According to a report published by Bloomberg, the German government has formed plans to create €20 billion ($22 billion) of investments to aid in the growth of local semiconductor manufacturing. The article proposes that the organization is racing to bolster the country's technology sector, and is attempting to secure essential supplies of components. Various geopolitical issues have complicated matters in recent times. Funding will be made available to German and international companies, from Germany's (now diversified) Climate and Transformation reserve, over the next four years. The finance ministry responded to Bloomberg's query, and stated: "The draft for the economic plan 2024 and the financial plan until 2027 for the Climate and Transformation Fund are currently being prepared...This process has not yet been completed." Germany's economy ministry did not provide a statement/response to Bloomberg's queries.

Around 75% of the fund is reportedly set aside for multinational semiconductor firms including Intel Corporation (USA) and Taiwan Semiconductor Manufacturing Company Limited (TSMC). Bloomberg believes that Team Blue is due an allocation of €10 billion for investments in its new production facility, located close to Magdeburg, Germany. The government is allegedly deep into talks with TSMC regarding the foundation of a proposed €10 billion production base in the Dresden area—the likes of BMW, Mercedes-Benz and Volkswagen AG would benefit greatly with quicker access to (localized) microcontrollers manufacturing facilities. The government could subsidize half of that total investment (€5 billion). Infineon is possibly in line to receive a €1 billion aid package, since it is building a new fab location in Dresden.

According to various news sources, CEOs from Intel, NVIDIA and Qualcomm have been holding meetings with representatives of the US government—with the topic of discussion reportedly being the escalation of semiconductor import restrictions placed on China. AMD was notably absent from Monday's proceedings, due to Dr. Lisa Su attending to business matters in Taiwan. Commerce Secretary Gina Raimondo, National Economic Council director Lael Brainard and National Security Council director Jake Sullivan were alleged to have met with industry leaders.

Chipmakers have expressed worry about new restrictions coming into effect within the next couple of week—the latest negotiations could have touched on some sort of provision for leading silicon manufacturers. The US government believes that by limiting China's access to cutting-edge technology, it will bolster national security interests—with the Chinese military not being able to develop competitive defense systems. The Semiconductor Industry Association stated on Monday that: "overly broad, ambiguous and at times unilateral restrictions risk diminishing the US semiconductor industry's competitiveness, disrupting supply chains, causing significant market uncertainty and prompting continued escalatory retaliation by China." Intel, NVIDIA and Qualcomm did not provide any comments to press outlets following the conclusion of their meetings with senior government officials. It is speculated that Qualcomm is set to lose the most trade following the implementation of stricter rules—Bloomberg proposes that 60% of the firm's business revenue comes from Chinese territories.

Semiconductor industry research firm TechInsights said it has found that Samsung's 3 nm GAA (gate-all-around) process has been incorporated into the crypto miner ASIC (Whatsminer M56S++) from a Chinese manufacturer, MicroBT. In a Disruptive Technology Event Brief exclusively provided to DIGITIMES Asia, TechInsights points out that the significance of this development lies in the commercial utilization of GAA technology, which facilitates the scaling of transistors to 2 nm and beyond. "This development is crucial because it has the potential to enhance performance, improve energy efficiency, keep up with Moore's Law, and enable advanced applications," said TechInsights, identifying the MicroBT ASIC chip the first commercialized product using GAA technology in the industry.

But this would also reveal that Samsung is the foundry for MicroBT, using the 3 nm GAA process. DIGITIMES Research semiconductor analyst Eric Chen pointed out that Samsung indeed has started producing chips using the 3 nm GAA process, but the capacity is still small. "Getting revenues from shipment can be defined as 'commercialization', but ASIC is a relatively simple kind of chip to produce, in terms of architecture."

