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U.S. Commerce Department and Microchip Technology Forge $162 Million Preliminary Deal to Strengthen Semiconductor Supply Chain

semiconductor
Global Trade Daily, Technology, United states news

U.S. Commerce Department and Microchip Technology Forge $162 Million Preliminary Deal to Strengthen Semiconductor Supply Chain

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In a significant move, the Biden-Harris Administration has unveiled a non-binding preliminary memorandum of terms (PMT) between the U.S. Department of Commerce and Microchip Technology Inc., outlining federal incentives totaling approximately $162 million under the CHIPS and Science Act. The aim is to bolster Microchip’s semiconductor supply chain onshore, enhancing the domestic production of critical microcontroller units (MCUs) and other specialty semiconductors. This initiative is pivotal for industries such as automotive, commercial, industrial, defense, and aerospace. The potential investment is set to create over 700 jobs, fostering resilience in the supply chain.

Signed into law by President Biden in August 2022, the CHIPS and Science Act aims to fortify U.S. supply chains, generate high-paying jobs, safeguard national security, and enhance competitiveness. Microchip’s MCUs and mature-node semiconductors play a crucial role in various sectors, including electric vehicles, aerospace, and defense. The proposed investment, split between facilities in Colorado Springs, Colorado, and Gresham, Oregon, is expected to triple semiconductor output, reduce dependence on foreign foundries, and fortify supply chain resilience.

Secretary of Commerce Gina Raimondo emphasized the administration’s commitment to addressing semiconductor shortages that emerged during the pandemic, jeopardizing national security and contributing to economic challenges. The investment in Microchip aligns with President Biden’s goal to rebuild America’s semiconductor supply chain, ensuring a reliable domestic chip supply and fostering job creation across states.

White House National Economic Advisor Lael Brainard highlighted the significance of manufacturing investments in Oregon and Colorado to restore semiconductor production within the U.S. These investments contribute to the broader objective of reducing reliance on global supply chains, curbing price spikes, and eliminating delays in essential products.

Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio emphasized the collaboration between government and industry to strengthen the economy, enhance national security, and create high-quality jobs. Microchip President and CEO Ganesh Moorthy expressed the company’s commitment to reinforcing national and economic security, emphasizing the positive impact on the semiconductor supply chain and workforce development.

The announcement reflects the Biden-Harris Administration’s proactive approach to addressing semiconductor challenges, aligning with broader initiatives to fortify domestic industries and create a more resilient and secure supply chain.

semiconductor manufacturing
Global Trade Daily, Market insight

Semiconductor Memory Market size to reach $340 Bn by 2032

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As per the report by Global Market Insights Inc. “Worldwide semiconductor memory market was valued at over USD 160 billion in 2022 and will surpass a revenue collection of USD 340 billion by 2032 with an annual growth rate of 7.5% from 2023 to 2032.”

Several memory chips developed for applications in intelligent machines and virtual reality gadgets by the gaming industry players are being used in gaming hardware. In addition, the growing inclination towards gaming in China and other Asian countries would significantly influence the semiconductor memory market growth in the coming years.

Besides, semiconductor memory offers faster access times compared to other types of data storage, which is further estimated to propel the market demand in the future. For example, a byte of data can be written or read from semiconductor memory in just a few nanoseconds.

The competitive landscape of the semiconductor memory industry is highly intact. The key market players are engaging in new data center establishment, R&D investment, and undertaking mergers, acquisitions, and partnerships to bolster their presence in the industry. For instance, in 2022, Samsung Electronics Co., Ltd. collaborated with NAVER Corporation to develop semiconductor solutions customized for hyper-scale artificial intelligence (AI) models. The newly developed solutions are expected to take large-scale AI performance and power efficiency to a new level.

Overall, the semiconductor memory market is segregated in terms of type, application, and region.

Considering the type, the random-access memory (RAM) segment will demonstrate sturdy growth through 2032, owing to the rising adoption of semiconductors in automotive & electronic systems, such as SRAM, DRAM, and MRAM. Besides, automobile manufacturers are making use of RAMs for everything, right from engine control to lane-change warning, which is slated to bolster its demand in the ensuing years.

