➀ The global semiconductor industry is undergoing a shift due to US export control policies, benefiting domestic Chinese manufacturers;
➁ Investment in China's semiconductor industry is highly concentrated in Taiwan and Jiangsu, with significant investment in silicon wafers and third-generation semiconductor materials;
➂ The Chinese semiconductor industry is expected to play a more significant role in global competition with technological breakthroughs and policy support.
➀ The Mainland Affairs Office of the State Council held a regular press conference on February 26th.
➁ A journalist asked about U.S. President Trump's recent statement on Taiwan taking away the U.S. chip business and his warning to Taiwan.
➂ The spokesperson, Zhu Fenglian, commented on the concerns and doubts in Taiwan regarding TSMC becoming 'U.S. TSMC'.
➃ Zhu emphasized that the Taiwan region's semiconductor industry and leading enterprises are treated as a 'door-opener for seeking independence through external forces' and even as 'a gift' handed over to the U.S., leading to growing opposition among Taiwanese citizens and enterprises.
➀ South Korea's Magnachip Semiconductor is seeking to sell after failing to close a $1.4 billion acquisition deal with China's Zhi Lu Capital in 2021 due to U.S. intervention.
➁ Magnachip's stock has been declining due to the long-term downturn in the global display industry, with its market value now at $150.7 million and expected sale price at $27.3 million.
➂ Sumco, a Japanese silicon wafer manufacturer, plans to stop silicon wafer production at its Miyazaki factory by the end of 2026, transforming it into a factory for producing single crystal ingots.
➀ The domestic semiconductor industry, particularly analog chips and MCUs, is experiencing rapid development and a trend towards mergers and acquisitions.
➁ Companies like Gigadevice and South芯 Technology are acquiring smaller firms to expand their product lines and enhance their technological capabilities.
➂ The integration of MCU and analog chips is becoming a major trend, with companies like Naxin Micro and Xinyuan Microcontroller Semiconductor collaborating to offer comprehensive solutions.
➀ TSMC faces challenges due to Trump's tariffs and the potential for additional taxes from the US government.
➁ The Taiwanese semiconductor industry is under pressure to establish more fabs in the US.
➂ Taiwanese fabs like TSMC and United Microelectronics Corporation are struggling with the dual pressures of US tariffs and competition from Chinese mainland fabs.
➃ Taiwanese fabless companies like MediaTek are adapting to geopolitical risks and exploring new markets.
➄ South Korea's semiconductor industry is facing challenges from Chinese competitors and US tariffs.
➅ Both Taiwan and South Korea are seeking a balance between technological innovation and supply chain security.
➀ Broadcom and TSMC are considering a deal with Intel to split the company, with Broadcom interested in Intel's chip design business and TSMC focusing on Intel's factories.
➁ Broadcom has been closely monitoring Intel's chip design and marketing business and has held informal discussions with advisors, but this could only happen if a partner is found for Intel's manufacturing business.
➂ The potential transactions, which were unimaginable before Intel's recent troubles, could result in the disintegration of Intel.
➀ In the backdrop of the "chip shortage" crisis from 2020-2022, the MCU market experienced rapid expansion, leading to profits for major manufacturers.
➁ However, the market has since faced challenges such as "cost reduction, inventory management, and localization".
➂ Major MCU manufacturers like Microchip, STMicroelectronics, and NXP have reported declining revenues and profits, reflecting a tough market environment.
➃ These companies are adjusting strategies, focusing on technology innovation, and seeking new growth points to overcome the current difficulties.
➀ SMIC reported $22.073 billion in revenue for the fourth quarter of 2024, a 1.7% increase from the previous quarter;
➁ The company's gross profit was $4.99 billion, with a gross margin of 22.6%;
➂ For the full year 2024, SMIC's revenue was $80.299 billion, a 27% increase year-over-year;
➃ The company's operating profit was $4.927 billion, down 45.4% the previous year;
➄ Capital expenditures for 2024 were $7.33 billion;
➅ The company's 8-inch standard logic monthly capacity the end of 2024 was 948,000 wafers;
➆ The average capacity utilization rate for the year was 85.6%;
➇ The company's first-quarter guidance for 2025 is a revenue increase of 6% to 8% from the previous quarter;
➈ The expected gross margin for the first quarter of 2025 is 19% to 21%;
➉ SMIC expects its revenue growth in 2025 to be higher than the average of comparable industries, with capital expenditures remaining roughly the same as in 2024.
