Recent MMI Report: EMS Top 50 sales reached $344 billion in 2019:
(Source) According to Manufacturing Market Insider (MMI), the sales of the top 50 biggest electronic manufacturing services (EMS) providers accounted for $344B USD in revenue last year. The top 10 EMS companies, including Foxconn, Pegatron, Jabil, Flex, Wistron, Sanmina, New Kinpo, BYD, Celestica, and USI, saw growth rates ranging from -0.7% to 14.2% from 2018 to 2019. Foxconn’s revenue grew an estimated 0.9% in terms of NTD but revenue growth in terms of USD decreased by 1.6 %. The $14B USD increase is said to be largely attributed to the steady growth of the bottom 40 EMS firms. The APAC region accounted for roughly 90% of the top 50 EMS revenue. Of that, the Americas represented almost 8% of revenue.
Analog Devices Closes Semiconductor Industry’s First Green Bond:
(Source) On 04.08.20, Analog Devices announced its successful closing of the first green bond offering in the semiconductor industry. This green bond consisted of a $400M USD aggregate principal amount of almost 3% senior unsecured notes, which will be due April 2025. Analog Devices plans to use the proceeds from the offering to finance/ refinance eco-conscious projects to further the company’s commitment to environmental sustainability. Vincent Roche, president and CEO of Analog Devices, commented on the bond saying,
“At ADI, we are committed to engineering a sustainable future and this is an important next step in driving sustainable growth for all ADI stakeholders. We are proud to lead the semiconductor industry with our green bond issuance.”
Infineon Technologies AG completes acquisition of Cypress :
(Source) On 04.16.20, Infineon Technologies officially acquired Cypress Semiconductor. Through this acquisition, Infineon has gained a more diverse portfolio of microcontrollers, connectivity devices, and memory components. Additionally, Cypress’ R&D capabilities and its foothold in both the U.S. and Japan will strengthen Infineon’s global reach. Commenting on the acquisition, CEO of Infineon, Reinhard Ploss, said,
“The acquisition of Cypress is a landmark step in Infineon’s strategic development.Together, we offer our customers the industry’s most comprehensive portfolio for linking the real with the digital world and shaping digitalization, one of the most important global trends. We serve as a trusted partner for customers and distributors and we are evolving from a leader in components to a leader in system solutions for the automotive, industrial and IoT markets. Furthermore, customers can benefit from our increased global reach and enhanced design-in support tailored to their needs. We welcome our new colleagues from Cypress to Infineon."
The acquisition puts Infineon among the top top 10 semiconductor manufacturers in the world.
Apple Aims to Sell Macs With Its Own Chips Starting in 2021:
(Source) As soon as 2021, Apple Inc. is planning on selling Mac computers equipped with its own main processors. Apple has been working on several Mac processors, all based on the A14 processor, that are expected to be faster than the ones currently used in the iPhone and iPad. As Apple starts to develop and use its own electronic components, future Mac models will no longer need Intel’s processing chips. According to Brad Gastwirth, chief technology strategist at Wedbush Securities, a financial services and investment firm, this news will have negative long-term implications for Intel and will most likely impact Intel’s future market share.
Coronavirus: Implications for the semiconductor industry:
(Source) According to a recent article put out by McKinsey & Company, the semiconductor industry is expected to decline by 5 to 15% this year. The major end markets, being PC/ server, wireless communication, wired communication, consumer electronics, automotive, and industrial applications, have already noticed the shifts in demand. PC/ server, consumer electronics and industrial are expected to see moderate decreases in demand while wireless communications and automotive are expected to see significant decreases. Demand for wireless communication is projected to drop by 11-26%, and 10-27% for automotive. Wired communication is the only end market that is expected to have an increase in demand, of about 8-11%. McKinsey acknowledged that because of the unprecedented nature of the current COVID-19 pandemic, it is difficult to make market predictions based on past crises.
Intel’s 2020 Forecast is Grim:
(Source) Intel, a global leader in chip manufacturing, is expected to be less prosperous this year in comparison to years past. Despite earning almost $20B USD in revenue in Q1, Q2 is not proving to be as positive and this is expected to be the trend for the rest of the year. Intel has cited capacity constraints and other operational disruptions, largely as a result of the current COVID-19 pandemic. Intel’s desktop units have declined by about 6% and its 10nm process will not cross over 14nm process in volumes this year. In preparation for what is expected to be one of their toughest years yet, Intel has raised $10.3B USD in new debt and has suspended share buybacks.
New Product Releases:
1. CIT Relay & Switch - Snap-Action Switch:
This month, CIT Relay & Switch launched the VM3 Series Snap-Action Switches with UL and TÜV approval. This new series offers SPST NO, SPST NC, or SPDT functions with an operating force from 80gF up to 180gF. The VM3 series also offers actuator lever options of pin plunger, roller levers, hinge levers, and simulated rollers. Common applications include lighting, security, automation, industrial controls, and gaming. VM3 Series can be customized to fit every design engineer’s needs.
2. GEYER Electronic- GEYER has achieved another reduction in size with a TCXO:
Sensible Micro’s authorized line for quartz crystals, oscillators & ceramic resonators, Geyer electronic recently launched the KXO-88. This new TCXO package has small dimensions and a frequency range of 26 to 52 MHZ. Suitable for applications with low power consumption and especially suitable for all kinds of mobile communications devices, such as W-Lan, ISM, NFT, wireless modules for Smart Cities, GNSS, GPS and wearables.
3. Intel- World’s Fastest Mobile Processor:
At the beginning of the month, Intel announced the 10th Gen Intel® Core™ H-series mobile processors. This new series goes beyond 5 GHz barrier for laptops at 5.3 GHz and delivers desktop-caliber performance. Suitable for gamers and creators, the H-series offers up to 44% more frames per second in gaming, 33% better overall performance and 70% faster 4K video exporting.
4. Murata- Mass Production of New Battery Module for Industrial Equipment:
Murata recently launched the new FORTELION 24V Battery Module. This battery module is an all-in-one type that combines long life with a high level of safety. It is ideal for industrial equipment that requires high output, such as automated guided vehicles and robots. Mass production for this new product began this month.
5. Nexperia- New Ultra-tiny MOSFETs:
This month, Nexperia launched a range of MOSFETs in the ultra-small DFN0606 package. The DFN0606 package offers the lowest RDS(on) and is 36% smaller than its predecessors. This new package is intended for mobile and portable applications, including wearables. from Nexperia are 36% smaller with lowest RDS(on).
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