Gallium and Scandium Waste Recovery Startup Targets Critical Mineral Bottlenecks

Supra Elemental Recovery

Gallium and scandium waste recovery is gaining a new player in the US critical minerals market. Supra Elemental Recovery launched with $2mn to advance its reusable cartridge technology. The company aims to recover metals from industrial byproducts, mine tailings, and electronic waste. As a result, gallium and scandium waste recovery is moving closer to commercial use.

This matters because gallium and scandium remain strategically sensitive materials. Western supply has tightened after Chinese export controls squeezed access to several critical minerals. That pressure has increased across defense, aerospace, and energy-related supply chains. Therefore, US gallium supply and scandium recycling are becoming more important industrial priorities.

The company’s approach also stands out because it focuses on recovery from waste streams rather than new mining alone. Supra says its system uses a reusable sponge-like cartridge to capture target metals. That model could reduce dependence on conventional upstream supply. Consequently, gallium and scandium waste recovery may become a more practical diversification tool.

Critical Mineral Recovery Technology Moves Toward Pilot Scale

Critical mineral recovery technology is becoming more valuable as concentrated supply chains remain a strategic risk. Supra’s system is designed to recover metals from several overlooked sources, including industrial waste and mine tailings. That gives the company access to materials that already exist inside the industrial system. As a result, the business is aligned with the growing push for circular supply models.

The company is also preparing for a commercial pilot in 2026. The initial funding will support further technology development and pilot readiness. That means the project is still early stage, but it is moving beyond pure research. Therefore, critical mineral recovery technology is starting to enter a more commercial phase.

The scientific foundation adds credibility to the effort. Supra’s technology builds on federally supported research at the University of Texas at Austin. That background suggests the company is building from a stronger technical base than a typical early startup. Meanwhile, it aligns with broader US interest in domestic critical minerals innovation.

US Gallium Supply and Scandium Recycling Could Gain a New Pathway

US gallium supply could benefit if Supra proves it can recover high-purity material at meaningful scale. Gallium remains important for semiconductors, electronics, and advanced industrial uses. Scandium also matters for aerospace and other high-performance applications. Therefore, a domestic recovery pathway for both metals would carry strategic value.

The business may also extend beyond these two materials. Supra is testing recovery of cobalt, lithium, and some rare earths. That suggests the company is building a platform rather than a single-metal solution. Consequently, gallium and scandium waste recovery may be only the first step in a broader critical minerals strategy.

The wider market message is clear. Waste recovery is no longer a secondary topic in strategic materials. It is becoming a serious supply option where mining and refining remain exposed to geopolitical concentration. As a result, smaller technology firms may play a bigger role in future critical mineral resilience than their scale first suggests.

The Metalnomist Commentary

This launch matters because it focuses on one of the most overlooked parts of the critical minerals chain: recoverable waste. Gallium and scandium are small-volume metals, but they create outsized pressure when supply tightens. If Supra can prove its process at pilot scale, waste recovery could become a more credible answer to critical mineral concentration.

AWS to use Rio Tinto copper for datacenters

AWS

AWS to use Rio Tinto copper for datacenters under a new two-year partnership. The deal links Arizona cathode output to US data center buildouts. Meanwhile, AWS will support Nuton with cloud tools for leaching optimization.

Nuton produces 99.99pc copper cathodes at the Johnson Camp mine in Arizona. Nuton uses proprietary bioleaching to extract copper from primary sulfide ore. AWS to use Rio Tinto copper for datacenters as the project moves from first metal to scale.

Nuton’s bioleaching links copper supply to AI infrastructure

Nuton positions bioleaching as a lower-footprint route for refined copper in the US. Gunnison produced its first copper cathode from the project in August. Therefore, the partnership arrives as operators seek reliable domestic metals for electrification and AI demand.

Nuton expects the project to produce 30,000t of refined copper over four years. Nuton expects 14,000t to come from its bioleaching technology. AWS to use Rio Tinto copper for datacenters as volumes build and specifications stay tight.

AWS simulations target higher recovery with lower water and acid use

Nuton will use AWS platforms to simulate performance and improve recovery predictions. The workflow aims to optimize water and acid consumption across the leaching circuit. As a result, Nuton can tune operating parameters faster and reduce trial-and-error.

The partners also build a repeatable digital template for future leaching deployments. Nuton and Gunnison previously secured $13.9mn in DOE tax credits to support domestic copper output. Therefore, the project fits a broader push to localize critical materials supply chains.

