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Infineon Builds Fortress SiC: Foresight or Overreach?

Infineon Builds Fortress SiC: Foresight or Overreach?

By Bolaji Ojo

What’s at stake?

Infineon Technologies is fast becoming a silicon carbide powerhouse, fortified by sourcing alliances and spendings on fabs running into billions of dollars in addition to sales deals with OEM customers. As its capital outlay grows, however, the question arises: is Infineon doing too much in a market that is still struggling to find its feet? Or are these prescient moves for which the company’s management deserve credit?

Infineon Technologies AG on Wednesday unexpectedly said it was reorganizing its global sales organization. Infineon, said CMO Andreas Urschitz, wants to position itself “for ambitious growth by further strengthening and streamlining its sales organization.”

The terse, 3-paragraph statement announcing the decision is atypical of Infineon, hinting that more changes may be afoot at Europe’s leading semiconductor vendor.

Read More »Infineon Builds Fortress SiC: Foresight or Overreach?
Japan's Bet on Jim Keller: Why?

Japan Bets on Jim Keller: Why?

By Junko Yoshida

What’s at stake:
Japan’s ability to secure the chip supply and protect national security would require it to build leading-edge semiconductor fabs and AI technologies. Japan is giving Tenstorrent, a Canadian startup, the job of leading its national AI/RISC-V/chiplet project.

Japan’s chipmaking challenge is colossal. It will take herculean effort and staggering investment to bring up a 2-nm process technology at Rapidus, its startup foundry, by 2027.

Given the many national tech projects that have failed under the guidance of the Japanese government, recent media headlines such as “Japan’s comeback in semiconductor manufacturing” make some industry observers in Japan cringe.

Nonetheless, as the Ojo-Yoshida Report learned recently from semiconductor manufacturing equipment vendors and EDA suppliers, contracts are getting signed. Hardware and software tools are heading to Sapporo, where Rapidus is building a fab.

Read More »Japan Bets on Jim Keller: Why?
Wolfspeed Ails but What Exactly Is the Problem?

Wolfspeed Ails but What Exactly Is the Problem?

By Bolaji Ojo

What’s at stake?

Wolfspeed Inc.’s market value is not in alignment with the positive stories about its position and profile in the silicon carbide market. In essence, its market dominance is not reflected in its market valuation. Wall Street is heavily discounting the stock. Why? Plus, with valuation this low, Wolfspeed is an appealing acquisition target. What’s stopping buyers from making a move?

Wolfspeed Inc., by all measures, should be the shiniest star in the silicon carbide (SiC) galaxy.

It prides itself as the “only pure-play vertically integrated silicon carbide company.” This means Wolfspeed is in the enviable position of owning, controlling and operating its own wafer-sourcing and production supply chain.

This vertical operating structure – a long abandoned system in the regular silicon semiconductor market – is a strength in the SiC segment, putting Wolfspeed in the uniquely advantageous position of being a prime beneficiary of the surging demand for SiC devices from the electronics, power and energy markets. Investors should be swooning over its stocks. They are instead paring back its valuation. There are a few reasons behind this, but none appear compelling. Do potential buyers of Wolfspeed shares know more than the average observer? Even this is not clear.

Read More »Wolfspeed Ails but What Exactly Is the Problem?
Foundry Dreams Spotlighted at Intel-Palooza

Foundry Dreams Spotlighted at Intel-Palooza

By Junko Yoshida

What’s at stake:
“Intel Foundry Day” was described by one executive as a “coming out party” to burnish the image of Intel Corp.’s foundry enterprise. This isn’t Intel’s first crack at wooing customers into its foundry. The thing is this: beyond building new fabs around the world, has Intel CEO Pat Gelsinger done enough to prove that his ‘IDM 2.0’ strategy for manufacturing, innovation and product leadership is also working for customers?

By lining up big guns like U.S. Secretary of Commerce Gina Raimondo, Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman as “Foundry Day” speakers, Intel highlighted its power to pull strings and issue a reminder that it remains a heavyweight in the global semiconductor industry.

To establish itself as a credible, independent foundry, however, Intel must go beyond pageantry. 

Read More »Foundry Dreams Spotlighted at Intel-Palooza
Arm Doubles Down on AI, Chiplets With Neoverse Update

Arm Doubles Down on AI, Chiplets With Neoverse Update

By Bolaji Ojo

What’s at stake:

The artificial intelligence market is poised to be a top economic growth driver, and everyone wants a piece of the business. By updating its Neoverse IP to address AI and chiplets, Arm is moving to solidify its formidable position in the semiconductor design process. Global hyperscalers are already using Arm’s Neoverse, but the IP vendor is taking no chances. Will Neoverse CSS V3 and Neoverse CSS N3 help push Arm deeper into the AI market?

Arm Holdings Plc has unveiled updated versions of its Neoverse intellectual property for the semiconductor industry, aiming the two offerings directly at the artificial intelligence market with the goal of a the tighter embrace with its current customers and others exploring options in the fast-growing sector.

With Neoverse CSS N3 and Neoverse CSS V3, both updates on the earlier versions (dubbed CSS N2 and CSS V2, respectively), Arm is plunging headfirst into two of the hottest segments of the semiconductor world – AI and chiplets.

Read More »Arm Doubles Down on AI, Chiplets With Neoverse Update
Glazed with AI, Arm Market Value, Soar and Soar

Glazed with AI, Arm Market Value Soars

By Bolaji Ojo

What’s at stake:

Few companies have had as tangled a history as Nvidia Corp. and Arm Holdings, both of which have seen their valuations skyrocket on surging demand for artificial intelligence hardware, software and intellectual property. The only challenge for Arm lies in whether its growing list of AI customers would be similarly able to turn the company’s IP into huge windfalls. If not, a retreat in valuation could occur as suddenly as rapidly as the ascent of its shares.

It turns out Softbank Group has reasons worth billions of dollars to appreciate M&A regulators.

Arm Holdings, the once wholly-owned subsidiary of the Japanese conglomerate, has turned into one of the most valuable properties in Softbank’s portfolio, courtesy of the buzz around artificial intelligence.

Read More »Glazed with AI, Arm Market Value Soars
As AI Challenges Chipmakers, EDA Must Up the Ante

As AI Challenges Chipmakers, EDA Must Up the Ante

By Junko Yoshida

What’s at stake:
Whether foundry, processor IP company, or EDA vendor, practically every major player in the electronics industry is scrambling to adapt its business strategies, product lines and roadmaps to exploit the explosive growth of AI. What does the AI community want from EDA and who among EDA tool suppliers can rise to the occasion?

Everyone in the electronics industry wants to surf the AI wave. Just discussing AI is good business. Wall Street is listening.

More significantly, AI has begun breaking traditional business models and tech development practices. To process AI, hardware must be able to handle massive software workloads. AI chips/accelerators also typically require huge designs.

Read More »As AI Challenges Chipmakers, EDA Must Up the Ante
Chiplets: If It Happens in China, Will It Stay in China?

Chiplets: If It Happens in China, Will It Stay in China? 

By Junko Yoshida

What’s at stake:
China’s chiplet aspirations are well known. But will China use its domestic chiplet activities as an opportunity to decouple from the rest of the world? We think the reality is contrary.

Chiplets represent a once-in-a-lifetime revolution that will allow the semiconductor world to disaggregate the processes of designing, manufacturing, testing and packaging silicon – the fundamental matter who does what. China wants to seize this moment to play a big role in this new world order.

Read More »Chiplets: If It Happens in China, Will It Stay in China?