Western Digital reached a tentative settlement with the IRS to resolve “a long-running tax matter” involving the fiscal years 2008 through 2015, said CEO David Goeckeler on an earnings call Thursday for fiscal Q3 ended April 1. The settlement is expected to result in a “previously unforecasted” cash payment to the government of between $500 million and $600 million during the fiscal year ending July 2023, he said. WD’s consumer business is experiencing “short-term demand weakness” outside the U.S. tied to the “geopolitical events in Europe,” plus the COVID-19 lockdowns in China, Goeckeler said. “However, we are confident in the strength of the business as we are entering a seasonally stronger second half of the calendar year with a number of new innovative products.” In mobile, WD has a “strong position in 5G phones,” he said. “We see demand for the latest 5G flagship phones remaining solid, with NAND content doubling from prior-generation smartphones.” Demand from gaming and virtual- and augmented-reality devices “remains robust,” he said. Industry analysts expect VR headset sales to rise at a 47% compound annual growth rate “over the next couple of years.” he said.

Global semiconductor revenue is projected to grow 13.6% in 2022, reaching $676 billion, as component supply constraints are expected to “gradually ease” throughout the year, reported Gartner Tuesday. The rise in average selling prices spurred by the chip shortage “continues to be a key driver for growth in the global semiconductor market in 2022,” prompting Gartner to raise its forecast by $36 billion from its previous projections, said the company. The chip shortage “will continue to be a concern for the supply chain of electronics equipment in 2022 and will have different effects in major electronic equipment markets depending on different semiconductor device types,” said Gartner. Most semiconductor shortages eased in PCs and smartphones as production moved into the off season combined with increased semiconductor supply into the market, it said. But some semiconductor device types “will continue to be in shortage in the automotive supply chain through late 2022.”

Global revenue in the semiconductor devices market will likely reach $620 billion by the end of 2022, up 11.5% from 2021, reported Frost & Sullivan Monday. Several drivers will accelerate growth in “all verticals,” including the increased deployment of 5G, rising adoption of 5G smartphones, increasing electronics content in automotive, migration to electric vehicles and the proliferation of IoT devices in smart homes, it said. Growth will be “especially strong” in the automotive sector, said analyst Prabhu Karunakaran.

Global chip shortages are likely to ease “significantly” in 2022's second half, as demand-supply gaps “decrease across most components,” reported Counterpoint Research Wednesday. The demand-supply gaps have been “shrinking” since late 2021, “signaling an approaching end to supply tightness across the broader ecosystem,” it said. The company suggests 2022's first half will include “downward shipment revisions, largely due to increasing inventory in the channel and a slowdown in consumer PC momentum.” The “big risk factor” will be the COVID-19 lockdowns across China now, especially in and around Shanghai, it said.

Western Digital and Kioxia finalized an agreement to jointly invest in the “first phase” of a new flash-memory manufacturing facility in Yokkaichi, Japan, said the companies Thursday. Financial terms weren't disclosed. With construction of the first phase complete, the investment will enable production to begin there this fall, they said. The investment adds a sixth flash-memory to the Yokkaichi campus, “enhancing its position as the world's largest flash memory manufacturing site,” they said. The first phase will produce 3D flash memory in 112- and 162-layer nodes, they said. Western Digital’s “flash availability” will be reduced by about 7 exabytes (7 billion gigabytes) in the second half of its fiscal 2022 ending in early July from the contamination of materials used in manufacturing processes in its joint venture with Kioxia, said the companies last month (see 2203030006).

Global semiconductor revenue reached $595 billion in 2021, increasing 26.3% year over year, reported Gartner Thursday. The 5G smartphone ramp, plus a combination of strong demand and supply chain price increases drove semiconductor average selling prices higher, “contributing to significant revenue growth in 2021,” it said. Samsung regained the top spot from Intel for the first time since 2018, though by a fraction of a point, amid Samsung’s 28% revenue increase to Intel’s 0.3% decline, said Gartner. Among the top 10, Advanced Micro Devices and MediaTek had the strongest growth in 2021 at 68.6% and 60.2% growth, respectively, it said.

Israeli company Polyn Technology announced Wednesday that its first neuromorphic analog signal processor chip, with a “brain-mimicking architecture,” has been packaged and evaluated. The Tiny AI chip bridges analog computations and the digital core and is said to replicate the pre-processing done in the primary cortical area of the human brain “before learning at the center.” The company expects the chip to be available to wearables customers in Q1, combining photoplethysmography and inertial measurement unit sensors for measuring heart rate and activity.

Global sales of semiconductor manufacturing equipment surged 44% last year to a record $102.6 billion, reported Semi Tuesday. China was the largest market for semiconductor equipment, with sales there expanding 58% to $29.6 billion, said the trade group. Sales in South Korea, the second-largest equipment market, jumped 55% to $25 billion, said Semi. Taiwan logged 45% growth to $24.9 billion to claim the third position, it said. Annual semiconductor equipment spending increased 23% in Europe and 17% in North America, it said. “The 44% increase in manufacturing equipment spending in 2021 highlights the global semiconductor industry’s aggressive push to add capacity,” said Semi CEO Ajit Manocha. “This drive to expand production capabilities extends beyond the current supply imbalance, as the industry continues to ramp up to address a wide range of emerging high-tech applications that will enable a smarter digital world with countless social benefits.”

Analog Devices, Intel and Micron joined with Mitre Engenuity to form the Semiconductor Alliance aimed at speeding semiconductor R&D and prototyping, said the chipmakers Wednesday. The alliance’s goal is to build a more “robust” U.S. semiconductor industry, foster “advanced manufacturing” in the U.S. and protect intellectual property “amid increased global competition,” they said. “This engagement signifies a commitment to collaborate on ensuring the resiliency of the industry” by proposing “the foundation for a whole-of-nation approach for a more innovation-focused U.S. semiconductor industry and supply chain,” they said. The founding members “seek engagement from industry and experts from all facets of the U.S. semiconductor ecosystem, including integrated device manufacturers; fabless chip companies; providers of infrastructure, design, and manufacturing tools; and technology innovators from industry and academia,” they said.

Revenue in the global semiconductor materials market topped $64 billion last year, a new record, reported Semi Wednesday. The previous high was $55.5 billion, set in 2020, it said. Wafer fabrication materials and packaging materials revenue in 2021 totaled $40.4 billion and $23.9 billion, respectively, for year-over-year increases of 15.5% and 16.5%, said Semi. The silicon, wet chemicals, chemical-mechanical planarization and photomask segments had the strongest growth in the wafer fabrication materials market, while packaging materials market growth was largely driven by the organic substrates, leadframes, and bonding wire segments, it said.