➀ The approved IC design companies and semiconductor packaging and testing companies are mainly from Europe, the United States, and Taiwan, indicating a clear intention to decouple technology. It is necessary to build a complete and independent domestic electronic information industry chain.
➁ The requirement for sensitive chip outsourcing and the use of designated packaging and testing companies show that packaging and testing will be the next target of US suppression. It is necessary to enhance wafer manufacturing and packaging and testing capabilities, ensuring close cooperation among design, manufacturing, and packaging and testing companies.
➂ The safety of nodes above 16/14nm, such as 20nm and 28nm, will not be a concern as long as a complete and independent industry chain is formed.
➃ It is necessary to ensure the sufficient supply of 16/14nm process technology as soon as possible to avoid affecting the upgrade of many products.
➄ Short-term focus on technology optimization and capacity expansion of mature processes such as 28nm, and medium to long-term breakthroughs in special processes such as automotive chips and the third generation of semiconductor. In addition, accelerate the research and development of new materials and new architectures, such as SiC/GaN, computing-in-memory chips, and silicon photonics chips.
➀ NXP announced plans to lay off approximately 1,800 employees globally due to increased tariffs in the US and market pressures.
➁ The decision is not directly related to concerns about potential trade wars but is related to broader market conditions.
➂ NXP expects its workforce to 'slightly decrease', with the number of employees reduced no more than 5% globally.
➃ NXP's President and CEO Kurt Sievers commented on the company's performance in 2024, noting a 5% decline in revenue and a focus on managing growth strategies.
➄ NXP obtained a €1 billion loan from the European Investment Bank to accelerate semiconductor innovation.
➀ The semiconductor industry in China faces severe internal competition and low-profit margins despite market share growth.
➁ Restrictions on advanced technology and equipment from the US have led mainland China to focus more on mature processes (28nm and above).
➂ Despite these challenges, China's semiconductor exports are growing, with storage devices and processors being key export categories.
➀ The US investment research firm Zacks predicts that if the Sino-US tech war continues, leading semiconductor companies such as NVIDIA, Micron, Intel, and Qualcomm may be drawn into the trade war, facing regulatory and market challenges that could threaten their growth prospects.
➁ The US has been implementing export control policies over the past few years, restricting China's access to advanced semiconductor technologies crucial for AI, 5G, and supercomputers.
➂ In response to the US measures, China has imposed export restrictions on rare earth metals, retaliating against the US.
➀ The U.S. CHIPS Act has been in the works for over four years, costing $53 billion, aiming to revitalize the U.S. economy and compete with China.
➁ The U.S. Commerce Secretary recently criticized the Act, suggesting that trying to stop China is foolish and that the only way to win is by innovating and staying ahead.
➂ The Act has led to significant investments, but challenges like cultural differences and financial issues have hindered progress.
➀ Samsung recalled overseas general managers from 9 regions including China, North America, and Southeast Asia to discuss emergency business strategies in response to domestic and international uncertainties;
➁ The meeting focused on currency exchange rates, departmental sales strategies, and response plans;
➂ The semiconductor business faced challenges with the appreciation of the Korean won against the US dollar, affecting component prices and overall sales.
➀ The market sentiment towards China's semiconductor industry is pessimistic due to capital withdrawal and layoffs.
➁ Professor suggests that the good news is that the U.S. is blocking China's advanced technology, not mature technology, which presents an opportunity.
➂ The bad news is that China's advanced semiconductor technology is not promising in the short term, with numerous issues and a lack of original innovation.
➀ Taiwan's semiconductor industry is expected to grow by 16%, with TSMC's growth at 25%, driven by Intel orders, advanced process capacity, and AI orders.
➁ Analysts suggest that the U.S. restrictions on China's mature process may not be as effective as expected, and Taiwan's mature process companies should consider integration for economies of scale.
➂ TSMC's revenue growth rate is estimated to reach 25% in 2025, but the biggest variable is U.S. policy.
