Market-Intel Newsletter #41
GlobalFoundries predicts strong finish as chip demand rebounds
The semiconductor industry is witnessing a significant turnaround, as GlobalFoundries, a leading wafer foundry, projects a robust finish to the year with fourth-quarter profits exceeding initial analyst expectations, reports SemiMedia. This upbeat forecast is a strong indicator that the industry is successfully navigating past its recent period of oversupply, signaling a possible end to the slump that has affected semiconductor manufacturers. This positive trend is primarily attributed to the gradual resurgence in demand for semiconductors, a shift from the previous quarters where manufacturers grappled with excess inventory. The sudden drop in demand following the pandemic had left the industry in a precarious state, with piled-up stock and stalled production lines. However, as the global economy recovers, electronics manufacturers are now actively rebuilding their inventories, reflecting renewed confidence in market demand. A pivotal factor contributing to this recovery is the resurgence of the personal computer (PC) market, which constitutes a significant source of...
NAND Flash market heads towards shortage, Phison CEO forecasts
The NAND Flash market is set for a significant shift, as Phison’s CEO, Pua Khein-Seng, predicts a shortage in the coming year. This forecast emerges amid a backdrop of production reductions by major memory chip manufacturers and a revitalising end market, leading to a resurgence in NAND Flash prosperity and price hikes. During a recent interview, Pua Khein-Seng highlighted that Phison, a NAND Flash control chip manufacturer, has seen a recent surge in shipments. However, the overall market supply is tightening, primarily due to production cuts by leading manufacturers. This tightening, coupled with a recovery in the end market, is setting the stage for a potential shortage of NAND Flash in the near future. Khein-Seng emphasized Phison’s role as a control chip manufacturer, not a memory chip factory, distancing the company from direct influence over the strategies of memory chip manufacturers. Nevertheless, he observed that current NAND Flash prices are at a low, with a clear upward trajectory in demand. This situation suggests a substantial growth in demand could be on the horizon. Adding complexity to the market dynamics, Samsung Electronics , a key player in the NAND...
U.S. Government invests $3B to boost semi packaging tech
In a strategic move to bolster its position in the semiconductor industry, the U.S. Government has committed $3 billion to advance its leadership in semiconductor packaging technologies, reports The Register. This investment, part of the CHIPS for America funding, aims to enhance the U.S.’s capabilities in advanced packaging, a critical aspect of the semiconductor sector’s future. The National Institute of Standards and Technology (NIST) has announced that the funding will support the National Advanced Packaging Manufacturing Program (NAPMP). The program’s primary objective is to stimulate research in advanced semiconductor packaging, with an “initial funding opportunity” set to be announced in early 2024. This initiative falls under the aegis of the Department of Commerce and forms a key part of the CHIPS for America scheme’s research and development efforts. NIST Director Laurie E. Locascio envisions this investment enabling the U.S. to manufacture and package the world’s most sophisticated chips within a decade. The goal is to establish a high-volume advanced packaging industry that is self-sustaining, profitable, and environmentally responsible while accelerating new packaging approaches to market. Advanced packaging technology is integral to...
Uncertainty looms over German chip fab funding for Intel and TSMC
Germany’s ambitious plans to become a hub for semiconductor manufacturing, involving major players like Intel and TSMC, have hit a significant roadblock following a recent ruling by the country’s Federal Constitutional Court, reports The Register. The court deemed the government’s reallocation of €60 billion from pandemic support measures to its Climate and Transformation Fund in 2022 unconstitutional. This fund, intended to cover about €210 billion for 2024 to 2027, included subsidies for setting up local chip factories by Intel and TSMC. The ruling has put the future of these subsidies in jeopardy, with a budget committee member calling for their removal. Consequently, the government has implemented a budget freeze, leaving the fate of the chipmaking subsidies uncertain. Intel’s engagement with the German government, resulting in a €10 billion subsidy towards a planned wafer fabrication facility in Magdeburg, Saxony-Anhalt, is now under scrutiny. Intel had anticipated investing over €30 billion in the site, meaning the subsidy would cover about a quarter of the construction costs. Similarly, TSMC’s joint venture plans for a 300mm wafer fabrication facility outside Dresden, involving European chip companies like NXP Semiconductors , Infineon Technologies , and Bosch ...
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Semiconductor industry forecast: surging towards sustainable growth
In an electrifying turn of events, the semiconductor industry is poised for a robust recovery, as forecasted by the International Data Corporation (IDC). The sector, crucial to the global electronics industry, is set to witness a 20.2% growth in 2024, escalating the market to a staggering $632.8 billion. This upward revision from IDC’s previous estimate of $625.9 billion signals a pivotal shift, marking the industry’s departure from a recent slump. IDC attributes this anticipated surge to several factors, key among them being the recovery of demand in major markets like the United States and China. The latter is expected to begin its rebound in the second half of 2024, contributing significantly to this growth. The market is also buoyed by the resilience of the U.S. market, which continues to demonstrate robust demand. One of the most exciting aspects of this forecast is the role of electrification in driving semiconductor content over the next decade. With the automotive and industrial sectors expected to return to normal inventory levels by the second half of 2024, there’s an evident alignment with the global shift towards electrification. This alignment is not just a boon for semiconductor manufacturers but also a testament to the industry’s adaptability and forward-thinking...
Astute announces Positronic’s inclusion on European Space Agency Preferred Parts List
Electronic component and supply chain experts, Astute Electronics, are excited to announce that Positronic Amphenol , part of @Amphenol Corp and one of the most respected interconnect brands, has achieved European Space Agency (ESA) EPPL status for their SND and SDD Series D-Sub connectors...Find out more with Claire Cave Scott Morley Peter Sullivan Anita Warner Kevin
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