Samsung is embarking on an ambitious project, with an investment of approximately $1.6 trillion to build a semiconductor colony in partnership with the South Korean government.
Samsung is embarking on an ambitious project, with an investment of approximately $1.6 trillion to build a semiconductor colony in partnership with the South Korean government. In March 2023, the government announced a joint investment of 300 trillion won (around $1.6 trillion) with Samsung to establish five advanced semiconductor manufacturing plants by 2024. The goal is to create the world's largest semiconductor cluster in the Seoul metropolitan area, with over 150 domestic and foreign raw material, component, equipment, and IC design companies. Samsung has been successful in attracting global semiconductor manufacturers to invest in the region, with executives from U.S.-based Applied Materials and Dutch-based ASML meeting with the government office of Gyeonggi Province near Seoul to discuss investment plans, infrastructure development, and tax incentives
SIA Applauds Senate Passage of CHIPS Permitting Legislation
The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding Senate passage of the Building Chips in America Act (Kelly Amendment #985) as part of the National Defense Authorization Act (NDAA). The amendment will maximize the impact of the CHIPS and Science Act by streamlining federal reviews for chip manufacturing projects while keeping environmental protections in place. “Enactment of the CHIPS and Science Act was a landmark step toward reinvigorating domestic semiconductor manufacturing and innovation. Announced CHIPS projects total more than $200 billion in private investments and will create more than 40,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional jobs throughout the U.S. economy. “The Building Chips in America Act will help ensure these new facilities get up and running in an expeditious and environmentally responsible way, which will help maximize the CHIPS Act’s positive impact on America’s economic and national security. We thank the legislation’s Senate sponsors—Sens. Mark Kelly (D-Ariz.), Ted Cruz (R-Texas), Todd Young (R-Ind.), Bill Hagerty (R-Tenn.), Sherrod Brown (D-Ohio), Martin Heinrich (D-N.M.), Kyrsten Sinema (I-Ariz.), and Ted Budd (R-N.C.)—for their leadership, applaud Senate approval, and urge House and Senate negotiators to include the amendment in final NDAA passage.”
The chip industry is currently experiencing a challenging
The chip industry is currently experiencing a challenging environment, with falling sales and declining revenues for many semiconductor companies. In the first quarter of 2023, global semiconductor industry sales dropped by 5.2%, with a significant 31.6% decline in the Chinese mainland. Additionally, the top 15 global semiconductor suppliers saw a 14% drop in revenues in the fourth quarter of 2022 compared to the previous quarter. In terms of equipment, semiconductor manufacturing imports in the mainland fell by 28.8% year-on-year and are projected to decrease by 16% year-on-year to $91.2 billion in 2023. In response to these challenges, semiconductor companies are turning to layoffs as a preferred option to cut costs. Intel, Micron, and Qualcomm have all announced layoffs. For start-up chip companies, shipping and financing have become top priorities for survival in this challenging environment. Despite the current downturn, the semiconductor industry operates in a cyclical business, and every semiconductor crash presents an opportunity to gain market share. Companies that take decisive action and prepare for the coming recovery can position themselves to take advantage of the upturn that is expected in 2024.
Nvidia has made history by becoming the first chipmaker to join the trillion-dollar club.
On May 30, following the opening of the US stock market, Nvidia's shares rose above $400, pushing its market value beyond the $1 trillion mark. This achievement is a significant milestone for the company, cementing its status as a leader in the semiconductor industry. In recent weeks, Wall Street analysts have raised their price targets for Nvidia's shares, reflecting the company's strong financial performance and growth prospects. This is a testament to the company's continued innovation and success in developing cutting-edge technology and products.
Samsung is embarking on an ambitious project, with an investment of approximately $1.6 trillion to build a semiconductor colony in partnership with the South Korean government.
Samsung is embarking on an ambitious project, with an investment of approximately $1.6 trillion to build a semiconductor colony in partnership with the South Korean government. In March 2023, the government announced a joint investment of 300 trillion won (around $1.6 trillion) with Samsung to establish five advanced semiconductor manufacturing plants by 2024. The goal is to create the world's largest semiconductor cluster in the Seoul metropolitan area, with over 150 domestic and foreign raw material, component, equipment, and IC design companies. Samsung has been successful in attracting global semiconductor manufacturers to invest in the region, with executives from U.S.-based Applied Materials and Dutch-based ASML meeting with the government office of Gyeonggi Province near Seoul to discuss investment plans, infrastructure development, and tax incentives
SIA Applauds Senate Passage of CHIPS Permitting Legislation
The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding Senate passage of the Building Chips in America Act (Kelly Amendment #985) as part of the National Defense Authorization Act (NDAA). The amendment will maximize the impact of the CHIPS and Science Act by streamlining federal reviews for chip manufacturing projects while keeping environmental protections in place. “Enactment of the CHIPS and Science Act was a landmark step toward reinvigorating domestic semiconductor manufacturing and innovation. Announced CHIPS projects total more than $200 billion in private investments and will create more than 40,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional jobs throughout the U.S. economy. “The Building Chips in America Act will help ensure these new facilities get up and running in an expeditious and environmentally responsible way, which will help maximize the CHIPS Act’s positive impact on America’s economic and national security. We thank the legislation’s Senate sponsors—Sens. Mark Kelly (D-Ariz.), Ted Cruz (R-Texas), Todd Young (R-Ind.), Bill Hagerty (R-Tenn.), Sherrod Brown (D-Ohio), Martin Heinrich (D-N.M.), Kyrsten Sinema (I-Ariz.), and Ted Budd (R-N.C.)—for their leadership, applaud Senate approval, and urge House and Senate negotiators to include the amendment in final NDAA passage.”
The chip industry is currently experiencing a challenging
The chip industry is currently experiencing a challenging environment, with falling sales and declining revenues for many semiconductor companies. In the first quarter of 2023, global semiconductor industry sales dropped by 5.2%, with a significant 31.6% decline in the Chinese mainland. Additionally, the top 15 global semiconductor suppliers saw a 14% drop in revenues in the fourth quarter of 2022 compared to the previous quarter. In terms of equipment, semiconductor manufacturing imports in the mainland fell by 28.8% year-on-year and are projected to decrease by 16% year-on-year to $91.2 billion in 2023. In response to these challenges, semiconductor companies are turning to layoffs as a preferred option to cut costs. Intel, Micron, and Qualcomm have all announced layoffs. For start-up chip companies, shipping and financing have become top priorities for survival in this challenging environment. Despite the current downturn, the semiconductor industry operates in a cyclical business, and every semiconductor crash presents an opportunity to gain market share. Companies that take decisive action and prepare for the coming recovery can position themselves to take advantage of the upturn that is expected in 2024.
Nvidia has made history by becoming the first chipmaker to join the trillion-dollar club.
On May 30, following the opening of the US stock market, Nvidia's shares rose above $400, pushing its market value beyond the $1 trillion mark. This achievement is a significant milestone for the company, cementing its status as a leader in the semiconductor industry. In recent weeks, Wall Street analysts have raised their price targets for Nvidia's shares, reflecting the company's strong financial performance and growth prospects. This is a testament to the company's continued innovation and success in developing cutting-edge technology and products.