DIGITIMES Asia: News and Insight of the Global Supply Chain

Marvell reports strong 3Q24 results, driven by AI silicon demand

DIGITIMES — Wed, 4 Dec 2024 01:44:20 GMT

Marvell reported strong fiscal third-quarter results with a 6.87% revenue increase, driven by record data center revenue, primarily from custom AI silicon. The company forecasts continued growth in the fourth quarter, with revenue expected to increase by 19% quarterly and 26% year-over-year. Analysts predict that AI sales will exceed expectations, potentially reaching US$1.6 billion.

Space tech startups struggle with launch costs amid market consolidation

DIGITIMES — Wed, 4 Dec 2024 01:20:18 GMT

Space technology executives warn that small satellite launch companies face mounting pressure from both established players and market dynamics, despite new opportunities emerging in lunar missions and space manufacturing.

Merck's semiconductor pivot: a decade of transformation and future ambitions

Vyra Wu — Wed, 4 Dec 2024 01:20:06 GMT

Merck has fundamentally reshaped its business strategy, evolving over a decade from a display-focused powerhouse into a crucial semiconductor materials supplier. Following its recent acquisition of Unity-SC, the German materials giant plans to rebrand its "Display Technology Solutions" business unit as "Optoelectronics" in 2025. The company's semiconductor segment currently generates 80% of its revenue, marking a dramatic shift from its display-centric past.

AWS unveils a trio of data center reforms, focus on liquid cooling and energy efficiency

Charlene Chen — Wed, 4 Dec 2024 01:19:26 GMT

Amazon Web Services (AWS) has announced three significant reforms in data center technology, including the streamlining of power distribution and structural design, the introduction of liquid cooling systems, and enhancements to energy efficiency. The company is also collaborating with Nvidia to advance the design of liquid-cooled server racks.

Samsung and SK Hynix collaborate to promote LPDDR6-PIM standardization

Charlene Chen — Wed, 4 Dec 2024 01:19:12 GMT

Samsung Electronics and SK Hynix, while competing in memory development for artificial intelligence (AI), have agreed to collaborate on accelerating technology standardization.

Ibiden plans 40% output boost for AI server IC substrates in 2025

Jingyue Hsiao — Wed, 4 Dec 2024 01:19:01 GMT

Japanese IC substrate maker Ibiden is ramping up production capacity in response to rising demand linked to generative AI, with plans centered on renovating its current facilities to increase output.

Luxshare expands and leverages non-China capacity in Vietnam to ease client cost pressures

Levi Li — Tue, 3 Dec 2024 10:24:13 GMT

Luxshare Precision, a key Chinese partner of Apple, is expanding its production capacity in Vietnam through a significant enlargement of its Nghe An facility. The workforce is expected to grow from 12,000 to 60,000–80,000, reinforcing its position in Apple's global supply chain.

New US ban imposes 'large yard, high fence' on Chinese equipment, materials, EDA

Charlene Chen — Tue, 3 Dec 2024 10:22:47 GMT

The US Department of Commerce's Bureau of Industry and Security (BIS) released a new regulation on December 2, adding 140 Chinese companies to the Entity List. This regulation targets 24 types of semiconductor manufacturing equipment, three categories of electronic design automation (EDA) tools, and high bandwidth memory (HBM).

China and ASML respond to new US restrictions adding 140 more entities to Entity List

Charlene Chen — Tue, 3 Dec 2024 10:04:59 GMT

China has expressed strong dissatisfaction in response to the new round of sanctions from the US. China's Ministry of Commerce issued a statement stating that the new measures further strengthen export controls on semiconductor manufacturing equipment and memory chips, adding 136 Chinese entities to the Entity List and expanding jurisdictional reach to obstruct trade between China and third countries, characterizing it as typical economic coercion and non-market practices.

Chinese AI company Megvii cancels IPO on STAR market

Eifeh Strom — Tue, 3 Dec 2024 09:44:58 GMT

Megvii Technology, one of China's original "AI Elite Four" which specializes in computer vision and deep learning, announced its application for an initial public offering (IPO) on the Shanghai Stock Exchange Science and Technology Innovation Board (STAR) has been withdrawn.

Chips crucial for AI robots and smart car safety

Rodney Chan — Tue, 3 Dec 2024 08:13:26 GMT

The potential of AI in advancing smart manufacturing has been widely recognized, but deaths and injuries involving robots at factories have called attention to functional safety, of which semiconductor chips play a crucial part, according to industry sources.

Global industry leaders back Taiwan's emerging satellite sector amid key challenges

Heidi Tai — Tue, 3 Dec 2024 07:29:34 GMT

Recent advancements in communication technology have lowered barriers in the space industry, enabling commercialization and attracting a wave of innovative players. While Taiwan-based companies acknowledge that the space sector, previously a highly exclusive domain, was long considered out of reach, with many companies not even daring to dream of participating. However, thanks to disruptive innovators like Starlink reshaping the market, the doors are now open for Taiwan-based manufacturers to take up the challenge.

