Asia ICs
Himax Technologies, a fabless manufacturer based in Taiwan, has entered into a Memorandum of Understanding (MoU) with China’s Nexchip Semiconductor Corporation. The collaboration aims to expedite the entry of both companies into the automotive sector. Himax is renowned for its expertise in various specialized domains, including the provision of display solutions for a diverse range of products such as TVs, PC monitors, laptops, mobile phones, tablets, automotive devices, ePaper devices, and industrial displays, among others. Conversely, Nexchip Semiconductor Corporation specializes in the manufacturing of ICs, 12-inch wafers, and related products.

GlobalWafers
As per reports from DigiTimes, GlobalWafers, known for its expansion through a string of acquisitions since 2008, is currently eyeing the acquisition of companies specializing in silicon carbide (SiC) and gallium nitride (GaN) compound semiconductors as its next strategic move.

Infineon
Infineon has officially completed the acquisition of GaN Systems, as announced.

Intel
Intel exceeded investor expectations in its fourth-quarter revenue and earnings per share (EPS) despite a 3% year-over-year decline in PC product sales, which marked an improvement from earlier more substantial declines. The company completed inventory rebalancing in the PC segment and anticipates a return to sales growth. While datacenter sales increased by 6% quarter-over-quarter, they were down 10% year-over-year due to strong server CPU sales offset by weakness in the Programmable Solutions Group (PSG) and Altera FPGA, with expectations for continued weakness in the following quarter.

OSAT
According to DigiTimes, various Taiwan-based OSATs, such as ChipMOS Technologies, Lingsen Precision Industries, Orient Semiconductor Electronics (OSE), and Walton Advanced Engineering, have recently observed slight improvements in their fab utilization rates.

Onsemi
Onsemi has finished the expansion of its silicon carbide (SiC) fabrication facility in South Korea. This expansion is expected to enable the company to achieve over 80,000 200mm SiC wafer starts per month once it reaches full capacity.

Onsemi and Renesas have recently revealed a collaborative effort aimed at improving the safety of semi-autonomous driving. As part of this collaboration, onsemi has announced the integration of its family of image sensors into Renesas’s R-Car V4x platform. This integration is expected to bolster the vehicle’s advanced driver-assistance systems (ADAS) by enhancing the vision system.

Microchip
The Microchip Detroit Automotive Technology Centre located in Novi, Michigan, has recently undergone an expansion, doubling its previous size with the completion of its third phase. The extended facility now features a dedicated high-voltage lab showcasing demonstrations of reference designs that incorporate Microchip’s silicon carbide mSiC solutions, dsPIC Digital Signal Controllers (DSCs), and various analog and mixed-signal designs. Moreover, the centre provides support for central compute and zonal networks in advanced driver-assistance systems (ADAS) platforms using Microchip’s PCIe Gen 4 and Gen 5 switching hardware, single-pair Ethernet devices, and an array of development tools.

Nvidia
A report from Reuters stated, Nvidia has been discreetly developing PC central processing units (CPUs) based on Arm architecture. Nvidia is said to be collaborating with Microsoft to facilitate the development of an Arm-based CPU for Windows PCs. The report also suggests that AMD is similarly planning to manufacture PC CPUs based on Arm architecture.

The US Commerce Department has revealed its intentions to revise export restrictions concerning the sale of advanced artificial intelligence (AI) chips to China. According to officials from the administration speaking to CNBC, this update will involve prohibiting the sale of NVIDIA’s H800/A800 chips. These chips were modified specifically for the Chinese market in response to the initial restrictions imposed last autumn.

Semi equipment
Japanese government data indicates that sales of semiconductor equipment tools in Japan experienced a decline of over 20% year-over-year in September. The downward trend began in June 2023, and the pace of the decline has intensified over the last three months.

SiC
As per reports from Asia, China has witnessed a significant rise in its silicon carbide (SiC) production capacity since 2023. The industry projects that China’s share of silicon carbide wafers globally is set to reach 50% by 2024. Notable companies such as SICC Co., Ltd, TankeBlue Semiconductor Co. Ltd, and SanAn Optoelectronics have all made investments to expand their SiC wafer production capacity. Currently, the combined monthly production capacity of these Chinese companies stands at approximately 60,000 wafers. With the ongoing expansion initiatives, it is anticipated that the monthly production capacity will reach 120,000 units by 2024, resulting in an annual production capacity of 1.5 million wafers.

