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."

Shares of chip makers and companies serving the sector suffered during the year. The Philadelphia Semiconductor Sector index, which is comprised of chip companies as well as manufacturers of chip-making equipment, fell by nearly half in 2008. The index closed Tuesday's trading session at 211.26, compared with 408.04 at the end of 2007.

Tejas Silicon Holdings (UK) has completed the acquisition of the Atmel wafer fabrication operation in Heilbronn, Germany. The sale follows a leasing agreement announced in September and its completion on December 31 has enabled Atmel to achieve its goal of reducing the number of its manufacturing facilities from five to two in 2008.

JP Morgan analyst Christopher Danely today lowered his estimate for global semi sales in 2009 from a decline of 17% to a decline of 20%, after Wednesday's report from trade group The Semiconductor Industry association that showed a steeper-than-expected decline in chip sales in November.

STMicroelectronics NV, Europe's largest semiconductor maker, plans to shut its plants in Italy over the Christmas period, affecting about 8,000 workers, as demand slides amid a deteriorating economy and an industry glut.

"Never before have we witnessed such a sharp and sudden fall-off in lithography system demand, triggered by an unprecedented mix of falling end-demand for semiconductors, weak memory prices and restricted access to capital for our customers," said Eric Meurice, President and Chief Executive Officer of ASML. "This steep decline in our business activity is forcing us to adjust our organization in order to lower our cost base significantly."

Semiconductor maker Atmel reduced its fourth-quarter revenue estimate and announced cost cuts that include an 11% reduction of its North American work force amid slumping chip demand.

Even in a weak phone market, rising acceptance of connectivity technology should benefit semiconductor suppliers.

Amtech Systems, a supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and silicon wafers, posted a revenues jump of 104% on year in the fourth quarter of 2008.

Kim Jong-kap, CEO of the world's No. 2 memory chip maker, told the evening newspaper, Munhwa Ilbo, that the global semiconductor industry would face a big change such as a closure of a rival chipmaker by the first quarter of 2009.

Fab capacity utilisation in Q3 was high for advanced processes and 300mm fabs but overall showed a decline, according to the latest Semiconductor Industry Capacity Statistics (SICAS) report, with the foundry industry experiencing sharp declines in capacity, actual wafer starts and capacity utilisation.

Semiconductor equipment companies are using memory semiconductor recession as opportunity to grow further. World economic downturn has hit both local and foreign equipment makers, so local makers believe that if the memory semiconductor market is recovered, only companies that have done their best to cut cost will take the benefit of semiconductor market recovery.

Market research group Gartner has lowered its forecast for semiconductor equipment manufacturing gear sales in 2009, just weeks after a previous downgrade.

Gartner today lowered its capital and equipment spending forecast for the second time in as many months, warning that the next year could see a capital spending decline of about 17% and capital equipment revenue decline of 18%. The revised forecast comes after Gartner in October suggested 2009 equipment demand would be slower than anticipated.

Researchers have found a simple way to make high-performance electronic circuits from organic semiconductors. The advance, reported in this week's Nature, brings us one step closer to low-cost, bendable plastic electronics.

confidence, and cloudy visibility in the second half of the year have forced Gartner to lower its forecast for 2008 revenue growth in Asia/Pacific's semiconductor market. The research company in its Semiconductor DQ Monday Report yesterday decreased its estimate for the region from 6.4% to 5.2% growth on an annual basis.

...Even India's government ministries responsible for facilitating the belated start of semiconductor manufacturing in India seem to have focused solely on the financial aspects (e.g., subsidies), and at the same time, underestimated the overwhelming importance of securing scarce technical knowhow that still dominates the viability of this most high tech of industries. The fact that nanoscale devices are already in production at the latest wafer fabs seems to have escaped them as well...

IC Insights' recent research uncovered a big shakeup in the 1H08 top 20 semiconductor supplier ranking. There are eight US companies in the top 20 (including three fabless semiconductor suppliers), six Japanese, three European, two South Korean, and one Taiwanese company (IC foundry supplier TSMC) in the ranking. As shown, it required at least US$2.1 billion in 1H08 sales to make the top 20 ranking. Although the top four ranked companies remained the same, there were a number of "movers and shakers" up and down the remainder of the ranking.

Seoul Semiconductor has a confident position to Nichia's assertion regarding to patent infringement because Acriche uses different technology from Nichia’s patent range.

udging the health of an industry can be complex. For the semiconductor industry, one indicator is the amount of manufacturing equipment sold, which fell by 37% year-over-year in North America for the month of May. While some market research companies had been expecting sales to pick up in the second half of the year, there are macro-economic issues at play that suggest otherwise.

...two major USA compound semi houses, TriQuint Semiconductor and Cree have announced they're opening their doors to GaN electronic foundry customers (v.s. GaN-based LEDs). The world has embraced GaN for LED applications rather nicely. Without GaN you simply wouldn't have blue spectrum LEDs. But for those of us who have been championing GaN for electronic applications for what seems to be decades, that foundry doors are finally opening is great news, as long as there are enough customers out there to make the efforts worthwhile.