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Last Updated: 9/6/24
AMD Acquires ZT Systems to Gain AI Competitiveness
AMD has bolstered its data center AI system capabilities by acquiring ZT Systems, a leading AI infrastructure provider, for $4.9 billion. This acquisition is crucial to AMD’s long-term AI strategy, enhancing its competitiveness in the rapidly expanding data center AI market.
Intel’s Users Opt for Older CPU Models
Due to instability issues with 13th and 14th Gen models, desktop customers may return to 12th Gen Alder Lake CPUs. Intel has ceased special pricing on Alder Lake, but open market prices show vendors selling at a loss to meet revenue targets.
Micron Purchase Properties to Boost Production
AU Optronics announced the sale of its Tainan property and AUO Crystal’s Taichung property to Micron Taiwan. Micron will use these facilities for front-end wafer testing and to expand DRAM production operations.
TI Reports Weak Q2 Revenue
Texas Instruments (TI) reported $3.82 billion in Q2 revenue, a 16% year-over-year decline but a slight sequential increase. Despite overall weak demand, profits exceeded expectations due to a recovery in analog chip demand. While personal electronics grew strongly, industrial and automotive markets remained weak. Inventory levels have decreased.
STM Excess Expectations Despite Low Demand
STMicroelectronics faced Q2 challenges from inventory adjustments and fluctuating demand, causing a sharp year-over-year revenue decline, mainly from industrial and automotive sectors. Despite this, ST exceeded expectations and introduced smart sensors with edge AI for industrial and robotics applications.
XLINK Launch Cost-Optimized FPGA Amid Low Demand
XILINX faces low demand, particularly for the XC7K, XC7A, and XC6S series, with most 7-series products priced below market value. The discontinuation of the XC95 series has raised prices. XILINX recently launched the cost-optimized Spartan UltraScale+ FPGA for various industries.
Microship High Inventory Levels
Microchip faces high inventory levels, especially for PIC MCUs, ATMEGA, USB, and KSZ series, due to weak demand. August demand centered on servers and PCs like Microsemi’s PM series. Some components remain scarce due to strict controls and long lead times.
More Component Compass news
The United States Has Imposed Additional Tariffs on Chinese EVs
The United States Has Imposed Additional Tariffs on Chinese EVs
On May 14, the United States announced it would impose 100% punitive tariffs on Chinese pure electric vehicles (EVs), quadrupling the current rate. Additionally, tariffs will be increased on imported products totaling USD 18 billion, including semiconductors, photovoltaic panels, steel, and aluminum.
TSMC Nanjing Fab Obtains Indefinite Exemption from U.S.
TSMC announced that the U.S. Department of Commerce granted “Verified End User” (VEU) authorization to TSMC (Nanjing) Co., Ltd. This long-term license allows continuous provision of items and services under U.S. export control regulations without requiring individual licenses. TSMC’s Nanjing factory, producing 16nm and 28nm processes, will maintain its status quo.
Increasing HBM capacity may cause a DRAM shortage later.
Samsung and SK hynix predict strong prices for DRAM and HBM due to rising AI chip demand. Over 20% of DRAM lines will shift to HBM production. TrendForce forecasts HBM will be prioritized in factory planning, potentially leading to a DRAM shortage due to capacity constraints.
Microsoft’s implementation of a dual-chip plan provides substantial benefits to AMD
Microsoft has added AMD’s Instinct MI300X AI chip and Nvidia’s processors to its Azure cloud services for diverse AI solutions. Integrating AMD’s chip as an alternative to Nvidia GPUs offers customers more options and alleviates purchasing pressures during peak demand.
Nvidia Cut Price of its Most Advanced China Chip
In response to U.S. sanctions and competition from Huawei, Nvidia has reduced the price of its AI chip H20 in China. The H20 chip is now priced over 10% lower than Huawei’s Ascend 910B in some cases. Nearly 1 million H20 chips are expected to be shipped to China in the second half of 2024.
TI Spot Market Shows Ample Supply and Price Drops
The TI spot market shows sluggishness with ample supply and price drops for some products. TI holds a large inventory with falling prices; for instance, the automotive-grade MCU TMS320F28335PGFA dropped to $5.5 from $6.8 earlier, down nearly 20% this year. Unsold inventory at lower prices complicates transactions amid low customer target prices.
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