TASTI Expo 2024: CubeSat, SAR, drone-satellite synergy

DIGITIMES — Tue, 3 Dec 2024 07:24:17 GMT

Nearly 60 space companies are showcasing their latest innovations at TASTI Expo 2024, demonstrating Taiwan's growing aerospace capabilities. The Taiwan Space Agency (TASA) leads the exhibition with Formosat-8, featuring locally developed components including optical payload, GPSR, satellite computer, power systems, and communication modules.

Power semiconductor firms explore niche auto markets amid headwinds

Eifeh Strom — Tue, 3 Dec 2024 06:36:57 GMT

Major integrated device manufacturers (IDM) are pessimistic about automotive chip prospects in 2025, with Taiwan-based power semiconductor firms taking cautious stances on the European and US markets. However, Taiwanese firms are still hoping to cut into niche markets to weather challenging market conditions.

Ubiqconn showcases next-gen satellite solutions at TASTI 2024, deepening presence in global satcom networks

Willis Ke — Tue, 3 Dec 2024 06:33:51 GMT

Ubiqconn Technology, a Taiwan-based satellite equipment manufacturer and systems integrator, demonstrated its expertise at the 2024 Taiwan International Assembly of Space Science, Technology and Industry (TASTI 2024), held from November 30 to December 4 at the Kaohsiung Exhibition Center. Executive Vice President Paul Hsieh, who will take on the CEO role in 2025, led the team at the event, marking his debut appearance.

Poland-Taiwan space partnership takes flight at TASTI 2024

DIGITIMES — Tue, 3 Dec 2024 06:08:47 GMT

Poland marked a significant diplomatic milestone at the TASTI Expo 2024 with the first-ever Polish Space Agency delegation to Taiwan, led by Michal Wiercinski, Vice President of POLSA. The visit culminated in a landmark memorandum of understanding (MOU) between the nations' space agencies. The Poland Pavilion highlighted the country's expertise in satellite systems, manufacturing, and launch services, underscoring the growing technological collaboration in the space and defense sectors.

Arm aims beyond semiconductors, targeting AI hardware, software, ecosystem

Charlene Chen — Tue, 3 Dec 2024 04:53:01 GMT

Arm CEO Rene Haas has openly expressed his aspirations for AI, envisioning that all future AI applications will run on Arm technology in some form. This strategic shift suggests that Arm, known as the king of mobile chips, is following its Windows on Arm success by pushing toward "AI on Arm."

Apple unlikely to reverse declining iPhone sales in China with Chinese version of AI alone

Heidi Tai — Tue, 3 Dec 2024 04:43:08 GMT

Apple is facing significant challenges in China, where its smartphone sales have been hit hard. Despite the launch of the iPhone 16 series in October 2024, the brand is under increasing pressure from domestic competitors. While Apple still managed to secure nearly 20% of China's market in October, this is a far cry from its previous dominance. Industry experts forecast that upcoming premium releases, such as Huawei's Mate 70, along with AI-driven devices from Oppo, Xiaomi, and Vivo, will further erode iPhone sales.

Super Micro finds no evidence of fraud; will replace CFO

DIGITIMES — Tue, 3 Dec 2024 04:28:47 GMT

Super Micro Computer said an independent review of its business found no evidence of misconduct but recommended that the server maker appoint new top financial and legal leadership.

Chinese foundries, memory firms face US export curbs

Jessie Shen — Tue, 3 Dec 2024 04:14:47 GMT

The upcoming US ban targets the Chinese semiconductor industry in what is expected to be the third significant crackdown in three years. However, the number of companies affected has been reduced from an earlier estimate of 200 to 140, with HBM memory designated as a primary target of these measures.

Chinese OSATs step up investment in advanced packaging

Rodney Chan — Tue, 3 Dec 2024 04:05:47 GMT

Chinese outsourced semiconductor assembly and test (OSAT) providers have intensified their capacity expansion for advanced packaging to support the country's semiconductor self-sufficiency amid growing artificial intelligence (AI) application demands.

Trump 2.0 trade war: potential winners and losers

Kevin Wang — Tue, 3 Dec 2024 03:41:35 GMT

Donald Trump's upcoming return to the US presidency and his promised import tariffs threaten to disrupt the World Trade Organization's free trade principles. The WTO's 166 member states account for a combined 98% of global trade, and industry watchers are closely monitoring how these protectionist policies might reshape global commerce.

Intel's leadership change sparks speculation on foundry spin-off plans

DIGITIMES — Tue, 3 Dec 2024 03:19:57 GMT

The abrupt retirement of Intel CEO Pat Gelsinger has sent shockwaves through the industry, raising questions about a potential spin-off of Intel Foundry. DIGITIMES Research indicates that even if such a spin-off materializes, Intel would need to maintain majority control of the foundry business to comply with US subsidy requirements.

Shift in brand AI server orders; Taiwan contract firms still benefit

Jingyue Hsiao — Tue, 3 Dec 2024 03:12:08 GMT

Orders for brand AI servers are surging, prompting Taiwan-based electronic contract manufacturing firms to capitalize on the trend regardless of order variations.

