Intel Announces Plans to Build Two Chip Factories in Europe

Intel chief executive Pat Gelsinger announced plans to build two semiconductor factories in Europe valued up to $95 billion, as part of an effort to ease the current worldwide chip shortage. Gelsinger added that Intel could expand the investment over a decade to the equivalent of “as much as €80 billion.” At an auto event in Munich, Gelsinger said, “this new era of sustained demand for semiconductors needs bold, big thinking.” Meanwhile, Taiwan Semiconductor Manufacturing Co. also plans to spend $100 billion in the next three years to increase chip production and Samsung is making similar moves. Continue reading Intel Announces Plans to Build Two Chip Factories in Europe

House Passes Two Bills in Effort to Foster Scientific Research

In a bipartisan vote, the House passed two bills this week designed to boost U.S. research and development programs. The bills are the House’s response to the Senate’s passage of the Endless Frontier Act that puts significant federal funds into emerging technologies with the aim of competing with China. Instead, the bills passed by the House double the amount of money over the next five years for research at the National Science Foundation (NSF) and provides a 7 percent increase for the Energy Department’s Office of Science. Continue reading House Passes Two Bills in Effort to Foster Scientific Research

Chip Shortage Continues to Have an Impact Across Industries

Intel chief executive Pat Gelsinger revealed it may take two years to ramp up chip production, while Advanced Micro Devices chief executive Lisa Su noted that her company is prioritizing high-end chips found in a PlayStation 5 game console or Nvidia GeForce RTX 3080 graphics card over “lower-powered parts.” The auto manufacturing sector has been hit hard by the semiconductor shortage — with some indicating no end in sight. At John Deere, chief technology officer Jahmy Hindman said that he expects “we’re into this for the next 12 to 18 months.”  Continue reading Chip Shortage Continues to Have an Impact Across Industries

Countries Plan to Invest in New Chip Manufacturing Facilities

Due to a global semiconductor shortage, the United States, European Union countries and Japan are planning to spend billions of dollars to build chip fabrication plants (“fabs”). These countries also face the fact that more than two-thirds of the world’s chips are made in Taiwan. China is offering subsidies to its domestic chip industry, as industry-leaders Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics plan to build U.S.-based fabs, potentially aided by significant U.S. government subsidies. Continue reading Countries Plan to Invest in New Chip Manufacturing Facilities

Intel to Spend $20B on New Chipmaking Factories in Arizona

Intel’s new chief executive Patrick Gelsinger committed $20 billion to build two new semiconductor manufacturing plants in Arizona. Over the years, Intel has failed to keep up with the miniaturization of transistors, giving Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics the lead. These two companies now make chips for Advanced Micro Devices (AMD), Amazon, Apple, and Nvidia but Gelsinger — who hopes for federal incentives — vowed to regain enough ground with the new factories to rival them. Continue reading Intel to Spend $20B on New Chipmaking Factories in Arizona

Apple Begins Working on Its Own Cellular Modem for Devices

Apple has begun building its own cellular modem for smartphones, to replace those now purchased from Qualcomm, according to Apple senior vice president of hardware technologies Johny Srouji. He added that it is one of the few wireless chips that Apple designs, along with the W-series in the Apple Watch and U1 Ultra Wideband (UWB) chip in the iPhone. In addition to reducing costs, moving the modem in-house could eventually lead to cellular connectivity becoming a standard feature for the iPad, Apple Watch and other devices. Continue reading Apple Begins Working on Its Own Cellular Modem for Devices

Huawei, Apple Drop in Rankings of Top Global Phone Makers

After attaining a position as No. 1 in global smartphone shipments in Q2, Huawei Technologies ceded that position to Samsung Electronics in Q3, according to International Data Corporation. IDC added that Huawei’s global shipments fell by 22 percent, a sign that U.S. efforts to disrupt its supply chain are having an impact. All vendors without a license from the U.S. Commerce Department have been banned from selling chips and other components to Huawei since September 15. Huawei’s domestic sales also fell 15+ percent in Q3. Continue reading Huawei, Apple Drop in Rankings of Top Global Phone Makers

