【October】
Samsung Electronics Exits LED Business
On October 21, 2024, Samsung Electronics announced that it would exit the light-emitting diode (LED) business. This move aims to optimize resource allocation and focus on more promising core areas, such as power semiconductors and MicroLED technology.
This decision marks the second exit by a major South Korean electronics company from the LED market, following LG Electronics' withdrawal in 2020. Samsung had been primarily producing and selling LED products for applications such as television displays and smartphone flashlights.
In a statement, Samsung indicated that the company had decided to adjust its business structure because its overall performance had failed to meet expectations. While the LED business had contributed revenue in the past, its performance had been declining in recent years and had not met the company's targets. Therefore, Samsung decided to divest its LED operations in order to focus more resources on areas with higher growth potential.
Arm Terminates Licensing Agreement with Qualcomm
On October 23, 2024, Arm issued a mandatory 60-day notice to Qualcomm, terminating its architecture licensing agreement. If no resolution is reached by the deadline, Qualcomm could lose the ability to use Arm's instruction set for chip designs.
This decision is closely related to lawsuits between the two companies that began in 2022. In 2021, Qualcomm acquired Nuvia, a chip design startup that held an Arm license. Nuvia's Oryon architecture was later incorporated into Qualcomm's AI PC chips.
In 2022, Arm sued Qualcomm over the acquisition, claiming it violated the licensing agreement and infringed on Arm's trademarks. Arm argued that Qualcomm had not renegotiated the terms of the agreement after acquiring Nuvia. Qualcomm, on the other hand, contended that the existing agreement covered Nuvia’s activities.
Arm argued that Qualcomm’s use of Nuvia’s designs violated the licensing agreement. Arm demanded Qualcomm destroy designs created before the acquisition of Nuvia. According to Arm’s lawsuit filed in Delaware District Court, these designs could not be transferred to Qualcomm without a proper license. In February 2023, Nuvia’s license was terminated after negotiations failed.
In response to Arm's move to terminate the licensing agreement, Qualcomm stated that this was a typical approach by Arm to pressure long-term partners and disrupt their leading CPU products, ignoring the broad rights already covered by the existing licensing agreement in order to raise licensing fees. Qualcomm believes that Arm’s move, ahead of a December court hearing, seems to be an attempt to interfere with the legal proceedings and lacks any solid basis.
Latest update: On December 20, 2024, in the case involving Arm’s accusation of Qualcomm violating the chip technology licensing agreement, a jury in the U.S. District Court for Delaware ruled that Qualcomm holds a valid license to use Arm’s fundamental chip architecture for its central processing unit (CPU) production. However, the jury reached an impasse on another issue, rendering the trial a mistrial. Arm announced that it would seek a retrial.
Wolfspeed Halts German SiC Factory Plans
On October 23, 2024, Wolfspeed announced that it would suspend plans to build a semiconductor factory in Erndorf, Germany, due to the slower-than-expected adoption of electric vehicles (EVs).
According to sources, German automotive parts supplier ZF is also considering withdrawing from its $3 billion chip manufacturing partnership with Wolfspeed in Germany.
2024 has been a challenging year for Wolfspeed. In addition to canceling its planned factory in Germany, the company’s financial performance has been disappointing. Wolfspeed posted a loss of $860 million for the year, and its stock price has fallen by about 85% since the beginning of the year, fueling rumors of bankruptcy or acquisition.
However, on October 15, 2024, Wolfspeed and the U.S. Department of Commerce announced a non-binding preliminary memorandum of understanding (PMOU), in which the U.S. government would provide Wolfspeed with up to $750 million in potential direct subsidies under the CHIPS and Science Act. This deal has provided Wolfspeed with some breathing room for now.
【November】
SIRIOP Disbands MCU Team
On November 1, it was reported that the domestic well-known analog chip company, SIRIOP, announced the dissolution of its MCU team on October 28.
SIRIOP established its Embedded Processor Division in 2021, marking its entry into the MCU market. The company planned to invest 200 million RMB to develop MCUs that would surpass domestic and international competitors in terms of system performance and integration, leveraging the company's rich experience in analog and mixed-signal design.
However, the MCU market in China has become highly competitive, with severe product homogenization. Competition mainly revolves around cost-performance ratio. The dissolution of SIRIOP’s MCU team may stem from the fact that the MCU market has become overly saturated, and the company sees little hope of profitability in this sector.
AMD to Lay Off 4% of Global Workforce
On November 14, AMD announced that it would lay off 4% of its global workforce, approximately 1,000 employees.
