TSMC to Raise Its Chip Prices as Global Shortage Continues

Taiwan Semiconductor Manufacturing Co. (TSMC) — the world’s largest contract chipmaker — plans to raise prices on its most advanced chips by about 10 percent and less advanced chips by about 20 percent, to take effect late this year or in early 2022. The price hike is taking place during a global shortage of semiconductors that already impacts auto companies including General Motors and Toyota Motor, an array of consumer electronics, and major tech companies such as Apple, which uses TSMC chips in its smartphones. GM closed three North American factories and Toyota will slow production by 40 percent in September. Continue reading TSMC to Raise Its Chip Prices as Global Shortage Continues

Western Digital and Kioxia Merger Could Impact Chip Market

California-based data technology company Western Digital is purportedly in “advanced merger talks” with Japan’s computer memory firm Kioxia Holdings, according to sources who added that a deal could be inked as soon as mid-September. Western Digital’s shares rose 8 percent in reaction to the Wednesday news and continued to rise on Thursday. Sources said Western Digital would complete the deal with stock and that its chief executive David Goeckeler would run the combined company. According to Barron’s, the deal would be valued at about $20 billion. Continue reading Western Digital and Kioxia Merger Could Impact Chip Market

Cerebras Chip Tech to Advance Neural Networks, AI Models

Deep learning requires a complicated neural network composed of computers wired together into clusters at data centers, with cross-chip communication using a lot of energy and slowing down the process. Cerebras has a different approach. Instead of making chips by printing dozens of them onto a large silicon wafer and then cutting them out and wiring them to each other, it is making the largest computer chip in the world, the size of a dinner plate. Texas Instruments tried this approach in the 1960s but ran into problems. Continue reading Cerebras Chip Tech to Advance Neural Networks, AI Models

Samsung First to Design Commercial Semiconductor with AI

Samsung is using Synopsys’ DSO.ai tool to design some of its next-gen Exynos mobile processors for 5G and AI, which will be used in smartphones including its own and other devices. Synopsys chair and co-chief executive Aart de Geus said this is the first example of a “real commercial processor design with AI.” Google, IBM and Nvidia are among the other companies that have discussed designing chips with AI. Synopsys, which works with dozens of companies, also has years of expertise in creating advanced designs to train an AI algorithm. Continue reading Samsung First to Design Commercial Semiconductor with AI

Intel Chief Promotes Chipmaking Plan to U.S., Global Leaders

Intel chief executive Pat Gelsinger and board members met with the Biden administration to promote his company’s plan to build more semiconductor factories with subsidies from the U.S. government. Currently, Asian-owned chip factories, which receive hefty incentives, dominate chip production. There’s also an “unprecedented” global shortage of chips, which is impacting the auto and consumer appliance industries. Gelsinger was hired this year to improve the fortunes of the beleaguered Intel. Continue reading Intel Chief Promotes Chipmaking Plan to U.S., Global Leaders

Foxconn Has Plans for Expansion, Buys Chipmaker Macronix

Foxconn Technology Group, best known for assembling Apple iPhones, will acquire Taiwan chipmaker Macronix International for approximately $90.8 million (T$2.52 billion) to boost its entry into the electric vehicle (EV) market. Foxconn earlier announced plans to assemble cars for EV startup Fisker and team up with Stellantis, manufacturer of Jeep and Chrysler, to develop in-car software. Macronix’s six-inch wafers are made of silicon carbide, regarded as preferable for tasks such as fast charging. Continue reading Foxconn Has Plans for Expansion, Buys Chipmaker Macronix

Samsung Profits, Revenues Climb with Semiconductor Sales

In Q2 2021, Samsung Electronics posted a 73 percent increase in net profit to about $8.37 billion (9.63 trillion won), and a revenue increase of 20 percent to 63.57 trillion won, both numbers surpassing analyst expectations. Although the South Korean company’s sales of smartphones was relatively weak, its semiconductors — used by Apple and Sony among others — were snapped up by Big Tech companies churning out PCs, servers and other devices requiring chipsets. Samsung’s chip division saw upticks in operating profit and revenue. Continue reading Samsung Profits, Revenues Climb with Semiconductor Sales

