According to a report from Commercial Times, the increase in production capacity has resulted in an oversupply of 6-inch SiC substrates, leading to a decline in prices.

The report indicated that by mid-2024, each piece was priced at less than USD 500 (approximately the manufacturing cost in China). By the fourth quarter, prices have fallen to as low as USD 400, or even lower.

According to the report, industry insiders indicate that the price collapse has forced most businesses to sell at a loss. However, despite the low prices, buyers remain hesitant to make purchases, as they anticipate that prices will continue to decline.

As for 8-inch SiC substrates, the report noted that though mass production has not yet been achieved, prices have rapidly declined in 2024, particularly in China.

According to the report, there is currently no standard price for 8-inch SiC substrates, as they remain in the trial production stage with very limited supply. However, prices have begun to decline.

At the end of 2023, the average quotation of 8-inch SiC substrates in China was approximately USD 3,000 to USD 4,000 per piece. By the second quarter of 2024, the price had dropped to just USD 2,000, representing a downward revision of around 50% within just six months.

The report indicated that currently the market quotation for 8-inch SiC substrates has plummeted to around USD 1,500. The decline in the first three quarters of 2024 has exceeded 60%, and it is estimated that by the first quarter of 2025, the price will drop to just USD 1,000.

Regarding the progress of mass production for 8-inch SiC, Wolfspeed remains dominant, currently operating at a capacity utilization rate of 25%. The report noted that Wolfspeed’s stock price has declined by more than 60% since the beginning of the year, primarily due to disappointing financial results linked to a slowdown in demand for electric vehicles.

According to its press release, Wolfspeed is set to receive USD 750 million from the U.S. Department of Commerce’s CHIPS and Science Act funding. Additionally, the company has secured another USD 750 million in financing from Apollo Global Management, The Baupost Group, Fidelity Management & Research Company, and the Capital Group.

The report noted that SiC pricing is currently chaotic. While the decline in upstream materials should benefit downstream applications, buyers expect prices to continue falling, which makes them hesitant to make purchases. This, in turn, contributes to an even more rapid decline in prices.

According to the report, the SiC market continues to rely on major IDM factories. The decline in raw material prices and component costs is expected to benefit terminal applications, which will not be limited to electric vehicles or solar modules.

Read more

• [News] SiC and GaN Go Full Steam Ahead in Automotive Industry
• [News] A Price War in SiC Wafer Sector seems to Start

(Photo credit: Wolfspeed)

According to Economic Daily News, which cites the report by Indian media outlet The Economic Times, U.S. AI giant NVIDIA has proposed collaborating with India to develop AI chips, aiming to leverage the country’s semiconductor design talent and tap into its growing local market.

According to The Economic Times, NVIDIA CEO Jensen Huang proposed this idea during his meeting with Indian Prime Minister Narendra Modi in the U.S. earlier this year.

The Economic Times reported that Ashwini Vaishnaw, the Indian Union Minister for Electronics and IT, has confirmed that the country is currently in discussions with NVIDIA about jointly developing an AI chip. These discussions are still in the preliminary stage.

Citing local officials, the Economic Times indicated that NVIDIA intends to utilize India’s vast chip design talent pool to develop chips specifically for the Indian market. The government is currently discussing the details, including costs, benefits, and use cases.

This collaboratively developed chip could be tailored for specific use cases in the local market, such as the security system of Indian Railways, according to The Economic Times.

According to the press release from NVIDIA, the NVIDIA AI Summit India is scheduled to take place in Mumbai from October 23rd to 25th. The press release emphasized NVIDIA’s critical role in India’s emergence as an AI powerhouse, noting that the company has six locations across the country with over 4,000 employees.

Notably, CEO Jensen Huang will deliver a speech on October 24th, addressing how AI is revolutionizing industries worldwide and highlighting India’s growing significance as a global AI leader, as indicated by the press release.

Read more

• [News] PSMC and Tata Electronics Finalize Partnership on 12-Inch Wafer Fab
• [News] India’s First AI Chip, Developed by Ola, Reportedly to Hit the Market by 2026

(Photo credit: NVIDIA)

According to a report from Reuters, the U.S. government is finalizing regulations that will prohibit investments in AI in China, as indicated by a recent government update. The regulation will restrict specific outbound investments to China in areas such as AI, semiconductors, microelectronics, and quantum computing.

According to the report, the rule is currently under review at the Office of Management and Budget, suggesting that it is expected to be released within the next week or so.

The rules will reportedly require U.S. investors to notify the Treasury Department about certain investments in AI and other sensitive technologies in China.

The report highlighted that the rules are based on President Joe Biden’s executive order from August 2023, aimed at safeguarding American knowledge and preventing its application in China’s military advancements.

