The Tech Week that was... Sept 2~6

Welcome to the latest edition of my weekly newsletter bringing you all the global key semiconductor and technology news from last week in one easy read

This week, 30 Taiwanese firms, led by leading foundry TSMC and leading OSAT ASE Technology, launched a silicon photonics industry alliance, called SEMI Silicon Photonics Industry Alliance (SiPhIA)?aiming to accelerate the medium’s development and address the energy efficiency of artificial intelligence (AI) devices like data centers.? Other members include MediaTek, Quanta Computer, Synopsys, AUO, and Foxconn.

?NXP & Vanguard’s (VIS) JV Fab in Singapore this week received all the necessary approvals from relevant authorities and injected capital to officially establish the VisionPower Semiconductor Manufacturing Company (VSMC) joint venture. The company will now proceed with the planned construction of VSMC’s US$7.8billion 300mm wafer manufacturing facility, with initial production slated to begin in 2027.

ams OSRAM has announced it has completed the sale of it’s? Passive Optical Components assets to Focuslight Technologies?for US$50million.? Focuslight Technologies specialises in optical technologies and is headquartered in Xi’an, China.? The sale was part of ams OSRAM strategic efficiency program to exit non-core semiconductor businesses.

Chipmaker Broadcom reported Q3 revenue of US$13.1billion up 47% YoY due to strong AI revenue, however they saw sluggish spending from its broadband segment.? Broadcom expect full year revenue from AI segment will reach US$12billion. ?For Q4 they forecast revenue of US$14billion.? ?

The United States this week announced tighter global export controls on critical technologies like advanced semiconductor equipment, gate-all-around FETs and quantum computing targeting access by adversaries like China.? Alan Estevez, Under Secretary for the Bureau of Industry and Security said “This action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners,”?and ?that “aligning our controls on quantum and other advanced technologies makes it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security.”

The Dutch government said it would take over export licensing requirements for all ASML?DUV immersion tools from the United States and aligning the two countries' policy.? The United States had previously unilaterally regulated those tools, as part of its campaign to restrict access to advanced technology by Chinese chipmakers who could contribute to Beijing's technological and military advances.? ASML said that it didn’t expect the change in oversight will impact earnings.??

In market research news..

?Global semiconductor industry sales hit US$51.3 billion in July 2024, an increase of 18.7% year-to-year (YoY) and 2.7% more than the June 2024, ?according to the latest data compiled by World Semiconductor Trade Statistics (WSTS) organization.? Semiconductor Industry Association president John Neuffer said “The global semiconductor market continued to grow substantially on a year-to-year basis in July, and month-to-month sales increased for the fourth consecutive month,” and that “the Americas market experienced particularly strong growth in July, with a YoY sales increase of 40.1%.”

Global semiconductor equipment billings increased 4% YoY to US$26.8 billion in Q2 2024 while quarter-over-quarter billings edged up 1% during the same period, according to the latest update from SEMI.? Global semiconductor equipment billings totalled US$53.2billion in the 1st half? 2024 as the market returned to growth driven by strategic investments to support continued strong demand for advanced technologies and regions seeking to bolster their chipmaking ecosystems.

Intel is widely reported to be considering options to stem its losses with possible moves being to sell Altera, putting a halt to its investment project in Germany, and less likely, the sale of its foundry business according to analysis by Trendforce.? Trendforce believe that Samsung and Intel are unlikely to be buyers of Intel’s foundry business if it did sell.? According to TrendForce’s latest analysis, top five rankings in the foundry sector remained unchanged in Q2’24 with TSMC (62.3%), Samsung (11.5%), SMIC (5.7%), UMC (5.3%), and GlobalFoundries (4.9%) stood steadfast in their positions.

According to Reuters, Qualcomm has explored buying pieces of Intel’s design business to boost the company’s product portfolio.? Intel’s client PC design business is of significant interest to Qualcomm executives, one of the sources said, but they are looking at all of the company’s design units.?

That's all for this weeks edition. I hope you enjoyed it.? Please remember to “like” or “share” the article so that others may also enjoy it. 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 healthy and safe... bye

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