We've all been beating dead consumer horses for a while now in most product areas that require semiconductors to operate - and that applies to almost anything, really. Whether CPU shortages from the AMD camp, GPU shortages from both AMD and NVIDIA, increasing prices of storage due to a new cryptocurrency boom, scalpers left and right on the most recent PC and console hardware, shortages on semiconductors for car manufacturers and technological companies like Bosch... It's a wild ride in the semiconductor world right now. And if you were looking at upgrading your media-consumption living room with a fancy new TV, you will also have to cope with increased pricing now, and perhaps further price climbs and shortages in the future.


Market research company NPD has said as much in its most recent market analysis; they've concluded that Smart TV prices have already increased 30% comparatively to the first months of 2020. The price increases are expected to hit anything with a screen - whether smartphones, TVs, laptops, or any other product that has to take up a portion of the world's panel output. This is the market correcting itself when it comes to the supply/demand equation - increased demand post-COVID-19 and global supply chain issues have set up a series of network effects that have led manufacturers to increase product pricing according to demand, passing on additional supply costs on to the customer, and simultaneously attaching the highest possible profits on the existing (and insufficient) supply. It's highly unlikely that this semiconductor supply shortage will see a turnaround throughout 2021.

On Monday, GIGABYTE, a Taiwanese PC manufacturer, has published a blog post that made fun of other component manufacturers for having their products made in China, the "low-cost, low-quality way". According to Bloomberg, who was the first to spot the blog post, which is now removed. According to the report, such a statement had a massive toll on the shares of the Taiwanese company. E-commerce operators in China, like JD.com Inc. and Suning.com Co., have removed GIGABYTE products from their offerings and searching GIGABYTE or "Jijia" (Chinese company name) returned zero results from these websites. This has single-handedly caused the shares of the company to plummet by 10%, wiping away around $550 million worth of market cap.

The original blog post has since been removed, and GIGABYTE has issued a public apology, which you can see here. The translation of the text says that "A few days ago, part of the text content published on our official website is seriously inconsistent with the fact. It is caused by poor internal management of the company. We sincerely apologize for the discomfort caused to you." The company has also noted that it is very proud of "Made in China" products. On a more personal note, it is interesting to see such a strict market response coming from a blog post, and even more interesting to witness this exclusion from the Chinese e-commerce companies.

Owing to high demand generated by the proliferation of WFH and distance education, monitor shipment for 2020 reached 140 million units, an 8.6% growth YoY, which represents the highest growth in about 10 years, according TrendForce's latest investigations. With demand persisting through 1H21, monitor shipment for 1Q21 underwent a staggering YoY increase of 34.1%, and this figure is projected to exceed 10% for 2Q21. Total monitor shipment for 2021 will likely reach 150 million units, a 7.3% growth YoY. Gaming monitors, which have been gaining attention in the monitor market, are expected to make up 17.3% of this total and reach 25.9 million units in shipment in 2021. In addition to being one of the most in-demand applications in the stay-at-home economy, this product category has long been a resource-intensive focus of monitor brands and panel suppliers alike.

TrendForce's investigations find that India has become the second largest market for smartphones since 2019. However, the recent worsening of the COVID-19 pandemic in the country has severely impaired India's domestic economy and subsequently dampened various smartphone brands' production volume and sales (sell-in) performances there. TrendForce is therefore revising the forecasted YoY growth in global smartphone production for 2021 from 9.4% down to 8.5%, with a yearly production volume of 1.36 billion units and potential for further decreases going forward.

TrendForce further indicates that the top five smartphone brands (Samsung, Apple, Xiaomi, OPPO, and Vivo) have either set up assembly plants in India or sought assistance from EMS providers with operations in the country. Hence, the share of made-in-India smartphones has been on the rise over the years, even though the majority of the domestically manufactured devices are still for meeting the demand of the home market. Judging from the current state of Indian smartphone manufacturing, TrendForce expects the second wave to reduce the country's smartphone production volume for 2Q21 and 3Q21 by a total of 12 million units, in turn resulting in a 7.5% YoY decrease in smartphone production in India for the whole year.

