Vinayak Agrawal’s Post

M🚀 Exciting times for the semiconductor industry! Intel has just announced that it has secured **$2.2 billion** in federal grants from the U.S. Department of Commerce as part of the **U.S. CHIPS and Science Act.** This funding will help bolster domestic chip production, ensuring the U.S. remains a leader in technology and manufacturing. In a recent earnings call, Intel’s co-interim CEO, Dave Zinsner, revealed that the company received the first half of this funding at the end of 2024 and expects to receive more based on milestone achievements. Overall, Intel is set to receive **$7.86 billion** to enhance semiconductor production across its facilities in Arizona, New Mexico, Ohio, and Oregon. While there are challenges, including potential shifts in federal funding under the current administration, Zinsner expressed optimism about ongoing collaboration with government leaders to advance these crucial efforts. 💬 What are your thoughts on the impact of such investments on the tech landscape? Let's discuss! **Intel **Semiconductors **TechnologyLeadership **Innovation

BIIC Weekly Key EMS News Sharing / 24th June 1. Following Hua Hong Semiconductor, TSMC is also about to raise prices. The semiconductor industry has recently been frequently reported to have news of price increases. The industry generally believes that with the continuous improvement of the utilization rate of the wafer foundry link and the full production of some foundries, there will be elasticity in price increases in the future. 2. China is vying to be the "dominant force" in the chip market, with a 13% increase in wafer production capacity in 2024. 3. Chip giant Intel is facing a class action lawsuit: suspected of concealing huge losses in its foundry business. June 17th According to foreign media reports, chip giant Intel is currently facing a class action lawsuit. The plaintiff accused Intel of not correctly disclosing the huge losses of its wafer foundry department in its 2023 performance report. 4. China's new energy vehicle market in the first five months: on the one hand, production and sales are booming, and on the other hand, cost reduction and layoffs. 5. June 20th According to Japanese media reports, Micron will expand HBM production capacity in the United States and will consider producing HBM in Malaysia... 6. Xiaomi reported an anti-corruption case: the amount is huge, and 2 people were dismissed! The notice shows that Owen, the former general manager of the Western European region of the International Business Department, fabricated outsourcing business, involving a huge amount of money, and was dismissed. The company initiated criminal and civil rights protection against him. 7. Nvidia, the world's highest market value. June 19th news On Tuesday, June 17th, Eastern Time, during the U.S. stock market, Nvidia's stock price rose by more than 4% at its highest, surpassing Microsoft, which previously occupied the top of the market value list. In the end, Nvidia closed up 3.51%, with a market value of approximately US$3.34 trillion, Microsoft's market value of US$3.32 trillion, and Apple's market value of US$3.28 trillion. 8. How do OEMs manage semiconductor obsolescence? When the speed of semiconductor replacement differs significantly from the long-term durability requirements of terminal products, electronic product original equipment manufacturers (OEMs) must work closely with their suppliers to jointly plan and ensure the continuous supply of key semiconductor components to meet market demand and the long-term stable operation of products. #IC #semiconductor #biicelectronics #ems

Why Intel is still so important: Real countries have fabs Intel is the only US company that knows how to make cutting-edge semiconductors. Without this, America is vulnerable. Read mode on following blog post!

Recent reports suggested TSMC was aiding Intel in establishing its U.S. manufacturing facilities. However, TSMC has clarified that while regular discussions on production design occur, it has no involvement in building Intel's U.S. operations. This clarification highlights the competitive dynamics between the two companies, with Intel seeking to strengthen its domestic presence while navigating historical tensions with TSMC. Intel's slower progress in expanding its U.S. manufacturing capabilities contrasts with TSMC's more efficient advancements in Arizona. This development may significantly impact the competitive landscape of the U.S. semiconductor industry, particularly as both companies vie for market share and government support. #TSMC #Intel #foundries #chips #chipmanufacturing #semiconductor #semiconductors #semiconductorindustry #semiconductormanufacturing #USA #US #Taiwan #CHIPSact #technology #technologynews #competition #business 

"Major American #semiconductor companies like Nvidia, AMD and Qualcomm own no factories, and all rely heavily for chip-making on TSMC/Taiwan, as well as Samsung/South Korea. The US has duly induced TSMC and Samsung to build plants respectively in Arizona and Texas. (...) Intel’s stock is down 59% in 2024, and the company is cutting 15% of its workforce to save US$10 billion as Intel Foundry Services (IFS), launched in 2021, has struggled to take off."

