Japan has proposed a $65 billion (or more) plan to strengthen the semiconductor and AI industries in the country through grants and financial support by fiscal year 2030. The government plans to present this proposal at the next parliamentary session. The draft includes support for mass production of next-generation chips, focusing on AI chipmakers such as Rapidus, the government estimates an economic impact of about 160 trillion yen from this investment. Rapidus plans to start mass production of advanced chips in Hokkaido from 2027 and will work with IBM and Belgian research organization Imec.

According to the report from Reuters, Prime Minister Shigeru Ishiba said the government would not issue deficit-financing bonds to fund the support plan, although specific financial details are not yet known. The new initiative builds on last year's 2 trillion yen investment in the chip industry, and it is part of a broader economic package. Expected to be approved by the Cabinet on November 22, the plan calls for combined public and private investment in the semiconductor industry of more than 50 trillion yen over the next decade.

According to a recent Reuters report, the US government, under Biden's administration, will allow a few criteria-matching semiconductor fabs to circumvent environmental protection laws. On Wednesday, President Joe Biden signed legislation that effectively enables these fabs to not follow the strict regulations designed for maximum preservation of the environment. The Semiconductor Industry Association has noted that without this new legislation, companies that are extending facilities on US soil would be significantly slowed down due to the National Environmental Policy Act (NEPA) of 1969. The CHIPS Act's primary force driver isn't just domestic production but near-future completion so that future geopolitical shifts don't impact US companies. The speed of getting permits to manufacture advanced chips is essential for every CHIPS Act recipient company, like Intel, Samsung, TSMC, and Micron.

The grass isn't always greener on the other side, especially as we're running out of sides in the advanced semiconductor manufacturing sector. A recent report by Business Korea highlights Samsung Securities' July publication titled "Geopolitical Paradigm Shift and Industry," which paints a less-than-optimistic picture of Samsung's current state of affairs. The report even evaluates a possible spinoff of Samsung Foundry. The Korean tech giant has faced various business setbacks related to its state-of-the-art 3 nm Gate-All-Around (GAA) FET node. Reports indicate that this node only manages to yield 10-20% of working silicon, making potential customers reluctant to secure partnerships with Samsung. Samsung Securities projects that Samsung Foundry, along with the LSI division, will suffer a 500 billion won (about $385 million) loss this year.

Poor yields and difficulty securing customers have left Samsung facing tough choices, including the possible sale of its massive Foundry unit, which manufactures logic for external customers. It's noteworthy that Samsung is one of only three companies left in the advanced semiconductor manufacturing field, alongside TSMC and Intel. Many companies struggled to deliver results when transitioning to sub-7 nm nodes. Global Foundries dropped out of the race to focus on mature nodes, while Intel faced delays. TSMC has been the only company so far to consistently set and execute its goals, positioning itself as the industry leader. With low yields on the 3 nm GAA FET node, Samsung currently holds 11.5% of the global foundry market share in Q2, while TSMC dominates with 62.3%.

Industry leader AAEON has expanded its RISC computing product portfolio with the release of the SRG-IMX8PL and PICO-IMX8PL, a Mini PC and 2.5" PICO-ITX board, respectively. Both products are powered by the NXP i.MX 8M Plus platform, featuring a quad-core Arm Cortex -A53 processor with a Neural Processing Unit (NPU) operating at up to 2.3 TOPS.

Built to provide cost-efficient IoT Gateway solutions in rugged environments, the SRG-IMX8PL and PICO-IMX8PL both offer wide temperature ranges of -40°C to 80°C with the use of a fanless heatsink, a 9 V to 36 V power input range. The SRG-IMX8PL Mini PC also features enhanced shock, drop, and vibration resistance. Dual LAN ports with IEEE 1588 and TSN capabilities, alongside Wi-Fi and 4G module support via M.2 2230 E-Key and full-size mini card, provide each device with broad connectivity options for industrial IoT use. Additionally, both the PICO-IMX8PL and SRG-IMX8PL support a wide range of operating systems, including Debian 11, Android 13, Windows 10 IoT, and Yocto, as well as data communication protocols such as Modbus, MQTT, and OPC Unified Architecture (OPC UA).

The PC (desktops, notebooks, and workstations) market in Mainland China is forecast to contract by 1% in 2024 according to the latest Canalys data. The first quarter of the year already saw a sharp decline, with shipments down 12%, in contrast to the global market which returned to growth. Desktop shipments are expected to perform well in 2024, growing 10% annually as they benefit from commercial sector refresh demand, especially from large state-held enterprises and local governments. Notebook shipments are set to drop 5%, as demand from consumers and the private sector is anticipated to remain cautious on short-term expenditure such as PCs.