The Metalnomist Commentary

This partnership ties “digital mine” methods directly to refined copper supply for hyperscale infrastructure. However, the real test will be consistent recoveries across variable sulfide feeds. If Nuton proves repeatability, bioleaching could win a larger share of US copper growth.

STMicro targets new sources of silicon chip demand

STMicro

STMicro is betting on new sources of silicon chip demand from AI data centres and advanced EV platforms. The company sees silicon and silicon carbide (SiC) devices as core growth engines, even as it trims some near-term capital spending. As a result, STMicro is repositioning its portfolio toward photonics, high-voltage power electronics and next-generation vehicle systems that can unlock new sources of silicon chip demand across several end markets.

Photonics and AI servers anchor new sources of silicon chip demand

STMicro is using silicon photonics to capture new sources of silicon chip demand from hyperscale AI data centres. In the third quarter, the firm reported rising orders for silicon photonics integrated circuit prototypes from its 300mm fabs. This confirms internal expectations that photonics ICs will become a meaningful revenue driver as AI server build-outs accelerate worldwide.

Meanwhile, the company is tightening its integration into the AI infrastructure ecosystem through the Starlight Consortium. The consortium connects substrate suppliers, device makers and system integrators to develop high-speed optical solutions for data centres, telecoms and automotive. In parallel, STMicro is collaborating with Nvidia on an 800V DC AI data centre architecture that combines SiC, gallium nitride (GaN) and silicon technologies. The firm has also demonstrated a GaN prototype with over 98pc conversion efficiency, underscoring how power density and efficiency now drive silicon chip demand as much as raw compute.

SiC, EV power electronics and a more selective capex strategy

STMicro is broadening SiC usage beyond traction inverters and onboard chargers to new power roles in active suspension inverters. This expands the addressable market in EVs just as advanced driver-assistance systems increase demand for sensors and control chips. However, weaker-than-expected EV programmes in Europe and China have delayed the full impact, forcing the company’s main automotive customer to cut orders.

Therefore STMicro is trimming near-term SiC capex as it transitions production from 150mm to 200mm wafers. The company will slow some investments in SiC conversion while maintaining its 300mm expansion plans in Agrate, Italy, and Crolles, France. These fabs continue to see solid order visibility, particularly for data-centre power modules and optical components. STMicro expects EV growth and SiC restocking to resume in 2026, once inventory drawdowns run their course and regional electrification policies translate into firmer demand.

The Metalnomist Commentary

STMicro’s push into photonics and SiC power devices shows how new sources of silicon chip demand are shifting toward AI infrastructure and complex EV systems. For the wider materials chain, this means sustained pull for high-purity silicon, SiC substrates and GaN epitaxy, even if near-term EV softness delays some projects. Suppliers that align with 300mm and 200mm wafer roadmaps and can support AI-class power densities will be best positioned as these new demand waves crystallise from 2026 onward.

IQE GaSb and GaN strategy pivots business toward AI and power markets amid sale options

IQE

IQE’s GaSb and GaN strategy is reshaping the UK compound semiconductor maker as it explores a potential sale of the company. The IQE GaSb and GaN strategy shifts focus toward high-value sensing, photonics and power electronics while legacy wireless markets remain under pressure. As a result, the IQE GaSb and GaN strategy now sits at the core of IQE’s turnaround and M&A narrative.

IQE has continued to rationalise its footprint while redirecting capital to growth nodes. The firm suspended manufacturing at its Silicon site in south Wales and plans to exit fully by the fourth quarter, with a new operator taking over the facility. This follows the sale of its decommissioned Bethlehem, Pennsylvania site in late 2023, with skills, IP and customers transferred to Greensboro, North Carolina. That larger US site now anchors IQE’s presence in advanced sensing, optical communications, aerospace, defence and wireless markets.

However, the restructuring runs in parallel with a strategic review that has widened from a Taiwan business sale to a possible sale of the entire company. IQE has been approached by at least one potential buyer and has received further early expressions of interest. Any acquirer would gain exposure across all four III-V platforms — GaAs, InP, GaN and GaSb — with particular upside in infrared sensing, AI data communications and GaN power electronics.

GaSb sensor momentum underpins IQE GaSb and GaN strategy

GaSb is emerging as a central pillar of the IQE GaSb and GaN strategy, especially in infrared and space imaging. IQE holds GaSb substrate manufacturing capacity in Spokane, Washington, and in Milton Keynes in the UK, creating a transatlantic supply base. The company has shipped its first commercial 6-inch GaSb epiwafers for large-area sensor products used in advanced space and satellite imaging.

