News Posts matching #Semiconductor

Return to Keyword Browsing

Samsung Reaches Key Milestone at New Semiconductor R&D Complex

Samsung Electronics Co., Ltd. today announced that it held a tool-in ceremony for its new semiconductor research and development complex (NRD-K) at its Giheung campus, marking a significant leap into the future. About 100 guests, including those from suppliers and customers, were in attendance to celebrate the milestone. As a state-of-the-art facility, NRD-K broke ground in 2022 and is set to become a key research base for Samsung's memory, system LSI and foundry semiconductor R&D. With its advanced infrastructure, research and product-level verification will be able to take place under one roof. Samsung plans to invest about KRW 20 trillion by 2030 for the complex in an area covering about 109,000 square meters (m²) within its Giheung campus. The complex will also include an R&D-dedicated line scheduled to begin operation in mid-2025.

"NRD-K will bolster our development speed, enabling the company to create a virtuous cycle to accelerate fundamental research on next generation technology and mass production. We will lay the foundation for a new leap forward in Giheung, where Samsung Electronics' 50-year history of semiconductors began, and create a new future for the next 100 years," said Young Hyun Jun, Vice Chairman and Head of the Device Solutions Division at Samsung Electronics.

Worldwide Silicon Wafer Shipments Increase 6% in Q3 2024, SEMI Reports

Worldwide silicon wafer shipments increased 5.9% quarter-over-quarter to 3,214 million square inches (MSI) in the third quarter of 2024 and registered 6.8% growth from the 3,010 million square inches recorded during the same quarter last year, the SEMI Silicon Manufacturers Group (SMG) reported in its quarterly analysis of the silicon wafer industry.

"The third quarter wafer shipment results continued the upward trend which started in the second quarter of this year," said Lee Chungwei (李崇偉), Chairman of SEMI SMG and Vice President and Chief Auditor at GlobalWafers. "Inventory levels have declined throughout the supply chain but generally remain high. Demand for advanced wafers used for AI continues to be strong. However, the silicon wafer demand for automotive and industrial uses continues to be muted, while the demand for silicon used for handset and other consumer products has seen some areas of improvement. As a result, 2025 is likely to continue upward trends, but total shipments are not yet expected to return to the peak levels of 2022."

TSMC Can't Legally Make 2 nm Chips in the US Yet, Latest Nodes Must Remain in Taiwan

Even with billions of US dollars being invested overseas, TSMC cannot legally manufacture its most advanced nodes outside of Taiwan. According to Taiwan's Minister of Economic Affairs J.W. Kuo, "Since Taiwan has regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently." He added, "Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan." This provides crucial insight into TSMC's strategic positioning, both in its US expansion plans and in navigating global geopolitical waters, especially with Taiwan being the major hub of silicon innovation. Taiwan's semiconductor industry follows strict regulations regarding overseas production capabilities, requiring companies to maintain their most advanced manufacturing processes within Taiwan.

The company's international expansion strategy includes significant developments in the United States. TSMC's Arizona facilities are central to these plans, with multiple fabs in different stages of development. The initial Arizona facility will begin producing 4 nm chips imminently, while a second facility, scheduled to open in 2028, will manufacture then mature 3 nm and 2 nm chips. A third planned facility aims to produce 2 nm or more sophisticated chips. Meanwhile, Taiwan-based facilities will produce more advanced chips at the same time, with volume production of A-16 chips planned for late 2026, following the rollout of 2 nm chip production in 2025. Furthermore, Taiwan-US semiconductor cooperation will continue regardless of political changes. Taiwan Semiconductor Industry Association (TSIA) Chairman and TSMC Senior Vice President Cliff Hou noted that historical evidence suggests US electoral outcomes have not significantly impacted this technological partnership, though some adjustments may occur.

SMIC Reports 2024 Third Quarter Results

Semiconductor Manufacturing International Corporation (SMIC), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended September 30, 2024.

Third Quarter 2024 Highlights
  • Revenue was $2,171.2 million in 3Q24, compared to $1,901.3 million in 2Q24, and $1,620.6 million in 3Q23.
  • Gross profit was $444.2 million in 3Q24, compared to $265.1 million in 2Q24, and $321.6 million in 3Q23.
  • Gross margin was 20.5% in 3Q24, compared to 13.9% in 2Q24 and 19.8% in 3Q23.