TrendForce's investigations find that DRAM suppliers and major PC OEMs are currently participating in the critical period of negotiating with each other over contract prices for 2Q21. Although these negotiations have yet to be finalized, the ASP of mainstream DDR4 1G*8 2666 Mbps modules has already increased by nearly 25% QoQ as of now, according to data on ongoing transactions. This represents a higher price hike than TrendForce's prior forecast of "nearly 20%". On the other hand, prices are likewise rising across various DRAM product categories in 2Q21, including DDR3/4 specialty DRAM, mobile DRAM, graphics DRAM, and in particular server DRAM, which is highly related to PC DRAM and is therefore also undergoing a higher price hike than previously expected. TrendForce is therefore revising up its forecast of overall DRAM price hike for 2Q21 from 13-18% QoQ to 18-23% QoQ instead. However, the actual increase in prices of various DRAM product categories will depend on the production capacities allocated to the respective products by DRAM suppliers.

Netac, a Chinese company based in Shenzen claiming to be the inventor of USB flash drive, has reportedly started the research and development process of DDR5 memory modules that will outperform everything on the market. Netac is rumored to have started the development of DDR5 memory that will have a frequency of over 10,000 MHz. While the JEDEC specification notes that the DDR5 frequency range is between 4800-8400 MHz, manufacturers are always welcome to go over the official specifications. Being that Netac is a relatively new player in the PC memory space, we are wondering how the company plans to execute its plans.

A 10 GHz DDR5 memory would require a very high voltage to run, meaning high heat output. We know that DDR5 chips can run at 2.6 V, according to T-FORCE, who tested such a configuration earlier. The next potential problem would be a platform that could handle 10 GHz DDR5 memory, however, by the time we get this memory in our hands, platforms will mature enough to handle high-speed RAM. The first batch of new DDR5 memory that was sent to Netac was Micron's Z9ZSB modules, which are 2Gx8, CL40 memory modules. They are manufactured in the 1znm memory manufacturing node Micron uses. It is left to be seen what we end up with and if Netac delivers on its promise.

The global chip shortage is currently getting worse each day, starting from the tight supply of graphics cards and processors for consumers, spanning to even your internet router. Every piece of electronics now seems to be getting more expensive, as the semiconductor processors found inside them are very hard to source. The cause of that is huge demand coming from consumers, who require the latest generation of processors manufactured in overbooked semiconductor facilities like the ones from TSMC, UMC, Intel, Samsung, SMIC, etc. If manufacturers can't supply enough chips to satisfy the demand for companies that incorporate these chips in products' needs, the issue appears.

This time, we have another big player in need of more wafer capacity. Realtek, the maker of various ICs for multimedia and peripherals, is reportedly experiencing a chip shortage as well. According to the report coming from DigiTimes, the Taiwanese Realtek is fighting to keep up with the demand. The report raises concerns from laptop manufacturers like Dell, HP, and others who use Realtek's chips for various purposes in devices, like audio and LAN chips. Reportedly used in 70% of global laptop designs, Realtek's audio and LAN solutions are very much in demand. If the company cannot supply enough of those chips, manufacturers would be unable to ship products. According to the report, the delivery time of Realtek's chips has been extended to 32 weeks, which could cause massive delays with product shipments and cause some harm to the supply chain. It remains to be seen how the market responds to the extended delivery time, so we will watch it with caution.

The Semiconductor Industry Association (SIA) today announced global semiconductor industry sales were $39.6 billion for the month of February 2021, an increase of 14.7% over the February 2020 total of $34.5 billion, but 1.0% less than the January 2021 total of $40.0 billion. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 98% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

"Global semiconductor sales during the first two months of the year have outpaced sales from early in 2020, when the pandemic began to spread in parts of the world," said John Neuffer, SIA president and CEO. "Sales into the China market saw the largest year-to-year growth, largely because sales there were down substantially early last year."

Last year, we found out that a group of investors has accused NVIDIA that the company has misled its investors by reporting crypto revenue as gaming revenue numbers and making its gaming revenue seem much bigger than it is. The original lawsuit was filed in 2017 and it demanded that NVIDIA should pay one billion US Dollars to investors shall they be proven right. In 2017, cryptocurrency mining was at the same craze it is today, with people buying every possible card that exists and consumers having a hard time upgrading their PCs. Investors in NVIDIA corporation have believed that in 2017, the company has presented its cryptocurrency earning figures as a part of the gaming figures, thus giving misleading information about the company's success in the gaming market.

