Unstable Market For Chip Manufacturers

Posted on July 28, 2012 at 8:57 am by Amber Hemmer

After the flooding that took place across seas, the technology world took a hit from the physical damages and loss of production. So with the affected companies trying to tread water – literally – we’re finding out who’s sinking and who’s swimming.

Intel announced that they are buying into a Dutch company, ASML Holding, to expand production and work on additional research. This $3.1 billion deal transfers 10% of ASML’s shares to Intel and provides $1 billion for technological research and production. Intel reportedly plans on purchasing 5 more shares from ASML Holding at a later date for a price tag of an additional $1 billion.

Intel is hoping this new purchase will help speed up production to get more products out and will also help fund research involving extreme ultraviolet lithography. Extreme ultraviolet lithography is a new type of manufacturing technology for semiconductors. These moves show that Intel is a strong player in the tech world and looking for growth and more expansion.

On the other side of the tech world is Toshiba. Unfortunately, Toshiba has been caught in a financial whirlwind due to an oversupply in product and inventory and falling prices for USB drives and memory cards. The company has reportedly cut off production at one of the main plants in Japan, putting Toshiba in a questionable status.

Two other overseas chipmakers have been caught up in unfortunate events as well, with Elpida Memory filing for bankruptcy and Renesas Electronics closing plants and laying off workers.

It’s not hard to tell which companies are sinking and which are swimming. Intel seems to be heading in the right direction and with new technology possibly on the horizon, they could be one of the major leaders left in the chip manufacturing niche. Hopefully, with a few good investments and business decisions (whatever they may be), Toshiba, Elpida Memory and Renesas Electronics can recover and work back toward the top as well.



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