On June 30th, the Netherlands introduced new export restrictions on advanced semiconductor manufacturing equipment. Despite facing export controls from the US, Japan, and the Netherlands, TrendForce anticipates the market share of Chinese foundries in terms of 12-inch wafer production capacity will likely increase from 24% in 2022 to an estimated 26% in 2026. Moreover, if the exports of 40/28 nm equipment eventually receive approval, there's a chance that this market share could expand even further, possibly reaching 28% by 2026. This growth potential should not be dismissed.

Several manufacturing processes including photolithography, deposition, and epitaxy will be subject to these recent export restrictions. Beginning September 1st, the export of all controlled items will require formal authorization. TrendForce reports that Chinese foundries have been primarily developing mature processes like 55 nm, 40 nm, and 28 nm. Furthermore, demand for deposition equipment can be largely met by local Chinese vendors, meaning concerns regarding expansion and development are minimal. The main limiting factor, however, remains the equipment used in photolithography.

New research from Omdia reveals that the semiconductor market declined in revenue for a fifth straight quarter in the first quarter of 2023. This is the longest recorded period of decline since Omdia began tracking the market in 2002. Revenue in 1Q23 settled at $120.5B, down 9% from 4Q22. The semiconductor market is cyclical, and this prolonged decline follows the upsurge as the market grew to record revenues in each quarter between 4Q20 through 4Q21 following increased demand from the global pandemic.

The memory and MPU market are major areas of the semiconductor market that are contributing to the decline. The MPU market in 1Q23 was $13.1B, just 65% of its size in 1Q22 when it was $20B. The memory market fared worse, with 1Q23 coming in at $19.3B, just 44% of the market in 1Q22 when it was $43.6B. The combined MPU and memory markets declined 19% in 1Q23, dragging the market down to the 9% quarter-over-quarter (QoQ) decline.

Today, the U.S. Department of Commerce shared the Biden-Harris Administration's strategic vision to strengthen the semiconductor supply chain through CHIPS for America investments. To advance this vision, the Department announced a funding opportunity and application process for large semiconductor supply chain projects and will release later in the fall a separate process for smaller projects. Large semiconductor supply chain projects include materials and manufacturing equipment facility projects with capital investments equal to or exceeding $300 million, and smaller projects are below that threshold.

The announcement leads into the Biden-Harris Administration's Investing in America tour, where Secretary Raimondo and leaders in the Administration will fan across more than 20 states to highlight investments, jobs, and economic opportunity driven by President Biden's Investing in America agenda and the historic legislation he's passed in his first two years in office, including the bipartisan CHIPS and Science Act.

Lam Research Corp. (Nasdaq: LRCX) today introduced Coronus DX, the industry's first bevel deposition solution optimized to address key manufacturing challenges in next-generation logic, 3D NAND and advanced packaging applications. As semiconductors continue to scale, manufacturing becomes increasingly complex with hundreds of process steps needed to build nanometer-sized devices on a silicon wafer. In a single step, Coronus DX deposits a proprietary layer of protective film on both sides of the wafer edge that helps prevent defects and damage that can often occur during advanced semiconductor manufacturing. This powerful protection increases yield and enables chipmakers to implement new leading-edge processes for the production of next-generation chips. Coronus DX is the newest addition to the Coronus product family and extends Lam's leadership in bevel technology.

"In the era of 3D chipmaking, production is complex and costly," said Sesha Varadarajan, senior vice present of the Global Products Group at Lam Research. "Building on Lam's expertise in bevel innovation, Coronus DX helps drive more predictable manufacturing and significantly higher yield, paving the way for adoption of advanced logic, packaging and 3D NAND production processes that weren't previously feasible."

Sony Semiconductor Solutions Corporation (SSS) this week announced that it will ship a new line of LYTIA brand products, primarily 50-megapixel models, this fiscal year. LYTIA is the new product brand of image sensors for mobile devices developed by SSS. SSS has leveraged its imaging and sensing technologies to bring value to the market in a variety of ways and deliver a richer imaging experience to users. SSS is expanding its high-quality products under the LYTIA brand so that more users in the mobile market can benefit from its commitment to imaging as they use smartphones to capture images. The first step in this initiative is expanding the line of 50-megapixel products, as it is the most versatile resolution for use in current mobile applications.

