Taiwan semiconductor digest: week 37
One of the highlights of last week’s record-setting SEMICON Taiwan 2024 was the establishment of the SEMI Silicon Photonics Industry Alliance that brings together 30 leading Taiwan technology companies to address future challenges, particularly in AI and energy efficiency. With global semiconductor sales showing robust growth, the outlook for Taiwan’s semiconductor sector remains positive despite ongoing global economic uncertainties.
SEMICON Taiwan 2024 last week saw the launch of SEMI Silicon Photonics Industry Alliance (SiPhIA) with the goal of accelerating the development of this promising technology to boost the energy efficiency of AI servers and systems. Led by semiconductor giants TSMC and ASE Technology, SiPhIA comprises 30 Taiwan companies including MediaTek, Quanta Computer, Synopsys, AUO, and Foxconn.
Hon Hai Technology Group (Foxconn) disclosed a 4.2% sequential decrease in August revenue. Despite this, the company remains optimistic about Q3, projecting both sequential and year-on-year growth. Foxconn’s August revenue reached NT$548.31 billion (US$17.1 billion), marking a 32.8% increase from August 2023 and setting a historical record for the month. The group’s cumulative revenue for the first eight months of 2024 hit NT$3.99 trillion, up 9.5% year-on-year.
NXP Semiconductors and Vanguard International Semiconductor (VIS) have officially established their joint venture, VisionPower Semiconductor Manufacturing Company (VSMC), in Singapore. With all necessary approvals secured, VSMC will proceed with the construction of a US$7.8 billion 300mm wafer manufacturing facility. Initial production is slated for 2027, marking a significant expansion in semiconductor manufacturing capacity in the region.
Chipmaker Broadcom announced Q3 revenue of US$13.1 billion, a 47% year-on-year increase primarily driven by strong AI-related sales. However, the company disappointed investors with its forecast of US$14 billion in overall revenue in Q4 caused by sluggish spending in its broadband segment.
The Semiconductor Industry Association reported that global semiconductor industry sales reached US$51.3 billion in July 2024, marking an 18.7% year-on-year increase and a 2.7% rise from June 2024. SIA president John Neuffer highlighted the consistent growth, noting that “month-to-month sales increased for the fourth consecutive month.” The Americas market showed particularly strong performance with a 40.1% year-on-year sales increase.
