April 23, 2025

Round-up

Highlights

1. Intel swings the axe – 20 %+ workforce cut incoming. New CEO Lip-Bu Tan will announce the first phase of deep layoffs this week as he tries to reboot Intel’s engineering culture and stop share-loss to TSMC and Nvidia ¹².
2. Washington flirts with an outright semiconductor tariff. A White House study floated “component-tariffs” on foreign-made chips; allies warn the move could raise costs without reshoring production ³.
3. Memory suppliers hike prices ahead of tariff deadlines. Spot DRAM quotes jumped 8-10 % overnight as PC and server makers stockpile inventory, while Micron joined Samsung in cutting legacy DDR4 output ⁴⁵.

Other developments

• BE Semiconductor (Besi) bookings up 8 % on hybrid-bonding demand ⁶
• Industry group tells BIS that current export controls are driving customers off U.S. silicon ⁷
• Nvidia touts 300× water savings with Blackwell direct-to-chip cooling ⁸
• Short selling in SK Hynix hits a record after Korea ends its ban ⁹
• Tower Semi sets 14 May for Q1 earnings & guidance ¹⁰
• Huawei’s Ascend 910C AI GPU said to enter mass shipment in May ¹¹
• Teledyne beats on Q1 earnings as defence sensor demand stays strong ¹²

Did you know?
Hybrid-bonding orders for HBM 4 packaging now account for over 40 % of Besi’s total backlog, the first time an advanced-memory node has dominated the Dutch toolmaker’s pipeline ⁶.

In-depth

1. Government & Corporate Policy

• U.S. semiconductor tariff blueprint

  • Treasury memo weighs a flat ad-valorem duty or “component tariff” tied to chip value in finished goods ³.
  • Economists warn broad levies could simply accelerate offshore assembly rather than on-shoring fabs.
  • Targeted China-only duties would be symbolic – Chinese dies make up <5 % of chips entering the U.S. supply chain.

• Export-control backlash reaches BIS

  • Semiconductor Industry Coalition told regulators the October rules are “forcing buyers toward non-U.S. alternatives within two quarters” ⁷.
  • Companies urged faster licence processing and clearer de-minimis thresholds for design IP.
  • BIS officials said tweaks are possible but a wholesale rollback is unlikely.

• South Korea lifts 18-month short-selling ban

  • Immediate result: bearish bets on SK Hynix spiked to an all-time high ⁹.
  • Traders cite AI demand uncertainty and looming U.S.-China trade friction.
  • Seoul regulators signalled they will intervene if “excessive volatility” emerges.

• Intel’s radical head-count reset

  • >20 % cuts target overlapping management layers and legacy client-PC groups ¹².
  • Move follows board’s ouster of Pat Gelsinger and aims to free cash for 18A foundry ramp.
  • Street sees ~$4 bn annual savings but worries about brain-drain in key design teams.

2. Economics, Finance & Business Outlook

• Memory price spike

  • TrendForce spot survey shows 8-10 % DRAM jump in one session ⁴.
  • Buyers racing to beat anticipated reciprocal tariffs that start 1 May.
  • Contract negotiations for Q2 already resetting 5-7 % higher.

• Micron joins Samsung in trimming DDR4

  • Both vendors shifting wafer starts to HBM and DDR5 ahead of AI server demand ⁵.
  • Taiwan IC packagers expect a windfall in legacy DIMM work.
  • PC-OEMs face renewed cost pressure just as laptop demand stabilises.

• Besi rides the HBM 4 wave

  • Q1 orders +8.2 % q/q to €132 m; hybrid-bonding tools secured from two top DRAM makers ⁶.
  • Revenue still -6 % on weak smartphone and auto, but CEO flags “AI-led up-cycle from late-2025.”
  • Shares popped 9 % on the print.

• SK Hynix under siege

  • Short interest hits record as traders bet on tariff drag and slowing AI euphoria ⁹.
  • Company reports Thursday; focus is on HBM3E margin disclosure.
  • Korean regulators monitoring for naked-short violations post-ban-lift.

3. Technology & R&D

• Blackwell racks go closed-loop

  • Nvidia claims GB200/GB300 systems use direct-to-chip liquid cooling that is 300× more water-efficient than traditional evaporative towers ⁸.
  • Coolant distribution units rated at up to 2 MW enable 120-140 kW racks.
  • Reference designs with Schneider Electric aim to ease data-centre retrofits.

• Huawei Ascend 910C mass production

  • Dual-die package doubles compute over 910B, chasing Nvidia H100-class perf ¹¹.
  • Built on SMIC N+2 7 nm; first cloud shipments expected in June.
  • U.S. export curbs on Nvidia H20 make 910C the default China AI accelerator.

• Tower Semi readies Q1 scorecard

  • April 23 release set earnings date and guidance call for 14 May ¹⁰.
  • Analysts will look for colour on RF-SOI demand and Intel foundry overlap.

• Teledyne sensor surge

  • Imaging-segment sales +2.2 % y/y to $757 m on defence opto-electronics ¹².
  • Management keeps FY-25 outlook despite tariff fog, citing backlog visibility.

Footnotes