Lots of cheap(er) shiny shiny on the way?
The chip industry is on course for an inventory correction in the second half of 2022 or early 2023 with steep inflation, signs of end-user demand slowing, and companies building stockpiles among the causes. This is according to a report from analysts at Jefferies Group, which advises investors on where to place their bets. …
Components may become cheaper, but I doubt that finished goods will, or if they do, it won't be to do with the cheaper components, but with poor consumer demand (companies will really want higher margins on lower volumes, but may drop prices just to maintain share).
We've seen this type of thing before. Manufacturers have bumper years because of some external event, and then expect that subsequent years will be the same even after the event stops. We saw this with flat-screen TVs when TV switched from analogue to digital, and we're seeing it again because of the skewed market Covid caused.
It's interesting looking at sites like ebay to see what bargains can be had. Companies appear to be dumping systems into the second-user market because they've suddenly got more IT equipment of various types than they need. I've recently bought a couple of Windows terminal/lightweight clients (to become low-power *ix systems) and some monitors at knockdown prices.
The difference is that nobody believes Gartner, not the people paying for the research and definitely not the people reading it. Nobody knows why anybody still pays them
The 'chief economist' of XYZ bank goes on CNN to tell the public something in the definite hope that enough people will believe it and act on it to change the price in the banks favour. If this didn't work they wouldn't pay him.
Good luck buying chips from STMicroelectronics
These costing $11 are sold for $300+ from scalpers. Meanwhile distributors give lead times 52+ weeks, that keep getting extended.
People just buy whatever is available, often just in case.
These chips are build on old 40nm+ nodes. Why can't we build something like that in the UK?
There is crazy demand for these type of chips. No need for fancy 5nm processes.
Why can't we build something like that in the UK?
There's no reason you can't, but you don't make decisions like that based on situations like this where there is more demand than supply. You make them accounting for the entire business cycle, including the lean years where you are running below capacity and may be losing money.
>These chips are build on old 40nm+ nodes. Why can't we build something like that in the UK?
Because even a 40nm fab costs $$$
Then you have to find workers. If you aren't allowed to import workers and you have an economy where all your skilled workers are concentrated in one city you are going to have a job getting 1000s of engineers to work in your
desolate former industrial size 'new enterprise zone'
then the parts you are making at 40nm are going to go to 3rd world country for packaging/integration so you haven't improved your strategic situation very much
Try buying ANY FPGA. Almost all of these are out of stock, basically with "fantasy" lead times (52+W)... and we got told by one of our suppliers: Don't expect anything from us in the next 4-7 QUARTERS.
Meanwhile we are running completely out of stock
(we have open orders since September/October last year).
Yeah I totally see that this chip crisis ends soon...
Chip supply is horrendous out there, and no sign of it getting better until next year at least. As people above have been saying, 52+wk lead times on lots of stuff, we've been quoted 104wks for some parts. Design them out, then the new part suddenly disappears as well.
Cannot see any sort of decent improvement until mid next year, and even then, it's not going to be great.
If you're going to redesign a module to use a new part, why would you not buy sufficient quantity of that to produce a batch at the time you decide on the new part, rather than wait N weeks till you've done the design work? In former days, waiting would make sense, but now it definitely doesn't!
Taiwan's GlobalWafers announced on Monday a new use for the $5 billion it first earmarked for a purchase of Germany's Siltronics: building a 300-millimeter semiconductor wafer plant in the US state of Texas.
Construction on the facility – which will eventually span 3.2 million square feet – is expected to commence later this year, with chip production commencing by 2025. The plant will sit in the city of Sherman, near the Texas-Oklahoma border, where it is slated to bring in 1,500 jobs as production climbs towards 1.2 million wafers per month.
GlobalWafers is the world's third largest producer of silicon wafers and Sherman is already home to its subsidiary, GlobiTech.
Taiwan's state-owned energy company is looking to raise prices for industrial users, a move likely to impact chipmakers such as TSMC, which may well have a knock-on effect on the semiconductor supply chain.
According to Bloomberg, the Taiwan Power Company, which produces electricity for the island nation, has proposed increasing electricity costs by 15 percent for industrial users, the first increase in four years.
The power company has itself been hit by the rising costs of fuel, including the imported coal and natural gas it uses to generate electricity. At the same time, the country is experiencing record demand for power because of increasing industrial requirements and because of high temperatures driving the use of air conditioning, as reported by the local Taipei Times.
The semiconductor market is flattening out after a period of record revenues, according to research outfit Omdia.
The report joins a growing list of warnings that the chip industry is heading for a slowdown because of companies stockpiling components and global economic effects such as inflation.