These technology milestones are now backed by tangible orders. IQE secured a first-year $1.7mn purchase order for GaSb epitaxial wafers under a three-year agreement with a long-standing infrared sensing customer. It also landed a $4.1mn purchase order for antimonide substrates, with deliveries running into 2026. These sensors target industrial, aerospace and security applications, where long qualification cycles favour stable, specialist suppliers.

Meanwhile, photonics revenue remained broadly flat at £26.6mn in the first half, compared with £26.8mn a year earlier. Strong InP demand for AI-driven data communications offset delays in US military and defence infrared programmes. IQE also launched a 6-inch foundry platform for silicon photonics, positioning GaSb and InP technologies inside emerging AI and hyperscale data centre architectures.

GaN power growth, AI demand and risks to IQE GaSb and GaN strategy

On the GaN side, IQE is expanding reactor capacity for 8-inch GaN-on-silicon targeted at gesture recognition in AR and VR displays. At the same time, it is developing high-voltage (>1,000V) GaN technologies, including vertical GaN and GaN-on-sapphire, to serve automotive power electronics and radar markets. These developments reinforce how GaN power is becoming a key enabler for AI-era data centre power needs and high-efficiency conversion.

Management sees this GaN power pivot as crucial to long-term growth. Chief executive Jutta Meier highlighted the diversification into GaN power and connectivity as the right strategy, citing surging AI-related infrastructure and communications demand. IQE expects to benefit from the exit of a key GaN foundry player, which could free market share for its expanded platform. Multiple Tier 1 design wins in laser and detector products for AI and hyperscale data centres signal that the IQE GaSb and GaN strategy is already landing important customers.

Yet the investment case also carries risks. First-half group revenue fell to £45.3mn from £66mn, driven by a 52pc collapse in wireless revenue to £18.6mn. Overhang from 2024 inventory builds, tariff uncertainty and weak smartphone demand continue to weigh on handset-linked GaAs volumes. IQE expects wireless inventories to normalise only from 2026 and now guides 2025 revenue at £90-100mn, down from £118mn in 2024. The success of the IQE GaSb and GaN strategy must therefore offset a structurally weaker wireless segment and fund ongoing capacity shifts.

The Metalnomist Commentary

IQE is moving from a broad, handset-heavy portfolio toward a more focused, higher-margin mix centred on GaSb sensing, GaN power and AI photonics. That repositioning strengthens its appeal as a strategic target for buyers seeking exposure to AI infrastructure and defence-linked semiconductors. The key question is whether GaSb and GaN growth can ramp fast enough to stabilise revenues before wireless markets recover.

Daqo polysilicon guidance 2025 cut as oversupply persists

Daqo

Daqo polysilicon guidance 2025 was lowered as oversupply pressures the solar supply chain. The company trimmed output to 110,000–130,000t. Daqo polysilicon guidance 2025 now sits well below 2024’s 205,068t. Management again cited weak demand and high inventories.

Prices stabilize on policy moves, but fundamentals remain soft

Polysilicon prices improved from June lows after policy interventions. However, the market still faces a stock overhang and slow demand. Daqo ran at 34pc utilization in the second quarter. Production was 26,012t, in line with guidance. Yet third-quarter output will fall to 27,000–30,000t. Futures on the Guangzhou exchange briefly spiked to Yn55/kg in July. Even so, spot had fallen to Yn32–35/kg in late June. Daqo sees average industry costs at Yn40–50/kg. Therefore, relief depends on sustained price discipline.

Capacity glut delays a full recovery in utilization

Front-loaded Chinese installs distorted near-term demand. May set a record, but June installations plunged after tariff phase-outs. Daqo polysilicon guidance 2025 reflects a multi-year capacity imbalance. Installed or building capacity totals ~3.5mn t/yr. Annual demand averages near 1.2mn t/yr. As a result, industry utilization may stay subdued for years. Daqo sold 18,126t in the second quarter as it withheld volumes. The firm expects to operate at roughly 30–35pc utilization. Management hopes policy enforcement curbs below-cost selling. That could tighten balances into 2026.

The Metalnomist Commentary

This guidance cut underscores a classic downcycle: capacity outruns demand while policy tries to set a floor. Watch run-rates, inventory draws, and realized prices versus the Yn40–50/kg cost band. A durable upturn needs sustained installation growth, not episodic policy spikes.