Based on application, the aerospace and defense segment will be valued over USD 6 billion by 2032 end. The growth can be attributed to the rising need for memory chips due to ongoing technological innovations in military weaponry. To cite an instance, China’s leaders have made significant investments in technical fields that support artificial intelligence (AI), quantum computing, hypersonic, and microelectronics, with intentions to create a “fully modern” military by 2027.

Regionally, the North America semiconductor memory market was valued at over USD 40 billion in 2022 and is slated to demonstrate massive growth by 2032. The regional growth can be attributed to the developments in automation and digitalization as well as the use of memory-based elements in technically advanced products in the electronics industry in North America. In addition, various central governments are constantly investing in stabilizing the semiconductor industry, which will further offer lucrative growth opportunities over the coming years.

NFC chip
Global Trade Daily, Market insight, Technology

NFC Chip Market Size is Estimated to Surpass US$ 7.6 Billion Rise at 15% CAGR by 2033

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The global NFC chip market is valued at US$ 1.9 billion in 2023 and is predicted to progress at a CAGR of 15% from 2023 to 2033.

One of the key drivers of the near field communication (NFC) chip market is the increasing adoption of mobile payments across the world. Many people are now using their smartphones to make payments, and NFC technology is a key enabler of this trend. NFC-enabled smartphones can be used to make payments at point-of-sale terminals that support contactless payments, which is more convenient and secure than using cash or traditional payment methods.

Get to Know More: https://bit.ly/41Xp6Tr

Another factor boosting the sales of NFC chips is the development of the Internet of Things (IoT). NFC technology is being used in a wide range of IoT applications, from smart homes to connected cars. NFC-enabled devices can be used to exchange data and enable secure communication between devices, which is essential for many IoT applications.

Sales of NFC chips are experiencing tremendous growth, with increasing demand from various industries, including healthcare, retail, transportation, and finance. The healthcare industry is significantly using NFC technology for patient monitoring and remote healthcare services, while retailers are using it to improve the customer experience by offering several mobile payment options and personalized promotions.

Key Takeaways from Market Study

  • The global NFC chip market is expected to reach US$ 7.6 billion by 2033.
  • The United States market for NFC chips is expanding rapidly due to the presence of key market players.
  • NFC technology is widely used in the healthcare sector in Germany.
  • China is the leading market in Asia Pacific due to its increasing use in the banking sector.

“Popularity of wireless charging and NFC-enabled vehicle diagnostic systems are fuelling NFC chip sales,” says a Fact.MR analyst.

Recent Market Developments

  • STMicroelectronics introduced an affordable NFC Type 2 Tag IC with privacy features and enhanced NFC data exchange format (NDEF) in November 2021. For high-volume utilisation cases such as customer engagement, product information, and brand protection, the solution offers a balance of cost and functionality.
  • In May 2019, NXP Semiconductors and Identive, a leader in digital security and identity for the Internet of Things, developed an ultra-cheap RFID inlay.

More Valuable Insights on Offer

Fact.MR, in its new offering, presents an unbiased analysis of the global NFC chip market, presenting historical demand data (2018 to 2022) and forecast statistics for the period (2023 to 2033).

The study divulges essential insights on the market based on product type (auxiliary, non-auxiliary), storage capacity (up to 64 bytes, 65 to 168 bytes, 169 to 180 bytes, 181 to 540 bytes, above 540 bytes), application (smartphones, laptops & notebooks, smart cards, televisions, point-of-sale systems, medical devices, vehicles, smart wearables), and end-use industry (automotive & transportation, consumer electronics, retail, BFSI, healthcare, building & infrastructure, media & entertainment), across five major regions of the world (North America, Europe, Asia Pacific, Latin America, and MEA).

materials amplifiers chips dutch
Archives, Global Trade Daily, Technology

Applied Materials’ Innovative Pattern-Shaping Technology Reduces the Cost, Complexity and Environmental Impact of Advanced Chip Manufacturing

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Applied Materials, Inc. today unveiled a breakthrough in patterning technology that allows chipmakers to create high-performance transistors and interconnect wiring with fewer EUV lithography steps, thereby lowering the cost, complexity and environmental impact of advanced chipmaking.

Customers increasingly use EUV double patterning to print chip features smaller than the resolution limits of EUV to optimize chip area and cost. Using EUV double patterning, chipmakers split a high-density pattern in half and produce two masks that adhere to the resolution limits of EUV. Both halves of the pattern are combined on intermediate patterning films and then etched into the wafer. While double patterning is effective at increasing feature density, it adds design and patterning complexity along with process steps that consume time, energy, materials and water – and increase the cost of wafer fabs and wafer production.

