Latest Semiconductor News Update on Mar 3 to 9, 2024

Lumentum layoff impacts 10% of global workforce

According to news, Lumentum, the world's leading optical manufacturer, recently announced a new round of layoffs. Last year, Lumentum closed two NeoPhotonics factories in China in December. At the same time, It is investing in state-of-the-art production lines at its manufacturing plant in Thailand and expects to launch the first wave of 1.6T transceivers for multiple customers in 2024.

In early February, Lumentum announced its financial results for the second quarter of fiscal year 2024 as of December 30, 2023: revenue of US$367 million, a month-on-month increase of 15.5%, a year-on-year decrease of 27.5%; GAAP net loss US$99.1 million, a net loss of US$67.9 million last quarter, and a net loss of US$31.7 million in the same period last year.

Cadence to Acquire BETA CAE in $1.24 billion

Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced it has entered into a definitive agreement to acquire BETA CAE Systems International AG, a leading system analysis platform provider of multi-domain, engineering simulation solutions. BETA CAE is a leading provider of multi-system analysis platforms. Its proven technology and talent will accelerate Cadence's smart systems design strategy by expanding its multiphysics systems analysis portfolio and into structural analysis, unlocking billions of dollars in incremental TAM opportunities.

In terms of the agreement, Cadence will pay approximately $1.24 billion for the transaction, 60% of which will be paid in cash and 40% through the issuance of its common stock to existing BETA CAE shareholders. In conjunction with the transaction, Cadence plans to use free cash flow generated by its existing operations to quickly pay down the debt that funded the deal while maintaining stock repurchases.

TSMC to win more than $5 billion in grants for a US chip

TSMC’s plant in Arizona is expected to receive more than $5 billion in federal incentives, according to people familiar with the matter. The U.S. government isn't ready to announce the incentive yet because it must finalized with the world's largest contract chip manufacturers, but the amount looks substantial.

It's unclear whether TSMC, which makes chips for AMD, Apple, Intel, Nvidia and Qualcomm, will receive it. In addition, it's unclear whether the company will use the loans and loan guarantees to build and expand its plant near Phoenix, Arizona.

Marvell announces industry’s first 2nm platform for accelerated infrastructure Silicon

Marvell Technology, a leader in data infrastructure semiconductor solutions, is extending its collaboration with TSMC to develop the industry’s first technology platform to produce 2nm semiconductors optimized for accelerated infrastructure.

“Tomorrow’s artificial intelligence workloads will require significant and substantial gains in performance, power, area, and transistor density. The 2nm platform will enable Marvell to deliver highly differentiated analog, mixed-signal, and foundational IP to build accelerated infrastructure capable of delivering on the promise of AI,” said Sandeep Bharathi, chief development officer at Marvell. “Our partnership with TSMC on our 5nm, 3nm and now 2nm platforms has been instrumental in helping Marvell expand the boundaries of what can be achieved in silicon.”

Bosch plans another big layoff, cutting 1000 jobs this year

According to The Business Times, German industrial giant Bosch Group plans to lay off employees again. The spokesperson Matthias Metz announced on February 23, local time, that based on the current business volume, the Bosch Group Home Appliances Division (BSH) plans to eliminate approximately 3,500 indirect field department positions globally by the end of 2027, of which 1,000 will be eliminated this year.

Metz reportedly said the layoffs would occur in administrative and internal services areas, not at production sites. 450 jobs in Germany will be affected by the plan this year, and it has not yet been determined how many jobs will be cut over the next three years. BSH was originally a joint venture between Bosch and Siemens, established in 1967. It is Europe's largest household appliances company and one of the world's leading companies in the industry.

Sony to exit Chinese smartphone market?

According to reports, Sony’s latest Xperia mobile phone may not be released in mainland China in the future. Does this indicate Sony mobile phones will withdraw from the mainland Chinese market? Xperia mobile phones have been developing in China for a long time. As early as 2013, Xperia Z1 began to be sold in mainland China. There have been rumors that the number of countries and regions where the Sony Xperia 1 VI will be sold will be reduced, with market speculation that regions where it may no longer be sold include the United States and mainland China. Despite this, Sony is still selling mobile phone products normally on its e-commerce platform.

In recent years, with the rise of local Chinese mobile phone brands, Sony has faced fierce competition in the Chinese market. Industry insiders analyze that Sony's mobile phone withdrawal from the mainland Chinese market may be part of the company's strategic adjustment to respond to market changes and competitive pressure. However, this news has not yet been officially confirmed by Sony, and the specific situation still requires some time.

Tower Semiconductor to shut down for 3 weeks

Tower Semiconductor plans a three-week shutdown of much of its Newport Beach operations, a move that will furlough nearly 700 employees this year. It will close most of its operations from April 1 to 7, and plans to close more operations from July 1 to 7 and October 7 to 13. Company officials said this move was planned to avoid a longer shutdown that could result in job losses. And affected employees include engineering technicians, financial planners, manufacturing workers and utility operators.

According to the report, most of Tower Semiconductor's 699 employees will be required to use accrued leave during the shutdown. Employees without vacation time can apply for unemployment benefits during these weeks, while other employees in safety, facilities management and customer support departments will continue to work but will need to take a week off before June 15th.

Western Digital announces update on company separation

Recently, Western Digital announced that it will appoint a CEO for the flash memory and traditional hard drive businesses that will be spun off, and said that the spin-off process is expected to be completed in the second half of 2024. Western Digital said its executive vice president of global operations, Irving Tan, will take the helm of the independent hard drive company. It is reported that Western Digital and its manufacturing partner Kioxia have been negotiating a merger since 2021, which would create a company that controls one-third of the global NAND flash memory market. But merger talks stalled in October 2023, and then Western Digital announced that the company would spin off its flash memory business, which has been facing oversupply problems, and conduct a new round of financing for part of its debt.