Must-Read! Semiconductor Industry Latest News (February 20-26)

The semiconductor industry is constantly evolving, with new technologies and market trends emerging all the time. From advances in AI and machine learning to breakthroughs in quantum computing, the sector is constantly pushing the boundaries of what's possible. Whether you're a chipmaker, a tech enthusiast, or simply interested in the latest trends in business and innovation, read on for our roundup of the top semiconductor news of the week.

ChatGPT Helps Nvidia's Market Value Soar 65% This Year

Shares of Nvidia rose nearly 14 percent to $236.70 on Thursday, according to the report. They are up more than 65% since the start of the year, nearly triple the gain of the Philadelphia Semiconductor Index. Nvidia is the undisputed market leader in AI chips, controlling about 80 percent of the market for graphics processing units (GPUs), specialized chips that provide the computing power needed for services like OpenAI's popular ChatGPT chatbot .

The Nvidia A100, which costs tens of thousands of dollars, has become the "workhorse" of artificial intelligence professionals, and is very suitable for machine learning models that support tools such as ChatGPT, Bing AI, or Stable Diffusion. Additionally, Nvidia says it's working with all major cloud computing providers, including Amazon, Microsoft, and Google, on generating AI tools as well as consumer internet companies and startups.

TSMC Receives Urgent 5nm Orders for Hot AI Chips

According to the Digitimes report, affected by the soaring demand for AI and server platforms, TSMC’s demand for 5nm has recently increased significantly, and the capacity utilization rate in the second quarter may be fully loaded. Urgent orders come from Nvidia, AMD and Apple’s AI and data center platforms.

Murata Closes Two Subsidiaries in Taiwan and Japan

A few days ago, the official website of Murata announced that due to the sluggish demand for smartphones, it closed its overseas subsidiary Huacheng Electronics Co., Ltd. (hereinafter referred to as "Huacheng Electronics") in Taiwan, China on January 31 this year, and will Closed subsidiary COILTEC in Japan on April 30.

In addition, it is reported that Murata plans to invest 15 billion yen in a factory in Ishikawa Prefecture by 2027 to increase production of on-board sensors for autonomous driving as the next pillar of financial growth.

SK hynix Equipment Operations Halted Due to Material Quality Issues

According to Korean media The Elec's report on February 20, during the production of DRAM wafers by SK Hynix this month, several production equipment temporarily shut down due to quality problems with SK trichem's zirconium (Zr)-based high-K materials (also known as precursors). SK Hynix said it immediately cleaned the factory lines, so output was not affected. SK Trichem responded that it expects to complete quality improvement before the end of this month and resume normal supply to SK Hynix.

India's First Fab is Coming!

It was reported on February 23 that the joint venture between Vedanta and Foxconn has finalized the Dholera Special Investment Zone near Ahmedabad, Gujarat State, India, where a fab will be established.

It is reported that this cooperation is the largest corporate investment since India's independent history, and it is also the first semiconductor manufacturing plant in India. The monthly production capacity of this Indian fab is expected to be 40,000 pieces. The initial goal is to produce 65nm process technology, which will be upgraded to 40nm process technology in the future, mainly for automotive chips and defense chips.

MagnaChip's Gumi Factory Shut Down for a Week

MagnaChip decided to suspend production at its factory in Gumi, Gyeongsangbuk-do for a week from the 25th of this month due to soaring inventory, sluggish product sales, and deteriorating profitability. The factory mainly produces power semiconductors. Based on the input of 8-inch wafers, it has a monthly production capacity of 40,000 pieces.

U.S. Provides $39 Billion in Chip Subsidies, "National Security First, Not Subsidizing Companies"

The U.S. government is preparing to invest $39 billion to support U.S. chip production, and the U.S. Department of Commerce has emphasized that the focus of the plan is to strengthen national security rather than boost struggling chipmakers. Raimondo said at a news conference on Thursday that the U.S. bill aims to create at least two semiconductor manufacturing clusters by 2030.

U.S. May Embargo "Brain Computer Interface" Technology to China

According to a Voice of America report, out of consideration for the impact of "Brain-Computer Interface (BCI)" technology on national security, the U.S. government may restrict the export of such technology to rival countries including China.

Ericsson to Lay off 8,500 Workers

As reported on February 24, Telecom equipment maker Ericsson plans to lay off 8,500 of its employees globally to cut costs.