National Semiconductor's fiscal first-quarter profits dropped 63% as revenues fell by a third, but the analog chip maker indicated demand was rebounding.

"Despite positive earnings pre-announcements, the overall tone from companies remains relatively muted and cautious," said Doug Freedman, an analyst for Broadpoint AmTech.

Last October, Doug Grose was given a daunting task–turning the semiconductor manufacturing operations of AMD into a service that would also serve other chip designers. Now it looks like his job may effectively double.

Investors have speculated about a Temasek exit from the chip industry since its failed attempt to buy out and delist Stats Chippac two years ago. Stats Chippac and Chartered Semiconductor have slashed costs to weather the global slowdown that came amid slumping semiconductor prices and more competition from Taiwan.

Novellus Systems narrowed the range of its expected third-quarter per-share loss to US$0.09 to break-even, from US$0.15 to break-even, as conditions in the semiconductor sector continue to improve.

Freescale Semiconductor plans to transfer its 3G cellular IP to Beijing Capital Semiconductor in a deal valued at US$30-40 million, according to a market analyst.

Cadence Design Systems and Globalfoundries have jointly announced a multi-year software and services agreement for advanced semiconductor design.

Dutch semiconductor equipment maker ASM International will eliminate 106 jobs as it shutters its manufacturing facility in Phoenix and shifts those operations to Singapore.

Hynix is expected to swing to an operating profit in the July to September period, ending its seventh consecutive quarterly loss. Samsung may also see profits rise further in its semiconductor unit in the third quarter.

Verigy, a semiconductor testing company, has posted a net loss of US$21 million in its third quarter ended July 31, 2009, compared to net income of US$18 million in the prior year period.

Advanced Inquiry Systems, a developer of wafer-level sensing systems for memory testing, has closed an US$11 million Series B financing round with all its current investors participating.

"The cost involved in shrinking features to improve performance is a limiting factor in keeping pace with Moore's Law and a concern across the semiconductor industry," said Spike Narayan, manager, Science & Technology, IBM Research. "The combination of this directed self-assembly with today's fabrication technology eventually could lead to substantial savings in the most expensive and challenging part of the chip-making process."

Although the overall semiconductor market is expected to drop by 46% in 2009, it shows signs of rapid recovery, according to The Information Network market research company.

Converge has tracked increased demand from module manufacturers for 128x8 DDR2 chips, both in PC667 and PC800 speeds. However, there are mixed opinions on why the market has become so tight for these modules.

Applied Materials said orders for wafer fab equipment spiked in the final month of its third fiscal quarter, ending July 26. Foundries increased spending sharply, and display manufacturers are also looking at better times driven by flat panel TV sales, according to company CEO Mike Splinter.

China-based foundry Grace Semiconductor Manufacturing has announced the successful development of its 0.13-micron embedded flash process.

Demand for semiconductor equipment is showing signs of a return, but it remains too early to say that a broad-based recovery is at hand, said Applied Materials CEO Mike Splinter.

Despite a rebound in business, Applied Materials is set for more layoffs and cost-cutting, according to an analyst.

Spruce Pine, a modest, charmingly low-key town in the Blue Ridge mountains of North Carolina, is at the heart of a global billion-dollar industry.

EDA's industry "big three" held a panel session at DAC on the future of EDA and agreed that this is not "your father's recession."

NEC Electronics, Japan's fourth-largest chipmaker, said its first-quarter loss widened as demand for semiconductors used in automobiles, flat-panel televisions and handsets slumped amid a global recession.

German semiconductor maker Infineon Technologies has posted a significantly-narrowed third-quarter net loss on improved wireless sales and manufacturing efficiency, and said it expects sales growth to continue into the fourth quarter.

Grace Semiconductor Manufacturing Corporation (GSMC) has announced the availability of its 0.18-micron cost effective OTP (One Time Programmable) process platform for applications such as voice controlled devices, remote controls, small home appliances or touch panels.

Shares of MEMC Electronic Materials fell the day after the wafer maker's second-quarter profits dropped 96% on another steep fall in sales, though its semiconductor business showed improvement even as its solar end continues to struggle.

South Korea's Samsung Electronics, LG Electronics (LGE) and SK Telecom will work with other local companies to make semiconductors for hightech digital appliances that can replace imports, the government said Monday.

NEC is considering raising funds to strengthen its capital base, which has suffered during the economic downturn, according to sources familiar with matter.

Converge also reports that demand for DDR3 modules remains strong, with supplies limited, and that Xeons and AMD Opterons are the drivers for cost savings in the CPU space.

The investment in semiconductor in the second half will concentrate on introduction of 40nm DRAM and 30nm NAND, and shifting main process to 50nm and 40nm NAND.

Experts at Semicon West 2009 were in broad agreement that the industry must change its business model in the face of global recession and ever-advancing R&D costs.

Semiconductor equipment maker Novellus Systems has posted disappointing margins and a wider-than-expected loss, but a robust forecast helped limit share losses in late trade.

Dutch semiconductor equipment maker ASML has reported a narrower second quarter net loss than in the first quarter as sales jumped, and said it expects to reach break-even by the end of 2009.

While the current economic environment is imposing severe constraints on the semiconductor equipment industry, the primary driver for increasing profitability for leading-edge chipmakers is still Moore's Law...

Semiconductor makers are often among the first to see sales and earnings fall when a recession like this one comes along. But as the recession comes to an end, chip companies are usually among the first to come out of it.

The global semiconductor equipment book-to-bill-ratio rose above parity in June for first time in 11 months, according to VLSI Research.

Hynix Semiconductor has said it would cut its investment in a new production facility by 45% and extend the investment period.

Tokyo Electron, the world's second-largest chip equipment maker, said orders for machines that make semiconductors and flat-panel displays rose 82% sequentialy in the company's first quarter of fiscal 2009.

Photronics, a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, has announced that it is closing its integrated circuit photomask manufacturing facility in Shanghai, China. The closure is consistent with Photronics strategy to reduce costs and lower its operational breakeven point, it said.

The semiconductor memory industry is about to experience major technological changes as three-dimensional multi-gate structures push transistors and memory architectures forward, according to a one-day memory workshop held last month in Grenoble, France, by leading researchers from around the world.

There is considerable debate about second-half 2009. Some are bulls. Some are bears. Some are in both camps.