Apple Just Earned Its Biggest Profit in the Company’s History

The COVID-19 pandemic has reaped rewards for Big Tech companies that benefitted from the shift to remote working and learning. Apple earned $21.7 billion in profit for the quarter that ended in June, the most successful quarter in the company’s 45-year history, while Alphabet and Microsoft also enjoyed strong quarterly earnings. Apple’s revenue rose 36 percent from the same period a year earlier to $81.4 billion, exceeding Wall Street expectations. Apple is on track to earn $86 billion for the fiscal year, according to FactSet analysts. Continue reading Apple Just Earned Its Biggest Profit in the Company’s History

Azure Drives Impressive Quarterly Sales, Profits for Microsoft

Microsoft experienced a successful quarter, due in large part to significant growth in Azure cloud services. The company reported overall Q4 sales of $46.2 billion, up about 21 percent year-over-year, for a $16.5 billion profit, an increase of 47 percent year-over-year. Similar to other Big Tech companies, Microsoft’s numbers exceeded Wall Street expectations. According to chief financial officer Amy Hood, Microsoft expects overall sales of $44.2 billion for the current quarter. Microsoft’s stock is currently up 40 percent over the last year, and its valuation is now $2+ trillion, second only to its rival Apple. Continue reading Azure Drives Impressive Quarterly Sales, Profits for Microsoft

Intel Chief Warns the Chip Shortage Could Last Through 2023

Experts have warned that the semiconductor shortage will endure, and now Intel chief executive Pat Gelsinger has added his voice with the prediction that the shortage could stretch into 2023. Volkswagen also cautioned that the shortage may get worse in the next six months. The chip shortage is not only causing production delays in the auto industry but raising prices for consumer electronics. Gelsinger said it could take one or two years to achieve a “reasonable supply-and-demand balance.” “We have a long way to go yet,” he suggested. Continue reading Intel Chief Warns the Chip Shortage Could Last Through 2023

Global Smartphone Industry Feeling Impact of Chip Shortage

The smartphone industry is finally feeling the impact of the semiconductor shortage that has bedeviled the auto, PC and home appliance industries. Samsung Electronics, for example, expects a 20 percent drop in shipments from last quarter, due to problems sourcing key parts. Google’s Pixel 5a 5G device will only be available in the U.S. and Japan, even though last year’s models were given a wider release. China’s Xiaomi, which recently surpassed Apple to capture the No. 2 spot in global shipments, has raised the price of its flagship India device, the Redmi Note 10, to $174 from $161.  Continue reading Global Smartphone Industry Feeling Impact of Chip Shortage

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

Laptops Embrace Smartphone Tech in Wake of the Pandemic

According to IDC, although computer sales have been decreasing for the past decade, during the COVID-19 pandemic PC sales shot up 50 percent or more per quarter compared with the previous year. As a result, laptop manufacturers are now integrating technologies once reserved for smartphones, including powerful processors, higher-resolution displays, and increased battery life. New designs such as tablets that snap onto keyboards (detachables) and thin laptops with 360-degree hinges that fold into tablet form are also emerging. Continue reading Laptops Embrace Smartphone Tech in Wake of the Pandemic

TSMC Semiconductor Dominance Imperils Global Electronics

With its chips in billions of products, Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s most dominant chipmaker and, with a market cap of about $550 billion, is also the world’s 11th most valuable company. According to research firm TrendForce, Taiwan generated about 65 percent of global revenues for outsourced chipmaking, with TSMC accounting for 56 percent of that figure. Capital Economics — and other analysts — opined that the world’s dependence on Taiwanese chips is “a threat to the global economy.” Continue reading TSMC Semiconductor Dominance Imperils Global Electronics

Senate Passes $250 Billion Bill to Foster Manufacturing, Tech

The Senate passed a bipartisan bill in a 63-32 vote this week that allocates $250 billion for technology R&D to counter foreign competition, primarily from China. The U.S. Innovation and Competition Act (USICA) intends to boost research investment, build semiconductor manufacturing capacity and focus on AI development. The National Science Foundation (NSF) will also play a more significant role. Senator Maria Cantwell (D-Washington) stated the bill is “about investing in that innovation economy of the future.” It still needs to pass the House. Continue reading Senate Passes $250 Billion Bill to Foster Manufacturing, Tech