Semiconductor market news from DPE- December 20 to December 26

1、TrendForce Consulting: Samsung NAND flash production is not affected by Xi'an epidemic

According to TrendForce Consulting's survey, Samsung has two large factories in Xi'an, which are used to manufacture 3D NAND high-level products. The number of films cast accounts for 42.3% of the company's NAND flash capacity and 15.3% of the world. At present, Xi'an epidemic prevention measures have not affected the normal operation of the factory. In addition, the company's purchase of raw materials may also be delayed by logistics obstruction, but there is still a safe water level inventory in Samsung's plant area to cope with production in the coming months.

2、GLOBALFOUNDRIES receives additional chip orders from AMD! The two parties sign a $2.1 billion long-term contract

According to the regulatory documents released by the US competent authority on Thursday (23rd), the processor giant Supermicro In order to ensure sufficient supply in the event of a shortage of chips, the foundry GF Signed a 4-year long-term chip supply agreement (LTA), valued at nearly 2.1 billion dollars.

Documents from the US Securities and Exchange Commission (SEC) show that the two parties have finalized an amended agreement, and GlobalFoundries will supply supermicro with a value of nearly 2.1 billion between 2022 and 2025DollarOf wafers. The previous declaration data shows that the value of 1.6 billion will be supplied from 2022 to 2024DollarOf wafers.

Tom Caulfield, CEO of GF, said that GF and its customers have been cooperating closely for more than a year in order to cope with the current shortage of chips. This cooperation with Supermicro is the best example of customers signing long-term contracts to ensure supply.

GLOBALFOUNDRIES stated in its first financial report meeting after its listing this month that due to supply shortages, customers tend to sign long-term contracts to ensure supply. The current long-term contracts signed with customers are worth more than 20 billion yuan. Dollar, And achieved 3 billionDollarJP Morgan Chase estimates that these long-term contracts will cover 85% of GF’s revenue in the next three years.

3、Taiyo Yuden suspends operations of its Philippine factory

Taiyo Yuden announced that its subsidiary TAIYO YUDEN (PHILIPPINES), INC., located in Lapulapu City, Cebu, Philippines, was damaged by the typhoon Rai, the damage of its building and equipment was minor.

At present, the factory has suspended operations, and Taiyo Yuden is resuming work at the factory and inspecting the status of infrastructures such as electricity and logistics.

Once the estimated time to resume production is determined, Taiyo Yuden will make another announcement.

4、Panasonic temporarily halts operation of Malaysia factory due to floods

Japan’s Panasonic Corp has suspended the operation of its factory in Malaysia due to floods there, Nikkei reported.

The operation of the factory that produces vacuum cleaners and fans is expected to be recovered about after a week, Nikkei said.

The newspaper also said Daihatsu Motor had also halted one of its manufacturing plants in Malaysia.

5、China's Luxshare is building a Mega iPhone Plant in Eastern China to challenge Foxconn and Pegatron's Monopoly on iPhone Production

Luxshare Precision Industry is building a massive manufacturing complex in eastern China as it aims—with Apple’s blessing—to break the decadelong hold that Taiwanese rivals Foxconn and Pegatron have on iPhone assembly.

Luxshare, China’s most prominent player in the Apple supply chain, is building a 285,000 square meter manufacturing park in the Chinese city of Kunshan, with a total investment of RMB 11 billion (USD 1.72 billion). The sprawling site—covering an area the size of 40 football fields—will churn out millions of iPhones as early as next year.

Armed with the new facility, the Chinese supplier aims to significantly increase its share of iPhone assembly, from about 6.5 million units in 2021 to between 12 million and 15 million units by as early as next year, people briefed on the matter told Nikkei Asia.

An executive at another Apple supplier said that although this has been the first year for Luxshare to officially build new iPhones on its own, the company’s assembly performance rate is improving faster than expected and industry peers should not underestimate it.

6、SK Hynix gets China approval to take over Intel’s NAND business

South Korean chipmaker SK Hynix said on Wednesday it has received merger clearance from the Chinese antitrust authority for its $9 billion acquisition of Intel Corp’s NAND and SSD (solid-state drive) business, clearing the final hurdle to completion of securing regulatory approval in eight jurisdictions.

Last October, the U.S. chip giant and SK Hynix reached the acquisition deal. Following the agreement, SK Hynix obtained nods from watchdog agencies in South Korea, the U.S., the European Union, Taiwan, Brazil, Britain and Singapore.

SK Hynix said in its statement: “SK Hynix sincerely welcomes and appreciates the State Administration of Market Regulation’s merger clearance for the deal. SK Hynix will enhance its competitiveness of NAND Flash and SSD business by continuing the remaining post-merger integration process.”

China’s State Administration for Market Regulation said in its statement on Wednesday that it had approved, but with a number of conditions that will last for five years.

The conditions include that SK Hynix should expand its production quantity of PCIe and SATA enterprise-class solid-state hard disks products, and supply the products at fair, reasonable and nondiscriminatory prices, according to the statement. It also said that SK Hynix should not force customers in China to exclusively purchase products from SK Hynix or companies controlled by SK Hynix.

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