Omdia's latest analysis of the worldwide semiconductor market shows that it reached a plateau in the first quarter of 2022 following five straight quarters of record revenues and continual growth in demand.
Big Tech in America has had enough of Congress' inability to pass pending legislation that includes tens of billions of dollars in subsidies to boost semiconductor manufacturing and R&D in the country.
In a letter [PDF] sent to Senate and House leaders Wednesday, the CEOs of Alphabet, Amazon, Dell, IBM, Microsoft, Salesforce, VMware, and dozens of other tech and tech-adjacent companies urged the two chambers of Congress to reach consensus on a long-stalled bill they believe will make the US more competitive against China and other countries.
"The rest of the world is not waiting for the US to act. Our global competitors are investing in their industry, their workers, and their economies, and it is imperative that Congress act to enhance US competitiveness," said the letter.
Scientists in Germany claim to have developed bipolar transistors from organic materials, opening a path for flexible and transparent electronics.
The study, led by Shu-Jen Wang, post-doctoral researcher Technische Universität Dresden, built an organic bipolar junction transistor using doped rubrene. That could help the semiconductor industry to make the switch to organic materials, increasing access to a wide library of materials for building electronic devices.
Transistors are the basis of today's digital circuits and, at a simple level, allow one signal to control another. They can amplify a signal, or switch between 'on' and 'off' states, through control of a current of charge carriers – which are either electrons or their positive counterpart (holes), or both.
The global economy may be in a tenuous situation right now, but the semiconductor industry is likely to walk away from 2022 with a "healthy" boost in revenues, according to analysts at IDC. But beware oversupply, the analyst firm warns.
Semiconductor companies across the world are expected to grow collective revenues by 13.7 percent year-on-year to $661 billion, IDC said in research published Wednesday. Global semiconductor revenue last year was $582 billion.
"Overall, the semiconductor industry remains on track to deliver another healthy year of growth as the super cycle that began in 2020 continues this year," said Mario Morales, IDC group vice president of semiconductors.
Comment How serious is Intel about delaying the build-out of its planned $20 billion mega-fab site in Ohio?
It turns out very serious, as Intel CEO Pat Gelsinger made clear on Tuesday, less than a week after his x86 giant delayed the groundbreaking ceremony for the Ohio site to show its displeasure over Congress' inability to pass $52 billion in subsidies to fund American semiconductor manufacturing.
In comments at the Aspen Ideas Festival yesterday, Gelsinger warned Intel would prioritize building factories in Europe over the US if Congress fails to act on the long-stalled chip subsidies bill.
In yet another sign of how fortunes have changed in the semiconductor industry, Taiwanese foundry giant TSMC is expected to surpass Intel in quarterly revenue for the first time.
Wall Street analysts estimate TSMC will grow second-quarter revenue 43 percent quarter-over-quarter to $18.1 billion. Intel, on the other hand, is expected to see sales decline 2 percent sequentially to $17.98 billion in the same period, according to estimates collected by Yahoo Finance.
The potential for TSMC to surpass Intel in quarterly revenue is indicative of how demand has grown for contract chip manufacturing, fueled by companies like Qualcomm, Nvidia, AMD, and Apple who design their own chips and outsource manufacturing to foundries like TSMC.
Intel has found a new way to voice its displeasure over Congress' inability to pass $52 billion in subsidies to expand US semiconductor manufacturing: withholding a planned groundbreaking ceremony for its $20 billion fab mega-site in Ohio that stands to benefit from the federal funding.
The Wall Street Journal reported that Intel was tentatively scheduled to hold a groundbreaking ceremony for the Ohio manufacturing site with state and federal bigwigs on July 22. But, in an email seen by the newspaper, the x86 giant told officials Wednesday it was indefinitely delaying the festivities "due in part to uncertainty around" the stalled Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act.
That proposed law authorizes the aforementioned subsidies for Intel and others, and so its delay is holding back funding for the chipmakers.
In the world of fabless chip designers, AMD, Nvidia and Qualcomm usually soak up the most attention since their chips are fueling everything from top-end supercomputers to mobile devices.
This hunger for compute is what has allowed all three companies to grow revenue in the high double digits recently. But there's one fabless chip designer that is growing faster among the largest in the world and it's far from a household name: Marvell Technology.
Silicon Valley-based Marvell grew semiconductor revenue by 72 percent to $1.4 billion in the first quarter, which made it the fastest growing out of the top 10 largest fabless chip designers during that period, according to financials compiled by Taiwanese research firm TrendForce.
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