CybserSecurity News

Tag: SMIC

  • The top ten wafer foundries in Q4 2022 saw a 4.7% decrease in revenue compared to Q3

    Starting from the second quarter of 2022, many brand customers have begun to enter the destocking phase. However, wafer foundries are located upstream in the industry chain, and a considerable portion of them are long-term contracts, making it difficult to adjust quickly. Except for some second- and third-tier wafer foundries that have responded relatively quickly, it was not until the fourth quarter of last year that a significant decrease in capacity utilization rate became apparent.

    According to TrendForce‘s latest statistics, the total revenue of the top ten wafer foundries in the fourth quarter of 2022 was approximately $33.53 billion, a decrease of 4.7% compared to the previous quarter, marking the first decline in the past fourteen quarters. Due to the traditional off-season and the economic environment being filled with uncertainty, it is expected that the first quarter of 2023 will continue to decline, with a larger drop in revenue.

    Although there is support from new iPhone and Android models, TSMC’s revenue in the fourth quarter of 2022 still decreased by 1% compared to the previous quarter, reaching $19.96 billion, with a market share of nearly 60%. Due to the greater impact on second- and third-tier wafer foundries, TSMC’s market share has increased. Currently, advanced processes of 7nm and below account for 54% of TSMC’s revenue, with the decline in 6/7nm being offset by the growth of 4/5nm.

    Samsung also benefited from the components of new iPhone and Android models, offsetting some of the loss of customers’ destocking and orders for advanced processes. The revenue in the fourth quarter of 2022 decreased by 3.5% compared to the previous quarter, reaching $5.39 billion. The major problem facing Samsung is that the advanced processes of 7nm and below have new orders transferred by Qualcomm and NVIDIA, and there are not enough new customers to fill the gap, resulting in a low capacity utilization rate of about 60%. This will hinder the revenue growth of Samsung in 2023.

    The capacity utilization rate and shipments of UMC both decreased in the fourth quarter of 2022, with revenue reaching approximately $2.17 billion, a decrease of 12.7% compared to the previous quarter. GlobalFoundries benefited from the average selling price of wafers, optimization of product mix, and increased revenue from non-wafer-related products, with revenue in the fourth quarter of 2022 increasing by 1.3% compared to the previous quarter, reaching $2.1 billion, the only enterprise among the top ten with positive revenue growth, with a market share of 6.2%. SMIC attempted to increase order volume by lowering prices, but with little effect. Shipments and selling prices both declined, resulting in a 15% decrease in revenue in the fourth quarter of 2022, reaching approximately $1.62 billion.

  • TrendForce: Global Top 10 Foundries’ Total Revenue Grew by 6% QoQ for 3Q22

    TrendForce released a new survey report, showing that in the third quarter of 2022, the output value of the top ten wafer foundries reached $35.21 billion, with a quarter-on-quarter increase of 6%. After entering the fourth quarter of 2022, with the increase in inventory in Apple’s supply chain, the weak global economy, continued high inflation, and the impact of the epidemic, etc., coupled with a lack of consumer confidence, unsatisfactory demand, and slower-than-expected destocking operations, the order volume has been greatly reduced.

    The top five foundries are TSMC, Samsung, UMC, GlobalFoundries, and SMIC, with a combined global share (by revenue) of 89.6%. Most foundries have been affected by customer inventory or large adjustments in orders. Only TSMC’s revenue has increased significantly, largely due to the strong demand for Apple’s new iPhone models this year.

    TSMC’s revenue in the third quarter of 2022 was $20.16 billion, an increase of 11.1% quarter-on-quarter, and its market share expanded to 56.1%; Samsung’s market share fell to 15.5%, with revenue of $5.58 billion, a slight decrease of 0.1% month-on-month; UMC’ revenue increased by 3.1% month-on-month to US$2.48 billion; GlobalFoundries’ revenue increased by 4.1% month-on-month to $2.07 billion, and the capacity utilization rate has remained above 90%; SMIC’s revenue increased slightly, up 0.2% month-on-month to $1.91 billion.

    TrendForce expects that the total revenue of the top ten foundries in the fourth quarter of 2022 will decline quarter-on-quarter, as consumer semiconductor components continue to slump as the market continues to slump. Orders will be lowered more sharply, entering a correction period, thus ending a two-year boom period.