Intel Magdeburg Factory Postponed to 2029/2030, Billions in State Subsidies Could Get Redistributed

Intel's ambitious fab expansion plans, which are currently facing a temporary halt, are of significant importance. The German government, as reported by HardwareLuxx, is now considering redirecting €10 billion from the Climate and Transformation Fund (KTF) initially allocated to Intel, potentially returning these subsidies to the federal budget. The pause on Intel's investment to 2029-2030 (according to Tom's Hardware) not only threatens Germany's hopes of becoming one of semiconductor industry leaders but has also sparked debate over the intended use of this substantial financial support. Given the rise of geopolitical tensions, the urgency and significance of the German semiconductor industry in the current economic landscape cannot be overstated. The potential negative impact of the halt on Intel's investment is a cause for concern and engagement.

Finance Minister Christian Lindner has proposed that the funds be reallocated to address other economic needs, emphasizing fiscal responsibility amid current challenges. In contrast, Economic Affairs Minister Robert Habeck, whose department manages the KTF, opposes this reallocation, arguing that the fund should continue to support long-term economic growth and environmental initiatives. This disagreement between Lindner and Habeck illustrates the competing priorities within the government over the best use of public funds in uncertain economic times. The urgency of resolving this impasse is clear, as it will require navigating these tricky political waters while weighing the strategic importance of securing significant semiconductor investments in Germany. If Intel continues its Magdeburg expansion by the end of this decade, the terms for state subsidies might be changed. However, that is something to worry about in the distant future, as the blue giant has the priority of getting its financials back in line first.

GlobalFoundries Faces $500,000 Sanction Fine, Risking Its $1.5 Billion in CHIPS Act Funding

GlobalFoundries faces a $500,000 fine from the US Commerce Department for breaching export controls by shipping $17.1 million worth of chips to SJ Semiconductor (SJS), a blacklisted Chinese firm affiliated with Semiconductor Manufacturing International Corporation (SMIC). The company made 74 unauthorized shipments between February 2021 and October 2022, delivering nearly 5,700 wafers. The chipmaker attributed the violation to a data entry error in its Oracle trade management system, where SJS was incorrectly recorded under a direct customer's shipping details. While SJS had previously handled GlobalFoundries' chips as a third-party assembly provider, both SJS and SMIC were placed on the Entity List in 2020 due to suspected military ties.

GlobalFoundries received a significantly reduced fine due to its voluntary disclosure and cooperation avoiding a potential fine of up to $34.2 million. "GlobalFoundries' voluntary self-disclosure (VSD) and extensive cooperation throughout the investigation resulted in a significant reduction in the monetary penalty, which is the main incentive of our VSD policies," said John Sonderman, director of the Office of Export Enforcement (OEE) within the Commerce Department. The incident comes as the company anticipates $1.5 billion in CHIPS Act funding for manufacturing expansion. For comparison, the department previously fined Seagate $300 million in April 2023 for shipping $1.1 billion worth of drives to Huawei.

US Targets ASML With $1B Lithography Center in Albany, New York

Today, the Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced the expected location for the first CHIPS for America research and development (R&D) flagship facility. The CHIPS for America Extreme Ultraviolet (EUV) Accelerator, an NSTC facility (EUV Accelerator), is expected to operate within NY CREATES' Albany NanoTech Complex in Albany, New York, supported by a proposed federal investment of an estimated $825 million. The EUV Accelerator will focus on advancing state of the art EUV technology and the R&D that relies on it.

As a key part of President Biden's Investing in America agenda, CHIPS for America is driven by the growing need to bolster the U.S. semiconductor supply chain, accelerate U.S. leading-edge R&D, and create good quality jobs around the country. This proposed facility will bring together NSTC members from across the ecosystem to accelerate semiconductor R&D and innovation by providing NSTC members access to technologies, capabilities, and critical resources.

Infineon Unveils the World's Thinnest Silicon Power Wafer

After announcing the world's first 300-millimeter gallium nitride (GaN) power wafer and opening the world's largest 200-millimeter silicon carbide (SiC) power fab in Kulim, Malaysia, Infineon Technologies AG has unveiled the next milestone in semiconductor manufacturing technology. Infineon has reached a breakthrough in handling and processing the thinnest silicon power wafers ever manufactured, with a thickness of only 20 micrometers and a diameter of 300 millimeters, in a high-scale semiconductor fab. The ultra-thin silicon wafers are only a quarter as thick as a human hair and half as thick as current state-of-the-art wafers of 40-60 micrometers.