More and more people today are using smartphones to enjoy imaging on a daily basis, and the way they use cameras are also diversifying with more and more smartphones coming with multiple built-in cameras. SSS plans to contribute to enhanced imaging experiences with LYTIA products that accommodate diverse shooting scenes and purposes.

The newly established Department for Science, Innovation and Technology (DSIT) in the UK has recently released the UK's National Semiconductor Strategy. Dr. Shih-Chieh Chang, General Director of Electronic and Optoelectronic System Research Laboratories at the Industrial Technology Research Institute (ITRI) of Taiwan had an initial exchange with DSIT. During the exchange, Dr. Chang suggested that Taiwan can become a trustable partner for the UK and that the partnership can leverage collective strengths to create mutually beneficial developments. According to the Strategy, the British government plans to invest 1 billion pounds over the next decade to support the semiconductor industry. This funding will improve access to infrastructure, power more research and development and facilitate greater international cooperation.

Dr. Chang stressed that ITRI looks forward to more collaboration with the UK on semiconductors to enhance the resilience of the supply chain. While the UK possesses cutting-edge capabilities in semiconductor IP design and compound semiconductor technology, ITRI has extensive expertise in semiconductor technology R&D and trial production. As a result, ITRI is well-positioned to offer consultation services for advanced packaging pilot lines, facilitate pre-production evaluation, and link British semiconductor IP design companies with Taiwan's semiconductor industry chain. "The expansion of British manufacturers' service capacity in Taiwan would create a mutually beneficial outcome for both Taiwan and the UK," said Dr. Chang.

Global semiconductor materials market revenue grew 8.9% to $72.7 billion in 2022, surpassing the previous market high of $66.8 billion set in 2021, SEMI, the global industry association representing the electronics manufacturing and design supply chain, reported today in its Materials Market Data Subscription (MMDS). Wafer fabrication materials and packaging materials revenue in 2022 reached $44.7 billion and $28.0 billion, respectively, increasing 10.5% and 6.3%. The silicon, electronic gases, and photomask segments showed the strongest growth in the wafer fabrication materials market, while the organic substrates segment largely drove packaging materials market growth.

For the 13th consecutive year, Taiwan, at $20.1 billion, was the world's largest consumer of semiconductor materials on the strength of its foundry capacity and advanced packaging base. China continued to register strong year-over-year results, ranking second in 2022, while Korea finished as the third largest consumer of semiconductor materials. Most regions registered high single- or double-digit growth last year.

TrendForce reports that the global top 10 foundries witnessed a significant 18.6% QoQ decline in revenue during the first quarter of 2023. This decline—amounting to approximately US$27.3 billion—can be attributed to sustained weak end-market demand and the compounded effects of the off-peak season. The rankings also underwent notable changes, with GlobalFoundries surpassing UMC to secure the third position, and Tower Semiconductor surpassing PSMC and VIS to claim the seventh spot.

Declining capacity utilization rate and shipment volume contribute to widened revenue decline
The revenue decline in Q1 was primarily influenced by declining capacity utilization rates and shipment volume across the top 10 foundries. For instance, TSMC generated US$16.74 billion in revenue—marking a 16.2% QoQ drop in revenue. Weakened demand for mainstream applications such as laptops and smartphones led to a significant decline in the utilization rates and revenue of the 7/6 nm and 5/4 nm processes, falling over 20% and 17%, respectively. While the second quarter may see temporary relief coming from rush orders, the persistently low capacity utilization rate indicates that revenue is likely to continue declining, albeit at a slower pace compared to Q1.

GlobalFoundries Inc., a global leader in feature-rich semiconductor manufacturing, and STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, announced today the conclusion of the agreement to create a new, jointly-operated, high-volume semiconductor manufacturing facility in Crolles (France), which was announced on 11 July 2022.