China's PC market trajectory is diverging from global trends in its recovery journey. In Q1 2024, the commercial sector bore the brunt of the market downturn, undergoing a 19% decline due to weak IT spending by large enterprises. The decline in consumer shipments was milder, with shipments dropping 8%. However, despite the muted performance in 2024, significant local developments point to a stronger market in 2025, in which PC shipments are expected to grow 12%.

Beijing has doubled down on its push for semiconductor self-sufficiency with the establishment of a new $47.5 billion investment fund to accelerate growth in the domestic chip sector. The fund, officially registered on May 24th under the name "China Integrated Circuit Industry Investment Fund Phase III", represents the largest of three state-backed vehicles aimed at cultivating China's semiconductor capabilities. The announcement comes as tensions over advanced chip technology continue to escalate between the U.S. and China. Over the past couple years, Washington has steadily ratcheted up export controls on semiconductors to Beijing over national security concerns about potential military applications. These measures have lent new urgency to China's quest for self-sufficiency in chip design and manufacturing.

With a war chest of 344 billion yuan ($47.5 billion), the "Big Fund" dwarfs the combined capital of the first two semiconductor investment vehicles launched in 2014 and 2019. Officials have outlined a multipronged strategy targeting key bottlenecks, focusing on equipment for chip fabrication plants. The fund has bankrolled major projects such as flash memory maker Yangtze Memory Technologies and leading foundries like SMIC and Huahong. China's homegrown chip industry still needs to catch up to global leaders like Intel, Samsung, and TSMC. However, the immense scale of state-directed capital illustrates Beijing's unwavering commitment to developing a self-reliant supply chain for semiconductors—a technology viewed as indispensable for economic and military competitiveness. News of the "Big Fund" sent Chinese chip stocks surging over 3% on hopes of fresh financing tailwinds.

Epic Games, the developer behind the battle royale game Fortnite, has been slapped with a hefty fine of €1.1 million for violating EU consumer laws and pressuring youngsters into making in-game purchases. This decision was made by the Dutch Authority for Consumers and Markets (ACM) following an investigation into the company's practices. The ACM found that Epic Games had failed to provide clear information about the nature of its in-game purchases, particularly to children. This lack of transparency led to many young players making unintended purchases, which was a clear violation of EU consumer protection laws. The authority also noted that Epic Games' practices were designed to encourage children to make frequent purchases, which further deepens the issue. Netherlands' ACM claims that these were "dark patterns" which are prohibited in the EU. More specifically, these were "Get it now" or "Buy now" phrases that pushed youngsters into making choices. One fine is for illegal aggressive commercial practice that created fear of missing out (FOMO), which is calculated at €562,500. Another €562,500 is fined on countdown timers, which were used in the Item Shop for items that were still available even after the timer had reached zero. This totals €1.125 million.

In response to the fine, Epic Games has announced its intention to appeal the decision. This fine serves as a significant reminder to game developers of the importance of transparency and consumer protection in the gaming industry. As the popularity of online gaming continues to grow, companies must prioritize the well-being and financial security of their young players. The ACM's decision sends a strong message that such practices will not be tolerated and that companies must take responsibility for their actions. The fine is significant, and it will be interesting to see how Epic Games responds to the decision. In a statement for GameIndustry.biz, Epic Games has noted that "The findings in the ACM's decision contain significant factual errors about how Fortnite and the Item Shop operate. The ACM is mandating changes that would result in a poor experience for players. We will appeal this decision. While our appeal is pending, players in the Netherlands that are under the age of 18 will not be able to see or purchase items that are in the shop for less than 48 hours, beginning May 24, 2024."

Samsung Electronics Co., Ltd., the world leader in advanced memory technology, today announced that it has begun mass production for its one-terabit (Tb) triple-level cell (TLC) 9th-generation vertical NAND (V-NAND), solidifying its leadership in the NAND flash market.

"We are excited to deliver the industry's first 9th-gen V-NAND, which will bring future applications leaps forward. In order to address the evolving needs for NAND flash solutions, Samsung has pushed the boundaries in cell architecture and operational scheme for our next-generation product," said SungHoi Hur, Head of Flash Product & Technology at Samsung Electronics. "Through our latest V-NAND, Samsung will continue to set the trend for the high-performance, high-density solid state drive (SSD) market that meets the needs for the coming AI generation."

