U.S. Finalizes Up to $6.75 Billion in Semiconductor Awards for Samsung, Texas Instruments, and Amkor

/in /tarafından

The U.S. Commerce Department announced finalized awards totaling up to $6.75 billion to Samsung Electronics, Texas Instruments, and Amkor Technology, supporting efforts to boost domestic semiconductor production and packaging capabilities. These awards are part of a broader $39 billion subsidy program aimed at strengthening U.S. semiconductor manufacturing.

Samsung Electronics will receive up to $4.745 billion—$1.7 billion less than the initial April estimate of $6.4 billion—reflecting adjusted investment plans. Samsung now plans to invest $37 billion, down from the originally stated $45 billion, in building two chip production facilities, a research center, and a packaging facility by 2030. The Commerce Department stated that the changes were made to align the award with revised market conditions and the company’s updated investment scope.

A Samsung spokesperson noted that the company’s “mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency” without disclosing further details.

Texas Instruments is set to receive up to $1.61 billion, with $900 million allocated to its Texas facilities and $700 million for its operations in Utah. The company has committed over $18 billion through 2029 to construct two factories in Texas and one in Utah, collectively expected to create 2,000 manufacturing jobs.

Amkor Technology will receive up to $407 million to support its $2 billion advanced semiconductor packaging facility in Arizona, which will be the largest of its kind in the United States. The facility will focus on packaging and testing chips for applications such as autonomous vehicles, 5G/6G, and data centers. Apple has been named its first and largest customer, with chips sourced from a nearby Taiwanese Semiconductor Manufacturing Company (TSMC) plant.

Amkor CEO Giel Rutten highlighted the strategic importance of the Arizona plant, calling it a “critical cornerstone” in establishing a robust U.S. semiconductor supply chain.

This announcement follows Congress’s approval in August 2022 of a $39 billion subsidy program, alongside $75 billion in government lending authority, to bolster the semiconductor industry. The Commerce Department has now finalized over $33 billion of the $36 billion in proposed incentive funding.

Earlier this week, the Commerce Department also finalized $458 million for SK Hynix’s Indiana facility and previously confirmed up to $7.86 billion for Intel, down slightly from an initial $8.5 billion estimate due to separate Pentagon funding for Intel projects.

Commerce Secretary Gina Raimondo underscored the significance of these investments, noting that “the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers.”

 

Google Proposes Loosening Search Deals to Address U.S. Antitrust Ruling

/in /tarafından

Alphabet’s Google has offered a proposal to loosen its agreements with Apple and other partners that set Google as the default search engine on new devices. The move aims to address a U.S. District Court ruling that found the company unlawfully dominates the online search market.

Google’s proposed remedies focus on its distribution agreements with device manufacturers, browser developers, and wireless carriers. These agreements were deemed by U.S. District Judge Amit Mehta to give Google an unfair advantage over competitors, with the judge citing their exclusivity as a barrier to competition.

To address these concerns, Google suggested making its agreements non-exclusive and allowing browser developers to revisit their default search engine choice annually. For Android device manufacturers, the proposal includes unbundling Google’s Play Store from its search engine and Chrome browser.

However, Google’s proposal stops short of addressing one critical element: revenue-sharing agreements. These deals, which provide device and software companies with a portion of Google’s ad revenue, are a significant part of the company’s dominance. In 2022, Apple reportedly earned $20 billion through its agreement with Google. Mozilla and other independent browser developers have argued that these payments are vital to their operations.

Kamyl Bazbaz, a spokesperson for DuckDuckGo, criticized Google’s approach, stating that it maintains the status quo. “The remedy must stop illegal conduct, prevent its recurrence, and restore competition in the affected markets,” he said.

The U.S. Department of Justice and a coalition of states have rejected Google’s proposal, arguing that more drastic measures, including divestitures of its Chrome browser and potentially its Android operating system, are necessary. They will present their case in an April trial, calling witnesses from Microsoft, OpenAI, and AI startup Perplexity to demonstrate the need for broader remedies.

The prosecutors also aim to stop Google from paying to be the default search engine, investing in search rivals or AI query products, and to mandate licensing of its search results and technology to competitors.

Google cautioned Judge Mehta to act cautiously, arguing that antitrust remedies should not stifle innovation, particularly as artificial intelligence is transforming online search and other digital products. “Courts have historically avoided imposing remedies that chill innovation,” Google emphasized in court filings.

The outcome of this case could reshape the online search market and influence the future of AI-driven products. For now, the stage is set for a high-stakes trial that will determine how deeply regulators can intervene in Google’s business practices.

 

Qualcomm Wins Key Verdict in U.S. Chips Trial Against Arm

/in /tarafından

Qualcomm scored a significant victory in its legal battle with Arm Holdings, as a U.S. federal court jury found that Qualcomm’s central processors are properly licensed under its agreement with Arm. However, the case ended in a mistrial on one critical issue, leaving some aspects unresolved.

The dispute centers on Qualcomm’s use of technology from Nuvia, a startup it acquired in 2021 for $1.4 billion, and its licensing agreement with Arm. After deliberating for over nine hours, the jury ruled that Qualcomm did not breach its license with Arm and that its chips using Nuvia technology are fully protected by its contract with Arm.

However, the jury could not unanimously decide whether Nuvia violated the terms of its license with Arm before being acquired by Qualcomm. As a result, Judge Maryellen Noreika encouraged the parties to mediate, though Arm has already vowed to seek a new trial.

Arm’s shares fell 1.8% in extended trading following the decision, while Qualcomm’s shares rose by the same margin. Qualcomm hailed the ruling as a vindication of its innovation rights, while Arm expressed disappointment over the jury’s inability to reach a consensus on key claims.

The case has implications for Qualcomm’s ambitions in the laptop market, particularly its push into “AI PCs” designed to handle advanced tasks such as chatbots and image generation. Competitors like Nvidia, AMD, and MediaTek are also vying to create Arm-based processors for this growing market.

Analysts view the verdict as a stabilizing factor for Qualcomm’s roadmap. “The risk of losing access to Nuvia cores is much closer to being off the table,” said Stacy Rasgon, a Bernstein analyst.

The trial also reignites industry-wide questions about the boundaries of Arm’s intellectual property. While Arm licenses its architecture to companies like Qualcomm and Apple, it argued in court that its agreement with Nuvia allowed it to demand the destruction of custom core designs.

“This trial has ramifications for the entire tech ecosystem,” said Jim McGregor of Tirias Research. “Arm’s architecture forms the backbone of everything from consumer gadgets to satellites, and this verdict underscores ongoing tensions between licensing and innovation.”

Despite the partial victory for Qualcomm, unresolved issues regarding licensing terms and royalty rates may continue to impact future negotiations across the semiconductor industry.