"The world's thinnest silicon wafer is proof of our dedication to deliver outstanding customer value by pushing the technical boundaries of power semiconductor technology," said Jochen Hanebeck, CEO at Infineon Technologies. "Infineon's breakthrough in ultra-thin wafer technology marks a significant step forward in energy-efficient power solutions and helps us leverage the full potential of the global trends decarbonization and digitalization. With this technological masterpiece, we are solidifying our position as the industry's innovation leader by mastering all three relevant semiconductor materials: Si, SiC and GaN."

Kioxia to Unveil Emerging Memory Technologies at IEDM 2024

Kioxia Corporation, a world leader in memory solutions, today announced that the company's research papers have been accepted for presentation at IEEE International Electron Devices Meeting (IEDM) 2024, a prestigious international conference to be held in San Francisco, USA, from December 7th to 11th.

Kioxia is committed to the research and development of semiconductor memory, which is indispensable for the advancement of AI and the digital transformation of society. Beyond its state-of-the-art three-dimensional (3D) flash memory technology BiCS FLASH, Kioxia excels at research in emerging memory solutions. The company is constantly striving to meet the needs for future computing and storage systems with innovative memory products.

Realtek Showcasing Highly Integrated 2.5G Ethernet Switch Solution and Complete xPON Broadband Solutions at Network X 2024

Realtek Semiconductor will participate in Network X 2024 (October 08~10, 2024), an event being held in Paris, France, that will bring together over five thousand people from all over the world to include senior network infrastructure and service professionals from telcos, leading vendors, industry bodies, governments, analysts, and media to showcase the latest trending products, solutions, and services. Realtek will exhibit its highly integrated 2.5G Ethernet switch solutions and complete xPON broadband solutions to meet various bandwidth application needs.

Highly Integrated 2.5G Ethernet Switch Solution
With breakthroughs in large language model technology, generative AI has ushered in a new era of AI applications. The demand for AI applications is no longer confined to high-end cloud applications but has extended from the cloud to edge computing and is becoming increasingly widespread. Consequently, the high bandwidth requirements at the edge have become more critical. Currently, edge network speeds commonly use 1GbE. To address the growing bandwidth demands of AI applications, Realtek has developed a 2.5G Ethernet switch solution that integrates various technologies to provide 2.5GbE downstream bandwidth and 10GbE upstream bandwidth. This solution is designed to support future AI-enabled endpoint devices, such as AI PCs and AI notebooks, to meet their high bandwidth needs. Additionally, this 2.5G Ethernet switch solution can be used in Wi-Fi 6 and Wi-Fi 7 wireless routers, supporting high bandwidth applications to meet user demands for high bandwidth at the edge in AI applications.

US Government to Allow Some Semiconductor Fabs to Circumvent Environmental Laws

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.

Corning Unveils EXTREME ULE Glass to Enable Next Generation of Microchips

Corning Incorporated, one of the world's leading innovators in glass, ceramic, and materials science, today unveiled Corning EXTREME ULE Glass, a next-generation material that will support chip manufacturers in meeting the rapidly growing demand for advanced and intelligent technologies. The new material will help chipmakers improve photomasks - the stencils for chip design - which are critical for the mass production of today's most advanced and cost-efficient microchips.

Corning designed EXTREME ULE Glass to withstand the highest intensity extreme ultraviolet (EUV) lithography, including high numerical aperture (High NA) EUV, which is rapidly becoming an industry standard. EUV lithography allows manufacturers to use the most advanced photomasks to pattern and print the smallest, most complex chip designs. This process requires extreme thermal stability and a uniform glass material to help ensure consistent manufacturing performance.

Canon Delivers FPA -1200NZ2C Nanoimprint Lithography System for Semiconductor Manufacturing to the Texas Institute for Electronics

Canon Inc. announced today that it will ship its most advanced lithography platform, the FPA-1200NZ2C nanoimprint lithography (NIL) system for semiconductor manufacturing, to the Texas Institute for Electronics (TIE), a Texas-based semiconductor consortium. Canon became the first in the world to commercialize a semiconductor manufacturing system that uses NIL technology, which forms circuit patterns in a different method from conventional projection exposure technology, when it released the FPA-1200NZ2C on October 13, 2023.

