Samsung Electronics, the world's largest manufacturer of memory chips, smartphones, and TVs, is projected to experience a substantial decline in its June-quarter profit, Reuters reported. Analysts anticipate a staggering 96 per cent year-on-year drop, marking the lowest profit for any quarter in over 14 years. Despite efforts to curtail supply, a chip glut continues to plague Samsung's cash cow business, resulting in significant losses.

According to a Refinitiv SmartEstimate from 27 analysts cited by Reuters, Samsung's operating profit for the April-June quarter is predicted to reach 555 billion won ($427 million). If this estimate holds true, it would mark Samsung's lowest profit since Q4 of 2008, when the company reported a consolidated operating loss of approximately 740 billion won. In contrast, last year's same period saw Samsung achieve an operating profit of 14.1 trillion won.

Chip Downturn

The primary cause for this downturn is the chip division, traditionally Samsung's most profitable sector. The division is expected to report quarterly losses ranging from 3 trillion to 4 trillion won due to the continuous decline in memory chip prices and reductions in inventory values. DRAM memory chip prices, widely utilized in smartphones, PCs, and servers, fell approximately 13 per cent to 18 per cent during the quarter, as reported by TrendForce. Buyers refrained from purchasing new chips, depleting existing inventories.

Ray of recovery in sight

Nonetheless, the rate of price decline has slowed compared to previous quarters, mainly due to supply cuts implemented by Samsung Electronics and other memory chip manufacturers. Analysts predict the market will bottom out around the third quarter, although a significant recovery may not occur until 2024. Despite the ongoing downturn, Samsung aims to bolster its market share in the field of artificial intelligence (AI). The company focuses on high bandwidth memory (HBM) and chip contract manufacturing to achieve this.

Samsung's mobile business is expected to report an operating profit of approximately 3.3 trillion won. This estimate is based on forecasts from five analysts who considered the company's efforts to reduce marketing costs and a slight decline in smartphone shipments compared to the previous quarter, which saw the launch of Samsung's latest flagship model.

To maintain dominance in the premium phone market, Samsung plans to unveil its latest foldable smartphones earlier than usual, with the launch scheduled for later this month in Seoul. Industry analysts view this move as an attempt to gain an edge over rival Apple before the release of the next iPhone.

Samsung Electronics will announce its preliminary second-quarter earnings results on Friday, followed by a comprehensive report later this month.

(With Inputs from Reuters)

Samsung Electronics, the world's largest manufacturer of memory chips, smartphones, and TVs, is projected to experience a substantial decline in its June-quarter profit, Reuters reported.

Samsung Electronics, the world's largest manufacturer of memory chips, smartphones, and TVs, is projected to experience a substantial decline in its June-quarter profit, Reuters reported. Analysts anticipate a staggering 96 per cent year-on-year drop, marking the lowest profit for any quarter in over 14 years. Despite efforts to curtail supply, a chip glut continues to plague Samsung's cash cow business, resulting in significant losses. According to a Refinitiv SmartEstimate from 27 analysts cited by Reuters, Samsung's operating profit for the April-June quarter is predicted to reach 555 billion won ($427 million). If this estimate holds true, it would mark Samsung's lowest profit since Q4 of 2008, when the company reported a consolidated operating loss of approximately 740 billion won. In contrast, last year's same period saw Samsung achieve an operating profit of 14.1 trillion won. Chip Downturn The primary cause for this downturn is the chip division, traditionally Samsung's most profitable sector. The division is expected to report quarterly losses ranging from 3 trillion to 4 trillion won due to the continuous decline in memory chip prices and reductions in inventory values. DRAM memory chip prices, widely utilized in smartphones, PCs, and servers, fell approximately 13 per cent to 18 per cent during the quarter, as reported by TrendForce. Buyers refrained from purchasing new chips, depleting existing inventories. Ray of recovery in sight Nonetheless, the rate of price decline has slowed compared to previous quarters, mainly due to supply cuts implemented by Samsung Electronics and other memory chip manufacturers. Analysts predict the market will bottom out around the third quarter, although a significant recovery may not occur until 2024. Despite the ongoing downturn, Samsung aims to bolster its market share in the field of artificial intelligence (AI). The company focuses on high bandwidth memory (HBM) and chip contract manufacturing to achieve this. Samsung's mobile business is expected to report an operating profit of approximately 3.3 trillion won. This estimate is based on forecasts from five analysts who considered the company's efforts to reduce marketing costs and a slight decline in smartphone shipments compared to the previous quarter, which saw the launch of Samsung's latest flagship model. To maintain dominance in the premium phone market, Samsung plans to unveil its latest foldable smartphones earlier than usual, with the launch scheduled for later this month in Seoul. Industry analysts view this move as an attempt to gain an edge over rival Apple before the release of the next iPhone. Samsung Electronics will announce its preliminary second-quarter earnings results on Friday, followed by a comprehensive report later this month. (With Inputs from Reuters)

Samsung's Q2 profits take a 96% dive: Chip glut deals a heavy blow

The US-China chip war is all set to escalate. Now, China has decided to restrict exports of two metals that are crucial in producing not only semiconductors but also telecom devices and electric vehicles. The two metals under the radar are gallium and germanium. They will come under China's export control from August 1 in a bid to protect national security.

China restricts exports of two key metals

In a move that will further inflame relations between the two nations, lawmakers in the United States have called for retaliation against China for banning memory chipmaker Micron Technology.

US Representative Mike Gallagher, who chairs a Congressional committee focusing on China, has proposed adding Changxin Memory technologies to a "blacklist" that would prevent it from doing business with American companies.

His colleague Michael McCaul, who is the chairman of the House Foreign Affairs Committee, also slammed Beijing and called for a response. Bloomberg quoted McCaul as saying, "I urge the administration to use the many authorities Congress has given it to hold the CCP accountable."&nbsp;

The chips that power most technical developments, from artificial intelligence to self-driving vehicles, are produced by Changxin Memory, one of a handful of significant Chinese enterprises that reflect Beijing's ambitions to equal the US in terms of technology.

Moreover, the Chinese chipmaker wants to create history by launching an initial public offering in its home market this year, with a potential valuation of more than $14.5 billion.

The US lawmaker's proposal was in response to Beijing's decision to prevent Micron from supplying China's key infrastructure for reasons of national security.&nbsp;

China's move was an unprecedented step that has already sparked charges of overreach. Tensions over technology have been rising amid dueling claims of "economic coercion" since the US put broad export restrictions on semiconductor equipment to china.

On Wednesday, Mao Ning, a spokesperson for China's foreign ministry, defended the government's decision to withdraw from Micron.&nbsp;

"The cybersecurity review on micron's products sold in China is carried out according to China's laws, and the decision was made based on facts," Bloomberg quoted her as saying.&nbsp;

Ning added that the United States has placed dozens of Chinese businesses and individuals "into all kinds of lists and imposed all kinds of restrictions" without providing any evidence to support their inclusion.

In a move that will further inflame relations between the two nations, lawmakers in the United States have called for retaliation against China for banning memory chipmaker Micron Technology.

In a move that will further inflame relations between the two nations, lawmakers in the United States have called for retaliation against China for banning memory chipmaker Micron Technology. US Representative Mike Gallagher, who chairs a Congressional committee focusing on China, has proposed adding Changxin Memory technologies to a "blacklist" that would prevent it from doing business with American companies. His colleague Michael McCaul, who is the chairman of the House Foreign Affairs Committee, also slammed Beijing and called for a response. Bloomberg quoted McCaul as saying, "I urge the administration to use the many authorities Congress has given it to hold the CCP accountable." The chips that power most technical developments, from artificial intelligence to self-driving vehicles, are produced by Changxin Memory, one of a handful of significant Chinese enterprises that reflect Beijing's ambitions to equal the US in terms of technology. Moreover, the Chinese chipmaker wants to create history by launching an initial public offering in its home market this year, with a potential valuation of more than $14.5 billion. The US lawmaker's proposal was in response to Beijing's decision to prevent Micron from supplying China's key infrastructure for reasons of national security. China's move was an unprecedented step that has already sparked charges of overreach. Tensions over technology have been rising amid dueling claims of "economic coercion" since the US put broad export restrictions on semiconductor equipment to china. On Wednesday, Mao Ning, a spokesperson for China's foreign ministry, defended the government's decision to withdraw from Micron. "The cybersecurity review on micron's products sold in China is carried out according to China's laws, and the decision was made based on facts," Bloomberg quoted her as saying. Ning added that the United States has placed dozens of Chinese businesses and individuals "into all kinds of lists and imposed all kinds of restrictions" without providing any evidence to support their inclusion.

Chip war intensifies: Lawmakers want US to 'blacklist' Chinese firm after Micron ban

Cyberspace Administration of China said on Friday (March 31) that it will carry out a cybersecurity review of products by US memory chip manufacturer Micron Technology Inc. The move from the regulator has come amid spat between China and the US over chip technology. The Chinese regulator said that the review is aimed at protecting the security of the supply chain for critical information infrastructure, prevent hidden risks and safeguard national security.