"I would like to thank Minister Le Maire, the French Minister of the Economy and Finance, and his team for their support and the dedication for the last 12+ months that have made celebrating today's milestone possible," said Dr. Thomas Caulfield, President and CEO of GlobalFoundries. "In partnership with ST in Crolles, we are further expanding GF's presence within Europe's dynamic technology ecosystem while benefiting from economies of scale to deliver additional capacity in a highly capital efficient manner. Together we will deliver GF's market leading FDX technology and ST's comprehensive technology roadmap, in alignment with customer demand which is expected to remain high for Automotive, IoT, and Mobile applications over the next decades."

Achronix Semiconductor Corporation, a leader in high-performance FPGAs and embedded FPGA (eFPGA) IP, today announced that its VectorPath accelerator card featuring a Speedster 7t FPGA has been certified by PCI-SIG for PCIe Gen 5 and is the first and only FPGA accelerated CEM add-in card certified for PCIe Gen 5 x16 at 32 gigatransfers per second (GT/s) on the PCI-SIG Integrator's list. VectorPath S7t-VG6 accelerator cards are designed to reduce time to market when developing high-performance compute and acceleration functions for AI, ML, networking and data center applications and are shipping today.

"Achronix continues to drive acceleration in the high-performance FPGA add-in card market," said Craig Petrie, Vice President at BittWare. "Achieving PCI-SIG Gen 5 certification is an important milestone. Our customers can be assured of the highest PCIe bandwidths and have confidence that VectorPath cards will interoperate with Gen 5 servers."

Applied Materials, Inc. today announced a landmark investment to build the world's largest and most advanced facility for collaborative semiconductor process technology and manufacturing equipment research and development (R&D). The new Equipment and Process Innovation and Commercialization (EPIC) Center is planned as the heart of a high-velocity innovation platform designed to accelerate development and commercialization of the foundational technologies needed by the global semiconductor and computing industries.

To be located at an Applied campus in Silicon Valley, the multibillion-dollar facility is designed to provide a breadth and scale of capabilities that is unique in the industry, including more than 180,000 square feet - more than three American football fields - of state-of-the-art cleanroom for collaborative innovation with chipmakers, universities and ecosystem partners. Designed from the ground up to accelerate the pace of introducing new manufacturing innovations, the new EPIC Center is expected to reduce the time it takes the industry to bring a technology from concept to commercialization by several years, while simultaneously increasing the commercial success rate of new innovations and the return on R&D investments for the entire semiconductor ecosystem.

Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) ("SMIC", the "Company" or "we"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2023.

According to the international financial reporting standards, in the first quarter, the Company's revenue slightly beat guidance, gross margin was close to the high end of our guided range; in the second quarter, the Company expects the capacity utilization rate and shipments will perform better than first quarter. Revenue is expected to increase by 5% to 7% sequentially, with a decline in blended ASP due to the impact of changes in product mix; gross margin is expected to be between 19% and 21%.

Three years ago, Intel announced a goal to increase global annual spending with diverse suppliers to $2 billion by 2030. We are proud to announce we reached $2.2 billion in diverse supplier spending in 2022, eight years ahead of schedule. This $2.2 billion represents nearly 15 times the annual total when our supplier diversity program launched in 2015 and double our 2019 results.

GlobalFoundries (GF) today announced the appointment of Hui Peng Koh as vice president and general manager of the company's semiconductor manufacturing facility in Malta, New York. Building on her experience in leading the 1,200 strong engineering team in Malta for the last three years, Ms. Koh is stepping up to lead GF's most advanced U.S. fab that supports a wide range of customers. She succeeds long time GF executive and industry veteran Peter Benyon who will retire in early July 2023 after more than 40 years in the semiconductor industry including being part of the GF team since the acquisition of Chartered Semiconductor in 2011.

Ms. Koh, an accomplished leader with more than 23 years of semiconductor manufacturing experience, currently serves as vice president of manufacturing engineering at GF. Prior to her current role, she was the director of lithography and held various leadership positions at the company's Malta facility. Previously, she served in several technology development roles at GF's Singapore campus. Ms. Koh earned her master's degree in materials engineering from Nanyang Technological University in Singapore.