Introducing the Applied Materials Centura® Sculpta® Patterning System

To help chipmakers continue shrinking designs without the added cost, complexity, and energy and materials consumption of EUV double patterning, Applied Materials worked closely with leading customers to develop the Centura Sculpta patterning system. Chipmakers can now print a single EUV pattern and then use the Sculpta system to elongate the shapes in any chosen direction to reduce the space between features and increase pattern density. Because the final pattern is created from a single mask, design cost and complexity are reduced, and the yield risk from double-patterning alignment errors is eliminated.

EUV double patterning requires a number of added manufacturing process steps that generally include CVD patterning film deposition, CMP cleaning, photoresist deposition and removal, EUV lithography, eBeam metrology, patterning film etching and wafer cleaning. For each EUV double patterning sequence it replaces, the Sculpta system can provide chipmakers with:

  • Capital cost savings of approximately $250 million per 100K wafer starts per month of production capacity
  • Manufacturing cost savings of approximately $50 per wafer
  • Energy savings of more than 15 kwh per wafer
  • Direct greenhouse gas emissions reduction of more than 0.35 kg of CO2 equivalent per wafer
  • Water savings of approximately 15 liters per wafer

The Sculpta system is receiving high interest from leading chipmakers and has been selected as a production tool of record for multiple steps in high-volume logic manufacturing.

Additional information about Applied’s Sculpta system will be discussed at the company’s “New Ways to Shrink: Advanced Patterning Products Launch” event being held today.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future.

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Archives, Global Trade Daily, International Trade

Dutch Resist US Call to Ban more Chip Equipment Sales to China

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The Netherlands will defend its economic interests when it comes to the sales of chip equipment to China, a senior Dutch official said, further evidence of the country’s resistance to meekly following Washington’s attempts to cut off China from semiconductor technology.

The European country is home to ASML Holding NV, which dominates the market for one-of-a-kind, cutting-edge chipmaking equipment that has become a focus of the US government’s attempts to limit China. Dutch Foreign Trade Minister Liesje Schreinemacher told lawmakers on Tuesday that the Netherlands will make its own decision regarding ASML’s chip gear sales to China amid trade rule talks with the US and other allies.

Deep ultraviolet systems are the second-most-advanced chip production machines that Veldhoven, Netherlands-based ASML manufactures, and the equipment is required to make a wide range of semiconductors.

Schreinemacher’s comments appeared to indicate growing Dutch objections to the US call for the Netherlands to align with Washington on export controls to undermine Beijing’s ambition in building a chip industry at home and improve its military capabilities. The European country wants to maintain access to China as a major market.

Last week, the Dutch minister said the US shouldn’t expect the Netherlands to unquestionably adopt its approach to China export restrictions.

While ASML hasn’t sold any of its most advanced extreme ultraviolet lithography machines to China because the Dutch government has refused to grant it a license under US pressure, the company can still sell less sophisticated chipmaking systems to the Asian country.

However, US officials have been pressuring the Dutch government to ban the sales of immersion lithography machines, the most advanced kind of gear in ASML’s deep ultraviolet lineup, Bloomberg News has reported. The Biden administration has been working to get allies including the Netherlands and Japan to adopt the sweeping measures it unveiled in early October to ban more chip machines for China.

The Netherlands is key to the struggle because ASML is one of a handful of companies that dominate the market for semiconductor-manufacturing equipment. Its peers include Applied Materials Inc., Lam Research Corp. and KLA Corp. in the US, and Tokyo Electron Ltd. in Japan.

Senior US officials — including Alan Estevez, the undersecretary of commerce for industry and security — are traveling to the Netherlands this month to discuss export controls. But an immediate accord isn’t expected to come out of the talks, Bloomberg News has reported.

EU negotiators are working on a number of contentious trade issues with Washington. Countries, most vocally France, have said the measures could damage European economies and have raised the possibility of filing a complaint with the World Trade Organization.

These issues will be a topic of conversation early next month at the Trade and Technology Council, a high-level meeting between EU and US officials.