TSMC presents awards to outstanding suppliers at 2024 supply chain forum

Jingyue Hsiao — Tue, 3 Dec 2024 03:03:49 GMT

TSMC gathered industry partners at its 2024 Supply Chain Management Forum on December 2, presenting awards to 27 outstanding suppliers, including seven Taiwanese companies, in recognition of their significant contributions throughout the year.

Chinese state-owned CRC takes control of JCET

Jingyue Hsiao — Tue, 3 Dec 2024 02:56:11 GMT

Almost a year after the initial announcement, JCET has completed its stock-holding transfer and appointed a new chairman, solidifying control under a Chinese state-owned conglomerate. This move positions the conglomerate as the dominant force behind China's largest OSAT OSAT provider.

US imposes tariffs on Chinese solar producers in Southeast Asia

Jingyue Hsiao — Tue, 3 Dec 2024 02:41:05 GMT

The US Department of Commerce announced on November 29, 2024, its preliminary findings in antidumping duty investigations targeting crystalline photovoltaic cells and modules from Cambodia, Malaysia, Thailand, and Vietnam.

AI servers will not peak then slow in 2025, says Quanta EVP Mike Yang

Kevin Wang — Tue, 3 Dec 2024 02:37:46 GMT

Demand for AI servers will not peak in 2025, according to Quanta Computer executive VP and Quanta Cloud Technology general manager Mike Yang. In his opinion, the AI industry has seen an end-to-end progression encompassing all aspects from training and inference to end-user devices. Quanta has also seen AI server orders steadily increase.

Pat Gelsinger's retirement signals internal struggle at Intel over fab-lite vs. fab-strong strategy

Jingyue Hsiao — Tue, 3 Dec 2024 02:33:29 GMT

Intel's announcement of CEO Pat Gelsinger's unexpected retirement following the Thanksgiving holiday has sent shockwaves through the semiconductor industry. The departure of Gelsinger, who implemented the transformative IDM 2.0 strategy after taking the helm four years ago, has sparked intense speculation about the underlying reasons.

Biden's final chip salvo hits China: TSMC steady, UMC-VIS gain

Jessie Shen — Tue, 3 Dec 2024 02:27:15 GMT

The US government is preparing to expand restrictions on semiconductor equipment and related chip sales to China, particularly targeting AI and High Bandwidth Memory (HBM) products. This move will have minimal impact on TSMC but could create new opportunities for United Microelectronics (UMC) and Vanguard International Semiconductor (VIS), according to industry sources.

Five crises facing Intel amid CEO departure; board rumored to consider former TSMC executive for top role

Jingyue Hsiao — Tue, 3 Dec 2024 01:40:08 GMT

Intel's CEO Pat Gelsinger has announced his retirement, effective December 1, amid the company's struggles with design and manufacturing separation and ongoing financial losses. In the interim, CFO David Zinsner and EVP of the Client Computing Group Michelle Johnston Holthaus will jointly serve as acting co-CEOs while the board seeks a permanent successor.

Brightek joins SiPhIA, eyes overseas automotive expansion

Charlene Chen — Tue, 3 Dec 2024 00:52:36 GMT

As a new member of the SEMI Silicon Photonics Industry Alliance (SiPhIA), Brightek is actively expanding its international presence, promoting its latest EVO ICLED products in markets such as China, the US, Germany, and South Korea. Despite lower-than-projected automotive and notebook demand in 2024, the company plans to deliver samples of its next-generation ICLED to automotive customers by year-end, targeting integration into new vehicle models launching by the end of 2025.

Danish investors urge Taiwan to speed up renewable energy shift

DIGITIMES — Tue, 3 Dec 2024 00:52:27 GMT

Danish officials are pressing Taiwan to accelerate its green energy transition, warning that mounting global competition for renewable resources could threaten the island's ability to meet its 2030 climate goals and maintain industrial competitiveness. Denmark, which became Taiwan's largest foreign investor in 2022 largely due to renewable energy investments, is leveraging its expertise in green technology to help guide Taiwan's path to net-zero emissions. Danish companies have already contributed to more than half of Taiwan's offshore wind capacity.

CIP secures Taiwan's first corporate wind power deal

DIGITIMES — Tue, 3 Dec 2024 00:52:16 GMT

Copenhagen Infrastructure Partners (CIP) has marked a watershed moment in Taiwan's renewable energy sector by securing the first corporate power purchase agreement for its Round 3 offshore wind development, signaling the market's transition from government feed-in tariffs to corporate power purchases. Industry sources indicate additional agreements are expected in the coming months.

Shinkong diversifies amid European auto slump, eyes AI server opportunities

DIGITIMES — Tue, 3 Dec 2024 00:52:07 GMT

Shinkong Synthetic Fibers continues to navigate through Europe's prolonged automotive market downturn by implementing proactive diversification strategies and making a strategic entry into AI server supply chains. The company presented a mixed outlook, with European automotive demand remaining weak, but its expansion into new markets and products fostering cautious optimism.