On March 29th, the United States announced another round of updates to its export controls, targeting advanced computing, supercomputers, semiconductor end-uses, and semiconductor manufacturing products. These new regulations, which took effect on April 4th, are designed to prevent certain countries and businesses from circumventing U.S. restrictions to access sensitive chip technologies and equipment. Despite these tighter controls, TrendForce believes the practical impact on the industry will be minimal.

The latest updates aim to refine the language and parameters of previous regulations, tightening the criteria for exports to Macau and D:5 countries (China, North Korea, Russia, Iran, etc.). They require a detailed examination of all technology products' Total Processing Performance (TPP) and Performance Density (PD). If a product exceeds certain computing power thresholds, it must undergo a case-by-case review. Nevertheless, a new provision, Advanced Computing Authorized (ACA), allows for specific exports and re-exports among selected countries, including the transshipment of particular products between Macau and D:5 countries.

Altair, a global leader in computational intelligence, announced the upcoming release of Altair SimSolid for electronics, bringing game-changing fast, easy, and precise multi-physics scenario exploration for electronics, from chips, PCBs, and ICs to full system design. "As the electronics industry pushes the boundaries of complexity and miniaturization, engineers have struggled with simulations that often compromise on detail for expediency. Altair SimSolid will empower engineers to capture the intricate complexities of PCBs and ICs without simplification," said James R. Scapa, founder and chief executive officer, Altair. "Traditional simulation methods often require approximations when analyzing PCB structures due to their complexity. Altair SimSolid eliminates these approximations to run more accurate simulations for complex problems with vast dimensional disparities."

Altair SimSolid has revolutionized conventional analysis in its ability to accurately predict complex structural problems with blazing-fast speed while eliminating the complexity of laborious hours of modeling. It eliminates geometry simplification and meshing, the two most time-consuming and expertise-intensive tasks done in traditional finite element analysis. As a result, it delivers results in seconds to minutes—up to 25x faster than traditional finite element solvers—and effortlessly handles complex assemblies. Having experienced fast adoption in the aerospace and automotive industries, two sectors that typically experience challenges associated with massive structures, Altair SimSolid is poised to play a significant role in the electronics market. The initial release, expected in Q2 2024, will support structural and thermal analysis for PCBs and ICs with full electromagnetics analysis coming in a future release.

The third quarter of 2023 witnessed suppliers dramatically cutting production, which underpinned enterprise SSD prices. The fourth quarter saw a resurgence in contract prices, driven by robust buying activity and heightened demand from server brands and buoyed by optimistic capital expenditure forecasts for 2024. This, combined with increased demand from various end products entering their peak sales period and ongoing reductions in OEM NAND Flash inventories, resulted in some capacity shortages. Consequently, fourth-quarter enterprise SSD prices surged by over 15%. TrendForce highlights that this surge in demand and prices led to a 47.6% QoQ increase in enterprise SSD industry revenues in 4Q23, reaching approximately $23.1 billion.

The stage is set for continued fervor as we settle into the new year and momentum from server brand orders continues to heat up—particularly from Chinese clients. On the supply side, falling inventory levels and efforts to exit loss-making positions have prompted enterprise SSD prices to climb, with contract prices expected to increase by over 25%. This is anticipated to fuel a 20% revenue growth in Q1.

Western Digital Corp. ("Western Digital" or "the Company") today provided an update on its previously announced plan to separate into two independent, publicly traded companies. On track for the second half of calendar year 2024, significant progress towards the completion of the separation is underway with key transactional projects including global legal entity establishment, customer and supplier contract transfers, final stage preparation for government filings, and initial executive leadership appointments for both HDD and Flash companies post-separation.

Announced on October 30, 2023, Western Digital plans to separate its HDD and Flash businesses, creating two independent, public companies with market-specific, strategic focus. The company's separation will better position each franchise to execute innovative technology and product development, capitalize on unique growth opportunities, extend respective market leadership positions, and operate more efficiently with distinct capital structures.

TrendForce reports a 29.6% QoQ in DRAM industry revenue for 4Q23, reaching US$17.46 billion, propelled by revitalized stockpiling efforts and strategic production control by leading manufacturers. Looking ahead to 1Q24, the intent to further enhance profitability is evident, with a projected near 20% increase in DRAM contract prices—albeit with a slight decrease in shipment volumes to the traditional off-season.