No other details were made public including which products of Micron were under review.

The United States has imposed a series of export controls on chipmaking technology to China for fear it could be used to produce chips for applications such as artificial intelligence which could be used by China's military, and blacklisted a number of China's largest chip firms, including Micron rival Yangtze Memory Technologies Co Ltd.

Micron is one of the world's largest memory chip makers. Reuters said that Micron did not immediately respond to a comment.

"Punitive actions against Micron could suggest a broader shift in Chinese policy with other U.S. vendors with large Chinese exposure now potentially at risk of similar actions," Wedbush Securities analyst Matthew Bryson said.

On Friday, Japan announced it would align its technology trade controls with a U.S. push to curb China's ability to make advanced chips. The Netherlands, which makes advanced lithography equipment critical for the manufacture of advanced chips, made a similar announcement earlier this month.

(With inputs from agencies)

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Cyberspace Administration of China said on Friday (March 31) that it will carry out a cybersecurity review of products by US memory chip manufacturer Micron Technology Inc.

Cyberspace Administration of China said on Friday (March 31) that it will carry out a cybersecurity review of products by US memory chip manufacturer Micron Technology Inc. The move from the regulator has come amid spat between China and the US over chip technology. The Chinese regulator said that the review is aimed at protecting the security of the supply chain for critical information infrastructure, prevent hidden risks and safeguard national security. No other details were made public including which products of Micron were under review. The United States has imposed a series of export controls on chipmaking technology to China for fear it could be used to produce chips for applications such as artificial intelligence which could be used by China's military, and blacklisted a number of China's largest chip firms, including Micron rival Yangtze Memory Technologies Co Ltd. Micron is one of the world's largest memory chip makers. Reuters said that Micron did not immediately respond to a comment. "Punitive actions against Micron could suggest a broader shift in Chinese policy with other U.S. vendors with large Chinese exposure now potentially at risk of similar actions," Wedbush Securities analyst Matthew Bryson said. On Friday, Japan announced it would align its technology trade controls with a U.S. push to curb China's ability to make advanced chips. The Netherlands, which makes advanced lithography equipment critical for the manufacture of advanced chips, made a similar announcement earlier this month. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

China to test US chipmaker Micron’s products for ‘risks’ amid spat with Washington

The United States is planning to further tighten restrictions on export of semiconductor manufacturing equipment to China, said Bloomberg citing people familiar with the developments. As per the report, the US government is has briefed US companies about the plan and has told them that the restrictions may be announced as early as next month.

The Biden administration plans to coordinate with the Netherlands and Japan, according to the report.

This week, Dutch government said it plans new restrictions on semiconductor technology exports to China to protect national security.

Chinese foreign ministry spokesperson Mao Ning said on Thursday that China was firmly opposed to the restrictions as a means "to intervene and limit normal economic and trade exchanges between Chinese and Dutch companies."

The US had imposed a slew of export restrictions late last year including a measure to cut China off from certain semiconductor chips made anywhere in the world with US equipment.

The relations between the US and China are strained on multiple fronts. In addition to tech field, the two sides often spar on the issue of Taiwan. China considers Taiwan its own territory and has not ruled out use of force to capture it. US is the biggest international backer of Taiwan.

(With inputs from agencies)

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The United States is planning to further tighten restrictions on export of semiconductor manufacturing equipment to China, said Bloomberg citing people familiar with the developments.

The United States is planning to further tighten restrictions on export of semiconductor manufacturing equipment to China, said Bloomberg citing people familiar with the developments. As per the report, the US government is has briefed US companies about the plan and has told them that the restrictions may be announced as early as next month. The Biden administration plans to coordinate with the Netherlands and Japan, according to the report. This week, Dutch government said it plans new restrictions on semiconductor technology exports to China to protect national security. Chinese foreign ministry spokesperson Mao Ning said on Thursday that China was firmly opposed to the restrictions as a means "to intervene and limit normal economic and trade exchanges between Chinese and Dutch companies." The US had imposed a slew of export restrictions late last year including a measure to cut China off from certain semiconductor chips made anywhere in the world with US equipment. The relations between the US and China are strained on multiple fronts. In addition to tech field, the two sides often spar on the issue of Taiwan. China considers Taiwan its own territory and has not ruled out use of force to capture it. US is the biggest international backer of Taiwan. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US set to further tighten export of chipmaking gear to China: Report

US, Japan, and the Netherlands are reportedly planning to impose joint restrictions on exports of chipmaking tools to China as the race to dethrone Beijing heats up. The confirmation came from a Washington official who refused to divulge further details.&nbsp;“We can’t talk about the deal right now. But you can certainly talk to our friends in&nbsp;Japan&nbsp;and the Netherlands,” Guardian quoted Don Graves, deputy commerce department secretary, as saying on the sidelines of an event in Washington. &nbsp;

On Friday, Bloomberg and Reuters both reported that an agreement on the same had been finalised.&nbsp;

In October, the United States imposed sweeping export restrictions on shipments of chipmaking tools to&nbsp;restrict China’s capacity to expand its chip industry and enhance its military capabilities.&nbsp;

However, Washington needed the consensus of Netherlands and Japan, home to major chipmakers ASML and Tokyo Electron, among others.&nbsp;

In an email, the US commerce department said that it would continue to coordinate on export controls with foreign allies, calling this a “priority”. &nbsp;

“We recognise that multilateral controls are more effective than unilateral controls.”&nbsp;

On Friday, officials from the Netherlands and Japan landed in Washington to discuss a wide-ranging issue with White House national security adviser Jake Sullivan.&nbsp;

Commenting on the agreement on semiconductors, US President Joe Biden said: “Yes, we talked about a lot of things, but a lot of it is private.”&nbsp;

US has been seeking to break the monopoly of China’s semiconductor industry. Beijing has invested money into cultivating its domestic industry but its fabrication plants, known as fabs, still heavily rely on foreign-made equipment.&nbsp;

SMIC, China’s largest fab, makes chips that go into products for the automotive sector, internet-of-things devices and some smartphones.&nbsp;

(With inputs from agencies)

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US, Japan, and the Netherlands are reportedly planning to impose joint restrictions on exports of chipmaking tools to China as the race to dethrone Beijing heats up.

US, Japan, and the Netherlands are reportedly planning to impose joint restrictions on exports of chipmaking tools to China as the race to dethrone Beijing heats up. The confirmation came from a Washington official who refused to divulge further details. “We can’t talk about the deal right now. But you can certainly talk to our friends in Japan and the Netherlands,” Guardian quoted Don Graves, deputy commerce department secretary, as saying on the sidelines of an event in Washington. On Friday, Bloomberg and Reuters both reported that an agreement on the same had been finalised. In October, the United States imposed sweeping export restrictions on shipments of chipmaking tools to restrict China’s capacity to expand its chip industry and enhance its military capabilities. However, Washington needed the consensus of Netherlands and Japan, home to major chipmakers ASML and Tokyo Electron, among others. In an email, the US commerce department said that it would continue to coordinate on export controls with foreign allies, calling this a “priority”. “We recognise that multilateral controls are more effective than unilateral controls.” On Friday, officials from the Netherlands and Japan landed in Washington to discuss a wide-ranging issue with White House national security adviser Jake Sullivan. Commenting on the agreement on semiconductors, US President Joe Biden said: “Yes, we talked about a lot of things, but a lot of it is private.” US has been seeking to break the monopoly of China’s semiconductor industry. Beijing has invested money into cultivating its domestic industry but its fabrication plants, known as fabs, still heavily rely on foreign-made equipment. SMIC, China’s largest fab, makes chips that go into products for the automotive sector, internet-of-things devices and some smartphones. (With inputs from agencies) WATCH WION LIVE HERE:

US, Japan, Netherlands may announce ban on chipmaking tools’ export to China: Report 

US-based semiconductor company Micron has announced that the company will lay off 10% of its workforce next year, citing a nagging glut in the semiconductor market.

World Business Watch: Chipmaker Micron to cut 10% jobs in 2023

U.S. chip maker Nvidia Corp said on Monday it is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China’s hands.

The new chip, called the A800, represents the first reported effort by a U.S. semiconductor company to create advanced processors for China that follow new U.S. trade rules. Nvidia has said the export limitations could cost it hundreds of millions of dollars in revenue.

Nvidia’s comments confirmed reporting by Reuters that Chinese computer sellers are advertising products with the new chip.

US&nbsp;regulations set in early October effectively banned export of advanced microchips and equipment to produce advanced chips by Chinese chipmakers, part of an effort to hobble China’s semiconductor industry and in turn the military.

In late August, Nvidia and Advanced Micro Devices Inc both said that their advanced chips, including Nvidia’s data center chip A100, were added to the export control list by the Commerce Department. The Nvidia A800 can be used in place of the A100, and both are GPUs, or graphics processing units.

Such advanced chips can cost thousands of dollars each.