In contrast to conventional photolithography equipment, which transfers a circuit pattern by projecting it onto the resist coated wafer, the new product does it by pressing a mask imprinted with the circuit pattern into the resist on the wafer like a stamp. Because its circuit pattern transfer process does not go through an optical mechanism, fine circuit patterns on the mask can be faithfully reproduced on the wafer. With reduced power consumption and cost, the new system enables patterning with a minimum linewidth of 14 nm, equivalent to the 5 nm node that is required to produce most advanced logic semiconductors currently available.

Sony Semiconductor Solutions to Release 0.44-Type Full HD OLED Microdisplay

Sony Semiconductor Solutions Corporation (SSS) today announced the upcoming release of the ECX350F, a 0.44-type Full HD resolution OLED Microdisplay that combines the industry's smallest 5.1 µm pixels (approximately 5,000 ppi) with the industry's highest brightness of up to 10,000 cd/m².

The ECX350F is an OLED Microdisplay designed for use in augmented reality (AR) glasses, an application which demands a thin, lightweight form factor without compromising visibility. Adopting a novel OLED structure and microlenses, the microdisplay enhances pixel light emission despite its diminutive size. This innovation allows for Full HD resolution within a compact 0.44-inch panel while delivering a peak brightness of 10,000 cd/m² — approximately double that of the conventional model. This new product represents a breakthrough that addresses the longstanding challenge of delivering high brightness with small pixels.

TSMC and Samsung Consider Building $100 Billion Semiconductor Facilities in Middle East

TSMC and Samsung are reportedly in talks with the United Arab Emirates (UAE) to establish chip factories in the Gulf nation. As reported by the Wall Street Journal, this "desert dream" aligns with the UAE's ambitious plans to diversify its economy beyond oil and become a key player in the AI sector by building chips for AI domestically. The UAE and neighboring Saudi Arabia plan to leverage their oil wealth to invest in cutting-edge manufacturing, with AI emerging as a primary focus due to its high computational demands. Successful implementation of chip factories could significantly boost the region's AI capabilities and impact the global semiconductor supply chain. However, the project faces substantial challenges. Previous attempts to establish semiconductor manufacturing in the Gulf, such as the GlobalFoundries initiative over a decade ago, have yet to progress beyond initial planning.

The current proposal faces even greater obstacles, with estimated costs exceeding $100 billion for a state-of-the-art facility and necessary infrastructure. Geopolitical concerns add another layer of complexity. Recent US export restrictions of certain chips to the Gulf region may complicate the transfer of advanced manufacturing processes to the UAE. Despite these hurdles, the potential benefits are significant. For the UAE, success would represent a major step towards economic diversification and technological leadership. TSMC and Samsung could gain a strategic presence in a region eager for technological advancement. TSMC noted that the company focuses on current expansion projects in the US, Japan, and Germany, while Samsung declined to comment.

TSMC Produces Apple A16 Chips in Arizona Facility, a First on the American Soil

TSMC has reportedly initiated production of Apple's last-generation A16 Bionic processors at its newly constructed Fab 21 in Arizona. This development comes significantly earlier than anticipated, with the facility's full-scale production initially scheduled for 2025. According to insights from industry expert Tim Culpan, the Arizona plant is already churning out a modest but noteworthy quantity of A16 Bionic chips. These processors are being manufactured using TSMC's NP4 4 nm semiconductor node. Culpan also hinted at a substantial increase in production capacity once the second stage of Fab 21's initial phase becomes operational.

This early start serves a critical function for TSMC, allowing the company to calibrate its advanced equipment and refine its manufacturing processes thoroughly. Using the well-established A16 Bionic design, TSMC can ensure its new facility meets the exacting standards required for next-generation semiconductor production. The news aligns with recent industry buzz suggesting that Fab 21 is already achieving yield rates comparable to TSMC's long-established Taiwanese plants—a remarkable feat for a newly launched facility. While current output remains limited, this milestone marks a significant step in TSMC's expansion into US-based chip manufacturing. With more fabs on American soil, companies can push domestic manufacturing and ensure that geopolitics don't hinder the vital supply chain.