Samsung led the pack with the highest revenue growth among the top manufacturers in Q4 as it jumped 50% QoQ to hit $7.95 billion, largely due to a surge in 1alpha nm DDR5 shipments, boosting server DRAM shipments by over 60%. SK hynix saw a modest 1-3% rise in shipment volumes but benefited from the pricing advantage of HBM and DDR5, especially from high-density server DRAM modules, leading to a 17-19% increase in ASP and a 20.2% rise in revenue to $5.56 billion. Micron witnessed growth in both volume and price, with a 4-6% increase in each, resulting in a more moderate revenue growth of 8.9%, totaling $3.35 billion for the quarter due to its comparatively lower share of DDR5 and HBM.

Edged Energy, a subsidiary of Endeavour devoted to carbon neutral data center infrastructure, announced today the launch of its first four U.S. data centers, all designed for today's high-density AI workloads and equipped with advanced waterless cooling and ultra-efficient energy systems. The facilities will bring more than 300 MW of critical capacity with an industry-leading average Power Usage Effectiveness (PUE) of 1.15 portfolio-wide. Edged has nearly a dozen new data centers operating or under construction across Europe and North America and a gigawatt-scale project pipeline.

The first phase of this U.S. expansion includes a 168 MW campus in Atlanta, a 96 MW campus in the Chicago area, 36 MW in Phoenix and 24 MW in Kansas City. At a time of growing water scarcity where rivers, aquifers and watersheds are at dangerously low levels, it is more critical than ever that IT infrastructure conserve precious water resources. The new Edged facilities are expected to save more than 1.2 billion gallons of water each year compared to conventional data centers. "The rise of AI and machine learning is requiring more power, and often more water, to cool outdated servers. While traditional data centers struggle to adapt, Edged facilities are ready for the advanced computing of today and tomorrow without consuming any water for cooling," said Bryant Farland, Chief Executive Officer for Edged. "Sustainability is at the core of our platform. It is why our data centers are uniquely optimized for energy efficiency and water conservation. We are excited to be partnering with local communities to bring future-proof solutions to a growing digital economy."

According to Financial Times, a regional court in Düsseldorf, Germany, created a significant setback for Intel on Wednesday, issuing an injunction prohibiting sales of some of its processors due to allegations they infringe on a patent held by R2 Semiconductor. R2, a technology firm based in Palo Alto, California, accused Intel of violating its patent related to processor voltage regulation. The ruling applies to Intel's 10th, 11th, and 12th generation Core processors, known as Ice Lake, Tiger Lake, and Alder Lake, as well as its Ice Lake Xeon server SKUs. Newer processors generations (13th, 14th, etc.) don't infringe the patent. Even though Intel noted that it plans to appeal the decision, the ramifications could extend beyond the company itself. Industry experts warn the court order could lead to a sweeping ban on products containing the disputed Intel chips, including laptops and pre-built PCs from major manufacturers like HP and Dell. R2 has waged an ongoing legal fight across multiple jurisdictions to defend its intellectual property.

After initially filing suit against Intel in the United States, R2 shifted its efforts to Germany and other European countries after its patent was invalidated stateside. Intel strongly denied R2's patent infringement claims, alleging the company's entire business model relies on extracting legal settlements through serial litigation. Intel believes the injunction serves only R2's financial interests while harming consumers, businesses, and the economy. The two firms traded barbs in official statements about the case. R2's CEO, David Fisher, rebuffed Intel's characterization of his company, saying it has only targeted Intel for infringement of its clear IP rights. As the war of words continues, the practical impact of the German court's decision remains uncertain, pending Intel's appeal. However, the preliminary injunction demonstrates the massive financial consequences at stake in battles over technological patents.

Yesterday, the U.S. Department of Commerce publicly announced two new notices of intent—as reported by Tom's Hardware, this involves the latest distributions from the CHIPS Act's $11 billion R&D budget: "$300 million is to be made available across multiple awards of up to $100 million (not including voluntary co-investment) for research on advanced packaging, while another $200 million (or more) is set aside to create the CHIPS Manufacturing USA Institute. Companies will have to compete for the funds by filing an application." The Act's primary $39 billion tranche is designated to new construction endeavors, e.g. the founding of manufacturing facilities.

A grand total of $52 billion was set aside for the CHIPS Act in 2022, which immediately attracted the attention of several semiconductor industry giants. Companies with headquarters outside of North America were allowed to send in applications. Last year, Intel CEO Pat Gelsinger, made some controversial statements regarding his company's worthiness of government funding. In his opinion, Team Blue is due the "lion's share" due to his operation being a USA firm—the likes of TSMC and Samsung are far less deserving of subsidies.