According to the proposals released last year, the U.S. Treasury Department highlighted that the military, intelligence, surveillance, and cyber-enabled uses of these technologies and products pose risks to U.S. national security, particularly when developed by countries of concern such as the PRC.

Citing former Treasury official Laura Black, the report suggested that the rule is expected to be released before the U.S. election. Black also noted that the Treasury office responsible for overseeing regulations typically allows for a minimum 30-day period before the actual implementation of the rule.

According to the report, the Treasury Department released proposed rules, including some exceptions, and invited public comments in June. Black expected that the final rules will provide further clarity on the scope of coverage for AI and the thresholds for limited partners.

Additionally, the report noted that the proposed exceptions include publicly traded securities such as index funds and mutual funds, along with certain limited partnership investments and specific syndicated debt financings.

Read more

• [News] U.S. Urges South Korea to Tighten Chip Export Controls to China
• [News] China Bypasses Restrictions to Acquire NVIDIA Chips, with Cloud Service Costs Even Lower Than in the U.S.

(Photo credit: istock)

Following the Federal Reserve cut rate by 50 basis points in September, the November monetary policy decision is approaching, and Federal Reserve officials will enter a blackout period after October 26. Below is a summary of key remarks from Fed officials following the September monetary policy meeting regarding future monetary policy:

Mary Daly: “I haven’t seen any information that would suggest we wouldn’t continue to reduce the interest rate consistent with achieving that durable expansion.” “This is a very tight interest rate for an economy that already is on the path to 2% inflation, and I don’t want to see the labor market slow further.”

Christopher Waller: “This data is signaling that the economy may not be slowing as much as desired. While we do not want to overreact to this data or look through it, I view the totality of the data as saying monetary policy should proceed with more caution on the pace of rate cuts than was needed at the September meeting.”  “Whatever happens in the near term, my baseline still calls for reducing the policy rate gradually over the next year.”

Jeffrey Schmid: “Absent any major shocks, I am optimistic that we can achieve such a cycle, but I believe it will take a cautious and gradual approach to policy. While I support dialing back the restrictiveness of policy, my preference would be to avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility.”

Neel Kashkari: “Right now I am forecasting some more modest cuts over the next several quarters to get to something around neutral, but it’s going to depend on the data.”

Overall, the comments from Fed officials reflect a cautious yet accommodative stance toward future monetary policy. While some officials emphasize the importance of continued rate cuts to support economic growth, there is also a clear focus on closely monitoring data and maintaining flexibility in response to economic developments. The path ahead for monetary policy seems to favor a gradual and measured approach, with a strong emphasis on avoiding excessive market volatility and ensuring the economy remains on a sustainable growth trajectory.

Read more at Datatrack

As we approach the end of October, how will prices for TV, monitor, and laptop panels shift?

According to TrendForce’s late October panel pricing report, Research Vice President Boyce Fan observed that TV panel prices are stabilizing. Thanks to China’s trade-in program, brands ramped up promotions, and sales during the National Day holiday exceeded expectations, with a year-on-year increase of nearly 20%. This has boosted brand confidence and led to continued stockpiling of TV panels. Panel manufacturers, benefiting from the trade-in policy and production cuts during the holiday, are likely to see TV panel prices stabilize across the board in October.

For small-sized TV panels, demand for 32-inch and 43-inch panels remains steady, and with panel makers controlling production, prices are expected to stabilize. Medium-sized panels, such as 50-inch and 55-inch, are still facing weak demand, but production control could help prices level off.

Meanwhile, large-sized panels, including 65-inch and 75-inch, have seen a strong demand surge, directly benefiting from the trade-in policy. With strict production control of 10.5-generation panels maintaining supply-demand balance, prices are also expected to stabilize.

In the monitor panel market, prices have continued to decline following the trend seen in September as demand enters the off-season. Since late Q3, some panel manufacturers have aggressively negotiated project pricing with brand clients for Q4, exerting pressure on monitor panel prices. Fan noted that the price drop for open-cell panels is expected to widen, with declines ranging from $0.3 to $0.4. Panel module prices for mainstream sizes are projected to fall by $0.2 to $0.3, a more significant drop than the previous month.

As for laptop panels, some brands have slightly revised their Q4 demand upwards to boost production scale, supporting stable shipments of laptop panels. However, some panel manufacturers, in an effort to secure orders, have adopted a more flexible pricing approach, which may affect overall market pricing trends. Currently, average laptop panel prices are expected to remain stable, though high-end IPS models are already seeing a $0.1 drop. By November, panel makers are expected to face increased pressure from clients demanding price cuts, intensifying negotiations on both sides.