  • TrendForce released the 2021Q2 global foundry report

    TrendForce released the latest foundry survey report. The data shows that the global foundry production value reached $24.407 billion in the second quarter of 2021, a month-on-month increase of 6.2%. Since the third quarter of 2019, it has set a new high for eight consecutive quarters. The semiconductor industry is facing the impact of shifting to 5G technology, the continued spread of the coronavirus epidemic, and long-term supply chain shortages. Panic buying of chips continues in the second quarter of 2021. Due to the high demand for chips and limited foundry capabilities, it has been unable to meet the shipment targets of various terminals at this stage.

    In the second quarter of 2021, TSMC continued to hold the No. 1 position with revenue of $13.3 billion and an increase of 3.1% from the previous quarter. However, due to unexpected events such as drought, water shortage, and power outages, TSMC’s revenue has been affected to a certain extent. Samsung’s revenue in the second quarter of 2021 was $4.33 billion, an increase of 5.5% from the previous quarter, continuing to rank second. In this quarter, Samsung’s wafer fab in Texas, USA, was affected by the previous snowstorm, and the production line did not fully recover, which also affected revenue.

    In addition to TSMC and Samsung, UMC, GlobalFoundries, and SMIC are ranked three to five. In this quarter, UMC benefited from the demand for integrated touch and display driver ICs, power management ICs, and Wi-Fi chips. Revenue was $1.82 billion, an increase of 8.5% from the previous quarter. Recently, GlobalFoundries is very strong and continues to expand production capacity, achieving quarterly revenue of $1.52 billion, an increase of 17% from the previous quarter. SMIC is also vigorously increasing its production capacity, with revenue of $1.34 billion in the second quarter, an increase of 21.8% from the previous quarter.

    The market share of TSMC, Samsung, UMC, GlobalFoundries and SMIC are 52.9%, 17.3%, 7.2%, 6.1% and 5.3%, respectively. TSMC still occupies more than half of the market share, followed by Samsung, widening the gap with UMC, GlobalFoundries, and SMIC. TrendForce said that in the third quarter of 2021, the global foundry production value will continue to grow, and will reach new highs.

  • SMIC is said to have obtained a U.S. license

    SMIC has obtained a license issued by the U.S. government after the company was blocked by the Trump administration.

    The Trump administration banned SMIC and other Chinese technology companies on unwarranted charges and prevented US semiconductor companies from providing SMIC with components and technologies.

    At present, some US-based suppliers have obtained licenses issued by the US government, which will allow these suppliers to re-supply products to SMIC.

    Global Times said that the licenses obtained by SMIC’s supply chain companies this time mainly cover manufacturing processes such as 14nm.

    SMIC supply Huawei

    The so-called mature process refers to the mature technology, which corresponds to the advanced process, which mainly refers to the 7nm, 5nm, and other process technologies.

    For SMIC, mature technology is currently the most important product. At the same time, SMIC is still using its own strength to develop advanced technology to avoid potential risks.

    It is also gratifying to SMIC that the mature technology is now unblocked. After all, the semiconductor industry needs to use global technological capabilities to improve the supply chain.

  • SMIC is on the Entity List have a significant adverse impact on 10nm processes

    On December 18, the US Department of Commerce included SMIC and some of its subsidiaries and shareholding companies in the “Entity List” on the grounds of protecting US national security and diplomatic interests.

    SMIC supply Huawei

    According to SMIC, after the company is included in the “Entity List”, in accordance with relevant US laws and regulations, for products or technologies that are applicable to the US “Export Control Regulations”, suppliers must obtain an export license from the US Department of Commerce before they can supply products to the other companies.

    SMIC said in the announces:

    According to the company’s preliminary assessment, the matter has no significant adverse impact on the company’s short-term operations and financial status, and has a significant adverse impact on the R&D and capacity construction of advanced processes of 10nm and below. The company will continue to communicate with relevant departments of the U.S. government, and depending on the situation Take all feasible measures, actively seek solutions, and strive to minimize adverse effects.

  • The United States puts more than 60 entities including SMIC on the blacklists list

    The US Department of Commerce announced that the Bureau of Industry and Security of the Department of Commerce included SMIC on the Entity List to restrict its ability to acquire key US technologies.

    The US Department of Commerce stated that the Bureau of Industry and Security of the Department of Commerce included China Semiconductor Manufacturing International Corporation (SMIC) on the list of entities. This action is to protect US national security. US Secretary of Commerce Wilbur Ross (Wilbur Ross) said: “We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary.”

    ban Huawei equipment

    The US Department of Commerce stated that after SMIC is included in the Entity List, US exporters must apply for a license to sell products to the company, which limits SMIC’s ability to obtain certain US technologies.

