Samsung plans $23 billion Texas chip plant, creating 2,000 jobs
SEOUL (BLOOMBERG) - Samsung Electronics has unveiled plans to invest US$17 billion(S$23 billion) in a new advanced chip plant in Texas, a marquee project that will fortify the US semiconductor industry. "Increasing domestic production of semiconductor chips is critical for our national and economic security," US Commerce Secretary Gina Raimondo said in a statement on Tuesday (Nov 23). The project will result in the creation of more than 2,000 jobs, Texas Governor Greg Abbott said at a press conference announcing the plans. "The implications of this facility extend far beyond the boundaries of Texas," Mr Abbott said. "It's going to impact the entire world." South Korea's largest company will build the facility in Taylor, Texas, about 30 miles from Austin, where Samsung has invested billions in a sprawling complex that already houses more than 3,000 employees and fabricates some of the country's most sophisticated chips. Construction is slated to start in the first half of 2022, and the plant will begin production in the second half of 2024. Samsung joins Taiwan Semiconductor Manufacturing Co in making substantial investments in the US. The new facilities further the Biden administra...
Samsung says component shortages to affect some chip demand after 3-year profit high
SEOUL (REUTERS) - Samsung Electronics said on Thursday (Oct 28) it expects component shortages to affect chip demand from some customers in the current quarter, after reporting its highest quarterly profit in three years. The world's top maker of memory chips posted a 28 per cent jump in operating profit in the July-September quarter to 15.8 trillion won (S$18.19 billion) on the back of an 82 per cent on-year profit surge in its chip business, where earnings rose to 10.1 trillion won. Rising memory chip prices and shipments, plus a jump in profitability at Samsung's chip-contract manufacturing business boosted the chip division's operating profit, while sales of Samsung's new foldable smartphones were tempered by marketing and component costs. More on this topic Related Story Global chip shortage could affect gadget prices in 2022; impact on Samsung folding phones unclear Related Story Key Apple supplier TSMC announces new plant in Japan amid global chips shortage
Samsung Electronics says Q3 profit likely highest in 3 years on rising chip prices
SEOUL (REUTERS) - Samsung Electronics said on Friday (Oct 8) its third-quarter operating profit likely rose 28 per cent to the highest in three years, helped by rising memory chip prices and display sales for smartphone makers’ new flagship launches. The world’s largest memory chip and smartphone maker estimated July-September profit at 15.8 trillion won (S$18 billion), slightly below a Refinitiv SmartEstimate of 16.1 trillion won. It is highest quarterly result since the third quarter of 2018. Revenue likely rose about 9 per cent from the same period a year earlier to a record 73 trillion won, Samsung said in a short preliminary earnings release. It is due to announce detailed earnings later this month. Rising memory chip prices and shipments, plus a jump in profitability at Samsung’s chip contract manufacturing business, likely raised the chip division’s operating profit by about 79 per cent from a year earlier, analysts said. Semiconductors accounted for about half of Samsung’s operating profit in the first half of the year. Samsung shares rose 1 per cent in morning trade. The stock has fallen about 12 per cent so far this year versus a 3 per cent rise in the wider market, hurt ...
Chip crisis worsened by Delta variant threatens to cut auto output by 7.1 million cars
SOUTHFIELD, MICHIGAN (BLOOMBERG, REUTERS) - The global shortage of semiconductors will cut worldwide auto production by as many as 7.1 million vehicles this year, and pandemic-related supply disruptions will hobble the industry well into next year, IHS Markit said. The lack of chips will not stabilise until the second quarter of next year, with recovery coming in the second half, IHS said in a report on Thursday (Aug 19). The grim outlook is further proof that the chip crisis is far from over. And the research firm's forecast does not include the latest cuts from Toyota Motor, which plans to briefly pause output at 14 plants next month and slash production for September by 40 per cent. "The situation is still fraught with challenges," IHS analysts Mark Fulthorpe and Phil Amsrud wrote in their report. "We are also seeing additional volatility due to Covid-19 lockdown measures in Malaysia where many back-end chip packaging and testing operations are performed." Low vaccination rates and rising infection rates in South-east Asia are prompting shutdowns of plants assembling all types of semiconductors, IHS said. It now sees the chip crisis reducing global auto production by 6.3 million...
Intel in talks to buy chip giant GlobalFoundries for about $40.6 billion: WSJ
BENGALURU (REUTERS) - Intel Corp is in talks to buy chip giant GlobalFoundries, a big investor in Singapore manufacturing, for about US$30 billion (S$40.6 billion), the Wall Street Journal reported on Thursday (July 15). Any deal talks do not appear to include GlobalFoundries directly, as a spokesman for the company told WSJ it was not in discussions with Intel, according to the report, which cited sources familiar with the matter. The talks come as a semiconductor shortage is hobbling industries around the globe. A deal could help Intel ramp up production of chips at a time demand is at its peak and the company is looking to start producing chips for carmakers that have struggled to keep operations running due to severe shortages. Intel, one of the last companies in the semiconductor industry that both designs and manufactures its own chips, said earlier this year it would expand its advanced chip manufacturing capacity by spending as much as US$20 billion to invest in factories in the United States. Intel said it intended to open its factories to outside chip designers, as it competes with Taiwan’s Semiconductor Manufacturing Co and Korea’s Samsung Electronics. GlobalFoundries, w...