“The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the U.S. Government’s clear test for reduced export control and cannot be programmed to exceed it,” a Nvidia spokesperson said in a statement to Reuters.

At least two Chinese websites by major server makers offer the A800 chip in their products. One of those products previously used the A100 chip in promotional material.

A distributor website in China detailed the specifications of the A800. A comparison of the chip capabilities with the A100 shows that the chip-to-chip data transfer rate is 400 gigabytes per second on the new chip, down from 600 gigabytes per second on the A100. The new rules restrict rates of 600 gigabytes per second and up.

“The A800 looks to be a repackaged A100 GPU designed to avoid the recent Commerce Department trade restrictions,” said Wayne Lam, an analyst at CCS Insight, basing his comments on the specs shared by Reuters, and noting that eight is a lucky number in China.

“China is a significant market for Nvidia and it makes ample business sense to reconfigure your product to avoid trade restrictions,” said Lam.

Lam said the chip-to-chip communications abilities of the A800 represented a clear performance downgrade for a data center where thousands of chips are used together.

Major Chinese server makers Inspur and H3C which offer servers with the new chips did not respond to requests for comment. Neither did chip distributor OmniSky which posted the A800 specs online.

Nvidia has said that about $400 million worth of chip sales to China could be impacted in its fiscal third quarter ended in October due to the limits on high-end chips. Having a replacement chip could help lessen the financial blow.

Nvidia declined comment on whether it consulted the Commerce Department about the new chip. A Commerce Department spokesperson declined to comment.

U.S. chip maker Nvidia Corp said on Monday it is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China’s hands.

U.S. chip maker Nvidia Corp said on Monday it is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China’s hands. The new chip, called the A800, represents the first reported effort by a U.S. semiconductor company to create advanced processors for China that follow new U.S. trade rules. Nvidia has said the export limitations could cost it hundreds of millions of dollars in revenue. Nvidia’s comments confirmed reporting by Reuters that Chinese computer sellers are advertising products with the new chip. US regulations set in early October effectively banned export of advanced microchips and equipment to produce advanced chips by Chinese chipmakers, part of an effort to hobble China’s semiconductor industry and in turn the military. In late August, Nvidia and Advanced Micro Devices Inc both said that their advanced chips, including Nvidia’s data center chip A100, were added to the export control list by the Commerce Department. The Nvidia A800 can be used in place of the A100, and both are GPUs, or graphics processing units. Such advanced chips can cost thousands of dollars each. “The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the U.S. Government’s clear test for reduced export control and cannot be programmed to exceed it,” a Nvidia spokesperson said in a statement to Reuters. At least two Chinese websites by major server makers offer the A800 chip in their products. One of those products previously used the A100 chip in promotional material. A distributor website in China detailed the specifications of the A800. A comparison of the chip capabilities with the A100 shows that the chip-to-chip data transfer rate is 400 gigabytes per second on the new chip, down from 600 gigabytes per second on the A100. The new rules restrict rates of 600 gigabytes per second and up. “The A800 looks to be a repackaged A100 GPU designed to avoid the recent Commerce Department trade restrictions,” said Wayne Lam, an analyst at CCS Insight, basing his comments on the specs shared by Reuters, and noting that eight is a lucky number in China. “China is a significant market for Nvidia and it makes ample business sense to reconfigure your product to avoid trade restrictions,” said Lam. Lam said the chip-to-chip communications abilities of the A800 represented a clear performance downgrade for a data center where thousands of chips are used together. Major Chinese server makers Inspur and H3C which offer servers with the new chips did not respond to requests for comment. Neither did chip distributor OmniSky which posted the A800 specs online. Nvidia has said that about $400 million worth of chip sales to China could be impacted in its fiscal third quarter ended in October due to the limits on high-end chips. Having a replacement chip could help lessen the financial blow. Nvidia declined comment on whether it consulted the Commerce Department about the new chip. A Commerce Department spokesperson declined to comment.

Nvidia offers new advanced chip for China that meets US export controls

Amid the ongoing tussle between the United States and China over semiconductors, Apple has a frozen plan to use China's YTMC chips.

US-China semiconductor wars: Apple freezes plan to use China's YTMC chips

Taiwan's government said on Saturday that Taiwanese semiconductor firms place "great importance" on following the law and that they would abide by new U.S. export restrictions designed to stifle China's chip sector.&nbsp;

The administration of President Joe Biden's guidelines, which were unveiled on Friday, contains a provision to cut off China from specific chips produced anywhere in the globe using American machinery, greatly extending its reach in an effort to halt Beijing's scientific and military advancements.&nbsp;

Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world and a significant supplier to businesses like Apple Inc., is based in Taiwan, a country that produces a lot of chips.

Taiwan's economy ministry stated in a statement in reaction to the U.S. declaration that Taiwanese businesses adhered to the law.&nbsp;

"Taiwan's semiconductor industry has long served global customers and attaches great importance to compliance with laws," it said.

According to the ministry, the government remains in regular communication with manufacturers and encourages them to invest in the expansion of their factories and deliver goods to markets across the world for technical advancement.

TSMC refused to comment on the American regulations, claiming that it was a quiet time before its quarterly reports the next week. Prior to the announcement of its earnings later this month, the smaller competitor United Microelectronics Corp. similarly declined to comment.

Also Read:&nbsp;<a href="https://www.wionews.com/world/five-teenagers-sent-to-correction-facility-for-armed-revolution-in-hong-kong-523563">Five teenagers sent to 'correction facility' for 'armed revolution' in Hong Kong</a>

Taiwan has its own concerns about China, particularly the attempts made by Chinese businesses to snatch up technical know-how and semiconductor expertise. China, Taiwan's main commercial partner, has stiff restrictions on Taiwanese investment.&nbsp;

Taiwan's concerns have grown as China conducts frequent military exercises close to the island in an effort to pressure Taiwan into recognising Beijing's sovereignty.

(with inputs from agencies) 
&nbsp;

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Taiwan's government said on Saturday that Taiwanese semiconductor firms place "great importance" on following the law and that they would abide by new U.S. export restrictions designed to stifle China's chip sector.

Taiwan's government said on Saturday that Taiwanese semiconductor firms place "great importance" on following the law and that they would abide by new U.S. export restrictions designed to stifle China's chip sector. The administration of President Joe Biden's guidelines, which were unveiled on Friday, contains a provision to cut off China from specific chips produced anywhere in the globe using American machinery, greatly extending its reach in an effort to halt Beijing's scientific and military advancements. Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world and a significant supplier to businesses like Apple Inc., is based in Taiwan, a country that produces a lot of chips. Taiwan's economy ministry stated in a statement in reaction to the U.S. declaration that Taiwanese businesses adhered to the law. "Taiwan's semiconductor industry has long served global customers and attaches great importance to compliance with laws," it said. According to the ministry, the government remains in regular communication with manufacturers and encourages them to invest in the expansion of their factories and deliver goods to markets across the world for technical advancement. TSMC refused to comment on the American regulations, claiming that it was a quiet time before its quarterly reports the next week. Prior to the announcement of its earnings later this month, the smaller competitor United Microelectronics Corp. similarly declined to comment. Also Read: Five teenagers sent to 'correction facility' for 'armed revolution' in Hong Kong Taiwan has its own concerns about China, particularly the attempts made by Chinese businesses to snatch up technical know-how and semiconductor expertise. China, Taiwan's main commercial partner, has stiff restrictions on Taiwanese investment. Taiwan's concerns have grown as China conducts frequent military exercises close to the island in an effort to pressure Taiwan into recognising Beijing's sovereignty. (with inputs from agencies)

Taiwan signals compliance with new US export controls to hobble China's chip industry

In a bid to cut China's access to chip technology, the United States plans to limit the sale of US-made microchips to Beijing. WION tells you more in this report.

World Business Watch: Washington plans to limit sale of US-made microchips to China

A couple of weeks after Taiwanese major Foxconn announced it will be building a semiconductor plant in India, the European Union (EU) has swung into action to persuade other Taiwanese companies to do the same in the continent.

A couple of weeks after Taiwanese major Foxconn announced it will be building a semiconductor plant in India, the European Union (EU) has swung into action to persuade other Taiwanese companies to do the same in the continent. The EU has been courting and serenading local Taiwanese companies as one of the 'like minded' allies it would like to work with under the European Chips Act unveiled in February, according to a Reuters report. Fielding questions from reporters regarding local semiconductor companies expanding their footprint in Europe, Taiwan's deputy economy minister Chen Chern-chyi said, "To my knowledge, the European Commission and member states are talking to some of our companies, which is purely a commercial decision for the companies to make." "From the government's perspective, we are pleased to see our companies deploy globally and with our democratic allies, as long as we share the same values we like to form a trusted partnership," he said further. There had been murmurs of Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker coming to Germany last year. However, no progress has been made since then. With the major economies across the globe suffering a significant supply chain crunch, exacerbated by the lack of semiconductors, the Taiwanese chip companies have become all the more valuable as courting attempts intensify. India to get a semiconductor factory As reported by WION, earlier this month, Indian company Vedanta Ltd. and Foxconn joined hands to invest $19.5 billion to build semiconductor and display manufacturing facilities in India's western state of Gujarat, which is Prime Minister Narendra Modi's home state. Read more: Vedanta, Foxconn to invest $19.5 billion for semiconductor project in Indian PM Modi's home state Gujarat The joint venture received subsidies from the Gujarat state government for capital costs and electricity in order to build units close to Ahmedabad, the state's capital. The state government in its statement announced that Vedanta would set up two units: a chip-related production unit with an investment of $7.58 billion and a display manufacturing facility in which it will invest $11.95 billion. (With inputs from agencies) WATCH WION LIVE HERE:

EU serenades Taiwanese chip companies to drop anchor in the continent

India is expecting to court a total investment of at least $25 billion as a result of its incentive scheme meant to boost local manufacturing of chip and display panels.

