What are the topics covered? There are price hikes planned for TSMC, Infineon’s Q1 results, Marvell buying Tanzanite Silicon Solutions, growth in IP design sales and the downside part of the semiconductor market roller coaster cycle. …
5. TSMC raises prices
TSMC has told customers it plans to raise prices “in the single digits” by early 2023, blaming rising costs. This is the second time in less than a year that he has said he will raise prices. Last August, it raised its prices by 20%. Last year, TSMC said it would end its practice of cutting prices every quarter when a new process runs smoothly. The new prices would be between 5% and 8% for different processes.
4. Infineon expects a turnover of 13.5 billion euros in 2022
Infineon reported first calendar quarter revenue up 22% year-on-year and 4% sequentially to €3.298 billion for profit of €761 million with a 23.1% margin. It had a free cash flow of 120 million euros. For the second calendar quarter, it forecasts revenue of around 3.4 billion euros with a margin of around 21%. For its 2022 financial year, Infineon forecasts a turnover of 13.5 billion euros with a margin of 22%. The company plans to invest 2.4 billion euros in fiscal 2022. Free cash flow is expected at 1.1 billion euros.
3. Marvell to buy Tanzanite
Marvell will acquire Tanzanite Silicon Solutions, a developer of advanced Compute Express Link (CXL) technologies. Tanzanite’s expertise in CXL technology will help Marvell move towards a fully composable cloud infrastructure. CXL connectivity is an integral part of Marvell’s data center portfolio for compute, electro-optics, networking, security and storage. The benefits of CXL include infrastructure agility to allocate resources appropriate to workload requirements.
2. IP design sales grew 19.4% in 2021
Design IP sales grew 19.4% in 2021 to $5.45 billion, Eric Esteve’s IPnest reports in its Design IP Report for May 2022. The report ranks vendors of IP by category and by nature. The top trends shaking IP design in 2021 are very positive for most IP vendors, especially Synopsys growing 21.7%, outpacing the market, as well as Imagination Technologies (IMG) at 43.4 % and Flash memory compiler vendors (SST, eMemory Technology) and Alphawave with over 100% growth.
1. 2023 IC Market Will Fall 22%, Penn Says
The semiconductor industry has passed the peak of the rollercoaster market cycle and is beginning its descent, Malcolm Penn, CEO of Future Horizons, said yesterday at IFS2022 in London. While 2022 won’t be a disaster, 2023 will be, Penn said. This year, the growth forecast is +6%. +10% is always possible, but also +4%. “The downturn is inevitable, the magnitude depends on timing,” Penn said, “unit shipments will fall first, then ASPs will crash.”