As per sources cited in a report from Reuters, it’s revealed that former Intel board member Lip-Bu Tan stepped down after just two years due to disagreements with CEO Pat Gelsinger and other board members.

Two years ago, former Cadence Design Systems CEO Lip-Bu Tan was invited to join Intel’s board of directors to help reverse the company’s operational decline and restore its position as a chipmaker.

In October 2023, his role was expanded to oversee Intel’s manufacturing operations. However, he reportedly stepped down from Intel’s board last week.

The regulatory filings submitted last week have indicated that Tan’s departure from the board was due to a personal decision to reprioritize various commitments, though he remains supportive of Intel and its critical work.

Yet, Reuters further reported that Lip-Bu Tan, a seasoned semiconductor industry veteran, expressed frustration bloated workforce, risk aversion, and lagging AI strategies. This suggests uncertainty around Intel’s efforts to return to profitability.

As of now, neither Intel nor Tan’s venture capital firm, Walden Catalyst, have commented on the matter.

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(Photo credit: Intel)

According to TrendForce’s latest memory spot price trend report, regarding DRAM spot prices, improvements are unlikely in the near term as reballed chip supply remains plentiful and DDR5 price pressure emerges. As for NAND flash, several suppliers have also lowered their official prices amidst ongoing sluggishness of demand. Details are as follows:

DRAM Spot Price:

The spot market has shown no signs of improvement this week and prices continue to fall. In addition to weak channel demand, the supply of reballed chips also remains plentiful. Moreover, a South Korean supplier has recently slightly increased its supply of DDR5 products to the spot market, generating more downward price pressure. Hence, improvements in current spot price trends are unlikely in the near term. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) dropped by 0.25% from US$1.978 last week to US$1.973 this week.

NAND Flash Spot Price:

Several suppliers have lowered their official prices amidst ongoing sluggishness of demand, and spot prices could continue to weaken if demand for consumer products remains lackluster. Spot prices for 512Gb TLC wafers have dropped by 0.71% this week, arriving at US$3.211.

Following TSMC’s recent acquisition of Innolux’s Tainan plant for NTD 17 billion, another Taiwanese panel maker, AUO, announced on August 27 that it will sell three idled manufacturing facilities in Tainan, Southern Taiwan as well, as memory giant Micron emerged as the buyer.

Part of buildings and facilities located in Taichung, central Taiwan, would also be sold to Micron. According to a report from Economic Daily News, the total transaction amount is NTD 8.1 billion, with an estimated profit of NTD 4.718 billion, as the deal is expected to be completed by the end of this year.

The same report indicates that after Micron’s failed attempt to acquire Innolux’s 4th Plant in Tainan (5.5-generation LCD panel plant), it turned to AUO for a plant purchase.

To focus on its operational strategy, revitalize assets, and optimize its financial structure, AUO’s board of directors has approved the sale, the report suggests. By acquiring the facilities, Micron plans to further expand its DRAM business in Taiwan, with expectations to develop high-bandwidth memory (HBM) for AI applications.

Industry sources cited by the report have further interpreted the recent plant sales by Taiwan’s leading panel manufacturers as a sign of the rising influence of Chinese LCD companies like BOE and CSOT.

With the Chinese companies dominating the LCD industry, Taiwanese panel manufacturers are moving away from volume-based competition and are gradually selling off plants to mitigate risks associated with price fluctuations in the panel market. Micron’s active investments in Taiwan further strengthen the country’s semiconductor cluster advantage.

Reportedly, AUO pointed out that it originally had three color filter plants in Tainan: the Gen-4 C4A, the Gen-5 C5D, and the Gen-6 C6C.

Among them, the C5D and C6C plants were closed last August, leaving only the C4A plant in production. All three plants are being sold to Micron, with the C4A plant continuing operations under a sale-and-leaseback arrangement.

Micron stated that its operations in Taiwan are designed to meet the growing product demands of the AI era and to reinforce Micron’s market leadership. Through this acquisition, Micron plans to leverage this site to focus on front-end wafer testing,  to supporting the ongoing expansion of DRAM production at Micron’s Taichung and Taoyuan facilities.

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• [News] Micron Advances in Acquiring Innolux’s Southern Taiwan Facility After TSMC Outbids It for the G5.5 Plant
• [News] TSMC Acquires Innolux’s Plant in Southern Taiwan to Expand Advanced Packaging Capacity

(Photo credit: Micron)

Recently, the Zhongguancun Science City Technology Growth Phase II Fund and the Vertex Ventures China Technology Innovation Phase II RMB Fund were successively launched, with a combined investment of over CNY 8.5 billion targeting integrated circuit (IC) and semiconductor sectors.

