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Reed Unlimited Weekly: Bringing You News and Insights from the Semiconductor Industry The West is on a mission to build its own semiconductor fabs and reduce its dependence on Asia. Here's why and where. Semiconductors are the backbone of many industries, from automotive to consumer electronics to renewable energy. But in 2021, the US faced a severe chip shortage that cost its economy billions of dollars and exposed its vulnerability to supply chain disruptions in Asia, where most of the chips are produced. To address this challenge, the US passed the CHIPS Act in 2022, which allocated $53 billion to boost domestic semiconductor research, development, and manufacturing. The European Union followed suit with its own Chips Act in 2023, which aimed to double its global market share of semiconductors by 2030. These initiatives have sparked a semiconductor fabrication renaissance in the West, with many companies announcing new or expanded fabs in the US and Europe. Here are some of the major ones: - Global Foundries: The company received $30 million in federal funding to develop and produce next-generation gallium nitride (GaN) on silicon semiconductors at its facility in Vermont. - Intel: The company is investing billions of dollars to build fab complexes in Arizona and Ohio, focusing on 7nm and 10nm technology nodes, respectively. - Micron: The company announced its plan to invest over $40 billion through the end of the decade to establish leading-edge memory manufacturing in the US, with new fabs in Idaho, NY, Oregon, and Texas. These new fabs will not only increase the production capacity and innovation of semiconductors in the West, but also create thousands of jobs and enhance national security and competitiveness. If you want to learn more about these new semiconductor fabs and their impact on the industry, check out this article by Z2Data: https://lnkd.in/gGEsrupP

Have you heard about the latest restrictions on chip exports? The US has announced new export controls on chips and equipment that could be used for AI and supercomputing purposes by China and its allies. The move is aimed at preventing China from gaining access to advanced computing capabilities that could enhance its military and surveillance power. The new rules affect US companies such as Nvidia, AMD, Intel, KLA, Applied Materials, and Lam Research, as well as foreign companies that use US technology or software. The rules also apply to chips and tools destined for supercomputers in China, which are used for nuclear weapons development and other strategic applications. The US claims that China's civil-military fusion doctrine allows any technology in China to be transferred to military uses, posing a threat to US national security and global stability. The new policy marks a significant shift from the previous approach of keeping China two generations behind in chip technology. Now, the US is trying to cripple China's ability to produce chips with technology that is nearly a decade old, several generations behind the state-of-the-art capabilities. (Read more at https://bit.ly/48cOIzV)

Reed Unlimited Weekly: Bringing You News and Insights from the Semiconductor Industry Intel's deal with Tower Semiconductor, an Israeli chipmaker, was canceled after failing to get regulatory approval from China. The $5.4 billion acquisition was supposed to help Intel expand into new chip markets and compete with Taiwan Semiconductor Manufacturing Co. (TSMC), the global leader in chip production. Intel will pay a $353 million termination fee to Tower and look for other ways to collaborate in the future.  The regulatory approval process in China is governed by the Anti-Monopoly Law, which requires parties to submit transactions that entail a change of “control” and meet certain revenue thresholds. China’s competition authority, the State Administration for Market Regulation (SAMR), has the power to review the impact of a deal not only on competition but also on China’s national economic interests. SAMR can conduct a conventional competition analysis, as well as consider industrial policy factors, such as the development of domestic industries, technological innovation and national security. The review process can take up to six months or longer, depending on the complexity of the case and the level of cooperation from the parties. China has a fast-track “simplified procedure” for deals that have low market shares or no operations in China, which can be approved within three months from the initial submission. #microchip #semiconductor #electronics #maufacturing #electronics  #technology

This week in industry news… 💎Researchers from Chiba University in Japan have developed a novel technique to slice diamonds into wafers for semiconductor applications. The technique uses a laser to transform diamond into amorphous carbon along a grid pattern, creating fracture planes that allow easy separation of regular-shaped wafers. Diamond semiconductors have advantages such as high efficiency, wide bandgap and high-speed communication. The new technique could make diamond semiconductors more affordable and practical for various industries. Read more on this topic here: https://bit.ly/3OWVkLb ⚙️TSMC, a Taiwanese chipmaker, will approve a German plant with five billion euros from Berlin, according to a report. TSMC has also invested $40 billion in a US plant. TSMC wants to diversify its supply chain and reduce its dependence on Taiwan, which faces China's pressure. Read more on this topic here: https://bit.ly/3qtFXAq Follow Reed Unlimited for weekly semiconductor updates. Check out reedunlimited.com to learn more about how we can help you.

Semiconductors have been in the news ever since the drastic chip shortage that took place due to the Covid-19 pandemic in 2020. Now as we are approaching the latter end of 2023, analysts are studying why and how the world has ended up in a microchip overstock. Just two years ago, there were not enough chips to fill the demand which led to stock shortages across hundreds of industries. The current over supply of semiconductors worldwide has a lot to do with the current state of the economy. Many consumers can simply not afford products like laptops, new phones, and cars which are all luxury expenses. While there is quite an overstock of chips with NAND and DRAM memory, there are many different kinds of chips that are still in supply shortages and have long lead times. No matter what the market is looking like, Reed Unlimited is here to help your company thrive. Our experienced staff can locate hard-to-find chips, source stock and products across various industries, and provide consulting and advice when it comes to ordering material for your projects. Reed Unlimited also has a private stock of the hottest chips on the market. Message us today to see how we can help you! To read more on this week’s topic visit: https://cnb.cx/3OgzVL7