Meanwhile, China is working to ensure other countries don’t cave to US demands. In a Group of 20 summit meeting last Tuesday, Chinese President Xi Jinping urged Dutch Prime Minister Mark Rutte to avoid disrupting global trade.

semiconductor assembly
Archives, Global Trade Daily, Technology

Semiconductor Assembly and Testing Services Market to Reach US$ 52.1 Bn By 2029

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Continuous developments and implementation of new technologies such as organic-substrate-interposer technology and silicon-via-interconnection technology in the semiconductor assembly & testing services market are creating significant revenue opportunities for players in the semiconductor assembly and testing services market.

Implementation of semiconductor assembly and testing services in the consumer electronics sector helps manufacturers produce semiconductors, memory chips, and wafers used in consumer electronic products and wireless/mobile handsets in a more efficient manner.

The value of the global semiconductor assembly and testing services market is anticipated to witness a CAGR of 6.1% during the forecast period of 2022-2029.

Key Takeaways

  • Among the application segment, the consumer electronics segment is expected to witness a high growth rate, owing to rising demand for audio/video equipment, cameras, calculators, and smart homes (home safety equipment & accessories)
  • Asia Pacific Excluding Japan is expected to create lucrative growth opportunities for players in the semiconductor assembly and testing services market, attributable to the rapid growth of packaging of semiconductors, and increasing applications of semiconductor assembly methodologies in this region
  • Increasing demand for connected devices worldwide including smartphones and tablets having connectivity and multimedia capabilities propels the demand for higher packaging technologies and creates growth opportunities for the service provider in the semiconductor assembly and testing services market.

“Semiconductor assembly and testing service providers can improve revenues by upgrading existing facilities to include superior electrical and thermal performance, and high input and output capabilities,” Says the FMI Analyst

Gains Upheld by Increasing Demand for Improved Connectivity in Consumer Electronics

Higher demand for mobile and connected devices such as tablets and smartphones has bolstered the demand for higher packaging technologies. Also, rising demand for digital video content drives the growth of high-performance and mobile consumer electronics products, such as Wi-Fi chipsets and other semiconductor chips.

For instance, STATS chip AC (JCET) develops an expanded Wafer Level Chip Scale Package (eWLCSP), which offers improved testing and a low-cost fan-in wafer-level package for space-controlled mobile devices.

Moreover, the growth of end-use industries such as electronics and semiconductors, automotive, manufacturing, and packaging is expected to offer potential growth opportunities for manufacturers in the global semiconductor assembly and testing services market.

ODMs and OEMs to Prioritize ‘Fab-lite’ Strategy

As semiconductor process technology migrates to larger wafers and smaller feature sizes, the cost of building state-of-the-art wafer fabrication factories has risen significantly, reaching several billion dollars. High investment costs for next-generation silicon technology and equipment are influencing various semiconductor companies to adopt or maintain a ‘fabless’ or ‘fab-lite’ strategy. The increasing demand for semiconductors is needed for cloud integration and connectivity including sensors, computing, interactivity, and communication devices.

More Valuable Insights on Semiconductor Assembly and Testing Services Market

FMI’s report on the semiconductor assembly and testing services market is segmented into three major sections such as services (assembly & packaging services (copper wire & gold wire bonding, flip chip, wafer level packaging, TSV, and others), and testing services), applications (communications, computing & networking, consumer electronics, industrial and automotive electronics, and region to help readers understand and lucrative evaluate opportunities in the semiconductor assembly and testing services market.

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Archives, Global Trade Daily, Imports/Exports

U.S. States Whose Auto Industry Was Hit Hardest During COVID-19

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Amid recent concerns about inflation, rising prices for new and used vehicles have received significant attention. According to recent data from the Bureau of Labor Statistics, the price of vehicles increased by 11.8% for new cars and a whopping 37.3% for used cars from December 2020 to December 2021. Even in an environment of rising prices across the economy, the spike in vehicle prices stands out.

Many observers have pointed to ongoing challenges with the supply chain and a tight labor market as factors that are limiting supply and leading to an increase in prices. A shortage of semiconductor chips and other essential car components has hampered auto production, while backlogs at major ports are making it difficult to transport the vehicles and parts that are being produced. Manufacturers have been struggling to staff plants at full capacity with the tightness of the labor market, a situation worsened by the surge in cases from the Omicron variant. As a result of these factors, industry experts estimated that the industry could see a shortfall of about 8 million vehicles.