Today, we have information that NVIDIA has won this lawsuit. On Tuesday, U.S. District Court Judge Haywood Gilliam has dismissed the case and ruled that investors were unable to provide any significant evidence that the company has used such practices and misled investors. By taking this case off the company, NVIDIA will not be paying one billion USD to the accusing investors and the company continues operations as normal.

According to a new research report from the analyst firm Jon Peddie Research, the growth of PC-based Graphics Processor Units (GPU) shipments of all types worldwide reached 20.5 percent in Q4 2020 and 12.4 percent year over year. Overall, the installed base of GPUs will grow at a compound annual growth rate of 3.7 percent during 2020-2025 to reach a total of 419 million units at the end of the forecast period. Over the next five years, the penetration of discrete GPUs (dGPU) in the PC will grow to reach a level of 21 percent.

As part of its ongoing research on the PC graphics market, Jon Peddie Research (JPR) has released its Market Watch report for the fourth quarter of 2020. Before 2020, the PC market was showing signs of improvement and settling into a new normal. The pandemic has distorted all models and predictions, as has the gold-rush in Ethereum. JPR's Market Watch report confirms that trend for the fourth quarter of 2020, but with cautious guidance for next year.

We've all been reading multiple stories covering the current overly high demand compared to manufacturing capability for semiconductors. Some of us have actually felt this lack in supply not only in our pockets (for those who purchased above-MSRP graphics cards, CPUs or consoles). And apparently, TSMC has just made quite a deal more money out of this "extraordinary demand" than it usually does, as it's being reported the company has auctioned off "excess capacity" to an unknown third-party for 15-20% higher prices than they usually practice.

Now before we start lynching TSMC here, that can mean many things. There is a backlog of orders still to be filled for most manufacturers, that much the reports doing the rounds claim; however, the nature of semiconductor manufacturing occurs throughout many different nodes and technologies. It's more than likely that this doesn't mean that TSMC saved some wafers that could have been used for AMD's RX, Zen, or custom APUs for next-gen consoles on the side and decided to give them to another buyer. This likely means that TSMC had one or more nodes or manufacturing technologies that hadn't been pre-booked yet, and that some players might've looked at that as a solution to their semiconductor woes. And TSMC, having more than one interested party, auctioned the excess capacity. The rumor places the most likely candidates for the purchase as car manufacturers, who have also been hard by the lack of semiconductors in the market, and that's one business where it may make sense to order manufacturing on nodes other than the most cutting-edge; cars just don't need the latest, most powerful and greatest chips to run their software. But all in all, the result is this: a good day for TSMC.

The International Data Corporation (IDC) has revealed PC shipping growth numbers for 2020 - counting desktops, notebooks (including Chromebooks) and workstations (but excluding laptops and servers), and the results are clear. In a currently-pandemic world, and with the urge and necessity for teleworking efforts so as to reduce personal exposure to risk environments, we've seen an unprecedented demand for technological components. Whether in shortages for the latest "comfort" technologies such as dedicated graphics cards, latest-gen consoles, or even webcams, it's been clear that citizens of the world have been increasingly investing their money in technological devices. This need - either for work, for bridging social distances through the Internet, or for entertainment - has led the pre-built PC ecosystem shipments to increase as much as 13% in 2020 - and a global shipment number set at 302.6 million units.

This year-over-year (YoY) increase is bolstered, mainly, by rises in sales throughout Q4 of 2020, where global PC shipments achieved an outstanding 26% increase from Q4 2019 - in the fourth quarter of 2020 alone, 91.6 million units were shipped. In that particular quarter, Lenovo led the top three vendors with a 25.2% share of the sales, followed by HP (20.9%) and Dell (17.2%). Apple appears in fourth place with a mere 8% market share, but shows the strongest growth among the top 5 sellers, at 49.2% YoY - and that's with Apple's comparatively small product portfolio when put against any of the other top three vendors.

