The Tech Week that was... Oct 4~8

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.?This week, the latest news on the GlobalFoundries IPO, ?September revenue data from Taiwans foundries and OSAT’s plus all the of other semiconductor news from last week.

Foundry Globalfoundries filed for IPO this week on the Nasdaq, as it’s owner Mubadala intends to take advantage of the current chip boom to float the company. Last year, Globalfoundries revenue declined 17% to US$4.85billion, which Globalfoundries explained as being due to the divesting almost US$400million of the business in 2019 and also due to changes in the contractual terms of most of it’s customers and how it recognizes revenue.?For the first half of this year revenue increased 13% to US$3billion. The full prospectus can be read here.

The latest September revenue data from Taiwans foundries and OSATs shows that the industry is still going very strong. ?

Leading foundry TSMC reported record sales for September posting revenue of US$5.45billion, up 11.1% compared to July.?Third quarter sales were also at record levels at US$14.77billion, up 11.4% compared to Q2.?Whilst for year to date revenue was reported to be US$40.9billion, up 17.5% compared to 2020.

Number 2 Taiwanese foundry UMC posted revenue of US$668million in September, very close to it’s record high in August.??This is the 3rd month in a row that UMC has posted over US$650million in monthly revenue.?For Q3 the company posted 1.99billion in revenue up almost 10% compared to Q2.?For the year to date the company has recorded revenue of US$5.5billion, up 17% compared to the same period in 2020.

Specialist foundry Vanguard (VIS) reported record monthly revenue of US$149million, up slightly on last month.?For Q3 revenue was US$423million, whilst year to date revenue is 1.11billion up 28% compared to the same period in 2020.

Foundry Powerchip also reported record monthly revenue in September of US$215million, up 3% compared to August.?This is the 9th consecutive month this year that Powerchip has reported increasing revenue.?Q3 revenue was US$653million, whilst for the year to date revenue is US$1.63billion, up 36% yoy.

?Taiwans leading GaAs foundry AWSC reported record high revenue of US$15.7million in September.?For the year to date revenue is up 38% to US$124million.

Backend Assembly and Test provider ASE reported revenues of US$1.95billion in September, essentially flat on August for the ATM group.?Q3 revenues came in a US$3.24billion, up 15% sequentially and up 33% year on year.

Both Test specialist KYEC and OSAT Powertech were down slightly in September, but still at near record high revenue levels. ?KYEC reported revenue of US$106million in September.?Q3 revenue was US$320million, up 19% on Q2.? OSAT Powertech (PTI) reported revenue of US$258million.?Q3 revenue was US$794million, up 8% sequentially.?Year to date revenue is US$2.18billion, up 7% on the same period in 2020.

In market research news?

Global semiconductor sales increased almost 30% year on year in August and up 3% sequentially to US$47.2billionto a new record high in August according to SIA. “Global semiconductor sales remained strong in August, increasing year-to-year across all regional markets and major product categories,” said John Neuffer, SIA president and CEO. “Chip shipments have reached record totals in recent months as the industry ramps up production to address continuing high demand.”

The Taiwan semiconductor industry sales are forecast to increase almost 32% in 2021 compared to a year ago to US$129billion, according to Taiwanese based market researcher The Market Intelligence and Consulting Institute. The foundry segment, which accounts for almost half of semiconductor production in Taiwan, is forecast to grow 20% to US$67.7billion, driven by higher chip prices as demand continues to outstrip supply.

According to market analysts Trendforce, Navitas is expected to take over the leading position for GaN power devices with 29% market share, and overtake Power integration for the top position. ?

?In related news

Navitas and it’s business partner Live Oak II have added US$18million in funds to it’s PIPE ((private investment in public equity), raising the total equity raised to US$173million

Lidar developer Ouster has signed an agreement to acquire Sense Photonics, which has developed a 940nm VCSEL-based lidar sensor for automotive applications.

Samsung unveiled it’s technology roadmap for it’s foundry business this week.?The company says it plans to release gate-all-around (GAA) technology on the 3-nanometer (nm) process in the first half of 2022, with a second generation 3nm process released in 2023, and a GAA-based 2nm process in 2025 to mass-produce chips.

?Infineon has announced it will increase it’s capex in 2022 by around 50% compared to 2021 to around US$2.8billion.?Initially the capex will be invested in existing plants and the company will decide later if more capacity is needed to be added. ?The company is forecasting that revenue will grow in mid teens next year due to increased capacity and also higher chip prices.

General Motors and Wolfspeed (formerly Cree) announced last week a strategic supplier agreement to develop and provide SiC power device solutions for GM's future electric vehicle programs. Wolfspeed's SiC devices will enable GM to install more efficient EV propulsion systems that will extend the range of its rapidly expanding EV portfolio.

Chinese LED manufacturer, Unilumin has announced that the second phase of it’s Factory in Huizhou, China is up and running.?The factory’s first phase has already been in use for a number of years, and the second phase takes the total area up to over 300,000 square metres.

The recent and continuing power rationing in China due to the power shortage are threatening to add extra chaos to already strained global semiconductor supply chains. In an effort to restrict power usage, ?rolling power cuts across China have been implemented in many regions. So far the damage has been limited as a lot of the power cuts have been scheduled to coincide with the traditional China holiday shutdowns. In addition not all companies in the impacted regions are being affected by powercuts, but if the electricity shortage continues it could have further impact on already strained supply chains especially for the key year end shopping season.

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Stay safe and healthy... bye.

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