• Zhongguancun Science City Technology Growth Phase II Fund Launched with a Total Scale of CNY 5 Billion

On August 26, as per the official website of Haidian, Beijing, Zhongguancun Science City Technology Growth Phase II Fund was officially launched with a total scale of CNY 5 billion. This marks a further investment in technology innovation investment for Zhongguancun Science City, expanding the total scale CNY to 10 billion.

Zhongguancun Science City Technology Growth Fund is funded by the Haidian government, with each phase sized at CNY 5 billion. The Technology Growth Phase II Fund consists of a CNY 4 billion parent fund and a CNY 1 billion direct investment fund, managed by an investment company under Zhongguancun Science City.

In recent years, Haidian District has actively built a “1+X+1” modern industrial system, in reference to accelerating the development of strategic emerging industries such as biomedicine, IC, and commercial space under the support of the two “1”s–AI and technology service industries.

The Technology Growth Phase II Fund will closely align with this industrial system, focusing on high-potential, high-growth projects, leveraging capital to boost high-quality regional economic development, and accelerating the transformation and application of technological innovation achievements.

It is reported that following this official launch, the “Zhongguancun Science City Technology Growth Fund Sub-fund Application Guidelines” will simultaneously seek collaborative projects, with the first batch of collaborative sub-fund projects expected to be completed by September 30.

• Vertex Ventures Phase II Fund Completed a Fundraising of CNY 3.5 Billion, Targeting Sectors including Semiconductor

On August 26, Vertex Venture announced the recent successful completion of fundraising for its “Vertex Technology Phase II RMB Fund” (hereinafter referred to as “RMB Phase II”), with a scale exceeding CNY 3.5 billion, setting a new record compared to RMB Phase I.

Reportedly, RMB Phase II will primarily zero in on innovative technology sectors, including chip semiconductors, intelligent robotics solutions, large model-related applications, new energy, new materials, and medical technology.

It is noted that Vertex has consistently maintained a stable pace of fundraising and investment, with its main funds including five funds in USD and two funds in CNY, each steadily expanding in scale.

Notably, this phase has seen a significant reinvestment from LP in Phase I, as well as the introduction of large insurance companies, further improving the LP structure.

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• [News] China’s Semiconductor Industry Ushers in a New Period
• [News] China Contributes Over 40% of U.S. Chip Equipment Makers’ Revenue despite Export Controls

(Photo credit: ZGC Science City)

China’s export controls on crucial semiconductor materials are reportedly hitting the supply chain, with concerns rising over potential shortages of advanced chips and military optical hardware.

According to the U.S. Geological Survey, China produces 98% of the world’s gallium and 60% of its germanium. However, since July of last year, the Chinese government has imposed export restrictions on these minerals, causing their prices in Europe to nearly double over the past year. China claims these measures are to protect national security and interests in response to U.S. export sanctions.

As per a report from the Financial Times, an industry source who works at a large consumer of semiconductor materials has revealed that the situation with China is extremely critical, with significant reliance on China’s supplies.

Affected companies have also disclosed that while there is still some bulk shipment of Chinese gallium, the overall export volume has dropped by about half since the controls were implemented. If China continues to reduce gallium exports as it did in the first half of the year, reserves could be depleted, leading to shortages.

Per the same report from Financial Times, Jan Giese, Senior Manager at Frankfurt-based trading firm Tradium, noted that the gallium and germanium his company obtained through China’s new export licensing program account for only a small portion of past purchases. These export controls are adding additional pressure on markets outside China, making an already challenging market even more complex.

Gallium and germanium are crucial for semiconductor applications, military, and communications equipment. They are essential materials for producing advanced microprocessors, optical fiber products, and night vision goggles, so ongoing export restrictions by the Chinese government could hinder the production of such items.

Meanwhile, the Chinese government has announced new export restrictions on antimony this month. Antimony is used in armor-piercing ammunition, night vision goggles, and precision optical components. This follows previous export controls on graphite and rare earth extraction and separation technologies.

Under the regulations, each shipment requires approval, which takes 30 to 80 days and involves uncertainty, making long-term supply contracts impractical. Applications must specify the buyer and intended use.

The report cites sources in the semiconductor materials sector, noting that China is using these restrictions to catch up with the U.S. and other semiconductor technology leaders. Given the current global situation and U.S.-China relations, there seems to be no motivation for China to ease export controls.

Addressing the matter, the China’s foreign ministry declined to comment.

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• [News] China’s Antimony Export Restrictions Starting in Mid-September Reportedly Cause Prices to Skyrocket
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(Photo credit: iStock)