The Tech Week that was... Sept 11~15

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.?

Foundry GlobalFoundries has officially opened it’s new US$4billion 300mm Fab in Singapore this week at a ceremony attended by Singapore’s Deputy Prime Minister Lawrence Wong. The 23,000sqm Fab first announced in 2021 with a capacity of 450,000 300mm wafers per year ?is highly automated and will employ 1,000 people, 95% of which will be equipment technicians, process technicians and engineers

In the week where Apple announced it’s new iPhone15 series which is powered by it’s in-house designed A17 Pro 3nm technology SOC, Qualcomm has announced that it has signed a deal with Apple to supply 5G chips until at least 2026. Originally it was assumed that Qualcomm would be replaced with Apples own 5G chip from next years phone models, but It seems that Apples plans to develop it’s own 5G chips has not progressed as fast as hoped despite spending US$1billion to buy Intel’s modem unit in 2019.

Micron’s 1-Beta DRAM process started manufacturing in Japan and now production of the node has also moved to Taiwan. Then from 2025 production of it’s 1-Gamma DRAM process will start production in Taiwan first.? Read the interview by CNA with corporate vice president and head of Micron Taiwan Donghui Lu on the plans for Taiwan.

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Last week we saw the August revenue results from Taiwans foundries, this week we see the latest results from Taiwans OSATs.? If you remember last week, apart from TSMC, all the foundries reported flat sequential revenue and revenues down doubles digits compared to a year ago. For the OSAT's, apart from ASE which is report a slight sequential growth, they are also reporting flat sequential revenues and revenue down double digits compared to a year ago.

ASE reported revenues of US$902million in August for their semiconductor ATM group, up +4% sequentially and down -18% compared to Aug 22.?

Powertech (PTI) reported revenue of US$196million in August, up +1% sequentially and down -11% YoY.?

KYEC reported monthly revenue of US$90million in August, up 1% sequentially and flat compared to a year ago as revenue has already started to decline in KYEC this time last year.

Intel has agreed to sell a 10% minority stake in IMS Nanofabrication business (IMS) to TSMC.? Intel will retain majority ownership of IMS which will continue to operate as a standalone subsidiary.? Intel previously sold another 20% stake of IMS to Bain Capital.? The sale price values IMS at around $4.3billion.? IMS manufactures multi-beam mask writing tools required to develop advanced extreme ultraviolet lithography (EUV)

?Chip IP company Arm has been priced at US$51 for it’s IPO on the Nasdaq valuing Arm at US$54billion.? Softbank will retain control of the company with 90% of outstanding shares.? TSMC has approved an investment up to US$100million in the IPO.? Apple, Google, Nvidia and Samsung, have already said they will invest in the IPO.

In market research news…

Global fab equipment spending for front-end facilities in 2023 is expected to decline -15% YoY to US$84 billion before rebounding 15% YoY to US$97 billion in 2024, according to the latest data from SEMI.?? Softening chip demand and elevated inventory of consumer and mobile devices contribute to the 2023 decline, whilst SEMI is predicting that the current inventory correction will end by the end of 2023 and together with strong demand from HPC and memory segments will drive the 2024 recovery.

The memory market is showing signs of recovery, particularly in the mobile DRAM chip segment.? Samsung is reported to have recently signed memory chip supply deals with companies like Xiaomi, Oppo, and Google at prices 10~20% higher than previous contracts.

Whilst Trendforce is forecasting that NAND flash prices are expected to stabalise and rebound in Q4. ?This is due to recent production cuts in NAND production.

That's all for this week. If you enjoyed the newsletter, please “like” or share the article and if you have not already done so, why don't you subscribe and automatically stay up to date with all the industry news in your inbox.

?Stay safe and healthy... bye

Stay safe and healthy... bye