These are the most-read DIGITIMES Asia stories in the week of August 5 – August 9.
Intel's telecommunications division likely to face brunt of Intel's massive cost-cutting
In Intel's recently disappointing financial report, the development of the telecommunication networks business is almost neglected, barely mentioned in the quarterly earnings report and conference call. This shrinking market is highly resistant to Intel products, as most telecom operators do not believe that Intel's GPP approach can handle the tasks effectively. As a result, analysts believe this division may suffer the earliest and most significant impact of Intel's cost-cutting.
Indian opto-semiconductor maker acquires US-based IC equipment company
Indian opto-semiconductor supplier Polymatech has announced the acquisition of Nisene Technology Group, a US-based semiconductor equipment provider specializing in packaging and testing. This move is part of Polymatech's broader strategy to build an integrated chipmaking business that spans multiple sectors. Polymatech also plans to invest up to US$500 million in the US to strengthen its operations further.
TSMC to raise quotes for 5nm, 3nm process manufacturing in 2025
TSMC has notified clients of a price increase for its 5nm and 3nm process manufacturing in 2025 to reflect escalating costs. It will also raise its CoWoS packaging quotes. In early 2024, TSMC had already notified its clients of price increases for its 3nm and 5nm process manufacturing. These moves are done to preserve its long-term gross margin of 53% or higher. While the market claims that TSMC's pricing is the most expensive in the industry, it continues to outperform its competitors.
China rushing into chiplet and HBM fab tool development
China-based semiconductor equipment manufacturers have expedited their domestic development efforts, foraying into the chiplet and HBM memory sectors. Companies like Naura Technology, Advanced Micro-fabrication Equipment (AMEC), and Hwatsing Technology are all aiming for the supply chain of Chinese semiconductor firms. The self-sufficiency campaign in China has motivated the country's semiconductor firms to step up purchases of local tools.
CXMT's initial HBM capacity in Hefei reaches one-third of Korean manufacturers
China's DRAM leader ChangXin Memory Technologies (CXMT) is actively investing in high bandwidth memory (HBM) production capacity. Currently, CXMT is establishing a production line at its Hefei site, with a monthly capacity of 50,000 units. This is already one-third of the combined capacity of Samsung Electronics and SK Hynix. With HBM demand set to increase drastically in the future and the US pondering sanctions on HBM exports to China, China has to accelerate the establishment of its HBM supply chain.
China's pursuit of self-sufficiency in chipmaking equipment hurts Taiwan's exports
Taiwan's chipmaking tool exports, which prioritize the market in China, have been impacted by China's increased efforts to achieve self-sufficiency in semiconductor equipment. According to a report released by Taiwan's Ministry of Economic Affairs (MOEA), the proportion of semiconductor equipment and components exports to China, including Hong Kong, has dropped to 35.7% for January-June 2024. Despite the drop, China remains the biggest market for Taiwan's semiconductor equipment and components exports.
Can Pat Gelsinger inherit Andy Grove's culture and lead Intel to a revival?
Intel, once a titan of innovation in the tech world, now faces significant challenges in a fiercely competitive semiconductor market. As the company looks to reclaim its former glory, the spotlight is on CEO Pat Gelsinger. With a focus on revitalizing Intel's manufacturing capabilities and technological confidence, Gelsinger's journey is a critical test of whether the company's storied past can fuel its future success.