ST Micro
STMicroelectronics has announced that its third-quarter results surpassed the consensus expectations, although the fourth-quarter outlook fell below estimates. In the third quarter, the Auto and Discrete group sales experienced a 3% sequential increase and a substantial 30% year-over-year increase. However, the Analog, MEMS, and Sensor Business Unit (BU) saw a 5% sequential increase but a 28% decline year-over-year. Additionally, the MCU and Digital ICs witnessed a 1% sequential decline and a 2.8% year-over-year decline.

ST Micro reduced its full-year outlook by $100 million due to weakened orders in the Industrial sector, particularly in China. Consequently, the company has scaled back the utilization of non-automotive products in the second half of 2023, and it anticipates maintaining this adjustment throughout the first half of 2024. Despite this, the outlook for the Automotive segment remains robust, with STMicroelectronics forecasting double-digit growth in 2024, partly driven by silicon carbide (SiC). However, there is an expected correction in the Automotive Business-to-Business (B2B) segment due to the reduction in lead times.

Texas Instruments (TI)
TI has reported third-quarter results that were in line with expectations, but the company provided a disappointing outlook. Third-quarter sales remained flat quarter-over-quarter, and TI has projected a 10% quarter-over-quarter decline in sales for the fourth quarter. If this projection holds, it would mark the fourth consecutive quarter of double-digit year-over-year sales decline.

In an unusual move, TI mentioned that it has initiated a reduction in wafer starts starting in the third quarter to slow down the pace of inventory growth on its balance sheet. This decision reflects a more cautious approach in light of the prolonged duration of the current downcycle.

Regarding end markets, TI observed that auto sales increased by a mid-single-digit percentage quarter-over-quarter and 20% year-over-year in the third quarter. Personal electronics also experienced a 20% quarter-over-quarter increase from a low base. Conversely, the communication, industrial, and enterprise systems segments recorded declines. TI highlighted that the most significant change relative to the previous quarter is the widening weakness observed across the industrial end market.

TSMC
Morris Chang, the founder of TSMC, has cautioned that the escalating technological tensions between the United States and China will have repercussions on the global chip industry, ultimately leading to a deceleration in its pace. Mr. Chang highlighted that the objective of the ongoing decoupling efforts appears to be slowing down China, but he believes that it will have broader implications for the industry as a whole.

Meanwhile, TSMC is reportedly contemplating the construction of a $2 billion 12-inch fabrication plant in Singapore with the aim of catering to the needs of its automotive clients, as per reports from Nikkei Asia.

UMC (United Microelectronics Corporation)
UMC anticipates a 5% quarter-over-quarter decline in wafer shipments in the fourth quarter, with average unit prices expected to remain steady. Wang Shi, the co-general manager, has highlighted that although short-term demand for PCs and mobile phones is gradually recovering in the fourth quarter, customers are maintaining lean inventory levels due to a cautious and conservative approach. Moreover, the automotive business conditions are projected to remain challenging throughout 2024.

Consequently, UMC expects its utilization rate to decrease to 61-63% in the fourth quarter, down from 67% in the third quarter, owing to the anticipated decline in demand.

Western Digital
According to a report from Nikkei, Western Digital (WDC) and Kioxia have terminated their discussions regarding a potential merger. The companies were unable to reach an agreement on the terms, with the major Kioxia shareholders, Bain Capital, and SK Hynix, being key figures in the negotiation process.

Wafers
SEMI has forecasted a 14% decline in global shipments of silicon wafers for 2023, followed by a recovery in 2024, as the demand for wafers and semiconductors bounces back and inventory levels normalize. The global shipments of silicon wafers are expected to drop from the record high of 14.565 billion square inches in 2022 to around 12.51 billion square inches in 2023, as projected by SEMI.

Apple
According to two reports, the iPhone 15 is experiencing significantly poorer sales in China compared to its predecessor. Counterpoint’s estimation suggests that iPhone 15 sales have decreased by 4.5% compared to the iPhone 14 during the first 17 days after its release. On the other hand, Jefferies predicts an even more pronounced double-digit decline for the iPhone 15. Both reports attribute the underwhelming sales performance to weak consumer spending in China and the resurgence of Huawei in the 5G market.