Linus Torvalds, the inventor of the Linux kernel and version-control system called git, has posted another one of his famous rants, addressing his views about the lack of ECC memory in consumer devices. Mr. Torvalds has posted his views on the Linux kernel mailing list, where he usually comments about the development of the kernel. The ECC or Error Correcting Code memory is a special kind of DRAM that fixes the problems that occur inside the memory itself, where a bit can get corrupted and change the data stored, thus offering false results. ECC aims to fix those mistakes by implementing a system that fixes these small errors and avoids bigger problems. According to Mr. Torvalds, it is a technology that we need to be implemented everywhere, not just server space like Intel imagines.

Linus TorvaldsIntel has been instrumental in killing the whole ECC industry with it's horribly bad market segmentation... Intel has been detrimental to the whole industry and to users because of their bad and misguided policies wrt ECC. Seriously...The arguments against ECC were always complete and utter garbage... Now even the memory manufacturers are starting do do ECC internally because they finally owned up to the fact that they absolutely have to. And the memory manufacturers claim it's because of economics and lower power. And they are lying bastards - let me once again point to row-hammer about how those problems have existed for several generations already, but these f***** happily sold broken hardware to consumers and claimed it was an "attack", when it always was "we're cutting corners".

Intel is familiar with chip manufacturing problems since the company started the development of a 10 nm silicon semiconductor node. The latest node is coming years late with many IPs getting held back thanks to the inability of the company to produce it. All of Intel's chip production was historically happening at Intel's facilities, however, given the fact that the demand for 14 nm products is exceeding production capability, the company was forced to turn to external foundries like TSMC to compensate for its lack of capacity. TSMC has a contract with Intel to produce silicon for things like chipsets, which is offloading a lot of capacity for the company. Today, thanks to the exclusive information obtained by Reuters, we have information that a certain New York hedge fund, Third Point LLC, is advising the company about the future of its manufacturing.

The hedge fund is reportedly accounting for about one billion USD worth of assets in Intel, thus making it a huge and one influencing shareholder. The Third Point Chief Executive Daniel Loeb wrote a letter to Intel Chairman Omar Ishrak to take immediate action to boost the company's state as a major provider of processors for PCs and data centers. The company has noted that Intel needs to outsource more of its chip production to satisfy the market needs, so it can stay competitive with the industry. The poor performance of Intel has reflected on the company shares, which have declined about 21% this year. This has awoken the shareholders and now we see that they are demanding more aggressiveness from the company and a plan to outsource more of the chip production to partner foundries like TSMC and Samsung. It remains to be seen how Intel responds and what changes are to take place.

In the upstream semiconductor industry, the major foundries such as TSMC and UMC are reporting fully loaded capacities, while in the downstream, the available production capacity for OSAT is also lacking, according to TrendForce's latest investigations. Given this situation, suppliers of NAND Flash controller ICs such as Phison and Silicon Motion are now unable to meet upside demand from their clients. Not only have many controller IC suppliers temporarily stopped offering quotes for new orders, but they are also even considering raising prices soon because the negotiations between NAND Flash suppliers and module houses over 1Q21 contracts are now at the critical juncture. The potential increases in prices of controller ICs from outsourced suppliers (IC design houses) are currently estimated to be the range of 15-20%.

With regards to the demand side, demand has risen significantly for eMMC solutions with medium- and low-density specifications (i.e., 64 GB and lower), for which NAND Flash suppliers have mostly stopped updating the NAND Flash process technology, while maintaining support with the legacy 2D NAND or the 64L 3D NAND process. This is on account of strong sales for Chromebook devices and TVs. As older processes gradually account for a lowering portion of bit output proportions from NAND Flash suppliers, these companies are exhibiting a lowered willingness to directly supply such eMMC products to clients. As a result, clients now need to turn to memory module houses, which are able to source NAND Flash components and controllers, to procure eMMC products in substantial quantities.

According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, vendor revenue in the worldwide server market grew 2.2% year over year to $22.6 billion during the third quarter of 2020 (3Q20). Worldwide server shipments declined 0.2% year over year to nearly 3.1 million units in 3Q20. Volume server revenue was up 5.8% to $19.0 billion, while midrange server revenue declined 13.9% to $2.6 billion, and high-end servers declined by 12.6% to $937 million.

