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

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

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

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

Samsung Looking to Launch Chip Manufacturing Plant in U.S.

Samsung Electronics may build an up-to-$17 billion chip manufacturing plant in Arizona, Texas or New York, according to sources, and is reportedly scouting two locations in the Phoenix area, two locations in the Austin vicinity and an industrial campus in New York’s Genesee County. The decision to build in the U.S. hinges on the availability of federal government incentives to balance out cheaper costs and government incentives elsewhere. Samsung’s plant would employ up to 1,900 people and open by October 2022. Continue reading Samsung Looking to Launch Chip Manufacturing Plant in U.S.

Electronics Manufacturers Consider Building Plants in Mexico

As the U.S.-China trade war heats up, Taiwan-based electronics manufacturers including Foxconn and Pegatron are considering opening new factories in Mexico, South America’s second largest economy. Sources said Foxconn would manufacture Apple iPhones in Mexico but will make a final decision later this year. Apple would not comment. Pegatron is “in early discussions with lenders” for a Mexico facility to assemble semiconductors and other electronic components. This “near-shoring” would move supply chains away from China. Continue reading Electronics Manufacturers Consider Building Plants in Mexico

Qualcomm Seeks Permission to Sell Chips to China’s Huawei

Semiconductor manufacturer Qualcomm is presenting its case to the Trump administration for an exemption to the ban on selling components to Huawei Technologies, noting that the injunction has the impact of enriching its foreign competitors. The White House ban is part of the administration’s ongoing technology battle with China, which has intensified in recent months. Huawei would use Qualcomm chips for its 5G phones, but the San Diego-based company would need a license from the Commerce Department to be able to ship them. Continue reading Qualcomm Seeks Permission to Sell Chips to China’s Huawei

Google Shutters Initiative to Provide Cloud Services in China

Google ended its Isolated Region initiative to offer cloud services in China and other so-called sovereignty sensitive markets that strictly regulate companies whose services include collecting or processing personal data. Begun in 2018, the Isolated Region initiative would have complied with rules in China that require Western companies providing data or networking to form joint ventures with Chinese companies. The business would also be sequestered from Google’s existing cloud services including data centers. Continue reading Google Shutters Initiative to Provide Cloud Services in China

China to Invest $1.4 Trillion in Domestic Technology by 2025

To gain global leadership, Chinese president Xi Jinping plans to invest $1.4 trillion dollars by 2025 in key technology areas, including 5G wireless networks, cameras and sensors, and AI for autonomous vehicles, automated factories and mass surveillance among other sectors. Chinese companies such as Alibaba, Huawei Technologies and SenseTime Group will likely benefit, as China reduces its reliance on U.S. companies. The Trump administration is leveraging its relationship with Taiwan as one way to fight back. Continue reading China to Invest $1.4 Trillion in Domestic Technology by 2025

Apple’s Revenue Rises, Buoyed by Services and Accessories

Despite a decline in iPhone sales, Apple’s revenue rose 1 percent in its fiscal Q2 (ending March 28) to $58.3 billion, with profit falling about 3 percent to $11.25 billion or $2.55 a share. Prior to the coronavirus pandemic, Apple projected more than $63 billion, but the numbers still exceeded analysts’ expectations of almost $55 billion in revenue. Due to an uncertain economy in the wake of the pandemic, Apple would not project Q3 sales, the first time it declined to do so since it began offering such guidance in 2003. Continue reading Apple’s Revenue Rises, Buoyed by Services and Accessories

U.S. Moves to Hinder China Telecom and Links to Hong Kong

The Trump administration wants to revoke licenses used by China Telecom’s U.S. subsidiary to act as a common carrier, connecting domestic and international networks. The U.S. Department of Justice, leading the departments of Defense and Homeland Security, requested that the FCC permanently rescind these licenses. The administration stated that China’s technology interests are a threat to U.S. security. Citing the same concerns, U.S. gave Google permission to open a high-speed Internet link to Taiwan but not Hong Kong. Continue reading U.S. Moves to Hinder China Telecom and Links to Hong Kong

Apple Closes its Retail Stores, Vets Apps Related to COVID-19

Due to the coronavirus, Apple closed its retail stores outside of mainland China, Hong Kong and Taiwan. The move will shutter 450 stores in 21 countries until March 27. Apple chief executive Tim Cook noted that, “the most effective way to minimize risk of the virus’s transmission is to reduce density and maximize social distance.” Employees of the stores will continue to be paid. The company is also paying special attention to apps related to the coronavirus, to weed out misinformation and inappropriate content. Continue reading Apple Closes its Retail Stores, Vets Apps Related to COVID-19

SoftBank Charts New Direction Following WeWork Debacle

SoftBank Group founder Masayoshi Son and board director Rajeev Misra, who is also SoftBank Investment Advisers chief executive, are focused on saving the Vision Fund, whose bets on Uber Technologies and WeWork have been disastrous. Last week, SoftBank bailed out WeWork, whose value had dipped 80 percent below its peak, with $10 billion. The London-based private investment fund debuted two years ago, with the goal of raising $100 billion to invest in startups valued at $1+ billion, the so-called unicorns of Silicon Valley. Continue reading SoftBank Charts New Direction Following WeWork Debacle

Blizzard Suspends Pro eSports Player for His Political Stance

Gaming company Activision Blizzard suspended an eSports player who, during a live broadcast, expressed his support for the pro-democracy protest movement in Hong Kong. Professional “Hearthstone” player Chung Ng Wai has been suspended for a year and forced to give up $10,000 in prize money. The move led to a significant backlash from gamers and politicians via social media and online forums. The public relations dilemma is similar to what played out this week following NBA commissioner Adam Silver’s support of free speech, which led to the decision by China’s state-run television not to broadcast two NBA games. Continue reading Blizzard Suspends Pro eSports Player for His Political Stance