German memory chip maker Qimonda AG's long-term chances of survival are limited, despite its recent bailout, as Taiwan's chip makers strengthen their alliances with peers from Japan and the US. Those alliances could leave Qimonda without a technology partner and cast it as a minor player in the industry.

Loss making NOR flash memory market leader, Spansion is facing growing concerns over its liquidity status with credit ratings specialist, Fitch Ratings, lowering its view on approximately US$1.3 billion of debt to a 'negative' outlook. Fitch noted that Spansion's total debts were US$1.6 billion.

The efforts announced follow cost-reduction measures ON Semi began taking in 4Q 2008, including the reduction of 2009 planned capital expenditures to $50 million to $60 million from normalized yearly levels of $130 million to $140 million, temporary site shutdowns during the quarter, a hiring freeze, the elimination of second half 2008 bonus payments, and strict controls over all discretionary spending.

ASM International (ASMI) today announced it will cut 200 jobs as it shifts some manufacturing and operational procurement activities from the Netherlands to Singapore. The changes will take place over the next 12 months and involve the transfer of the remaining manufacturing and operational procurement activities for ASMI's vertical furnace product line from Almere, the Netherlands, to the company's front-end manufacturing operations in Singapore (FEMS).

The Cambridge-based company was already eight years old when on Jan. 6 1999 EE Times reported ARM's own prediction that the company would have 70 percent of the market for processors in the mobile phone handset business. This was a statistic that came to define ARM's early success.

Ulrich Schumacher, former Chief Executive Officer of Infineon Technologies AG, has been charged in a bribery case, the Munich Public Prosecutor said.

The SD Association unveiled a new SD card specification this week at the 2009 International CES that it said can support data storage capacities of up to 2TB with read/write speeds up to 104MB/sec. The specification, called SDXC (eXtended Capacity), uses Microsoft's exFAT file system to support the large capacity and interoperability in a broad range of PCs, consumer electronics and mobile phones.

Micron Technology has announced that the US District Court of Delaware has found that patents Rambus had asserted against Micron are unenforceable. The Delaware Court found that “the spoliation conduct was extensive, including within its scope the destruction of innumerable documents relating to all aspects of Rambus’ business.”

Elpida Memory announced that it has completed the early redemption of the outstanding unsecured convertible bonds (CBs) worth 44 billion yen (US$1.33 billion).

ARC International has warned of lower than expected revenues from semiconductor IP licensing at the end of 2008. "For 2009, management continues to remain cautious due to continuing uncertainty in the economic environment and fundamental industry changes," said the semiconductor IP developer.

Unlike the SEMI Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data, the World Fab Forecast and its related Fab Database reports track any equipment needed to ramp the fab, upgrade, expand, or change its wafer size regardless if it is new equipment, used equipment, or transferred equipment, while WWSEMS tracks only new equipment.

Responding to the IC downturn, Microchip Technology has lowered its forecast, taken pay cuts and reduced its IC production rates. "General economic and semiconductor industry conditions have continued to decline since our October earnings call," said Steve Sanghi, Microchip's president and CEO, in a statement. "As a result of these conditions, we are continuing with a pay cut for all of our worldwide non-manufacturing employees which was implemented during the December quarter."

The SD Association has announced the next-generation SDXC (eXtended Capacity) memory card specification which will provide up to 2TB storage capacity and accelerate SD interface read/write speeds to 104MB/s this year, with a road map to 300MB/s. Specifications for the new SDXC standard will be released in the first quarter of 2009.

STMicroelectronics, Infineon Technologies, NXP, and Renesas Technology each said they received surprise visits from investigators in late October. All of them were raided by European Commission investigators seeking information of collusion in the market for chips used in smart cards.

CSR is claiming it is possible to simplify and speed the development of Bluetooth headsets with high quality stereo audio with a new type of software development kit.

Silicon foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC) is mulling plans to buy ProMOS, according to sources. In the plan, TSMC would buy ProMOS' fabs and would shed the company's memory business, sources said.

Taiwan's exports slumped by a record 41.9% in December on weaker demand from the US and China for laptops, mobile phones and computer chips.

Driven by increasing demand from mobile devices and automotive applications, wafer-level packaging (WLP) is moving up to higher I/O counts and finer pitches, experts said. Other WLP trends to watch in 2009 include high-power and high-accuracy precision devices, through-silicon vias (TSVs), fan-outs, and embedded flash.

SanDisk unveiled a portable digital music system based on memory cards preloaded with songs, signaling a shift in its strategy to compete against the iPod. The Sansa slotRadio player and companion line of slotRadio music cards were announced at the Consumer Electronics Show in Las Vegas on Wednesday.

Nanya Technology, Taiwan's No. 2 DRAM chip maker, said on Wednesday it plans to raise the contract price of its chips by 10% in January from the level in late December.

Semiconductor Manufacturing International Corp (SMIC), China's top contract chip maker, is discussing the possibility of selling a strategic stake in itself to Intel, sources familiar with the talks said on Tuesday. The possible alliance could help Intel expand its business in China, which it has described as its fastest-growing major market.

Japan's Sanyo Electric plans to cut up to 1,000 jobs to revamp its struggling businesses before being bought by Panasonic, a press report said Tuesday.

Hynix Semiconductor, the world's No. 2 maker of computer memory chips, is set to raise $249 million in a new share issue this month under a shareholder-led support package, an executive said on Tuesday.

Texas-based Freescale Semiconductor has a prototype low-cost notebook using ARM-designed chips is the latest evidence that the UK company could play a major part in the next wave of computing.

The palm-sized device in a larger 500GB capacity is on sale from various online retailers now for around £120.

Toshiba, a company best known for making laptops and consumer electronics, on Monday said that it will enter the solar-photovoltaics business. Toshiba's photovoltaics business will be part of the conglomerate's Transmission Distribution & Industrial Systems business, which makes equipment for natural-gas power plants.

A slowdown in technology node migrations at the major DRAM producers is adding to the expected capital expenditure cuts manufacturing as companies struggle to combat increasing losses and preserve cash, according to the latest report from DRAMeXchange. The spending cuts are a direct result of the combined DRAM industry losing approximately US$8 billion in 2008.

Spansion, the Sunnyvale flash-memory maker, chose to borrow US$74.8 million of the US$85 million available to it under an agreement with UBS, the Swiss investment banker that holds auction-rate securities that were worth US$121.9 million when Spansion first bought them. The investment has a current estimated market value of US$107.4 million, according to a filing Spansion made Monday.