AMD Acquires Xilinx: Opens Door for 5G, Data Center Chips

Advanced Micro Devices (AMD) agreed to pay $35 billion in stock to acquire Xilinx, which will enable it to diversify into chips for 5G wireless communications and automotive electronics. The company, which has some of the strongest sales in its 51-year history, has traditionally been Intel’s rival for computer chips. With Xilnix, AMD could also provide components for data centers and compete with Nvidia in that space. The all-stock deal is still topped by Nvidia’s plan to purchase UK chipmaker Arm for $40 billion. Continue reading AMD Acquires Xilinx: Opens Door for 5G, Data Center Chips

Broadcom Warns of Slowdown Due to Supply Chain Troubles

On April 13, Broadcom vice president of sales Nilesh Mistry warned clients that the lead time for ordering parts has now grown to at least 26 weeks due to breakdowns in the supply chain. At Broadcom, which makes components for Apple iPhones, the typical lead time for deliveries had been two-to-three-months. Mistry explained that lockdowns in factories in Malaysia, Thailand, Singapore and the Philippines were “closing or severely restricting business operations.” Anything ordered now won’t arrive until the holiday season. Continue reading Broadcom Warns of Slowdown Due to Supply Chain Troubles

Huawei Increases Use of Its Own Chips in 5G Base Stations

When the Commerce Department banned U.S. manufacturers from selling chips to China’s Huawei Technologies, that company increased its own chipmaking capacity in its semiconductor company HiSilicon. According to U.S.-based Huawei executive Tim Danks, in Q4 the company shipped more than 50,000 5G base stations embedded with its chips, about 8 percent of all base stations it sold up to February this year. Danks reported that, although Huawei is ramping up HiSilicon efforts, it intends to return to U.S. technology when possible. Continue reading Huawei Increases Use of Its Own Chips in 5G Base Stations

European Union Hits Qualcomm With Another Antitrust Fine

For the second time in 18 months, the European Union levied a fine on Qualcomm, this time for €242 million ($272 million). European commissioner for competition Margrethe Vestager stated that Qualcomm drove a competing supplier of baseband chips out of business, an antitrust violation. The EU started its formal investigation into Qualcomm in 2015, when U.K. chip manufacturer Icera accused it of “predatory pricing” between 2009 and 2011, to drive it out of business. Nvidia subsequently purchased Icera. Continue reading European Union Hits Qualcomm With Another Antitrust Fine

Firms Test Limits of Commerce Department Ban on Huawei

Although the White House has banned U.S. companies from selling technology to Huawei Technologies, some chipmakers, including Intel and Micron, are doing so by labeling goods produced overseas as not being “American-made.” The ban actually begins in mid-August, and U.S. suppliers, their attorneys and the Trump administration are mulling over if and how the ban impacts current sales. Meanwhile, FedEx has filed a lawsuit against the U.S., saying it cannot police the millions of packages it sends. Continue reading Firms Test Limits of Commerce Department Ban on Huawei

Amid Record Profits, Samsung Faces a Slowing Chip Market

Samsung Electronics reported an approximately 20 percent increase in operating profit for the latest quarter from a year earlier, resulting in a record high profit of about $15 billion. But that sudden lift may not last. According to industry experts, the higher numbers are due to increased demand for memory chips for use in data centers and smartphones. Samsung and other chipmakers invested to expand production, but now demand for smartphones (and other consumer electronics) is reaching a plateau. Continue reading Amid Record Profits, Samsung Faces a Slowing Chip Market

ARM and Intel Team on Common Standards for IoT Devices

Semiconductor manufacturer ARM, a division of Japan’s SoftBank, and Silicon Valley tech giant Intel have put aside a longstanding rivalry in order to forge a strategic partnership that will adopt common standards developed by Intel for the Internet of Things. The lack of such standards to manage the security of IoT devices, networks and data has been a stumbling block to the growth of the sector. Gartner analyst Bill Ray explains that NXP Semiconductors, Renesas Electronics and Microchip Technology’s Atmel rely on ARM designs, while Intel’s processors dominate today’s cloud data center market. Continue reading ARM and Intel Team on Common Standards for IoT Devices

Broadcom’s Bid for Qualcomm Blocked Over Security Issues

Citing national security concerns, President Donald Trump has put the brakes on Singapore-based Broadcom’s attempt to acquire rival chipmaker Qualcomm. The companies were ordered to abandon the $117 billion acquisition bid and dismiss any proposals for Broadcom’s candidates to run for seats on Qualcomm’s board. Had it been approved, the purchase would have marked the largest tech deal of its kind. Broadcom says it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.” Continue reading Broadcom’s Bid for Qualcomm Blocked Over Security Issues

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