AMD stated: “As part of aligning our resources with the greatest growth opportunities, we are taking a series of targeted actions. Unfortunately, these actions will result in a reduction of approximately 4% of our global workforce.”
The layoffs are part of AMD's effort to optimize resource allocation and focus on its biggest growth opportunity—AI. Data showed that AMD's data center division (including its AI graphics processor business) achieved more than double the revenue growth in the quarter ending in September. In contrast, the personal computer division also grew by 29%, but the gaming division's sales fell by about 69%. In response to the huge demand from large-scale enterprises for high-end AI chips, AMD has been increasing its investment in this area.
Royole Display Files for Bankruptcy
On November 19, according to a notice from the Shenzhen Intermediate People’s Court, after investigating the assets and liabilities of Royole Display, the company was found unable to pay its due debts and lacked sufficient assets to cover all of its liabilities. In accordance with Article 2, Paragraph 1, and Article 107 of the Enterprise Bankruptcy Law of the People's Republic of China, the court ruled on November 18, 2024, to declare Shenzhen Royole Display Technology Co., Ltd. bankrupt.
Royole Technology, founded in 2012, made headlines in 2014 for creating a record-breaking ultra-thin flexible color display with a thickness of just 0.01 mm and a bending radius of up to 1 mm. In 2018, Royole Technology announced an investment of approximately 11 billion RMB to build a flexible display production line in Shenzhen.
Subsequently, Royole planned an IPO and completed its listing guidance work in 2020, with an estimated post-IPO valuation of 57.7 billion RMB. However, in February 2021, the company voluntarily withdrew its IPO application. Following this, it faced issues such as cash flow problems, layoffs, and unpaid wages, ultimately leading to bankruptcy proceedings.
【December】
Intel CEO Retirement
On December 2, 2024, the American semiconductor manufacturer Intel Corporation announced that its CEO, Pat Gelsinger, retired on December 1 and stepped down from the company’s board of directors.
In his retirement announcement, Gelsinger expressed mixed emotions, saying, “Today is a bittersweet day for me as Intel has played such an important role throughout my career.” He also added, “This year has been challenging for all of us. We have had to make tough but necessary decisions to ensure Intel can adapt to the changing dynamics of the market.”
The year 2024 has been particularly difficult for Intel. In the AI field, it has also failed to catch up with Nvidia. Intel’s market value has continued to decline, falling below $100 billion. In early November, S&P Global announced an adjustment to the Dow Jones Industrial Average, removing Intel and replacing it with Nvidia.
Moreover, the former semiconductor giant has been the subject of rumors regarding a potential acquisition, with Qualcomm, Broadcom, and*listed as potential buyers.
Given the company’s underperformance, Pat Gelsinger might be seen as the one to take responsibility for these challenges.
NVIDIA Under Investigation by China’s Market Regulatory Authority
On December 9, 2024, the State Administration for Market Regulation (SAMR) of China officially announced that it had launched an investigation into Nvidia for allegedly violating the Anti-Monopoly Law of the People’s Republic of China and the 2020 SAMR announcement regarding the anti-monopoly review of Nvidia’s acquisition of Mellanox Technologies.
In response, Nvidia stated: “Nvidia wins on merit, as reflected in our benchmark results and the value we provide to our customers. Our customers can choose any solution that best fits their needs. We strive to offer the best products in every region and are committed to fulfilling our obligations wherever we do business. We are happy to answer any questions regulators have about our operations.”
In addition to the investigation in China, the European union’s anti-monopoly regulators have also launched a review of Nvidia. The European Commission recently sent questionnaires to Nvidia’s competitors and customers to investigate whether the company has been bundling its graphics processing units (GPUs) with other products, such as networking devices. This investigation could lead to a formal probe.
Honda and Nissan Merger
On December 23, 2024, Honda Motor Co. and Nissan Motor Co. jointly announced that they had signed a memorandum of understanding (MoU), confirming the start of merger talks between Honda and Nissan, with Mitsubishi Motors also exploring the possibility of participating.
Under the agreement, Honda and Nissan will jointly invest to create a holding company, with both companies becoming subsidiaries of this new entity. The name of the holding company, shareholding structure, management arrangements, and other details will be determined in further negotiations. Honda and Nissan aim to finalize the merger agreement by June 2025, with the holding company expected to be officially established and listed in August 2026.
Mitsubishi Motors will make a final decision regarding its participation in the merger by the end of January 2025.
Analysts point out that the global automotive industry is undergoing a transformation driven by electrification and digitalization. Japanese car manufacturers have been slow in their transition, with declining sales and financial struggles, prompting them to “join forces for mutual benefit.”