Norsk Titanium DED titanium parts face slower shift but capacity expands

Norsk Titanium

Norsk Titanium DED titanium parts adoption is slower than expected across OEMs. The company pushed breakeven to early 2027. However, revenue rose 54% to $2mn in January–June. Norsk Titanium DED titanium parts still target aerospace, defense, and industrial growth. Therefore, management doubles down on serial readiness. Norsk Titanium DED titanium parts remain central to the firm’s strategy.

Transition dynamics and near-term commercial outlook

OEMs still prefer forgings for many qualified parts. As a result, transition timelines lengthen across programs. Operating expenses rose to $17.2mn from $13.4mn. The company now forecasts $70mn revenue in 2026. Mix splits roughly 50:50 between A&D and industrial. Contracts and mature discussions underpin the target. Execution depends on qualification pace and lot sizes.

Production readiness, RPD advantages, and scale plans

Norsk delivered contracted parts to Airbus this year. It qualified two additional machines and plans a third contract. Serial SKUs grew to 54 in the first half. Orders lifted the count to 56 with DOE parts. In-house machining and heat treatment reduce lead times. RPD melts titanium wire in argon to near-net shapes. Scrap falls below 10% versus conventional forging. Installed capacity stands at 700 t/yr.

The Metalnomist Commentary

RPD economics improve with higher buy-to-fly ratios and stable cadences. Watch OEM design-for-additive incentives and multi-year LTA scope. Qualification velocity will decide 2026–2027 cash inflection.

India Semiconductor Mission chip-making projects win $525mn boost across four states

3D Glass Solutions

India Semiconductor Mission chip-making projects secured $525mn to accelerate domestic fabs and advanced packaging. The India Semiconductor Mission chip-making projects include SiCSem, 3D Glass Solutions, CDIL and ASIP Technologies. As a result, the India Semiconductor Mission chip-making projects aim to reduce import dependence and strengthen critical electronics supply chains.

What the approvals deliver

India approved four projects with Rs46bn in funding. The total ISM portfolio now spans 10 projects across six states. Combined committed investment reaches about Rs1.60 trillion. Production is expected within two to three years, the ministry said.

Who is building what

SiCSem will build India’s first commercial compound-semiconductor fab in Odisha. It will make silicon-carbide devices for EVs, rail, defence and power electronics. Planned output targets 60,000 wafers and 96mn packaged units each year.

3DGS will localize advanced packaging and 3DHI in Odisha. Its line includes glass interposers, silicon bridges and heterogeneous integration modules. Nameplate capacity is 69,600 glass panels, 50mn assembled units and 13,200 3DHI modules.

ASIP Technologies, with Korea’s APACT, will add high-volume packaging in Andhra Pradesh. The plant targets 96mn packaged units annually for mobile and automotive. CDIL in Mohali will produce 158mn high-power devices and transistors each year.

Why this matters for supply chains

These investments lift local content in telecom, automotive and industrial electronics. Meanwhile, they complement India’s expanding chip-design ecosystem. Therefore, OEMs gain shorter lead times, resilient sourcing and tariff insulation.

Advanced nodes are not the near-term goal here. However, power devices and advanced packaging unlock fast manufacturing wins. As a result, India moves up the value chain while training a skilled workforce.

The Metalnomist Commentary

India is prioritizing power semiconductors and packaging where capex and time-to-market are favorable. The next milestone is execution: tool delivery, yield ramps and stable utilities. Watch for anchor offtakes from EV, grid and defence primes to de-risk volumes.

Nvidia invests $5bn in Intel to co-develop next-gen x86 and AI infrastructure

Nvidia & Intel

Nvidia invests $5bn in Intel to accelerate advanced chip development and AI infrastructure. The firms will co-design future x86 platforms. They will integrate Nvidia chiplets into Intel products. Nvidia invests $5bn in Intel through common stock at $23.28 a share, subject to closing. As a result, both aim to strengthen US semiconductor capacity.

Strategic co-development and chiplet roadmap

The partnership targets modular designs using advanced chiplets. Nvidia’s accelerators will link with Intel cores and I/O. Consequently, OEMs could build denser AI servers with lower latency. The roadmap focuses on packaging, interconnects, and memory bandwidth. Nvidia invests $5bn in Intel to scale these platforms quickly.

Implications for US semiconductor supply chains

The deal complements recent CHIPS funding for Intel. It reinforces domestic manufacturing and design sovereignty. Meanwhile, the collaboration diversifies supply away from single-node risks. It also supports AI data center growth and edge computing. Therefore, US buyers gain a deeper, on-shore ecosystem.