TSMC founder says firm to see 'most severe' challenges from US restrictions: report (TSM, NVDA, AAPL) Taiwan Semiconductor Manufacturing (TSMC) founder Morris Chang said the company faces its "most severe" growth challenges as the U.S. restricts advanced chip exports to China. "TSMC is now truly a turf all major powers want to secure," Chang said, noting that "free trade of semiconductors, particularly the most advanced semiconductors, has died." “In such an environment, our challenge lies in how to continue to drive growth”, he added. TSMC, which supplies top AI chips globally and is a major supplier to Apple and Nvidia, is limited from selling its most advanced AI chips to Chinese customers as part of U.S. efforts to curb China’s technology access. China accounts for 10% of TSMC's revenue. #TSMC #TSM #TSMStock #TaiwanSemiconductor #TaiwanSemiconductorStock $TSM

This report by the Center for Strategic and International Studies (CSIS) says that America cannot afford to lose Intel Corporation as a US-based manufacturer of advanced semiconductors, concluding: "Successful and timely implementation of the CHIPS Act is a critical step to addressing that challenge (of China as a competitor) and deterring conflict—and that cannot happen without Intel. Accordingly, the U.S. government needs to be proactive, make CHIPS Act resources available as soon as possible, and accept that while there will always be risks, speed and compromise are crucial to achieve the CHIPS Act’s central goals." #CHIPSAct #semiconductorindustry #waferfabs H/T Semiconductor Engineering

Based on BCG research the U.S. share of worldwide fab capacity will hit 14% in the next 8 years. This is up from 10% and is inclusive of the added capacity coming from the approval of the “Chips Act.” The most notable gain in the U.S. will come in leading-edge logic. Without the passage of the Chips Act estimates are that U.S. production would have dropped to 8%. Note: in 1990 the U.S held 37% of the manufacturing in semis. A stark decline as offshoring to largely Asia (China, Korea, Taiwan) saw the industry and almost the entire leading edge manufacturing of chips out of the U.S. So, the TLDR here is despite more than $50 Billion in funding, the Chips Act will only make a small impact as continued capacity expansion around the world will keep the vast majority of manufacturing in Asia with China and Korea making the biggest gains in memory and packaging. Despite market leading chip design (nvidia, AMD, Qualcomm, Intel etc.) in the U.S. and considerable spending from Intel, Samsung, TSMC, GlobalFoundries and Micron in the U.S. the market share growth will remain negligible but is heading in the right direction. The diversification is promising and definitely reduces risk associated with Taiwan. But, we are far from returning to leadership in the U.S. as it pertains to semiconductor manufacturing. #Semiconductors

Intel & Samsung Are Reportedly Inking A “Foundry Alliance”, Sharing Production Facilities Along With Process Tech (2 min read) Intel Seeks Collaboration with Samsung Intel CEO Pat Gelsinger has reportedly instructed a company executive to arrange a meeting with Samsung Electronics Chairman Lee Jae-Yong to discuss a "comprehensive collaboration" between their foundry divisions. This potential alliance aims to combine Intel Foundry Services (IFS) and Samsung Foundry's strengths to compete more effectively against industry leader TSMC. The collaboration could involve sharing R&D efforts, production facilities, and process technologies, leveraging Samsung's expertise and Intel's equipment. Industry Implications and Competitive Landscape Intel and Samsung have struggled to gain significant market share in the foundry business, with TSMC dominating the industry. Intel's 18A process node is scheduled for production in 2025, featuring RibbonFET and PowerVia technologies. This potential collaboration follows Intel's recent "x86 alliance" with AMD, signaling a shift in the company's strategy towards partnerships to expand its market prospects. My Take If realized, this alliance could be a game-changer in the semiconductor industry, potentially disrupting TSMC's stronghold and accelerating innovation in chip manufacturing. However, the success of such a partnership will depend on how effectively Intel and Samsung can integrate their technologies and overcome their individual challenges. #SemiconductorIndustry #IntelSamsungAlliance #ChipManufacturing #TechInnovation #Foundry Link to article: https://lnkd.in/dVzER5_A Credit: wccftech For more on AI, robots, and Semicon, check out my blog: https://lnkd.in/eWESid86

The CHIPS Act aims to restore U.S. semiconductor manufacturing, but its effectiveness is uncertain. The Act provides grants and loans to companies like Intel, Micron, and foreign firms TSMC and Samsung, aiming to meet 20% of global chip production by 2030. However, delays, skilled labor shortages, Intel’s setbacks, and increasing competition from China challenge these goals. Some progress is noted, with TSMC's Arizona plant showing promise, but experts suggest further initiatives focused on workforce and R&D might be needed. Here is a link with more details to an article in IBD written by Patrick Seitz. #semiconductors #chipact https://lnkd.in/gUPTZYQM