Indian government to provide 50% incentive for semiconductor manufacturing

The Biden administration plans next month to broaden curbs on US shipments to China of semiconductors used for artificial intelligence and chipmaking tools.

World Business Watch: US to broaden restrictions on China chip shipments

The United States are looking to cut down on their dependence on China when it comes to the export of semiconductors used for artificial intelligence and according to Reuters, the White House will be announcing curbs on US companies and their shipments sometime in September.

In a letter sent to KLA Corp, Lam Research Corp and Applied Materials Inc, the Joe Biden administration asked them to stop sending chipmaking equipment to China. However, they will be allowed to send the equipment to the factories after getting a Commerce Department license.

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Nvidia and AMD, two major players when it comes to the production of artificial intelligence chips, were also asked to obtain proper licenses before resuming exports to Chinese companies.

According to Reuters, the steps are aimed at stopping China from making technological advancements using US tech. A person close to the White House told the news agency that the authorities are "taking a comprehensive approach to implement additional actions...to protect U.S. national security and foreign policy interests including to keep China from acquiring US technology”.

Also read |&nbsp;<a href="https://www.wionews.com/world/five-911-attack-accused-in-guantanamo-may-escape-death-by-way-of-plea-deal-report-515201" hreflang="en">Five 9/11 attack accused in Guantanamo may escape death by way of plea deal: Report</a>

The government had earlier announced a lot of incentives for the chip makers in the US and the CHIPS bill saw a lot of enthusiasm in the industry. However, China continues to be a major consumer when it comes to the US superconductor chips with huge amounts of shipments every year.

"The strategy is to choke off China and they have discovered that chips are a choke point. They can't make this stuff, they can't make the manufacturing equipment," Jim Lewis a technology expert at the Center for Strategic and International Studies told Reuters. "That will change."

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The United States are looking to cut down on their dependence on China when it comes to the export of semiconductors used for artificial intelligence and according to Reuters, the White House will be announcing curbs on US companies and their shipments sometime in September.

The United States are looking to cut down on their dependence on China when it comes to the export of semiconductors used for artificial intelligence and according to Reuters, the White House will be announcing curbs on US companies and their shipments sometime in September. In a letter sent to KLA Corp, Lam Research Corp and Applied Materials Inc, the Joe Biden administration asked them to stop sending chipmaking equipment to China. However, they will be allowed to send the equipment to the factories after getting a Commerce Department license. Also read | Ukraine accuses Russia of attacking power grid after losing ground in Kharkiv Nvidia and AMD, two major players when it comes to the production of artificial intelligence chips, were also asked to obtain proper licenses before resuming exports to Chinese companies. According to Reuters, the steps are aimed at stopping China from making technological advancements using US tech. A person close to the White House told the news agency that the authorities are "taking a comprehensive approach to implement additional actions...to protect U.S. national security and foreign policy interests including to keep China from acquiring US technology”. Also read | Five 9/11 attack accused in Guantanamo may escape death by way of plea deal: Report The government had earlier announced a lot of incentives for the chip makers in the US and the CHIPS bill saw a lot of enthusiasm in the industry. However, China continues to be a major consumer when it comes to the US superconductor chips with huge amounts of shipments every year. "The strategy is to choke off China and they have discovered that chips are a choke point. They can't make this stuff, they can't make the manufacturing equipment," Jim Lewis a technology expert at the Center for Strategic and International Studies told Reuters. "That will change."

Joe Biden set to announce curbs on US chip exports to China: Report

A new report said on Tuesday that the cumulative value of India's semiconductor component industry is expected to exceed $300 billion by 2026, as "Make in India" and production-linked incentive (PLI) initiatives enhance local sourcing of semi-components in the coming years.

Mobile and wearables, IT, and industrial categories now account for over 80% of the country's semiconductor revenues in 2021.

According to research by the India Electronics &amp; Semiconductor Association (IESA) and Counterpoint Research, further regulatory changes and the development of a semiconductor ecosystem would lessen dependency on imports in the future.

"Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous 'chip'. "Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive," said Krishna Moorthy, CEO and President, IESA.

The Indian government has promised a $10 billion investment under its PLI programme for the creation of a semiconductor and display manufacturing electronics ecosystem.

Meanwhile, Maharashtra has defeated at least five other states to get a massive Rs 2.06 lakh-crore investment from the Vedanta Group-Foxconn alliance in Pune's rising semiconductor chip and display fabrication industry.

In terms of revenue, India's end equipment market was worth $119 billion in 2021. From 2021 to 2026, it is predicted to increase at a 19% CAGR.

According to the research, the electronic system design and manufacturing (ESDM) industry in India would play a significant role in the country's overall growth, from component sourcing through design manufacture.

(With inputs from agencies) 
&nbsp;

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You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

A new report said on Tuesday that the cumulative value of India's semiconductor component industry is expected to exceed $300 billion by 2026, as "Make in India" and production-linked incentive (PLI) initiatives enhance local sourcing of semi-components in the coming years.

A new report said on Tuesday that the cumulative value of India's semiconductor component industry is expected to exceed $300 billion by 2026, as "Make in India" and production-linked incentive (PLI) initiatives enhance local sourcing of semi-components in the coming years. Mobile and wearables, IT, and industrial categories now account for over 80% of the country's semiconductor revenues in 2021. According to research by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research, further regulatory changes and the development of a semiconductor ecosystem would lessen dependency on imports in the future. "Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous 'chip'. "Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive," said Krishna Moorthy, CEO and President, IESA. The Indian government has promised a $10 billion investment under its PLI programme for the creation of a semiconductor and display manufacturing electronics ecosystem. Meanwhile, Maharashtra has defeated at least five other states to get a massive Rs 2.06 lakh-crore investment from the Vedanta Group-Foxconn alliance in Pune's rising semiconductor chip and display fabrication industry. In terms of revenue, India's end equipment market was worth $119 billion in 2021. From 2021 to 2026, it is predicted to increase at a 19% CAGR. According to the research, the electronic system design and manufacturing (ESDM) industry in India would play a significant role in the country's overall growth, from component sourcing through design manufacture. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India's semiconductor component market to reach $300 billion by 2026

Samsung electronics has seen demand weakening for the Mobile and PC chips. However, its operating profit rises to $10.8 billion for June quarter.

Mobile and PC chip demand: Samsung electronics sees demand weakening

JLR is driving Tata Motors into high losses. Tata Motors said that losses are bigger than expected. However, Sales will pick up as the chip shortage eases.

JLR drives Tata Motors into high losses; Sales to pick up as chip shortage eases

Samsung Electronics has begun mass production of chips with advanced 3-nanometre tech. The company claims it is the first to do so globally. The design of the new 3-nanometre chip-making process reduces power consumption by up to 45%. It also improves performance by 23%, reduces area by 16%.

Samsung begins mass production of 3nm chips

Toyota is looking to close additional production plant in Japan as the semiconductor shortage haunts Toyota. Toyota adjusted its production for the third time in June.

Toyota to close another production plant as semiconductor shortage haunt Toyota

Samsung has reported the highest Q1 profit since 2018. This comes at a time when the demand for memory chips is soaring.

Samsung reports the highest Q1 profit since 2018 as demand for memory chips increases

In order to cut its dependence on China and the US on semiconductors supply, the European Union (EU) on Tuesday unveiled its multi-billion-dollar plan to set up chips factories&nbsp;in the bloc.

The decision by the European Commission, the executive arm of the EU, comes amid a global shortage of chip supplies that has crippled car makers, healthcare providers, telecoms operators and others.

The highly anticipated European Chips Act will “enable 15 billion euros ($17 billion) in additional public and private investment by 2030,” Commission President Ursula von der Leyen said in a statement.

“This will come on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets. And these funds are set to be matched by further long-term private investments," she said, referring to ongoing EU projects.

Von der Leyen said the bloc will ease its state assist guidelines, which purpose to forestall unlawful and unfair subsidies granted by EU international locations to firms, for revolutionary chip factories.

“We’re, subsequently, adapting our state assist guidelines, beneath strict circumstances. It will enable – for the primary time – public help for European ‘first-of-a-kind’ manufacturing amenities, which profit all of Europe.”