NEO Semiconductor, a leading developer of innovative technologies for 3D NAND flash and DRAM memory, today announced the launch of its ground-breaking technology, 3D X-DRAM. This development is the world's first 3D NAND-like DRAM cell array that is targeted to solve DRAM's capacity bottleneck and replace the entire 2D DRAM market. Relevant patent applications were published with the United States Patent Application Publication on April 6, 2023.

"3D X-DRAM will be the absolute future growth driver for the Semiconductor industry," said Andy Hsu, Founder and CEO of NEO Semiconductor and an accomplished technology inventor with more than 120 U.S. patents. "Today I can say with confidence that Neo is becoming a clear leader in the 3D DRAM market. Our invention, compared to the other solutions in the market today, is very simple and less expensive to manufacture and scale. The industry can expect to achieve 8X density and capacity improvements per decade with our 3D X-DRAM."

The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors totaled $119.5 billion during the first quarter of 2023, a decrease of 8.7% compared to the fourth quarter of 2022 and 21.3% less than the first quarter of 2022. Sales for the month of March 2023 increased 0.3% compared to February 2023. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

"Semiconductor sales continued to slip during the first quarter of 2023 due to market cyclicality and macroeconomic headwinds, but month-to-month sales were up in March for the first time in nearly a year, providing optimism for a rebound in the months ahead," said John Neuffer, SIA president and CEO. Regionally, month-to-month sales increased in Europe (2.7%), Asia Pacific/All Other (2.6%), and China (1.2%), but decreased in Japan (-1.1%) and the Americas (-3.5%). Year-to-year sales decreased across all regions: Europe (-0.7%), Japan (-1.3%), the Americas (-16.4%), Asia Pacific/All Other (-22.2%), and China (-34.1%).

Bosch is expanding its semiconductor business with silicon carbide chips. The technology company plans to acquire assets of the U.S. chipmaker TSI Semiconductors, based in Roseville, California. With a workforce of 250, the company is a foundry for application-specific integrated circuits, or ASICs. Currently, it mainly develops and produces large volumes of chips on 200-millimeter silicon wafers for applications in the mobility, telecommunications, energy, and life sciences industries. Over the next years, Bosch intends to invest more than 1.5 billion USD in the Roseville site and convert the TSI Semiconductors manufacturing facilities to state-of-the-art processes. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on the innovative material silicon carbide (SiC).

In this way, Bosch is systematically reinforcing its semiconductor business, and will have significantly extended its global portfolio of SiC chips by the end of 2030. Above all, the global boom and ramp-up of electromobility are resulting in huge demand for such special semiconductors. The full scope of the planned investment will be heavily dependent on federal funding opportunities available via the CHIPS and Science Act as well as economic development opportunities within the State of California. Bosch and TSI Semiconductors have reached an agreement to not to disclose any financial details of the transaction, which is subject to regulatory approval.

Samsung Electronics today reported financial results for the first quarter ended March 31, 2023. The Company posted KRW 63.75 trillion in consolidated revenue, a 10% decline from the previous quarter, as overall consumer spending slowed amid the uncertain global macroeconomic environment. Operating profit was KRW 0.64 trillion as the DS (Device Solutions) Division faced decreased demand, while profit in the DX (Device eXperience) Division increased.

The DS Division's profit declined from the previous quarter due to weak demand in the Memory Business, a decline in utilization rates in the Foundry Business and continued weak demand and inventory adjustments from customers. Samsung Display Corporation (SDC) saw earnings in the mobile panel business decline quarter-on-quarter amid a market contraction, while the large panel business slightly narrowed its losses. The DX Division's results improved on the back of strong sales of the premium Galaxy S23 series as well as an enhanced sales mix focusing on premium TVs.