Today, The Khronos Group, an open consortium of industry-leading companies creating advanced interoperability standards, announced the latest roadmap milestone for Vulkan, the cross-platform 3D graphics and compute API. The Vulkan roadmap targets the "immersive graphics" market, made up of mid- to high-end smartphones, tablets, laptops, consoles, and desktop devices. The Vulkan Roadmap 2024 milestone captures a set of capabilities that are expected to be supported in new products for that market, beginning in 2024. The roadmap specification provides a significant increase in functionality for the targeted devices and sets the evolutionary direction of the API, including both new hardware capabilities and improvements to the programming model for Vulkan developers.

Vulkan Roadmap 2024 is the second milestone release on the Vulkan Roadmap. Products that support it must be Vulkan 1.3 conformant and support the extensions and capabilities defined in both the 2022 and 2024 Roadmap specifications. Vulkan roadmap specifications use the Vulkan Profile mechanism to help developers build portable Vulkan applications; roadmap requirements are expressed in machine-readable JSON files, and tooling in the Vulkan SDK auto-generates code that makes it easy for developers to query for and enable profile support in their applications.

Kenichiro Yoshida—Sony Group Corporation Chairman, President And CEO—appeared as a guest on Norges Bank Investment Management's Good Company videocast late last year. News outlets have sluggishly picked up on some interesting tidbits from the November 2023 interview—the Sony boss has discussed his gaming division's ambitions in the recent past, but (host) Nicolai Tangen managed to pry out a clearer picture of PlayStation's ambitions for the future. Yoshida-san has an all-encompassing vision for the brand: "In short, it will be ubiquitous wherever there is computing users will be able to play their favorite games seamlessly, gamers will be able to find a place to play in different spaces, while PlayStation will remain our core product, we will expand our gaming experiences to PC, Mobile and Cloud." Gamers on the PC platform have to wait roughly two to three years for PlayStation exclusive titles to breakaway from home consoles origins—it is encouraging to hear that a greater number of conversions could be in the pipeline (with shorter lead times...hopefully).

The discussion moved onto game subscription services—a hotbed talking point as of late—Yoshida seemed to be happy with his company's normal mode of operation: "Well, we do subscription business model. At the same time, people usually play one game at the time, so an all-you-can-eat type of many games may not be so valuable compared with video streaming services. We have kind of balanced a hybrid service on PlayStation Network: subscription as well as paid content." Microsoft is a market leader with its Xbox and PC Game Pass services, now bolstered with a takeover of Activision Blizzard—the Sony CEO remained calm regarding his firm's main rival: "Healthy competition is necessary for the Games Industry to grow and at Sony we believe it is important to provide gamers with different options to play so we will continue our efforts to achieve this."

An anonymous industry source has divulged a grim set of near-future circumstances to Tom's Hardware—they believe that "NAND packages consisting of four and eight NAND devices are already in short supply," thus causing an expected "skyrocketing" of prices within higher-capacity consumer SSD product lines. This sharp climb could happen within the first quarter of 2024, and the article outlines early warning signs—"price upticks are starting to show in retail already" as documented in graphs generated by CamelCamelCamel for a sampling consisting of three 2 TB NVMe models (Samsung 990 Pro, CORSAIR MP600 PRO LPX & Team Group MP44). Their analysis of this situation continued: "A single-sided SSD in an M.2-2280 form factor can carry four 3D NAND packages. Modern 2 TB and 4 TB drives in this form factor tend to use packages consisting of four or eight 3D NAND devices to ensure high performance. There is already a shortage of these packages today as SSD makers are struggling to find adequate supply."

Late summer going into the autumn of 2023 presented a great time to pick up SSD bargains, since manufacturers had flooded the market with far too much stock (following an oversupply of NAND units). The unnamed source believes that it could take two to three months for early 2024 NAND shortages to cause large ripple effects within consumer and enterprise markets. A January 9-dated TrendForce report proposes that NAND Flash contract prices are set to rise by 15 to 20% in Q1Y24, although Tom's Hardware reckons that this "acceptance of new rates is more likely among notebook makers." TrendForce anticipates enterprise SSD contract pricing to increase by roughly 18% - 23% within the first quarter of 2024.

Global semiconductor capacity is expected to increase 6.4% in 2024 to top the 30 million *wafers per month (wpm) mark for the first time after rising 5.5% to 29.6 wpm in 2023, SEMI announced today in its latest quarterly World Fab Forecast report.