These factories could also be allowed to get extra state funding, EU digital chief Margrethe Vestager mentioned, because the bloc seeks to double its international market share to 20per cent in 2030.

Notably, the EU Chips Act is identical to the US Chips Act which is aimed at increasing its competitiveness with China and supporting the domestic chip industry, including $52 billion to subsidise semiconductor manufacturing and research.

The European Chips Act, which would require approval from EU international locations and EU lawmakers earlier than it might change into legislation, additionally features a toolbox permitting the Fee to demand firms ship key chips throughout a disaster, reports Reuters.

(With inputs from agencies)

In order to cut its dependence on China and the US on semiconductors supply, the European Union (EU) on Tuesday unveiled its multi-billion-dollar plan to set up chips factories in the bloc.

In order to cut its dependence on China and the US on semiconductors supply, the European Union (EU) on Tuesday unveiled its multi-billion-dollar plan to set up chips factories in the bloc. The decision by the European Commission, the executive arm of the EU, comes amid a global shortage of chip supplies that has crippled car makers, healthcare providers, telecoms operators and others. The highly anticipated European Chips Act will “enable 15 billion euros ($17 billion) in additional public and private investment by 2030,” Commission President Ursula von der Leyen said in a statement. “This will come on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets. And these funds are set to be matched by further long-term private investments," she said, referring to ongoing EU projects. Von der Leyen said the bloc will ease its state assist guidelines, which purpose to forestall unlawful and unfair subsidies granted by EU international locations to firms, for revolutionary chip factories. “We’re, subsequently, adapting our state assist guidelines, beneath strict circumstances. It will enable – for the primary time – public help for European ‘first-of-a-kind’ manufacturing amenities, which profit all of Europe.” These factories could also be allowed to get extra state funding, EU digital chief Margrethe Vestager mentioned, because the bloc seeks to double its international market share to 20per cent in 2030. Notably, the EU Chips Act is identical to the US Chips Act which is aimed at increasing its competitiveness with China and supporting the domestic chip industry, including $52 billion to subsidise semiconductor manufacturing and research. The European Chips Act, which would require approval from EU international locations and EU lawmakers earlier than it might change into legislation, additionally features a toolbox permitting the Fee to demand firms ship key chips throughout a disaster, reports Reuters. (With inputs from agencies)

To cut dependence on China, EU unveils multi-billion-dollar plan to boost chip production

Micron Technology shares headed higher after the memory chip company posted strong results, while providing better-than-expected forecasts for the current quarter.

Micron shares rise on strong quarter 1 results

The global auto industry is facing a crisis. It could lose $210 billion in revenue due to an acute shortage of chips. In India alone, over 700,000 buyers are waiting for delivery. Can India's $10 billion plan solve this crisis? Palki Sharma brings you a report.

Gravitas: Can India's $10 billion booster save the global economy?

India has approved a $10 billion incentive plan to attract semiconductor fabricators and display manufacturers as part of efforts to establish itself as a global electronics production hub.

India approves $10 billion plan to lure semiconductor and display makers

According to reports, Japan will create a scheme to subsidise the construction of domestic chip factories with a new plant planned by Taiwan's TSMC likely to be the first recipient.

World Business Watch: Japan to create scheme to subsidise domestic chip output

Since 1989, Microchip Technology has operated in an unglamorous backwater of the electronics industry, making chips called microcontrollers that add computing power to cars, industrial equipment and many other products.

Now a global chip shortage has elevated the company’s profile. Demand for Microchip’s products is running more than 50% higher than it can supply. That has put the company, based in Chandler, Arizona, in an unfamiliar position of power, which it began wielding this year.

While Microchip normally lets customers cancel a chip order within 90 days of delivery, it began offering shipment priority to clients that signed contracts for 12 months of orders that couldn’t be revoked or rescheduled. These commitments reduced the chances that orders would evaporate when the scarcity ended, giving Microchip more confidence to safely hire workers and buy costly equipment to increase production.

“It gives us the ability to not hold back,” said Ganesh Moorthy, president and CEO of Microchip, which Thursday reported that profit in the latest quarter tripled and that sales rose 26% to $1.65 billion.

Such contracts are just one example of how the $500 billion chip industry is changing because of the silicon shortage, with many of the shifts likely to outlive the pandemic-fueled dearth. The lack of the tiny components — which has pinched makers of cars, game consoles, medical devices and many other goods — has been a stark reminder of the foundational nature of chips, which act as the brains of computers and other products.

Chief among the changes is a long-term shift in market power from chip buyers to sellers, particularly those that own factories that make the semiconductors. The most visible beneficiaries have been giant chip manufacturers like Taiwan Semiconductor Manufacturing Co., which offer services called foundries that build chips for other companies.

But the shortage has also sharply bolstered the influence of lesser-known chip makers such as Microchip, NXP Semiconductors, STMicroelectronics, Onsemi and Infineon, which design and sell thousands of chip varieties to thousands of customers. These companies, which build many products in their own aging factories, now are increasingly able to choose which customers get how many of their scarce chips.

Many are favoring buyers who act more like partners, by taking steps like signing long-term purchase commitments or investing to help chip makers increase production. Above all, the chip makers are asking clients to share more information earlier about which chips they will need, which helps guide decisions about how to lift manufacturing.

“That visibility is what we need,” said Hassane El-Khoury, CEO of chip maker Onsemi, a company previously known as ON Semiconductor.

Many of the chip makers said they were using their new power with restraint, helping customers avoid problems like factory shutdowns and raising prices modestly. That’s because gouging customers, they said, could cause bad blood that would hurt sales when shortages end.

Even so, the power shift has been unmistakable. “Today there is no leverage” for buyers, said Mark Adams, CEO of Smart Global Holdings, a major user of memory chips.

Marvell Technology, a Silicon Valley company that designs chips and outsources the manufacturing, has experienced the change in power. While it used to give foundries estimates of its chip production needs for 12 months, it began providing them with five-year forecasts starting in April.

“You need a really good story,” said Matt Murphy, Marvell’s CEO. “Ultimately the supply chain is going to allocate to who they think are going to be the winners.”

It’s a substantial change in psychology for a mature industry where growth has generally been slow. Many chip makers for years sold largely interchangeable products and often struggled to keep their factories running profitably, particularly if sales slumped for items like personal computers and smartphones that drove most chip demand.

But the components are essential for more products now, one of many signs that rapid growth may linger. In the third quarter, total chip sales surged nearly 28% to $144.8 billion, the Semiconductor Industry Association said.

Years of industry consolidation has also wrung out excess manufacturing capacity and left fewer suppliers selling exclusive kinds of chips. So buyers that could once place and cancel orders with little notice — and play one chip maker off another to get lower prices — have less muscle.

One effect of these changes was to make chip factories more valuable, including some older ones owned by foundries. That’s because new manufacturing processes have become so costly that some chip designers aren’t shifting to the most advanced factories to make their products. The result has been a demand crunch for less-expensive production lines that are 5-10 years old.

So some foundries, in a major strategy shift, are beginning to put more money into older production technology. TSMC recently said it would build such a plant in Japan. Samsung Electronics, a key foundry rival, has also said it was considering a new “legacy” factory.

But those investments will take several years to pay off. And they won’t address issues affecting chips like microcontrollers, which are a microcosm for the supply chain squeeze.

Microcontrollers combine the ability to make calculations with built-in memory to store programs and data, often adding features that only come from specialized factories. And the number of applications is skyrocketing, from brake and engine systems in cars to security cameras, credit cards, electric scooters and drones.

“We’ve probably sold more microcontrollers in the past year than the past decade,” said Marc Barnhill, chief trading officer at Smith, a chip distributor based in Houston. The wait to receive some popular microcontrollers now stretches to more than a year, he said, and prices for the products have leapt 20-fold among traders that buy and sell chips.

Amid the turmoil, companies that design or use chips have responded with new tactics. Some designers are adapting their products to be made in different factories with more manufacturing capacity, said Shiv Tasker, a global vice president engaged in that practice for the consultancy Capgemini.

And customers that once bought chips based on price and performance also are thinking more about availability.

Consider BrightAI, a startup developing devices and software to help businesses connect equipment and other devices to the internet. Alex Hawkinson, its co-founder, said it redesigned one circuit board four times in six months to adapt to different chips. The company also transferred some designers to China to revise products more quickly with components obtained there, he said.

Bigger chip users like automakers have started talking directly with manufacturers, rather than following the typical practice of working through subcontractors. Last month, General Motors forged a deal with the chip maker Wolfspeed to ensure a share of the semiconductors coming from a new factory that makes energy-efficient components for electric vehicles.

While the chip industry’s power shift has aided Microchip, it has also come with its own headaches. Moorthy said the company had managed to produce more chips in its three main factories in Arizona and Oregon, as well as get more from foundry partners. But demand is growing faster than what it can produce.

“We are falling farther behind,” he said.

