Semiconductor market news- August 28 to September 04 | US Government Bans Intel, Nvidia and AMD From Selling High End Chips …

1.US Government Bans Intel, Nvidia and AMD From Selling High End Chips To The Chinese Government

In an aggressive move to curb's China's advancements in supercomputing the US government has proceeded to ban sales of high end Intel, Nvidia and AMD CPUs and GPUs for use in Chinese supercomputers.

The US Department of Commerce even went a step further to prohibit Nvidia and AMD from selling their high-end Tesla and Firepro GPGPU co-processors to supercomputer powered Chinese research centers. IBM is also prohibited from directly selling its PowerPC CPUs but thanks to the Open Power initiative by big blue, Chinese firms can design and manufacture PowerPC based processors internally. The embargo by the US government even extends to HP and its sophisticated line of optoelectronics.

2.Prices for DRAM (DDR5/DDR4) memory drop 8%

Researchers at TrendForce recently surveyed the DRAM marketplace. Their findings show that DRAM inventory has seen a drop in consumer demand due to inflation, and the current war between Russia and Ukraine. This increase in the stock of DDR5 and DDR4 has caused DRAM prices to drop between three to eight percent as manufacturers, distributors, and sellers are struggling to diminish their supply.

Computer OEMs have met a loss in demand, affecting their annual shipments and increasing their DRAM inventories. During the third quarter of 2022, manufacturers have had to modify and remove inventories from their operations as they will not see their earnings meeting their expenses. Also, since the suppliers in the markets struggle to reduce the supply, the estimated pricing for the extra collection will drop as far as eight percent in the next half of 2022.

3.Arm sues Qualcomm, aiming to unwind Qualcomm's $1.4 billion Nuvia purchase

Chip technology firm Arm Ltd, which is owned by Softbank Group Corp (9984.T), on Wednesday said it had sued Qualcomm Inc (QCOM.O) and Qualcomm's recently acquired chip design firm Nuvia Inc for breach of license agreements and trademark infringement.

Arm is seeking an injunction that would require Qualcomm to destroy designs developed under Nuvia’s license agreements with Arm. Armalleged its approval was needed before these could be transferred to Qualcomm.

Qualcomm, which acquired Nuvia for $1.4 billion last year, said Arm has no right to interfere with Qualcomm’s or NUVIA's innovations. "Arm’s complaint ignores the fact that Qualcomm has broad, well-established license rights covering its custom-designed CPU’s, and we are confident those rights will be affirmed,” saidAnn Chaplin, General Counsel of Qualcomm in a statement.

4.Micron announces US$15 billion in new fab investment in Idaho

Micron Technology has announced plans to invest approximately US$15 billion through the end of the decade to construct a new fab for leading-edge memory manufacturing in Boise, Idaho. This will be the first new memory manufacturing fab built in the US in 20 years, ensuring domestic supply of leading-edge memory required for market segments like automotive and data center fueled by accelerating adoption of AI and 5G, according to the memory chip vendor.

This is the first of Micron's multiple planned US investments following the passage of the Chips and Science Act, the company said. With the anticipated federal grants and credits made possible through the Chips Act, as well as the incentives provided by the state of Idaho, the new fab will create over 17,000 new American jobs by the end of the decade.

The announcement is part of Micron's intention to invest more than US$150 billion globally over the next decade in manufacturing and R&D, including plans to invest US$40 billion through the end of this decade to build leading-edge memory manufacturing in multiple phases in the US, the memory chip vendor indicated.

5.3Q22 NAND Flash Wafer Contract Price Dip Expands to 30~35%

According to the latest TrendForce investigations, moving into the second half of 3Q22, the lack of a peak season has led to a delay in inventory destocking. Transactions in the NAND Flash market have been frosty. Buyers are watching passively and tend not to negotiate pricing. Pressure on factory inventory has reached a breaking point and manufacturers are bottoming out pricing in order to make a deal. This move will lead to a further decline in manufacturer pricing. TrendForce once again revises downward 3Q22 NAND Flash wafer contract prices and the decline of pricing is estimated to balloon to 30-35% from the original estimate of 15-20%.

6.CanSemi starts capacity expansion for analog chips at 12-inch fab

Guangzhou CanSemi Technology Inc started phase III construction of its semiconductor project on Thursday in Guangzhou, South China's Guangdong Province, with an investment of 16.25 billion yuan ($2.4 billion).

The new phase will generate production capacity of 40,000 wafers per month, with products focusing on industrial and vehicle chips.

CanSemi is the only 12-inch wafer maker that has entered mass production in Guangdong Province. According to the company, its capacity will ramp up to 80,000 12-inch wafers per month after all three phases of the project are completed, aiming to provide power management chips, mixed-signal chips and others for Internet of things (IoT) applications and the automotive market in the Greater Bay Area.

7.Renesas to acquire Steradian to expand reach in radar market

Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, on August 31 announced that it has entered into a definitive agreement to acquire Steradian Semiconductors Private Limited (“Steradian”), a fabless semiconductor company based in Bengaluru, India, that provides 4D imaging radar solutions, in an all-cash transaction. The acquisition is expected to close by the end of 2022, subject to customary closing conditions. The acquisition of Steradian's radar technology will enable Renesas to extend its reach in the radar market and boost its automotive and industrial sensing solution offerings.

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