The investment includes a planned $5bn equity purchase by Nvidia. Intel will jointly develop products that embed Nvidia chiplets. In parallel, Intel advances foundry services for high-volume AI parts. The US government’s 10pc stake in Intel adds policy backing. Together, these steps signal durable public-private alignment.

The Metalnomist Commentary

This tie-up tightens the US grip on high-end compute and packaging. If execution matches ambition, chiplet-based x86 platforms could reset AI TCO. Watch interoperability standards and packaging yields as leading indicators.

US Government Takes 10pc Stake in Intel Amid Chip Strategy

Intel

Washington Pushes Semiconductor Independence

US president Donald Trump confirmed that the government acquired a 10pc stake in Intel, worth about $11bn. He emphasized that the US “paid nothing” for the shares. The move comes alongside the administration’s broader push to expand domestic semiconductor production.

Trump previously announced a 100pc tariff on all chip and semiconductor imports. However, companies currently building or committed to building plants in the US will be exempt from the charge. This strategy reflects efforts to strengthen US energy and technology security while reducing dependence on foreign chip supply.

Government Expands Strategic Holdings in Key Sectors

The Intel stake is not the first direct government involvement in industry under Trump. The administration took a “golden share” during Nippon Steel’s acquisition of US Steel. In another case, the Department of Defense invested $400mn in rare earth producer MP Materials, securing a 15pc stake.

Such actions demonstrate a pattern of strategic intervention in critical supply chains. By aligning government investment with national security priorities, Washington signals that semiconductors now rank alongside steel and rare earths as essential for long-term resilience.

The Metalnomist Commentary

The US government’s stake in Intel underscores the growing overlap between industrial strategy and national security. As tariffs reshape global trade, semiconductors remain central to technological leadership and geopolitical competition.

GM to Invest $888M in NY Engine Plant for Sixth-Generation V-8 Production

General Motors

Tonawanda Facility to Support Internal Combustion and EV Manufacturing

GM to invest $888M in NY engine plant to produce its sixth-generation V-8 engines, reaffirming its commitment to high-performance internal combustion powertrains even amid its EV transition. The investment, directed to the Tonawanda Propulsion Plant in Buffalo, New York, is GM’s largest-ever commitment to an engine facility. Production of the new V-8 engines will begin in 2027, while the plant will continue assembling fifth-generation models in the interim.

This investment will fund the installation of new machinery, tools, and production equipment to support GM’s latest truck and SUV engine architecture. The sixth-generation V-8s are expected to power future full-size pickups and sport utility vehicles, key revenue drivers for the automaker. As GM invests $888M in NY engine plant, it underscores a dual-track strategy to sustain its internal combustion portfolio alongside electrification.

Prior EV Commitment Enhances Tonawanda's Strategic Role

The Tonawanda plant is already part of GM’s EV supply chain strategy. In 2023, GM committed $300 million to produce electric drive units at the facility through a deal with the United Auto Workers (UAW). With the new V-8 investment, Tonawanda becomes a hybrid production site, supporting both traditional and electric powertrain technologies. This dual-capability model reflects GM’s effort to balance market demand during a gradual transition from ICE to EV platforms.

As GM invests $888M in NY engine plant, it signals that the company sees continued demand for gasoline-powered vehicles—particularly in North America—while maintaining flexibility to scale EV output.

The Metalnomist Commentary

GM’s record-setting investment at Tonawanda highlights a pragmatic approach to powertrain diversification. By enhancing its ICE engine capabilities while scaling EV drive unit output, GM is hedging against market volatility and regulatory shifts in the U.S. automotive sector.

Asia Semiconductor Demand for AI Data Centres Surges on Regional Infrastructure Expansion

AI

Asia semiconductor demand for AI data centres is accelerating rapidly, driven by generative AI development, regional cloud infrastructure investment, and rising demand for high-bandwidth memory and logic chips. The shift marks a geographic rebalancing in semiconductor orders, which were previously centered on U.S. data centre growth.

AI, HBM, and Logic Chips Drive Semiconductor Orders in Asia

Dutch semiconductor equipment maker BESI reported increased orders from Asian subcontractors in Q1 2025, specifically for AI-related data centre applications. Orders rose 3.3% year-over-year and 8.2% quarter-over-quarter, even as other segments like mobile and automotive remained weak.