"Global demand for enterprise servers was a bit muted during the third quarter of 2020 although we did see areas of strong demand," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within China grew 14.2% year over year. And worldwide revenues for servers running AMD CPUs were up 112.4% year over year while ARM-based servers grew revenues 430.5% year over year, albeit on a very small base of revenue."

Yesterday, Cowocotland, a technology website, has published information that AMD's reference design cards like the latest Radeon RX 6900 XT, RX 6800 XT, and RX 6800 GPUs are getting discontinued. That means that AMD will stop the production of the reference designs and rely completely on the supply of GPUs coming from add-in board partners to satisfy the market needs. This does not mean that the availability of these GPUs is not going to exist. Rather, there will not be AMD reference designs available for purchase from the company. Only cards that are custom made by AIBs, that AMD provides GPU+VRAM for, will offer customers cards with these GPUs.

VideoCardz claims that they have been able to confirm some pieces of the information, so it is a done deal. From now on, it seems that only graphics cards with Radeon RX 6900 XT, RX 6800 XT, and RX 6800 GPUs inside them will be the ones offered by AIBs. The reference design cards will only be produced until early 2021, giving it a month or two for consumers to purchase cards from AMD. After that period the market will rely completely on AMD's partners.

Update 4:30 pm UTC: Scott Herkelman, CVP & GM of AMD Radeon Tweeted that they have "extended the reference design builds indefinitely due to popular demand." Meaning that the reference cards will remain in production. Mr. Herkelman also thanked for feedback, where community was loud and clear that they want to see reference boards for a while longer.

IC Insights' November Update to the 2020 McClean Report, released later this month, includes a discussion of the forecasted top-25 semiconductor suppliers in 2020. This research bulletin covers the expected top-15 2020 semiconductor suppliers (Figure 1).

The November Update also includes a detailed five-year forecast through 2024 of the IC market by product type (including dollar volume, unit shipments, and average selling price) and a forecast of the major semiconductor industry capital spenders for 2020. A five-year outlook for total semiconductor industry capital spending is also provided.

IC Insights recently released its September Update to the 2020 McClean Report that presented the second of a two-part analysis on the global IC foundry industry and included a look at the pure-play foundry market by region.

China was responsible for essentially all of the total pure-play foundry market increase in 2018. In 2019, the U.S./China trade war slowed China's economic growth but its foundry marketshare still increased by two percentage points to 21%. Moreover, despite the Covid-19 shutdown of China's economy earlier this year, China's share of the pure-play foundry market is forecast to be 22% in 2020, 17 percentage points greater than it registered in 2010 (Figure 1).

It was just yesterday that we have received the news of NVIDIA's latest move - acquiring Arm Ltd. from Softbank Group for $40 billion. However, it seems like there are more reasons for the deal than what meets the eye. In the briefing regarding the acquisition, NVIDIA's CEO was asked a question, by Timothy Prickett Morgan, from TheNextPlatform, about NVIDIA's plans for a possible implementation of Arm's Neoverse core in an NVIDIA-branded CPU design and start selling them to data centers. To that question, Mr. Huang gave a prolonged answer indirectly saying that the company can build the CPU if there is a market for it.

He explains that there is an entire network surrounding the Arm ecosystem and that there may be customers interested in contracting NVIDIA to build them semi-custom or completely custom chip based on Arm ISA on NVIDIA's own interest. Any of these options are available and Mr. Haung says that they are there for the best interest of the ecosystem to enrich it enhance it even further. This means that it is just a matter of time before we see NVIDIA-branded CPU make its way to data-center or some other areas of technology, so we have to wait and see for ourselves.

Phison Electronics , the industry's leader in NAND flash controllers and storage solutions, announces availability of the world's first 15.36 TB QLC customizable Enterprise SSD solution based on Phison's S12DC controller. Phison provides its customers with industry leading SSDs that are customized to their needs by leveraging Phison's firmware, controller, PCBA design, and manufacturing. The S12DC QLC SSD is an ideal storage solution by delivering higher performance, lower power consumption, and greater rack storage density for read intensive storage applications that currently source hard disk drives.