Expanding Microchip’s own plants isn’t easy. For one thing, the company has always relied heavily on buying used manufacturing equipment, but “that whole thing has dried up,” Moorthy said.

Acquiring new gear can take 12-18 months and costs more, he said. While the long-term purchase agreements have provided more stability to make such investments, Microchip and others also hope Congress approves a $52 billion funding package, which is expected to include grants to subsidize more U.S. chip production.

“Are we counting on it to run our business? No,” said Moorthy. “Would it help some of our investment choices? Absolutely.”

Since 1989, Microchip Technology has operated in an unglamorous backwater of the electronics industry, making chips called microcontrollers that add computing power to cars, industrial equipment and many other products.

Since 1989, Microchip Technology has operated in an unglamorous backwater of the electronics industry, making chips called microcontrollers that add computing power to cars, industrial equipment and many other products. Now a global chip shortage has elevated the company’s profile. Demand for Microchip’s products is running more than 50% higher than it can supply. That has put the company, based in Chandler, Arizona, in an unfamiliar position of power, which it began wielding this year. While Microchip normally lets customers cancel a chip order within 90 days of delivery, it began offering shipment priority to clients that signed contracts for 12 months of orders that couldn’t be revoked or rescheduled. These commitments reduced the chances that orders would evaporate when the scarcity ended, giving Microchip more confidence to safely hire workers and buy costly equipment to increase production. “It gives us the ability to not hold back,” said Ganesh Moorthy, president and CEO of Microchip, which Thursday reported that profit in the latest quarter tripled and that sales rose 26% to $1.65 billion. Such contracts are just one example of how the $500 billion chip industry is changing because of the silicon shortage, with many of the shifts likely to outlive the pandemic-fueled dearth. The lack of the tiny components — which has pinched makers of cars, game consoles, medical devices and many other goods — has been a stark reminder of the foundational nature of chips, which act as the brains of computers and other products. Chief among the changes is a long-term shift in market power from chip buyers to sellers, particularly those that own factories that make the semiconductors. The most visible beneficiaries have been giant chip manufacturers like Taiwan Semiconductor Manufacturing Co., which offer services called foundries that build chips for other companies. But the shortage has also sharply bolstered the influence of lesser-known chip makers such as Microchip, NXP Semiconductors, STMicroelectronics, Onsemi and Infineon, which design and sell thousands of chip varieties to thousands of customers. These companies, which build many products in their own aging factories, now are increasingly able to choose which customers get how many of their scarce chips. Many are favoring buyers who act more like partners, by taking steps like signing long-term purchase commitments or investing to help chip makers increase production. Above all, the chip makers are asking clients to share more information earlier about which chips they will need, which helps guide decisions about how to lift manufacturing. “That visibility is what we need,” said Hassane El-Khoury, CEO of chip maker Onsemi, a company previously known as ON Semiconductor. Many of the chip makers said they were using their new power with restraint, helping customers avoid problems like factory shutdowns and raising prices modestly. That’s because gouging customers, they said, could cause bad blood that would hurt sales when shortages end. Even so, the power shift has been unmistakable. “Today there is no leverage” for buyers, said Mark Adams, CEO of Smart Global Holdings, a major user of memory chips. Marvell Technology, a Silicon Valley company that designs chips and outsources the manufacturing, has experienced the change in power. While it used to give foundries estimates of its chip production needs for 12 months, it began providing them with five-year forecasts starting in April. “You need a really good story,” said Matt Murphy, Marvell’s CEO. “Ultimately the supply chain is going to allocate to who they think are going to be the winners.” It’s a substantial change in psychology for a mature industry where growth has generally been slow. Many chip makers for years sold largely interchangeable products and often struggled to keep their factories running profitably, particularly if sales slumped for items like personal computers and smartphones that drove most chip demand. But the components are essential for more products now, one of many signs that rapid growth may linger. In the third quarter, total chip sales surged nearly 28% to $144.8 billion, the Semiconductor Industry Association said. Years of industry consolidation has also wrung out excess manufacturing capacity and left fewer suppliers selling exclusive kinds of chips. So buyers that could once place and cancel orders with little notice — and play one chip maker off another to get lower prices — have less muscle. One effect of these changes was to make chip factories more valuable, including some older ones owned by foundries. That’s because new manufacturing processes have become so costly that some chip designers aren’t shifting to the most advanced factories to make their products. The result has been a demand crunch for less-expensive production lines that are 5-10 years old. So some foundries, in a major strategy shift, are beginning to put more money into older production technology. TSMC recently said it would build such a plant in Japan. Samsung Electronics, a key foundry rival, has also said it was considering a new “legacy” factory. But those investments will take several years to pay off. And they won’t address issues affecting chips like microcontrollers, which are a microcosm for the supply chain squeeze. Microcontrollers combine the ability to make calculations with built-in memory to store programs and data, often adding features that only come from specialized factories. And the number of applications is skyrocketing, from brake and engine systems in cars to security cameras, credit cards, electric scooters and drones. “We’ve probably sold more microcontrollers in the past year than the past decade,” said Marc Barnhill, chief trading officer at Smith, a chip distributor based in Houston. The wait to receive some popular microcontrollers now stretches to more than a year, he said, and prices for the products have leapt 20-fold among traders that buy and sell chips. Amid the turmoil, companies that design or use chips have responded with new tactics. Some designers are adapting their products to be made in different factories with more manufacturing capacity, said Shiv Tasker, a global vice president engaged in that practice for the consultancy Capgemini. And customers that once bought chips based on price and performance also are thinking more about availability. Consider BrightAI, a startup developing devices and software to help businesses connect equipment and other devices to the internet. Alex Hawkinson, its co-founder, said it redesigned one circuit board four times in six months to adapt to different chips. The company also transferred some designers to China to revise products more quickly with components obtained there, he said. Bigger chip users like automakers have started talking directly with manufacturers, rather than following the typical practice of working through subcontractors. Last month, General Motors forged a deal with the chip maker Wolfspeed to ensure a share of the semiconductors coming from a new factory that makes energy-efficient components for electric vehicles. While the chip industry’s power shift has aided Microchip, it has also come with its own headaches. Moorthy said the company had managed to produce more chips in its three main factories in Arizona and Oregon, as well as get more from foundry partners. But demand is growing faster than what it can produce. “We are falling farther behind,” he said. Expanding Microchip’s own plants isn’t easy. For one thing, the company has always relied heavily on buying used manufacturing equipment, but “that whole thing has dried up,” Moorthy said. Acquiring new gear can take 12-18 months and costs more, he said. While the long-term purchase agreements have provided more stability to make such investments, Microchip and others also hope Congress approves a $52 billion funding package, which is expected to include grants to subsidize more U.S. chip production. “Are we counting on it to run our business? No,” said Moorthy. “Would it help some of our investment choices? Absolutely.”

Chip shortage creates new power players

Chinese tech giant Alibaba Group Holding Ltd said on Tuesday it has developed a processor that will be used to power servers in its data centers.

The development marks the latest foray into semiconductors for the company, mirroring moves from other global cloud computing players while also dovetailing with Chinese government's priorities to boost the nation's chip sector.

Also Read |<a href="https://www.wionews.com/world/five-us-lawmakers-accuse-amazon-of-possibly-lying-to-congress-following-reuters-report-421811">&nbsp;Five US lawmakers accuse Amazon of possibly lying to Congress following Reuters report</a>

Developed by Alibaba's in-house semiconductor unit T-Head, the chip — the Yitian 710 — is based on architecture from UK-based Arm Ltd, and will not be available for commercial use outside of Alibaba.

Alibaba is the largest cloud computing provider in China by market share and the third-largest globally, according to research firm Gartner.

Its rivals in the sector have also released server chips of their own. Huawei Technologies Co Ltd and Amazon.com Inc rely on their respective Kunpeng and Graviton chips to power their cloud computing infrastructure.

Alibaba also said it has a developed proprietary line of servers, called Panjiu, and added that it will make the source code for its Xuantie series of IP cores — based on the RISC-V open source architecture — available to the public. Alibaba unveiled the Xuantie in 2019.

Also Read |&nbsp;<a href="https://www.wionews.com/world/exhausted-chinese-employees-start-worker-lives-matter-campaign-over-grueling-work-hours-421420">Exhausted Chinese employees start 'worker lives matter' campaign over grueling work hours</a>

China's government has long urged industry to invest in the domestic chip sector, which remains behind that of global counterparts.

The country remains reliant on overseas companies for much of its advanced semiconductors, a vulnerability brought forth when US&nbsp;sanctions against Huawei crippled that company`s booming smartphone business.

In addition to Alibaba, search giant Baidu Inc, phone maker Xiaomi Corp, and a number of Chinese automotive and appliance companies have begun investing in chips.

Chinese tech giant Alibaba Group Holding Ltd said on Tuesday it has developed a processor that will be used to power servers in its data centers. The development marks the latest foray into semiconductors for the company, mirroring moves from other global cloud computing players while also dovetailing with Chinese government's priorities to boost the nation's chip sector.