Future Japanese chipmaker Rapidus has announced that their first fab will be located in Chitose, Hokkaido, located in northern Japan. The planned 2 nm fab will be one of the most advanced fabs in the world once it's ready and construction is said to be starting in September, thanks to approval by the related Japanese government agencies. So far, the Japanese government has approved 330 billion yen for Rapidus, with the most recent investment being 260 billion yen or the equivalent of US$1.94 billion.

However, the total investment into the 2 nm fab is expected to end up somewhere around 5 trillion yen (~US$37.5 billion) in total investments before the fab is ready for mass production. Rapidus is collaborating with IBM and has already sent a group of researchers to its Albany Nanotech facility in upstate New York, which is one of the world's most advanced semiconductor research facilities. At the same time, Japan is working on building a local talent pool of researchers and semiconductor plant workers, by spearheading specialised training for select university students from Japan's top universities. Time will tell if this gamble pays off for Japan, as it's going to be a huge investment before the new fab stands ready in early 2025.

As a part of the CHIPS act, the US government has announced that it will set up a network for advanced chip design that goes under the name of the National Semiconductor Technology Center or NSTC. The NSTC is intended to help the US pull ahead of other nations when it comes to advanced chip design, but it's also meant to help reduce the time and maybe more importantly the cost of going from a design concept to a final commercial product. A big part of this is said to be about helping startups and entrepreneurs make prototypes and pilot runs, to enable them to bring proof of concepts to the market, so they can raise funds for a full production run.

However, it doesn't stop there, as the US government also wants the NSTC to help build and sustain a suitable workforce for the semiconductor industry, suggesting that the NSTC will be involved in academia as well as the industry itself. The NSTC is backed by the Commerce Department and it's expected to involve multiple locations nationwide, although at this point in time, it's not clear if this involves new locations outside of areas where the US based semiconductor industry is located today. Even the NSTC headquarter location has as yet to be decided, but its location alongside other sites are said to be worked out over the next few months. Time will tell if the NSTC will help bring change to the US semiconductor industry, but it seems like a step in the right direction.

The global economy has faced increased inflation risks and downstream inventory corrections in 2H22, which have affected IC design houses faster than wafer foundries, as they are far more sensitive and responsive to market reversals. TrendForce reports that adverse factors such as weak overall consumption, restrictions from China, and the slowdown of corporate IT spending and CSP demand have impacted the revenue performance of the world's top 10 IC design houses in 4Q22, leading to a QoQ decline of 9.2%, or approximately US$33.96 billion.

TrendForce predicts that the revenue of these top 10 companies keep declining—though with a slight convergence—into 1Q23, owing to ongoing inventory corrections across the entire supply chain as well as Q1 being the traditional off-season for consumer demand. Demand will continue to be weak despite new product launches and inventory replenishment in the supply chain.

The Financial Times this weekend has published details about an interesting development project that is currently in-the-works at British semiconductor specialist firm Arm Ltd. The article states that several executives in the industry have divulged (anonymously) that Arm's engineering team is designing a proprietary chip - these insider sources opine that this new creation could be one of the company's most advanced undertakings. The SoftBank-owned chipmaker is having a bumper year in terms of financial success and has invested in its future - it is speculated that their own semiconductor design will be showcased as a prototype product to potential new clients - with the main goal being to drum up more business and growth. Parent group SoftBank is likely pushing for maximum profit margins as it prepares Arm for an initial public offering (IPO) this year.

Arm's modus operandi involves partnering up with other chip manufacturers in order to license out its semiconductor intellectual properties. In turn these partners are expected to deal with the overall design and manufacturing processes of chips (plus sales of). Arm has teamed up with foundries TSMC and Samsung in the past to create prototypes for software testing purposes, but not much has been heard about those proofing projects in the following years. In an unusual turn (from certain industry perspectives) from its traditional working methodologies, it seems that Arm is embracing a different approach by producing its own compelling designs, with the hope of demonstrating greater potential to customers. FT's sources have provided evidence that Arm has expanded its operations and that a newly formed "solutions engineering" team is focused on prototyping new silicon for usage in mobile hardware and related devices.