01. China's Integrated Circuit Exports Regain Momentum, Reaching 736 Billion Yuan by August
China's integrated circuit (IC) exports have shown strong growth, surpassing automobiles to become the leading export product. In the first eight months of this year, the export value reached 736.04 billion yuan, a year-on-year increase of 24.8%. Over the past decade, the export value has more than doubled, with a 74.5% increase in export volume and a 155.9% increase in export value in 2023. Despite a downturn in the global chip industry between 2022 and 2023, which led to a slowdown in China's IC export growth, conditions began to improve in early 2024, with an 18.2% year-on-year increase in export value in August, marking ten consecutive months of growth.
02. US-India Joint Venture Targets GaN and SiC Chip Production
The US and India have agreed to build a semiconductor plant in India, which will manufacture advanced chips like gallium nitride (GaN) and silicon carbide (SiC), supporting India's manufacturing ambitions. The initiative is backed by the India Semiconductor Mission (ISM), Bharat Semi, 3rdiTech, and the U.S. Space Force, highlighting India's strategic role in global technology and its efforts to establish a comprehensive semiconductor value chain. This collaboration comes amidst Modi's broader vision to make India a tech manufacturing hub, competing with China and aiming for a $500 billion electronics industry by 2100.Modi is currently in the U.S. for the Quad Summit, a three-day visit during which he will hold bilateral talks with American leaders and meet with members of the Indian diaspora and tech executives.
03. Micron's Q1 Revenue to Hit $8.7B on HBM Demand-Wikipedia
Micron anticipates a first-quarter revenue of approximately $8.7 billion, surpassing market expectations, thanks to robust demand for high-bandwidth memory (HBM) chips utilized in AI applications. As one of the three leading HBM suppliers globally, Micron is capitalizing on the escalating need for semiconductors that drive generative AI. The company's CEO, Sanjay Mehrotra, confirmed persistent robust demand from data centers and favorable inventory levels during a conference call, revealing that HBM chip sales are fully booked through 2024 and 2025, with pricing locked in.
04. Vishay Restructures, Announces Job Cuts and Plant Closures
Vishay Intertechnology, a major producer of semiconductors and passive components, has announced a global restructuring plan under its "Vishay 3.0" strategy, which includes the closure of three facilities and a reduction of approximately 800 jobs. The plants set to close are a diode packaging facility in Shanghai, China, and resistor plants in Fichtelberg, Germany, and Milwaukee, U.S., with completion expected by the end of 2026.
The move will see the elimination of 365 manufacturing and 260 production roles, plus 170 sales and administrative positions. Pre-tax costs for the restructuring are projected to be between $38 million and $42 million, primarily for severance payments, with the bulk of expenses to be incurred in Q3 of 2024. Vishay anticipates over $23 million in annual cost savings once the restructuring is fully executed.
According to Vishay President and CEO Joel Smejkal, these measures are designed to streamline decision-making, sharpen customer focus, and optimize the company's manufacturing presence worldwide. Concurrently, Vishay is planning a $2.6 billion investment to boost capacity, aiming for a 12% increase in MOSFET production by 2025 and a 5.5% rise in semiconductor output by 2024.
05. TSMC Arizona Plant Begins Phase One Production of Apple A16 Chips
In Q2 2024, Chinese storage module manufacturers, facing sluggish consumer demand and increased regulatory oversight, have rapidly cleared excess inventory, causing SSD prices to plummet. Despite steady NAND wafer prices, SSD spot market rates have returned to early 2023 levels, with analysts predicting continued market instability through the year's end, possibly leading to shortages in specialized products.
The clearance is a reaction to overstock accumulated in the first half of 2024. Expectations for a market rebound in the second half of the year have been dampened by persistently low demand, as seen in September. This has forced manufacturers to sell off inventory. The demand slump is not limited to China; it's also affecting Europe, Southeast Asia, and South America, exacerbating pressures on the SSD industry.
Industry insiders note that while companies prepared for a downturn, the extent of the market's decline has been more severe than expected.
06. TSMC Begins Small-Scale Trial Production of 2nm Chips, Mass Production Set for 2025
TSMC has started small-scale trial production of its 2nm process, utilizing water-cooled technology from Japan's SMC, with plans for full-scale mass production in 2025, according to reports.
Industry insiders report that TSMC's 2nm technology is progressing smoothly, with its new Hsinchu Baoshan plant on track for mass production in 2025. Additionally, N2P and A16 (1.6nm) processes are expected to enter mass production in the second half of 2026, further enhancing power efficiency and chip density.