Infineon Announces World's First 300 mm Power Gallium Nitride (GaN) Technology

Infineon Technologies AG today announced that the company has succeeded in developing the world's first 300 mm power gallium nitride (GaN) wafer technology. Infineon is the first company in the world to master this groundbreaking technology in an existing and scalable high-volume manufacturing environment. The breakthrough will help substantially drive the market for GaN-based power semiconductors. Chip production on 300 mm wafers is technologically more advanced and significantly more efficient compared to 200 mm wafers, since the bigger wafer diameter offers 2.3 times more chips per wafer.

GaN-based power semiconductors find fast adoption in industrial, automotive, and consumer, computing & communication applications, including power supplies for AI systems, solar inverters, chargers and adapters, and motor-control systems. State-of-the art GaN manufacturing processes lead to improved device performance resulting in benefits in end customers' applications as it enables efficiency performance, smaller size, lighter weight, and lower overall cost. Furthermore, 300 mm manufacturing ensures superior customer supply stability through scalability.

Dutch Semiconductor Export Controls Spark Tension with China, Could Reflect Badly on Cooperation

The Netherlands government announced additional export controls on advanced chipmaking equipment on Friday. This decision, which specifically targets ASML's DUV immersion lithography tools, has drawn sharp criticism from Beijing. The new regulations, aligning with similar restrictions imposed by the US last year, will require additional licensing for the export of ASML's 1970i and 1980i models. China's Commerce Ministry swiftly responded to the announcement, expressing dissatisfaction with what it perceives as unwarranted restrictions on trade. In a statement released Sunday, the ministry accused the United States of leveraging its global influence to pressure allies into tightening export controls, describing it as an attempt to maintain "global hegemony" in the semiconductor industry.

The Chinese government urged the Netherlands to reconsider its position, calling for a balance between security concerns and the preservation of mutually beneficial economic ties. Beijing emphasized the importance of safeguarding the "common interests" of businesses in both countries and warned against potential damage to Sino-Dutch cooperation in the semiconductor sector. Dutch Trade Minister Reinette Klever defended the decision, stating it was made "for our safety." However, this move could have significant implications for ASML, which has already faced restrictions on exporting its most advanced systems to China. ASML receives as much as 49% of its revenue from China, meaning that additional export regulations could significantly reduce revenues if licenses aren't approved.

China Bought More Chipmaking Tools in the First Half of 2024 Than US, Taiwan, and South Korea Combined

According to a recent report from Nikkei, China has claimed the number one spot as the single highest spender on chipmaking tools. As the data from SEMI highlights, China spent a whopping $25 billion on key semiconductor tools in the first half of 2024, more than the US, Taiwan, and South Korea combined. And the train of acceleration for the Chinese semiconductor industry doesn't seem to be slowing down, as the country is expected to spend more than $50 billion for the entire year 2024. However, this equipment is not precisely leading-edge, as Chinese companies are under Western sanctions and are unable to source advanced EUV lithography tools for making sub-7 nm chips.

Most of the spending is allocated to mature node chipmaking facilities. These so-called "second tier" companies are driving the massive expenditures, and they are plentiful. Nikkei reports that there are at least ten firms that operate with mature nodes like 10/12/16 nm nodes. Being the biggest spender, China is also one of the primary revenue sources for many companies. For the US chipmaking tool companies like Applied Materials, Lam Research, and KLA, Chinese purchases accounted for 32%, 39%, and 44% of their latest quarterly revenue, respectively. Tokyo Electron recorded orders to China accounting for 49.9% of its revenues in June, while the Netherlands giant ASML also attributed 49%. Perhaps even more interesting is the expected outlook for 2025, which shows no signs of slowing down. The Chinese semiconductor industry must establish complete self-sufficiency, and massive capital expenditures are expected to continue.

Infineon Resolves 15-Year Qimonda Dispute with €800M Settlement

After nearly 15 years of legal disputes, Infineon Technologies and Qimonda's insolvency administrator have reached a final settlement, with Infineon agreeing to pay €800 million. The conflict centered on the valuation of memory business assets that Infineon spun off in 2006 to create Qimonda, once a global leader in memory chip manufacturing with 13,500 employees worldwide.

Qimonda's journey was short-lived. It debuted on the New York Stock Exchange in August 2006 but filed for insolvency by January 2009. Legal proceedings initiated in 2010 focused on claims that Qimonda's balance sheet was underfunded during the spin-off. The insolvency administrator alleged that the transferred memory business was undervalued, leading to a lawsuit for reimbursement of the share value discrepancy.