Debrief: Consumers further hit as global chip crunch worsens
SINGAPORE - The global chip shortage, which has become more pronounced in recent months, is expected to last until next year. The onset of the Covid-19 pandemic made manufacturers more conservative in their projections and orders. As a result, stronger-than-expected recovery in the second half of last year caught them unprepared. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.
Global chip shortage extends to more sectors, to last till 2022: Bain & Company
SINGAPORE (THE BUSINESS TIMES) - As the demand for chips continue to outstrip supply, carmakers are no longer the only ones bearing the brunt of the impact. The global chip shortage, which is expected to last till 2022, has now extended to the tech industry, according to partners at Bain & Company in a webinar on Thursday (June 3). The automotive industry had pulled back orders in the wake of the pandemic while other industries were increasing orders. As such, capacity slots were "reallocated to much higher margin industries", said Tom Wendt, partner at Bain & Company. Since March and April, the effects have then caught up with the tech industry. Consumer electronics (PCs, smartphones and others) account for some 70 per cent of the semiconductor market versus just 10 per cent from the automotive industry. Players such as Apple, Sony, Nintendo or Dell - which were initially expected to be better prepared and more advanced in their semiconductor supply chain management - started to see the effects at a production level, said Mr Wendt. It started impacting almost every other industry from toasters and washing machines to large equipment manufacturers," he added. This was in part due t...
Samsung sees higher chip earnings as Q1 profit jumps 46%
SEOUL (REUTERS) - Samsung Electronics said on Thursday (April 29) it expects chip profits to increase in the current quarter after announcing its highest first-quarter operating profit since 2018. The world's top maker of memory chips posted a 46 per cent jump in operating profit in the January-March quarter on the back of a 66 per cent profit surge at its mobile business to 4.4 trillion won (S$5.26 billion), the company said. The jump was led by sales of its flagship Galaxy S21 smartphone series, while profit also soared at its television set and home appliance business, buoyed by continued stay-at-home demand. Profits at its chip business, however, fell due to the cost of ramping up domestic production as well as losses at its Texas plant following a storm-related stoppage in mid-February that blunted the benefits of strong demand. Net profit rose 46% to 7.1 trillion won. Revenue climbed 18 per cent to 65.4 trillion won. More on this topic Related Story Global chip shortage threatens production of laptops, smartphones and more Related Story Why shortages of a US$1 chip sparked crisis in the global economy
Ford says Q2 car output will fall 50% on chip shortage
NEW YORK (REUTERS) - Ford estimated on Wednesday (April 28) that the global semiconductor shortage will cut second-quarter auto production in half, and warned the supply crunch "will get worse before it gets better." Ford expects to lose 1.1 million units of production in 2021, resulting in an earnings hit of some US$2.5 billion, the company said in an earnings release. The global supply crunch has forced Ford to trim production of the F-150 pickup truck and other models, and other automakers have made similar cutbacks. Ford said the shortage was exacerbated by a recent supplier fire in Japan. And while that site is expected to resume shipments by the end of the second quarter, but "the broader global semiconductor shortage may not be fully resolved until 2022," the company said. The supply shortfall "will get worse before it gets better," Ford said. "Currently, the company believes that the issue will bottom out during the second quarter, with improvement through the remainder of the year." The downcast outlook on production came as Ford reported much better than expected first-quarter earnings. The Detroit manufacturer reported profit of US$3.3 billion (S$4.4 billion), compared w...
Samsung flags 26% rise in Q4 profit on chip, display sales
SEOUL (REUTERS) - Samsung Electronics said on Friday (Jan 8) that fourth-quarter operating profit likely rose 26 per cent, in line with analysts' estimates, as pandemic-driven remote working fuelled sales of chips and display panels. The South Korean tech giant said operating profit was likely nine trillion won (S$10.9 billion) in the quarter ended December, offsetting weaker smartphone sales and a strong won versus the US dollar. That was in line with the 9.1 trillion won analyst forecast by Refinitiv SmartEstimate. Revenue at the world's biggest memory chip supplier and maker of smartphones likely rose 1.9 per cent to 61 trillion won from a year earlier, the company said. Samsung provides only estimates of quarterly revenue and operating profit in its preliminary earnings release. The company is due to release detailed earnings later this month. Analysts said they expected Samsung to report a jump in memory chip shipments from the September quarter, offsetting the effect of lower prices. Memory chip prices will likely rebound in the first half of this year, analysts said, as data centre customers return to buying chips, as well as demand from 5G smartphones, notebooks, graphics a...