Chinese tech giant Alibaba Group Holding Ltd said on Tuesday it has developed a processor that will be used to power servers in its data centers. The development marks the latest foray into semiconductors for the company, mirroring moves from other global cloud computing players while also dovetailing with Chinese government's priorities to boost the nation's chip sector. Also Read | Five US lawmakers accuse Amazon of possibly lying to Congress following Reuters report Developed by Alibaba's in-house semiconductor unit T-Head, the chip — the Yitian 710 — is based on architecture from UK-based Arm Ltd, and will not be available for commercial use outside of Alibaba. Alibaba is the largest cloud computing provider in China by market share and the third-largest globally, according to research firm Gartner. Its rivals in the sector have also released server chips of their own. Huawei Technologies Co Ltd and Amazon.com Inc rely on their respective Kunpeng and Graviton chips to power their cloud computing infrastructure. Alibaba also said it has a developed proprietary line of servers, called Panjiu, and added that it will make the source code for its Xuantie series of IP cores — based on the RISC-V open source architecture — available to the public. Alibaba unveiled the Xuantie in 2019. Also Read | Exhausted Chinese employees start 'worker lives matter' campaign over grueling work hours China's government has long urged industry to invest in the domestic chip sector, which remains behind that of global counterparts. The country remains reliant on overseas companies for much of its advanced semiconductors, a vulnerability brought forth when US sanctions against Huawei crippled that company`s booming smartphone business. In addition to Alibaba, search giant Baidu Inc, phone maker Xiaomi Corp, and a number of Chinese automotive and appliance companies have begun investing in chips.

Alibaba unveils custom ARM-based server chip for cloud computing data centers

Amid thrillers, biopics, and dramas that release each week on the big screen and OTT, the heart yearns to watch a feel-good love story. The good old fashion story where the boy meets a girl, falls in love, separates briefly due to some misunderstanding and eventually reunites for eternity. Anne Hathaway and Nicholas Galitzine's&nbsp;The Idea Of You ticks most boxes of a quintessential rom-com but then takes it a notch higher addressing middle-aged women and their desires in the most effective way possible.&nbsp; 
 
Helmed by Michael Showalter, The Idea Of You is breezy enough for you to enjoy the leads falling in love but also deep dives into the dangerous side effects of the paparazzi culture, societal prejudices and more which makes the film slightly different and not as casual as a romantic comedy perceives to be.&nbsp; 
 
Anne Hathaway plays Solene, an LA-based art gallery owner who reluctantly takes her 16-year-old daughter and her pals to Coachella for a meet-and-greet event with popular band August Moon. Solene's ex-husband has paid for the meet-and-greet but has bailed out. At Coachella, Solene meets Hayes (Galitzine), unaware that he is the lead singer of August Moon. Hayes is enamoured by Solene. She finds herself being drawn to him&nbsp;but hesitates initially because he is 24 and she is 40 and he is the crush of millions of teenagers.&nbsp;

<img alt="t" data-entity-type="file" data-entity-uuid="69b44440-3ae8-44fb-9463-e698ea3faf14" src="//cdn.wionews.com/sites/default/files/inline-images/Your%20paragraph%20text%20%2884%29_0.jpg" /> 
 
Hayes, an emotionally complex but kind and gentle man, is unassuming about his celebrity status. He pursues and charms his way to Solene's heart and the two embark on what seems like a summer romance initially with Solene travelling with Hayes as his 'Art Consultant' as he and his band tour Europe.&nbsp; 
 
As the paparazzi get to know, the couple is followed and photos of their romance are splashed across various tabloids.&nbsp;Solene gets labelled not Hayes. From being called a cougar to being targeted for her age and looks, the internet and society at large come down harshly on the woman while calling the man the victim. As one of Solene's friend rightly points out, "People hate happy women," the society is quick to make judgements about her integrity and character, Solene initially makes peace with it and puts her happiness first. And Hayes gives her happiness but later the dynamics change when Solene's daughter Izzy starts getting affected.&nbsp;

<img alt="t" data-entity-type="file" data-entity-uuid="38deb0a0-e7f5-4093-88f1-0308a4df7851" src="//cdn.wionews.com/sites/default/files/inline-images/Your%20paragraph%20text%20%2885%29_0.jpg" /> 
 
Based on a novel of the same name by Robinne Lee, The Idea Of You has 40-year-old single mother taking the centre stage where she lives an unapologetic life. Even though bitter about her ex-husband cheating on her, Solene is someone who has moved on and made her teenage daughter her best friend while&nbsp;finding solace in her work. Love happens by chance for her and she fights back thinking of society and its norms. But as she finds herself drawn deeply to a much younger man, she realises the hypocritical nature of the society that she has been afraid of all this while.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/izsZy5OW-p0?si=uAOGVLFIk-nEM_cv" title="YouTube video player" width="560"></iframe> 
 
Romantic comedies or love stories have that feel-good factor. But not too many make you think deeper, which fortunately The Idea Of You does. It helps that Hathaway and Galitzine share incredible onscreen chemistry and makes their pairing look very relatable. The songs, composed by Siddhartha Khosla and performed by Galitzine are nice and breezy adding freshness to the story.&nbsp;

<img alt="t" data-entity-type="file" data-entity-uuid="3c3bb29c-cb27-4280-bb95-6094985c7973" src="//cdn.wionews.com/sites/default/files/inline-images/Your%20paragraph%20text%20%2886%29_0.jpg" /> 
 
The Idea Of You is a feel-good romance and despite its predictability, it manages to put a smile on your face. Hathaway and Galitzine make for a good-looking couple on screen. A modern-day fairy tale romance, The Idea Of You is candid and honest, and throws light on the double standards that exist in our society without being too preachy. The film is not meant for teenagers but for their parents, and talks of finding love and giving it a second chance. 
&nbsp; 
The Idea Of You is releasing on Amazon Prime Video on May 2.&nbsp;

Amid thrillers, biopics, and dramas that release each week on the big screen and OTT, the heart yearns to watch a feel-good love story. The good old fashion story where the boy meets a girl, falls in love, separates briefly due to some misunderstanding and eventually reunites for eternity.

Amid thrillers, biopics, and dramas that release each week on the big screen and OTT, the heart yearns to watch a feel-good love story. The good old fashion story where the boy meets a girl, falls in love, separates briefly due to some misunderstanding and eventually reunites for eternity. Anne Hathaway and Nicholas Galitzine's The Idea Of You ticks most boxes of a quintessential rom-com but then takes it a notch higher addressing middle-aged women and their desires in the most effective way possible. Helmed by Michael Showalter, The Idea Of You is breezy enough for you to enjoy the leads falling in love but also deep dives into the dangerous side effects of the paparazzi culture, societal prejudices and more which makes the film slightly different and not as casual as a romantic comedy perceives to be. Anne Hathaway plays Solene, an LA-based art gallery owner who reluctantly takes her 16-year-old daughter and her pals to Coachella for a meet-and-greet event with popular band August Moon. Solene's ex-husband has paid for the meet-and-greet but has bailed out. At Coachella, Solene meets Hayes (Galitzine), unaware that he is the lead singer of August Moon. Hayes is enamoured by Solene. She finds herself being drawn to him but hesitates initially because he is 24 and she is 40 and he is the crush of millions of teenagers. Hayes, an emotionally complex but kind and gentle man, is unassuming about his celebrity status. He pursues and charms his way to Solene's heart and the two embark on what seems like a summer romance initially with Solene travelling with Hayes as his 'Art Consultant' as he and his band tour Europe. As the paparazzi get to know, the couple is followed and photos of their romance are splashed across various tabloids. Solene gets labelled not Hayes. From being called a cougar to being targeted for her age and looks, the internet and society at large come down harshly on the woman while calling the man the victim. As one of Solene's friend rightly points out, "People hate happy women," the society is quick to make judgements about her integrity and character, Solene initially makes peace with it and puts her happiness first. And Hayes gives her happiness but later the dynamics change when Solene's daughter Izzy starts getting affected. Based on a novel of the same name by Robinne Lee, The Idea Of You has 40-year-old single mother taking the centre stage where she lives an unapologetic life. Even though bitter about her ex-husband cheating on her, Solene is someone who has moved on and made her teenage daughter her best friend while finding solace in her work. Love happens by chance for her and she fights back thinking of society and its norms. But as she finds herself drawn deeply to a much younger man, she realises the hypocritical nature of the society that she has been afraid of all this while. Romantic comedies or love stories have that feel-good factor. But not too many make you think deeper, which fortunately The Idea Of You does. It helps that Hathaway and Galitzine share incredible onscreen chemistry and makes their pairing look very relatable. The songs, composed by Siddhartha Khosla and performed by Galitzine are nice and breezy adding freshness to the story. The Idea Of You is a feel-good romance and despite its predictability, it manages to put a smile on your face. Hathaway and Galitzine make for a good-looking couple on screen. A modern-day fairy tale romance, The Idea Of You is candid and honest, and throws light on the double standards that exist in our society without being too preachy. The film is not meant for teenagers but for their parents, and talks of finding love and giving it a second chance. The Idea Of You is releasing on Amazon Prime Video on May 2.