While many of these challenges are coming to a head now, the auto industry has struggled throughout the pandemic. At the beginning of the pandemic in early 2020, total U.S. auto exports experienced their biggest drop since the Great Recession with the onset of COVID shutdowns. As more drivers stayed home and manufacturers operated at more limited capacity, exports fell from approximately $10.5 billion in March 2020 to around $3.2 billion two months later. While monthly exports rebounded to more than $10.5 billion again by August, the industry has continued to struggle to exceed pre-pandemic levels since. In each of the first 11 months of 2021, export figures from U.S. automakers trailed the figures for the corresponding month in 2019, despite surging demand.

These ongoing struggles naturally pose greater challenges for states whose economies depend more heavily on car and auto part manufacturing. Michigan, the traditional home of the U.S. auto industry and home to giants like Ford and GM, accounted for nearly $16 billion in auto exports in 2020. South Carolina, which is home to major manufacturing facilities for BMW, Michelin, and a number of other auto parts companies, and California, which is a major center in the burgeoning electric vehicle market, are also large exporters.

While these major exporting states have been hard-hit as a result of the pandemic and could face more challenges in the near future, many other states have seen even greater declines. A total of 43 states had lower auto exports in 2020 than in 2019, but the size of the decline ranged from a 2.3% reduction all the way to a 51% decrease in exports. And the characteristics of a state’s auto industry did not spare any states from these difficulties: the states with large export losses experienced declines regardless of whether their industry concentrated in passenger vehicles, tractor trailers, motorcycles, or auto parts.

The data used in this analysis is from the U.S. Census Bureau’s Foreign Trade Data. To identify the U.S. states whose automotive industries were hit hardest by the COVID-19 pandemic, researchers at CoPilot calculated the percentage change in state automotive exports between 2019 and 2020. Researchers also calculated the percentage of total state exports accounted for by the automotive industry, as well as the automotive sector responsible for the most exports in 2020.

Here are the states whose auto industries were hit hardest during COVID.

State Rank Percentage change in auto exports (2019–2020) Total auto exports (2020) Total auto exports (2019) Auto exports as a share of total state exports Largest auto sector
Mississippi     1     -51.0% $577,561,521 $1,178,914,774 5.6% Passenger Vehicles (Internal Combustion)
Washington    2     -49.2% $570,863,349 $1,124,850,637 1.4% Road Tractors for Semi-trailers
Pennsylvania    3     -45.0% $1,136,532,516 $2,066,302,460 3.0% Motorcycles
Wyoming    4 –    36.0% $23,253,092 $36,316,995 2.0% Bodies for Road Tractors
Virginia    5     -35.6% $832,570,089 $1,293,755,497 5.1% Road Tractors for Semi-trailers
Arizona    6     -35.2% $387,614,930 $598,240,715 2.0% Motor Vehicles for Goods Transport
Tennessee    7     -34.5% $2,523,963,500 $3,851,343,633 9.0% Passenger Vehicles (Internal Combustion)
North Carolina    8     -33.2% $900,084,365 $1,348,192,451 3.2% Drive Axles
Ohio    9     -32.9% $5,933,273,841 $8,848,509,170 13.2% Passenger Vehicles (Internal Combustion)
Arkansas    10     -30.7% $153,882,650 $221,979,604 3.0% Suspension Shock Absorbers
Indiana    11     -30.5% $7,012,902,262 $10,089,583,845 19.8% Gear Boxes
Michigan    12     -29.9% $15,987,107,753 $22,813,060,777 36.0% Motor Vehicles for Goods Transport
Delaware    13     -27.3% $291,052,509 $400,590,517 7.4% Passenger Vehicles (Internal Combustion)
Maine    14     -24.2% $34,631,865 $45,680,861 1.5% Trailers & Semi-trailers
California    15     -23.3% $11,085,046,400 $14,454,461,847 7.1% Motor Vehicles (Electric Motor)
United States    –     -21.1% $105,560,728,656 $133,834,667,670 7.4% Passenger Vehicles (Internal Combustion)

For more information, a detailed methodology, and complete results, you can find the original report on CoPilot’s website: https://www.copilotsearch.com/posts/states-whose-auto-industries-were-hit-hardest-by-covid-19/