01. India's PC Market Exhibits Robust Growth in H1 2024, Fueled by Government and Business Demand
In the first half of 2024, India's PC market experienced a pronounced recovery, outpacing global trends. This momentum largely stemmed from strong demand in the government and business sectors, coupled with consumer market expansion. According to IDC data, after a 2.6% growth in shipments in Q1, the Indian PC market—encompassing desktops, servers, and notebooks—achieved 3.4 million units shipped in Q2, reflecting a 7% increase year-on-year. Canalys anticipates that, supported by public sector procurement and a surge in AI-related PC replacements, the Indian PC and tablet market will grow by 11% annually in 2024 and 15% in 2025.
02. Japan PC Shipments Mark Largest Increase in 3 Years in July, Boosted by Replacement Demand
The PC products popularized for home office use during the pandemic have now entered their replacement cycle. The implementation of Japan's "GIGA School Project," which provides every student in primary and secondary schools with a computer, has jointly driven a significant year-on-year increase of 37.7% in PC shipments (including desktops and notebooks) in July 2024, reaching 579,000 units. This marks the largest increase in over three years since March 2021, when there was a 40.9% surge. However, monthly shipments have remained below one million units for 40 consecutive months.
Specifically, notebook shipments in Japan in July soared by 43.2% year-on-year to 495,000 units, marking the seventh consecutive month of growth; desktop shipments also grew by 12.5% to 84,000 units, recording growth for the first time in ten months.
Looking ahead, it is anticipated that PC shipments in Japan for the fiscal year 2024 (April 2024 - March 2025) will see a year-on-year increase of 12.1%, reaching 12.083 million units, which would be the first growth in four years, with replacement demand being the main driving force.
03. Qualcomm Acquires Sequans' 4G IoT Technology to Strengthen Industrial IoT
Qualcomm has declared that its subsidiary, Qualcomm Technologies, has secured the 4G IoT technology from Sequans, a supplier of semiconductor solutions for IoT applications encompassing both 4G and 5G. The acquisition encompasses select personnel, assets, and licensing rights, contingent upon standard closing conditions, including regulatory approval from French authorities.
This strategic move enriches Qualcomm's industrial IoT suite by incorporating Sequans' 4G IoT technology into its current array of solutions. Qualcomm is poised to augment its enterprise offerings with more dependable and efficient low-power cellular connectivity, propelling digital transformation, enhancing operational efficacy, and paving the way for innovative advancements.
Nakul Duggal, the General Manager of Qualcomm Technologies' divisions for Automotive, Industrial & IoT, and Cloud Computing, remarked that the acquisition broadens Qualcomm's product spectrum and solidifies its market position in IoT, especially in the realms of edge intelligence and high-performance processing.
Sequans retains the right to commercially exploit the technology via a perpetual licensing agreement, allowing for the expansion of its 4G endeavors and the progression of its 5G suite. Georges Karam, CEO of Sequans, highlighted that this transaction not only affirms the value of Sequans' 4G IoT technology but also secures the necessary funding to bolster its IoT initiatives and amplify its market impact.
04. HP Receives $50 Million from U.S. Department of Commerce to Advance Semiconductor Technology
HP and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of understanding (PMT), with HP set to receive $50 million in proposed direct funding under the U.S. "Chips and Science Act." The funding will support the expansion and modernization of HP's existing facility in Corvallis, Oregon, and is expected to create nearly 250 jobs. The investment will also support the manufacturing of silicon devices, which are key components in life science laboratory equipment used for drug discovery and cell research.
The "Chips and Science Act," enacted in 2022 to revitalize the semiconductor industry, includes approximately $52.7 billion in funding support and $24 billion in investment tax credits. Initially focused on chip manufacturing, the U.S. Department of Commerce has broadened its investment to other segments of the semiconductor industry chain, including material packaging and testing companies.
Recently, the department has shown particular interest in the packaging and testing sector, announcing a $1.6 billion fund for developing new computer chip packaging technologies and launching the "National Advanced Packaging Manufacturing Program" (NAPMP) to establish leading domestic semiconductor packaging capabilities.
05. Counterpoint: TSMC's Market Share Reaches 62% in Q2 2024
The latest report from Counterpoint Research indicates that the global wafer foundry market saw a 9% quarter-over-quarter and a 23% year-over-year revenue increase in Q2 2024, largely driven by AI demand. TSMC leads with a 62% market share, a 4-point increase year-over-year, with its quarterly revenue exceeding expectations due to sustained demand for AI accelerators. Samsung's market share has risen to 13%, while SMIC maintains a 6% share, securing its position as the world's third-largest foundry.
The Chinese foundry market is recovering quickly due to early inventory adjustments and restocking by local fabless customers. TSMC anticipates the supply and demand for AI accelerators to remain tight until late 2025 or early 2026 and plans to at least double its CoWoS capacity by 2025 to meet AI demand. Samsung focuses on acquiring more customers for advanced nodes, expecting annual revenue growth to outpace the industry average. SMIC's positive guidance for Q3 reflects the ongoing recovery in demand across various Chinese applications.
06. Samsung Considers New Semiconductor Assembly Plant in Vietnam
South Korean government sources have disclosed that Samsung's Vietnam branch is in talks to set up a new semiconductor assembly plant, possibly in Bắc Giang Province, known for its strategic location near China and proximity to Hanoi and the Hải Phòng port, making it an industrial hub suitable for such a project.
During Vietnamese Prime Minister Phạm Minh Chính's visit to South Korea in July 2024, Samsung Chairman Lee Jae-yong reaffirmed the company's commitment to expanding investments in Vietnam. The Prime Minister highlighted Vietnam's interest in deepening cooperation in the semiconductor sector, with both sides reportedly reaching a mutual understanding.
Analysts suggest Samsung's move could be linked to the global minimum tax (GMT) set to take effect in 2024. While the GMT may increase corporate tax liabilities, establishing an assembly plant in Vietnam might offer favorable conditions from the Vietnamese government, potentially offsetting the financial impact.
Furthermore, Samsung's semiconductor assembly line in Suzhou, China, is already operational. With the U.S. and Vietnam elevating their relationship to a "comprehensive strategic partnership" in 2023, Vietnam's investment climate has seen significant improvements. Samsung's plans for an assembly plant in Vietnam are seen as part of a broader strategy to mitigate geopolitical risks and enhance the resilience of its global supply chain.