In the past few years, Google has been paying Apple billions of dollars just for the company to keep Google as the default search engine in every aspect of the company's products. Starting from iOS up to macOS, they included Google as the default search engine. However, the deal between two companies might be coming to an end. In July this year, a UK Competition and Markets Authority took a shot at a deal claiming that the companies imposed a barrier on any market competition in the search engine space. Constant pressure from regulators and the fact that Apple doesn't want to be reliant on any company is possibly giving Apple ideas to launch its own search engine.

Recent changes in the spotlight search on iOS 14 and iPad OS 14 beta is making the software bypass Google search engine completely. As shown below (search and direct results), the company implemented a feature that makes the spotlight search go directly to search results instead of going to Google. The Applebot web crawler has seen some changes so it now renders pages in a similar way Google does and not just filter HTML. The web crawler also is updated to rank web pages just like it is made for a search engine. All of this is supposed to give Apple enough material so it can build something similar to a search engine. It is believed that the search engine wouldn't look like any classical one, but rather be embedded in Apple products and serve as a personalized search hub.

The last cyclical upturn in DRAM contract prices began at the start of 2020 and was led by server DRAM, according to TrendForce's latest investigations. In 2Q20, the emergence of the COVID-19 pandemic shocked the global economy, but OEMs maintained or even stepped up procurement of components because they feared disruptions in the supply chain. As a result, DRAM suppliers' bit shipments surpassed expectations for the quarter, in turn widening the overall increase in DRAM ASP and raising the global DRAM revenue by 15.4% QoQ in 2Q20 to US$17.1 billion.

Nevertheless, TrendForce indicates that server OEMs are now carrying a rather high level of DRAM inventory after aggressively stocking up for two consecutive quarters. At the same time, customers of enterprise servers are holding back on procurement because the economic outlook is getting bleaker and more uncertain. Since server DRAM has the unique role of leading cyclical changes, this category is going to be first to experience price drop in the next downturn and thereby pull prices down for other types of DRAM products. As such, TrendForce forecasts at best a flattening of product shipments and decrease in DRAM prices in 3Q20, with DRAM suppliers suffering a decline in profitability.

Intel is preparing to launch an 8-core mobile processor based on its 10 nm "Tiger Lake" microarchitecture, according to a corporate memo by leading notebook OEM Compal, which serves major notebook brands such as Acer. The memo was drafted in May, but unearthed by momomo_us. Compal expects Intel to launch the 8-core "Tiger Lake-H" processor in Q1 2021. This is big, as it would be the first large 10 nm client-segment silicon that goes beyond 4 cores. The company's first 10 nm client silicon, "Ice Lake," as well as the "Tiger Lake-U" silicon that's right around the corner, feature up to 4 cores. As an H-segment part, the new 8-core processor could target TDPs in the range of 35-45 W, and notebooks in the "conventional thickness" form-factor, as well as premium gaming notebooks and mobile workstations.

The 8-core "Tiger Lake-H" silicon is the first real sign of Intel's 10 nm yields improving. Up until now, Intel confined 10 nm to the U- and Y-segments (15 W and below), addressing only ultra-portable form-factors. Even here, Intel launched U-segment 14 nm "Comet Lake" parts at competitive prices, to take the market demand off "Ice Lake-U." The H-segment has been exclusively held by "Comet Lake-H." Intel is planning to launch "Ice Lake-SP" Xeon processors later this year, but like all server parts, these are high-margin + low-volume parts. Compal says Intel will refresh the H-segment with a newer 8-core "Comet Lake-H" part in the second half of 2020, possibly to bolster the high-end against the likes of AMD's Ryzen 9 4900H. Later in 2021, Intel is expected to introduce its 10 nm "Alder Lake" processor, including a mobile variant. These processors will feature Hybrid technology, combining "Golden Cove" big CPU cores with "Gracemont" small ones.

EA has recently decided to break away from the exclusivity of its games on Origin game launches and started to offer some games on Valve's Steam gaming platform. The move has turned out to be quite substantial for EA and Valve just reported some big news. Out of the top 20 best-selling games on Steam for the month of July, EA games accounted for eight of them. This rather massive share is all thanks to the new markets EA opened themselves to. Without a doubt, Steam is still the world's biggest gaming platform, so it was a smart move to expand the availability of games to it. The financial gains follow as well. EA saw a massive 74% surge in PC revenue it is a quarterly report, all thanks to expansion to Steam.