite global supply chain challenges, the GF team continues to execute to plan, and we remain on track to deliver a strong year of growth and profitability."

?Chinese foundry SMIC reported record quarterly revenue in Q1’22, up 16.6% sequentially to US$1.84billion, up 67% yoy.?For Q2 they are predicting revenue will increase 1~3% sequentially.?SMIC said that whilst demand for consumer electronics is soft, the demand growth in new energy vehicles, display panels and industrial sectors has led to a short-term intensification of the structural shortage of semiconductor manufacturing capacity.

Taiwans foundries and OSAT’s ?reported their April revenue numbers this week, with revenue significantly up all round compared to a year ago.

TSMC reported record monthly revenue of US$5.8billion in April, up 55% yoy and up 0.3%?from March. With the year already one third completed, TSMC year to date revenue is US$22.3billion, up 40% compared to the same period a year ago.

?Taiwan’s number #2 foundry UMC also reported record high ?monthly revenue of US$765million in April, up 3% sequentially and up 39% yoy.

Specialty foundry Vanguard (VIS) reported April monthly revenue down -11% sequentially, reporting revenue of US$150million, though this was up 41.5% yoy.?Whilst DRAM foundry Powerchip reported record monthly revenue of US$246million, up 48% yoy.

BE OSAT ASE reported monthly revenue of US$1.06bililon in April for it’s ATM group (assembly testing and materials group), down -2.2% sequentially and up 28% yoy.

OSAT?Powertech reported April monthly revenue of US$246million, up 3% sequentially and up 10% yoy.?Test provider KYEC reported record monthly revenue in April of US$133.5million, up 3% sequentially and up 22% yoy.

In China the continued lockdown and impact on logistics supply chain is impacting business.?The lockdown in Shanghai has already lasted 5 weeks now. Chinese foundry SMIC has reduced it’s Q2 outlook as it warns about the impact of COVID lockdowns on it’s business. Fellow Shanghai based wafer manufacturer Hua Hong Semiconductor also reported a potential impact from lockdowns and logistics disruptions.?

UK epi and substrate manufacturer IQE has announced what is said to be world’s first commercially available 200mm (8”) vertical-cavity surface-emitting laser (VCSEL) epiwafer. ?The increase in wafer diameter should significantly improve the unit cost of devices.?

amsOSRAM has announced that it has agreed to sell it’s dynamic lighting business Traxon Technologies to Hong Kong based Prosperity Group. The sale comes as amsOSRAM continues to execute it’s strategy to focus on it’s core technology areas in illumination, visualization and sensing and to divest businesses that are not core to the company’s strategy.

In market research news

The semiconductor industry R&D spending is forecast to grow 9% in 2022 to $80.5 billion after climbing by an above average 13% in 2021 to a record-high $71.4 billion, according to IC Insights.?Intel continues to lead the research and development ranking, whilst the top 10 companies raised spending 18% last year.

Global smartphone production volume decreased in Q1’22 to 310million units, a decrease of ~13% compared to the previous quarter, according to Trendforce.?For the full year, total production volume is forecast to reduce to 1.333billion units in 2022 due to China’s COVID lockdowns and inflation worries in the 2nd half of 22.

?US smartphone sales declined 6% yoy in Q1’22 as pandemic demand cools according to the latest report from Counterpoint.?Apple led the market in Q1 2022 with 47% share, followed by Samsung (28%) and Motorola (12%).

?Worldwide factory output falls for first time since June 2020 as supply conditions worsen according to the latest analysis from IHS Markit..?The Manufacturing purchasing managers index fell from 52.9 in March to 52.2 in April which was caused mainly by a decline in production, due to output loss in mainland China amid fresh lockdown measures. Excluding China, global output growth accelerated slightly in April. However, China's downturn, combined with disruptions caused by the Ukraine war, also led to a worsening global supply situation, which in turn pushed price pressures higher and led to a further drop in global business expectations for output in the year ahead.

The semiconductor industry materials market outlook is forecast to reach US$ 1 trillion by 2030 according to SEMI, with the semiconductor industry “demonstrating extraordinary growth powered by digitization of global economies and a surge in demand for semiconductors”.?SEMI recently revised its 2022 forecast upwards to 7% growth following record results in 2021. Wafer fab materials are on track to grow 8.4% while packaging materials are set to expand 3.9% in 2022.”

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Stay safe and healthy... bye.