Texas Instruments to Receive up to $1.6 billion in CHIPS Act Funding for Semiconductor Manufacturing Facilities in Texas and Utah

Texas Instruments (TI) (Nasdaq: TXN) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300 mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.

"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient," said Haviv Ilan, president and CEO of Texas Instruments. "Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300 mm manufacturing operations in the U.S. With plans to grow our internal manufacturing to more than 95% by 2030, we're building geopolitically dependable, 300 mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come."

Fraunhofer IAF Researchers Work on AlYN, an Energy-Efficient Semiconductor Material

Researchers at Fraunhofer IAF have made a significant advance in semiconductor materials by successfully fabricating aluminum yttrium nitride (AlYN) using metal-organic chemical vapor deposition (MOCVD). AlYN, known for its outstanding properties and compatibility with gallium nitride (GaN), shows great potential for energy-efficient, high-frequency electronics. Previously, AlYN could only be deposited via magnetron sputtering, but this new method opens the door to diverse applications. Dr. Stefano Leone from Fraunhofer IAF highlights AlYN's ability to enhance performance while reducing energy consumption, making it vital for future electronics.

In 2023, the team achieved a 600 nm thick AlYN layer with a record 30% yttrium concentration. They have since developed AlYN/GaN heterostructures with high structural quality and promising electrical properties, particularly for high-frequency applications. These structures demonstrate optimal two-dimensional electron gas (2DEG) properties and are highly suitable for high electron mobility transistors (HEMTs).

Intel Faces Shareholder Lawsuit Amid Financial Turmoil and Layoffs, Company Misled Investors

According to a recent report from Reuters, tech giant Intel is facing a significant legal challenge as shareholders file a lawsuit following a dramatic plunge in the company's stock price. The legal action comes from Intel's recent announcement of dividend suspensions and plans to lay off over 15,000 employees. The semiconductor behemoth saw its market value plummet by a staggering $32 billion in a single day, leaving investors reeling. The Construction Laborers Pension Trust of Greater St. Louis has initiated a proposed class action suit, naming Intel, CEO Pat Gelsinger, and CFO David Zinsner as defendants. The plaintiffs allege that the company made misleading statements about its business operations and manufacturing capabilities, artificially inflating its stock price between January 25 and August 1.

Intel's financial woes stem from underperforming contract foundry operations and 1% drop in revenue during the second quarter of 2024. While it may seem miniscule, declining revenue is paired with a negative 15.3% operating margin, resulting in a net loss of $1.61 billion. The company's August 1 announcement caught many shareholders off guard, prompting accusations of inadequate disclosure and transparency. This lawsuit is just one of several legal battles Intel is currently strangled in. The company is also locked in a patent dispute with R2 Semiconductor across multiple European countries, centering on voltage regulation technology. While Intel has secured a victory in the UK, it faces ongoing litigation in Germany, France, and Italy. Adding to Intel's troubles, a separate class action lawsuit is being explored on behalf of customers who purchased potentially faulty 13th and 14th-generation processors. The company also canceled its September 2024 Innovation event, citing poor financials, without any words on Arrow Lake or Lunar Lake. While the cancelation of events is sad, it is necessary to get financials back on track, and product launches should continue as usual.

Intel Reports Q2-2024 Financial Results; Announces $10 Billion Cost Reduction Plan, Shares Fall 20%+

Intel Corporation today reported second-quarter 2024 financial results. "Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation," said Pat Gelsinger, Intel CEO. "These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value."

"Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity," said David Zinsner, Intel CFO. "By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet. We expect these actions to meaningfully improve liquidity and reduce our debt balance while enabling us to make the right investments to drive long-term value for shareholders."

Renesas Completes Acquisition of Altium for $5.9bn

Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, and Altium Limited ("Altium"), a global leader in electronics design systems, today announced the successful completion of the acquisition of Altium by Renesas. The definitive agreement to acquire Altium was announced on February 15, 2024.

The combination sets the foundation for Renesas and Altium to create an innovative electronics system design and lifecycle management platform. The platform will deliver integration and standardization of various electronic design data and functions and enhanced component lifecycle management, while enabling seamless digital iteration of design processes to increase overall productivity. This brings significantly faster innovation and lowers barriers to entry for system designers by reducing development resources and inefficiencies.
Return to Keyword Browsing
Nov 21st, 2024 03:56 EST change timezone

New Forum Posts

Popular Reviews

Controversial News Posts