The 2024 growth will be driven by capacity increases in leading-edge logic and foundry, applications including generative AI and high-performance computing (HPC), and the recovery in end-demand for chips. The capacity expansion slowed in 2023 due to softening semiconductor market demand and the resulting inventory correction.

Realizing the full potential of next-generation deep learning requires highly efficient AI infrastructure. For a computing platform to be scalable and cost efficient, optimizing every layer of the AI stack, from algorithms to hardware, is essential. Advances in narrow-precision AI data formats and associated optimized algorithms have been pivotal to this journey, allowing the industry to transition from traditional 32-bit floating point precision to presently only 8 bits of precision (i.e. OCP FP8).

Narrower formats allow silicon to execute more efficient AI calculations per clock cycle, which accelerates model training and inference times. AI models take up less space, which means they require fewer data fetches from memory, and can run with better performance and efficiency. Additionally, fewer bit transfers reduces data movement over the interconnect, which can enhance application performance or cut network costs.

In an event at the White House today, NVIDIA announced support for voluntary commitments that the Biden Administration developed to ensure advanced AI systems are safe, secure and trustworthy. The news came the same day NVIDIA's chief scientist, Bill Dally, testified before a U.S. Senate subcommittee seeking input on potential legislation covering generative AI. Separately, NVIDIA founder and CEO Jensen Huang will join other industry leaders in a closed-door meeting on AI Wednesday with the full Senate.

Seven companies including Adobe, IBM, Palantir and Salesforce joined NVIDIA in supporting the eight agreements the Biden-Harris administration released in July with support from Amazon, Anthropic, Google, Inflection, Meta, Microsoft and OpenAI.

IBM has announced the expansion of the their Cloud Security and Compliance Center, a suite of modernized cloud security and compliance solutions designed to help enterprises mitigate risk and protect data across their hybrid, multicloud environments and workloads. As clients look for ways to address new threats across the supply chain and manage evolving global regulations, the solution suite helps to support their resiliency, performance, security, and compliance needs while helping to minimize operational costs.

"IBM Cloud has a long history of working with clients in financial services and other highly regulated industries, especially when it comes to helping them to drive innovation while protecting their sensitive data," said Rohit Badlaney, General Manager, IBM Cloud Product and Industry Platform. "The expansion of the IBM Cloud Security and Compliance Center demonstrates our continued focus on industry-specific capabilities that help address real world business challenges for our clients. For example, clients have the ability to utilize the IBM Cloud Framework for Financial Services, which can help them address evolving rules, laws and regulations surrounding cloud risk. The new capabilities showcase our commitment to supporting clients on their hybrid cloud modernization journeys, designed for security, compliance, privacy, and trust at the forefront of our product roadmap."

With sequential IC sales declines beginning to moderate, the global semiconductor industry appears to be nearing the end of a downcycle and is expected to begin to recover in 2024, SEMI, in partnership with TechInsights, reported in the Semiconductor Manufacturing Monitor. In Q3 2023, electronics sales are projected to post healthy quarter-on-quarter growth of 10%, while memory IC sales are expected to log double-digit growth for the first time since the downturn started in Q3 2022. Logic IC sales are predicted to remain stable and improve as demand gradually recovers.

Headwinds will continue for the semiconductor manufacturing sector in the second half of the year, SEMI and TechInsights reported. Drawdowns of high inventory at integrated device manufacturer (IDM) and fabless companies will continue to suppress fab utilization rates to much lower levels than those in the first half of 2023. The weakness is projected to extend declines in capital equipment billings and silicon shipments for the rest of the year despite stable results in the first half of 2023.

The Council has today approved the regulation to strengthen Europe's semiconductor ecosystem, better known as the 'Chips Act'. This is the last step in the decision-making procedure. The Chips Act aims to create the conditions for the development of a European industrial base in the field of semiconductors, attract investment, promote research and innovation and prepare Europe for any future chip supply crisis. The programme should mobilise €43 billion in public and private investment (€3.3 billion from the EU budget), with the objective of doubling the EU's global market share in semiconductors, from 10% now to at least 20% by 2030.

With the Chips Act, Europe will be a frontrunner in the world semiconductors race. We can already see it in action: new production plants, new investments, new research projects. And in the long run, this will also contribute to the renaissance of our industry and the reduction of our foreign dependencies. - Héctor Gómez Hernández, Spanish Minister for Industry, Trade and Tourism