    In addition to SMIC, the Bureau of Industry and Security of the US Department of Commerce has added more than 60 other entities to the Entity List whose actions are deemed to violate US national security or diplomatic interests.

    Via: washingtonpost

  • SMIC is evaluating the impact of export restrictions on the company’s production

    SMIC has previously issued an announcement to explain the export control incidents of the US Department of Commerce. Currently, SMIC has issued a new announcement saying that it is assessing the impact.

    SMIC stated that the company is communicating with the U.S. Bureau of Industry and Security for restrictions, and the company is also actively communicating with the U.S. government.

    Due to the extended or inaccurate supply period of some equipment, accessories, and raw materials exported from the United States, it may have a material adverse effect on the company’s future production and operation.

    SMIC supply Huawei

    Next, SMIC will continue to maintain communication with the US Department of Commerce and other relevant government departments, and perform information disclosure obligations in strict accordance with relevant laws and regulations.

    “We’re evaluating the impact of the export restrictions on the company’s production and business activities,” said SMIC, while adding that it will maintain communication with the relevant U.S. departments.

    Via: CGTN

  • SMIC seems to be hoarding goods in response to the ban in the United States

    According to Bloomberg reports, SMIC is currently accelerating the procurement of various key equipment and parts, and it seems that it is hoarding goods in response to the regulatory requirements of the US Department of Commerce.

    It is worth noting that when documents from the Bureau of Industry and Security of the US Department of Commerce were circulating on the Internet, SMIC denied that it was blocked because the company had not received notification.

    However, it was at this time that SMIC started to accelerate the procurement of materials, including key equipment in the semiconductor field and various replacement parts and even raw materials.

    Although it did not last long for SMIC to confirm that it was indeed blocked, SMIC’s suppliers have now received the US Department of Commerce’s request for export restrictions.

    SMIC supply Huawei

    According to media reports, the scale of SMIC’s procurement from upstream supply chain companies such as the United States, Europe, and Japan has exceeded the material demand for the entire year of 2020.

    The key equipment purchased includes key equipment and test machines in the field of chip manufacturing such as etching, lithography, and wafer cleaning agents, as well as a large number of daily consumables.

    The purchase of these materials exceeds the demand for one year of use. Of course, it seems that it is necessary to stock up in advance because it is not convenient to purchase in the future.

    At present, if US companies want to continue to supply SMIC, they need to apply for a license from the US Department of Commerce. Of course, most applications may be approved.

    This means that a large number of key equipment and raw materials in the chip manufacturing field can no longer be exported to SMIC, which will have a negative impact on the entire supply chain.

  • U.S. Department of Commerce imposed controls on SMIC

    A few days ago, some media forwarded a document that was suspected to be issued by the Bureau of Industry and Security of the US Department of Commerce. The document shows that the US Department of Commerce has decided to impose controls on SMIC.

    The so-called implementation of control is the same entity list as the previous Huawei ban. According to regulations, the United States or companies using American technology are not allowed to trade with the listed companies without authorization.

    U.S. companies or foreign companies that use U.S.-based technology need to obtain prior approval from the U.S. Department of Commerce if they need to trade with listed companies, and cannot sell products without approval.

    The Bureau of Industry and Security of the US Department of Commerce mentioned in a document issued that certain products targeted at SMIC and its subsidiaries and joint ventures will be subject to export controls.

    SMIC supply Huawei

    The chip technology used by SMIC also contains American technology. As a semiconductor supply chain company, SMIC is involved in a variety of semiconductor products. At the same time, its products are not only for China but also for multiple markets around the world.

    This is also true SMIC has previously stated that it abides by the laws and regulations of relevant countries, but even so, the US seems to be reluctant to let SMIC go.

    If it is included in the list of regulated entities, SMIC’s follow-up technology and processes and products will be subject to various restrictions, which may also seriously affect the company.

    SMIC also issued a timely announcement to clarify the news circulating on the Internet. SMIC stated that the company has not yet received official documents from the United States.

    The reason given by the United States for SMIC seems to be military products, but SMIC also emphasized that the company only provides terminal products for civilian and commercial use.

    Therefore, it is not yet clear how these documents are currently circulating. At least for now, SMIC has not received official notification from the United States.

    Therefore, the credibility of the content circulated on the Internet should be relatively low before the official news is obtained. After all, the United States will give a buffer period even if it makes relevant decisions.

    Via: The Wall Street Journal