Tired of losing keys? Now, get chip installed for unlocking doors hassle-free

Sony has now sold over 10 million PS5 consoles. This comes after Sony clocked around 7.8 million units as sold by March-end. Even though PS5 continues to be the hottest selling gaming console by Sony to date, the supply is constrained and it is extremely difficult to purchase a console right now due to a global chip shortage.

Sony has now sold over 10 million PS5 consoles. This comes after Sony clocked around 7.8 million units as sold by March-end. Even though PS5 continues to be the hottest selling gaming console by Sony to date, the supply is constrained and it is extremely difficult to purchase a console right now due to a global chip shortage. Jim Ryan, president and CEO of Sony Interactive Entertainment, was quoted by The Verge saying, "While PS5 has reached more households faster than any of our previous consoles, we still have a lot of work ahead of us as demand for PS5 continues to outstrip supply". He added, "I want gamers to know that while we continue to face unique challenges throughout the world that affect our industry and many others, improving inventory levels remains a top priority for SIE". Also read | Twitter set to test 'shop' feature for select brands The supply constraint is not likely to go away anytime soon. It is because of the periodic sales through online channels that the buyers are unable to get their hands on a PS5 unit. Sony has also shared some milestones around the PS5 launch titles. Spider-Man: Miles Morales has sold more than 6.5 million copies since its launch in November, with Ratchet & Clank: Rift Apart selling more than 1.1 million copies since its launch last month. Returnal has also sold more than 560,000 copies since its April launch. As Sony continues to share console hardware figures, Microsoft has stopped sharing Xbox sales numbers in the Xbox One era. Microsoft CEO Satya Nadella has been quoted by The Verge saying, "We’re all in on games". He added, "The Xbox Series S and X are our fastest selling consoles ever, with more consoles sold life-to-date than any previous generation".

Sony has sold 10 million PS5 consoles while chip shortage continues

Samsung&nbsp;Electronics' net profits surged more than 70 percent in the second quarter thanks to higher memory chip prices fuelled by pandemic-led demand, the South Korean tech giant reported Thursday.

Coronavirus-driven working from home boosted demand for devices and appliances powered by&nbsp;Samsung's memory chips. The company said that "memory shipments exceeded previous guidance and price increases were higher than expected".

The world's biggest smartphone maker saw net profits rise 73.4 percent year-on-year to 9.6 trillion won ($8.4 billion) for April-June, the company said in a regulatory filing.

Operating profit increased 54.3 percent to 12.6 trillion won from 8.1 trillion won a year earlier, more than half of which came from the firm's semiconductor business.

The strong results come despite an on-quarter decline in&nbsp;Samsung's earnings from its smartphone business because of supply chain problems that disrupted global production.

Samsung&nbsp;Electronics is the flagship subsidiary of the giant&nbsp;Samsung&nbsp;group, by far the largest of the family-controlled empires that dominate business in South Korea, the world's 12th largest economy.&nbsp;

The conglomerate's overall turnover is equivalent to one-fifth of gross domestic product.&nbsp;

<a href="https://www.wionews.com/technology/samsung-may-launch-flagship-phone-early-to-grab-huawei-share-341786">Also read |&nbsp;Samsung may launch flagship phone early to grab Huawei share</a>

Analysts say the chip unit's proportion of the firm's profit is likely to grow in the months ahead.

"Samsung&nbsp;will benefit from memory chip prices that are likely to go higher in the third and fourth quarter," Park Sung-soon, an analyst at Cape Investment &amp; Securities, told AFP.

The firm anticipates favourable market conditions for the rest of the year, with continued demand for memory chips in the server and mobile markets.&nbsp;

But it warned pandemic-fuelled uncertainty would persist in the second half, noting "continued disruptions in component supply".

Shares in&nbsp;Samsung&nbsp;Electronics closed down 0.25 percent on Thursday.&nbsp;

Eligible for parole

Samsung&nbsp;is expected to showcase the latest foldable smartphone models of its Galaxy Z and clamshell Galaxy Z Flip next month.&nbsp;&nbsp;

Makers of foldables are increasingly competitive, and include rivals such as China's Huawei and Xiaomi.&nbsp;

The upcoming gadgets will be equipped with "new multitasking capabilities and enhanced durability", said TM Roh, head of&nbsp;Samsung&nbsp;Electronics' mobile communications business.&nbsp;

Samsung&nbsp;aims to solidify its position in the smartphone market "with the rollout of its premium mobile lineups as well as cheaper models in the third quarter", said James Kang, senior analyst at Euromonitor International.&nbsp;

But Kang said the company could face headwinds next year, as consumer demand is likely to be weaker than in 2021.&nbsp;

Samsung&nbsp;also faces legal challenges.&nbsp;

Its leader Lee Jae-yong is currently on trial, charged with manipulating a takeover to smooth his succession at the top of the&nbsp;Samsung&nbsp;group.

Lee was separately jailed in January over a sprawling corruption scandal that brought down former president Park Geun-hye.

South Korea's corporate leaders and scholars say a leadership vacuum could hamper the firm's decision-making about large-scale investments, previously key to its global rise.

But Lee's absence would not have much of an impact on&nbsp;Samsung's earnings for the second half, said Park of Cape Investment.&nbsp;

Still, his return to management "could accelerate the decision-making process for long term investments", he added. &nbsp;

Lee is eligible for parole next month after completing more than half of his two-and-a-half year jail term.

Meanwhile, LG Electronics, South Korea's second-largest appliance firm after&nbsp;Samsung, posted a 65.5 percent jump in operating profit for the second quarter, to 1.1 trillion won.&nbsp;Its shares rose 1.5 percent.&nbsp;

Samsung Electronics' net profits surged more than 70 percent in the second quarter thanks to higher memory chip prices fuelled by pandemic-led demand, the South Korean tech giant reported Thursday.

Samsung Electronics' net profits surged more than 70 percent in the second quarter thanks to higher memory chip prices fuelled by pandemic-led demand, the South Korean tech giant reported Thursday. Coronavirus-driven working from home boosted demand for devices and appliances powered by Samsung's memory chips. The company said that "memory shipments exceeded previous guidance and price increases were higher than expected". The world's biggest smartphone maker saw net profits rise 73.4 percent year-on-year to 9.6 trillion won ($8.4 billion) for April-June, the company said in a regulatory filing. Operating profit increased 54.3 percent to 12.6 trillion won from 8.1 trillion won a year earlier, more than half of which came from the firm's semiconductor business. The strong results come despite an on-quarter decline in Samsung's earnings from its smartphone business because of supply chain problems that disrupted global production. Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires that dominate business in South Korea, the world's 12th largest economy. The conglomerate's overall turnover is equivalent to one-fifth of gross domestic product. Also read | Samsung may launch flagship phone early to grab Huawei share Analysts say the chip unit's proportion of the firm's profit is likely to grow in the months ahead. "Samsung will benefit from memory chip prices that are likely to go higher in the third and fourth quarter," Park Sung-soon, an analyst at Cape Investment & Securities, told AFP. The firm anticipates favourable market conditions for the rest of the year, with continued demand for memory chips in the server and mobile markets. But it warned pandemic-fuelled uncertainty would persist in the second half, noting "continued disruptions in component supply". Shares in Samsung Electronics closed down 0.25 percent on Thursday. Eligible for parole Samsung is expected to showcase the latest foldable smartphone models of its Galaxy Z and clamshell Galaxy Z Flip next month. Makers of foldables are increasingly competitive, and include rivals such as China's Huawei and Xiaomi. The upcoming gadgets will be equipped with "new multitasking capabilities and enhanced durability", said TM Roh, head of Samsung Electronics' mobile communications business. Samsung aims to solidify its position in the smartphone market "with the rollout of its premium mobile lineups as well as cheaper models in the third quarter", said James Kang, senior analyst at Euromonitor International. But Kang said the company could face headwinds next year, as consumer demand is likely to be weaker than in 2021. Samsung also faces legal challenges. Its leader Lee Jae-yong is currently on trial, charged with manipulating a takeover to smooth his succession at the top of the Samsung group. Lee was separately jailed in January over a sprawling corruption scandal that brought down former president Park Geun-hye. South Korea's corporate leaders and scholars say a leadership vacuum could hamper the firm's decision-making about large-scale investments, previously key to its global rise. But Lee's absence would not have much of an impact on Samsung's earnings for the second half, said Park of Cape Investment. Still, his return to management "could accelerate the decision-making process for long term investments", he added. Lee is eligible for parole next month after completing more than half of his two-and-a-half year jail term. Meanwhile, LG Electronics, South Korea's second-largest appliance firm after Samsung, posted a 65.5 percent jump in operating profit for the second quarter, to 1.1 trillion won. Its shares rose 1.5 percent.

Samsung reports surge in profit on pandemic-led demand for chips

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