Chemical Engineering Guy’s Post

𝐌𝐚𝐲 𝟐𝟎𝟐𝟒 𝐑𝐞𝐩𝐨𝐫𝐭: Chemical Industry Stocks * 𝐍𝐯𝐢𝐝𝐢𝐚 forecasted a $28 billion Q2 revenue, surpassing estimates, with an adjusted gross margin around 75.5%. * 𝐓𝐒𝐌𝐂'𝐬's April sales surged by nearly 60% to $7.3 billion, driven by strong demand for AI chips. * 𝐒𝐜𝐢𝐨𝐧 𝐀𝐬𝐬𝐞𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭, under the leadership of Michael Burry, acquired stakes in 𝐁𝐏and 𝐂𝐢𝐠𝐧𝐚 * The 𝐔𝐒 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 is doubling tariffs on $18 billion worth of Chinese goods, including semiconductor tariffs to 50% and electric car tariffs to 102.5%. Join the 𝐍𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫, its 𝐅𝐑𝐄𝐄! https://lnkd.in/gDUa-KmB

❗ A global slump in demand for consumer electronics is contributing to a worldwide fall in semiconductor orders. Though we predict this slump to come to a swift end, with an uplift in output already anticipated in 2024 - what impact will it have on South Korea and Taiwan, as heavily specialized manufacturing economies? Read our latest insight from CEO Adrian Lloyd on the topic below. https://lnkd.in/e5hC6wbx Our quarterly updated Manufacturing Industry Output Tracker quantifies the total value of manufacturing production with deep granularity – for over 35 industries, across 44 countries, and presenting 15 years of historical data. For more information, download our brochure or get in touch if you would like to discuss our research. https://lnkd.in/eMDXntJ4 #semiconductor #manufacturing #economy #slump

Semiconductor slump challenges global manufacturing growth; a weak 2024 beckons London, 27th July 2023 – Interact Analysis recent update to its manufacturing industry output tracker report shows that China continues to prop up the manufacturing economy despite experiencing a rocky period of recovery. Interact Analysis #SemiconductorIndustry #CHIPSAndScienceAct #InflationReductionAct #AdrianLloyd #ManufacturingIndustry #OutputTrackerReport #ManufacturingEconomy #InvestmentDifficulties Ash Sharma Tim Dawson Brianna Jackson Matt Gryner Read More : https://lnkd.in/dz8_42-6

Markets regain risk appetite after artificial intelligence chip manufacturer Nvidia reports its sales forecast for the third consecutive time, surpassing market estimates. At 08:30, US durable goods orders were released, resulting in a -5.2% variation, significantly worse than the estimated -4%. However, initial claims for unemployment benefits were better than expected. Today marks the beginning of the anticipated Jackson Hole Symposium. Tomorrow, Jerome Powell will hold his conference, during which indications are expected regarding the path forward to contain inflation in the US. Despite starting with a mixed global outlook, weak US Manufacturing PMI data yesterday spurred a recovery in global markets, leading to a downward movement of the USD throughout the day, closing near the lows at $856. Today, S&P futures anticipate a positive opening (+0.39%), European markets trade mixed, and Asia closed higher. Concerning our main drivers, the outlook is negative for the CLP: the dollar is advancing +0.35% globally, the Mexican peso is down -0.39%, and copper is experiencing losses at -1.12%. Initial quotes come in at $860, and if we align with the global outlook, we should revisit the $864 range initially. At 09:00 today, the INE publishes the Producer Price Index for July. Technical levels: Resistances: $864 - $870 - $872 Supports: $859 - $856 - $850 www.figueroayriquelme.cl

𝐎𝐛𝐬𝐨𝐥𝐞𝐬𝐜𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐬𝐜𝐚𝐫𝐜𝐢𝐭𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐦𝐢𝐜𝐨𝐧𝐝𝐮𝐜𝐭𝐨𝐫 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐝𝐢𝐬𝐫𝐮𝐩𝐭 𝐞𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐥𝐢𝐧𝐞𝐬 𝐭𝐨 𝐦𝐚𝐫𝐤𝐞𝐭 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲. . . . Here’s my take on the reasons behind this issue: 1️⃣ 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭: New tech makes older components obsolete quickly. 2️⃣ 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐞𝐦𝐚𝐧𝐝 𝐚𝐧𝐝 𝐂𝐨𝐬𝐭: Changes in demand and production costs lead to End of Life (EOL) announcements for parts. 3️⃣ 𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 𝐃𝐢𝐬𝐫𝐮𝐩𝐭𝐢𝐨𝐧𝐬: Pandemics, natural disasters, and geopolitical tensions disrupt supply chains, causing shortages. 4️⃣ 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐡𝐚𝐧𝐠𝐞𝐬: Updated regulations push components towards obsolescence if they don’t meet new standards. 5️⃣ 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐅𝐚𝐜𝐭𝐨𝐫𝐬: Economic downturns, tariffs, and trade wars impact the availability and cost of components. Currency fluctuations also play a role. To combat these issues, I’ve: ✅ Engaged in last-time buy (LTB) opportunities. ✅ Invested in alternative parts or suppliers. ✅ Redesigned products to accommodate new components. ✅ Implemented strategic inventory management and forecasting. 𝐓𝐡𝐞𝐬𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐞𝐧𝐬𝐮𝐫𝐞 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧, 𝐦𝐚𝐫𝐤𝐞𝐭 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲, 𝐚𝐧𝐝 𝐦𝐞𝐞𝐭 𝐭𝐞𝐜𝐡𝐧𝐢𝐜𝐚𝐥 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬, 𝐟𝐨𝐬𝐭𝐞𝐫𝐢𝐧𝐠 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭. Let’s leverage our technical expertise and strategic relationships to stay ahead of obsolescence and scarcity challenges. #SemiconductorIndustry #ChipShortage #Innovation #BrightBytesWithRitam Picture Source: THORS

