By Bolaji Ojo

What’s at stake?

Ironclad semiconductor purchase commitments are now heavily favored by chipmakers and foundries seeking to spread the financial burden of IC production, but the rigid terms of the often-lengthy contracts could spell trouble for everyone if market conditions change.

Leading electronics manufacturers and semiconductor suppliers are signing ironclad, multibillion-dollar supply contracts as they struggle with unprecedented shortages and a spike in average selling prices for components and raw materials. The contracts terms typically require the prepayment of huge sums in multiyear commitments, further widening the sourcing gap between the industry’s biggest and richest enterprises and their smaller competitors.

By George Leopold

What’s at stake?
Convinced that Western democracies are in decline, Vladimir Putin and Xi Jinping seek to reshape the geopolitical map. With Russia bogged down in Ukraine, Beijing must weigh support for an international pariah against continued access to Western markets. Stiff Ukrainian resistance may also delay any Chinese moves on Taiwan.

China continues to walk a fine line of seeming neutrality in response to Vladimir Putin’s invasion of Ukraine as the U.S. ratchets up pressure on Beijing to comply with Western financial sanctions and technology controls.

By Bolaji Ojo

What’s at stake?
Semiconductor inventories have ballooned among chipmakers, foundries, and component distributors despite complaints of severe shortages. Most available parts have been prepaid and accounted for, however, and therefore cannot be released to just any prospective buyers, putting a further squeeze on supply chains. If the situation persists, the ongoing shortages will be indefinitely prolonged.

With the current supply shortages serving as cover and justification for their actions, chipmakers have been asking for and receiving billions of dollars as prepayment for components, splitting purchasers into two camps: the deep-pocketed enterprises that can afford to pay a premium for products and services, and the hardscrabble OEMs and fabless chip vendors that must scramble for leftover supplies and foundry manufacturing space, which they may only be able to secure by paying much higher prices.

By Junko Yoshida

What’s at stake?
Autonomous vehicle companies are rushing to get laws on the books allowing them to test their driverless vehicles on public roads. Few states have held public hearings on these proposals, and even fewer have included stakeholders in the discourse.

Autonomous-vehicle (AV) companies are marching through the states, both red and blue, fiercely advancing new legislation that will pave the way for automated driving. While the bills vary slightly, their agenda is uniform: to secure a free pass for companies to mobilize and test their highly automated vehicles — without human drivers — on public roads, with few safety questions asked and precious few legal and financial strings.

By Bolaji Ojo

What’s at stake?
Semiconductor sales forecasts for 2022 were calculated before war broke out in Ukraine and the West slapped economic sanctions on Russia. That makes the forecasts highly unreliable for capital expenditure, supply chain and other enterprise planning.