Market-Intel Newsletter #10
Counterfeit electronic components rising; 80.5% considered new occurrences
In 2022, the number of reported #counterfeit and nonconforming electronic components reported to the supply chain monitoring group, #ERAI, increased by 35% from the previous year, writes Evertiq This is despite worldwide semiconductor sales remaining relatively flat.
The increase in counterfeit components is likely due to a number of factors, including the reopening of global supply chains and the return to pre-Covid operations for many enterprises.
“The most interesting statistic from ERAI’s 2022 annual report is that the majority of the parts reported in 2022 – a whopping 80,5% actually – were new occurrences and had not previously been reported,” writes Evertiq - Global. “Analog ICs, programmable logic ICs and microprocessor ICs are still the most targeted component types – accounting for more than half of the reported component types during the year.”...
SEMI: Global semiconductor equipment sales reached $107.6 billion last year
Worldwide sales of semiconductor manufacturing equipment rose 5% from $102.6 billion in 2021 to an all-time high of $107.6 billion last year, according to SEMI.
Global sales of wafer processing equipment rose 8% in 2022, while other front-end segment billings grew 11%. After robust growth in 2021, assembly and packaging equipment sales decreased 19% last year while total test equipment billings contracted 4% year over year.
“The record high for semiconductor manufacturing equipment sales in 2022 stems from the industry’s drive to add the fab capacity required to support long-term growth and innovations in key end markets including high-performance computing and automotive,” said Ajit Manocha, SEMI president and CEO. “Additionally, the results reflect investments and determination across regions to avoid future semiconductor supply chain constraints like those that surfaced during the pandemic.”...
Nikkei – China pumps $7bn into upgrading chip supply chain
Chinese chipmaking suppliers and state-backed funds are estimated to invest 50 billion yuan ($7.26 billion) in order to enhance the domestic supply chain, as the US has put a limit on tech exports, reports Nikkei Asia.
This has resulted in a decrease in imported chipmaking machines from foreign sources. In 2022, Chinese semiconductor companies used 35% of domestic equipment, which is a rise from the 21% in 2021, according to Chinese media. Also, domestic players have gained almost half of all public bids by leading chipmakers within the year 2023, as reported by a Chinese brokerage.
NAURA Technology Group Co.,Ltd., the top manufacturer of chipmaking devices in China earned 14.6 billion yuan in revenue last year, more than six times the figure in 2017. With the backing of the state, the company acquired a U.S. wafer-cleaning device maker in 2018 and extended its business to include etching products...
JP Morgan – What’s next for the auto industry?
“2023 should mark a strong earnings year for the industry, with less volatile raw material costs and a more stable supply chain,” writes José M. Asumendi, Head of European Automotive Research for J.P. Morgan. “Raw material headwinds will slow, eventually providing a tailwind sometime in the second half of 2023. Overall, we predict a strong year for the autos sector, with global car production up 3% year-over-year.”
There is likely to be less earnings volatility in 2023, with original equipment manufacturers (OEMs) maintaining strong pricing power. Equally, more stability should boost the earnings momentum of suppliers and make this a stronger year across the board. “We anticipate tight control over inventories, which maintains pricing power for #OEMs and reduces the likelihood of rising incentives,” added Asumendi. “Overall, we expect a more stable pricing environment.” In terms of demand, OEMs expect some normalization, which is not unusual moving away from a period of extraordinary demand and low supply...
ARM is developing its own chips to fuel growth after IPO
Arm, the British chip designer, is working with foundries to develop its own chips, reports Reuters The move is part of a plan to fuel growth after an expected IPO later this year.
ARM is not directly involved in semiconductor development and production. Instead, it sells its chip designs to other companies, which then manufacture the chips. However, the company has now decided to develop its own chips in order to showcase its technology and attract new customers.
ARM has formed a new team to lead the development of the new chips. The team is led by Kevork Kechichian, a chip industry veteran who has worked at NXP Semiconductors and Qualcomm.
The new chips are expected to be more advanced than ARM’s current designs. If they are successful, ARM could become a competitor to its customers, such as MediaTek and Qualcomm.
The development of its own chips is a risky move for ARM. However, it is a necessary one if the company wants to remain competitive in the rapidly changing semiconductor industry...
Events:
New Tech Expo 2023
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