Cyclical downturns in manufacturing are not new or surprising to our industries with both domestic and international socioeconomic factors, worldwide health concerns, and a host of global supply and demand issues facing our nation. Considering these all too familiar factors demands our staunch and committed efforts to be applied to a continuation of revitalizing our manufacturing capabilities through reshoring initiatives, automation technology investments, and our utilization of the many rapidly flourishing digital tools helping build our domestic semiconductor manufacturing sector. Our persistent and unwavering efforts to build this new reality will outlast these cyclic hurdles and see to our lasting market success and supremacy. Read more on this topic: https://lnkd.in/gsrfNGVj

Import volumes are a poor measure of America's critical trade dependencies. The problem isn't buying things from abroad, it's buying from too few sources. That lack of diversification exposes US firms and workers to market shocks. Semiconductors are a good example. America gets a lot of its chips from overseas--but the early stages of chip production depend hugely on small number of key economies. See a snapshot of the data from my blog for Wilson Center Science and Technology Innovation Program. Thanks to Kellee Wicker and Kara Struckman

Could the U.S. led Chip Four (sometimes called the Fab Four) alliance really be an OPEC-style cartel and something akin to a State-Owned Enterprise (SOE) as suggested by a commentary article in Fortune? I usually do not dive into eco-political issues, but a recent commentary article published by Fortune caught my attention when it suggested the Chip Four alliance could create an OPEC-style cartel for the digital age. The Fab Four alliance between the United States, Japan, South Korea, and Taiwan focuses on diversification of the semiconductor supply chain, protecting intellectual property, and coordinating exports controls. The goal from what I see is strengthening the supply chains across the Indo-Pacific economic region. While this article indeed presents an interesting perspective, I think that the actual outcome is unlikely an OPEC-style cartel. The United States is embarking on regaining just a fraction of the global semiconductor supply domestically and the approach appears to be “state incentives” and not “state owned” coupled with broad multi-national collaboration. One clear indication the United States is not forming a cartel is Micron’s nearly $1B investment in a new memory chip assembly and test facility in Gujarat, India (India is not a Chip Four member) as part of a multiphase $2.75B manufacturing project. Couple this with other forthcoming Semiconductor manufacturing projects across India for both domestic and foreign companies makes me think more U.S. companies will follow suit with Micron. Additionally, the Chip Four coexists with other initiatives such as the U.S.-Japan-India-Australia Quadrilateral Security Dialogue (the Quad), and the U.S-EU Trade and Technology Council (TTC). Both recognize the strategic importance of these countries and regions, and the vast capabilities they offer across the entire semiconductor value chain. No matter what your view is, the renewed focus on semiconductor research, development, and production is welcome by all of us in the industry! #semiconductor #chip4 #chips #AIchips Here is the original Fortune commentary article:

With projected growth of just 0.3% in 2024, manufacturers worldwide are bracing for a potential slowdown. Discover how the current semiconductor crisis, strategic economic policies, and regional growth discrepancies are reshaping the industry’s future. https://bit.ly/3QpXnqq #Economics #Manufacturing #Industry

The U.S., Japan, South Korea and Taiwan are on a mission to restructure the global chip supply chain. The proposed “Chip 4 Alliance” wants to internalize all parts of the semiconductor business—research and development, design, manufacturing, packaging, sales and consumption—in-house. This chip clique will only reach outside the circle in strictly controlled circumstances. These four economies constitute almost the entire global semiconductor industry, accounting for 82% of the global market share, and 74% of the semiconductor global value chain with 84% of chip design. They collectively occupy a 77% share in the market for manufacturing equipment and as high as 99% for memory chips. Thus, the Alliance is more than just cooperation and coordination: What these four governments determine will shape the global market. But the Chip 4 Alliance raises a critical and complicated question: Can countries control production and manage trade for a product defined by innovation and competition? If they can, we’re looking at something very new: an OPEC-style cartel for the digital age. Credit: Jaemin Lee via Fortune #chip #alliance #innovation #cartel #semiconductor #supplychain