AI-centric devices are boosting demand for advanced semiconductor packaging, especially for high-bandwidth memory (HBM) 4 and logic chips. BESI received hybrid bonding orders from two memory producers and additional logic chip orders from an Asian foundry, underscoring regional momentum. Compound semiconductors and minor metals remain essential to meet AI’s performance, efficiency, and optical communication needs.

Chinese data centres, in particular, are preparing for broader adoption of optical technologies and laser detectors as they scale capacity to support domestic AI models like DeepSeek.

China, Singapore, and Malaysia Lead AI Data Centre Build-Out

China is rapidly scaling its AI data centre footprint. GLP, a Singapore-China investment firm, raised ¥2.6bn ($356.7mn) for a Beijing-area data centre and controls 20 data centres with a total capacity of 1.4GW across major regions. This expansion is backed by Chinese policy support for AI, cloud, IoT, and 5G development, with the country’s data centre market forecast to grow at a 38% CAGR through 2029.

Singapore remains southeast Asia’s largest data hub, hosting 1.4GW of capacity with expansion plans. However, regulatory restrictions on power and land usage are slowing growth. Meanwhile, Johor, Malaysia, is emerging as a new hotspot, with projected capacity of 1.6GW—poised to surpass Singapore.

Chinese firms have invested over $10bn in Malaysian data centres since 2019. Companies like ByteDance and Alibaba Cloud are leveraging Malaysia’s semiconductor-friendly environment to bypass U.S. export controls and support international operations.

The Metalnomist Commentary

The boom in Asia semiconductor demand for AI data centres signals a decisive shift in global digital infrastructure. As U.S. restrictions reshape supply chains, Asia is emerging as the new battleground for AI-optimized semiconductor and data centre development—anchored by domestic innovation and strategic capital deployment.

Chipmakers Face Slower Automotive Demand in Q1 2025

Wolfspeed

Semiconductor Firms Anticipate Declining Auto Sales, With EV Growth Concentrated in China

Semiconductor companies like STMicroelectronics, Wolfspeed, and NXP are bracing for slower demand growth from the automotive sector in the first quarter of 2025. This reflects a broader decline in vehicle production outside of China, where the electric vehicle (EV) market continues to outpace the rest of the world.

Declining Automotive Demand and Growing EV Shift in China

NXP, based in the Netherlands, reported a 4% drop in its automotive revenue for 2024. This decline was attributed to "inventory digestion at western tier 1 customers" amid an uncertain automotive demand environment. The company expects further declines in automotive revenue for the first quarter of 2025. However, NXP’s revenue from China grew by 4%, highlighting an increase in semiconductor content in vehicles as Chinese automakers embrace electrification and software-defined architectures.

NXP's strategy for China, which it calls "China for China," involves producing devices at its Tianjin plant for sale to the Chinese market. According to NXP president and CEO Kurt Sievers, the growth is natural and structurally ongoing, especially in China where 50% of cars sold in the second half of 2024 were electric or hybrid. This rapid transition to EVs in China is fueling an above-average increase in the semiconductor content of vehicles.

STMicroelectronics, based in Switzerland, faces similar challenges and is prioritizing the transition from 150mm wafers to 200mm wafers, driven by demand for silicon carbide (SiC) semiconductors. SiC devices are crucial for the automotive sector, particularly for EVs. The company plans to start 200mm SiC semiconductor wafer production at its Shenzhen plant in the first half of 2026. STMicro reported that 2024 was one of the worst years in decades, with weaker demand in both the automotive and industrial sectors and a higher level of inventories.

In response to growing demand, STMicro is building a new facility in Catania, Italy, to supply western markets. Silicon carbide manufacturers are making the transition to 200mm to produce more devices per wafer, a move driven by increasing demand from the automotive sector. However, the industrial and energy (I&E) sector continues to show low semiconductor demand, forcing companies like STMicro to focus more on automotive sales.

Wolfspeed's Shift to Automotive and Growing Market Opportunities

Wolfspeed, a US-based company that has pivoted to focus on SiC wafers and devices, has seen its product mix shift from industrial and energy (I&E) applications to automotive. Wolfspeed is shifting production from its 150mm plant in Durham, North Carolina, to its new 200mm plant in Mohawk Valley, New York. The company expects its revenue split to shift to 70% automotive and 30% I&E as the transition progresses. Despite the shift, Wolfspeed acknowledges the slower-than-expected adoption of EVs, which has contributed to a weaker market environment for EV semiconductors.

Despite these challenges, Wolfspeed is well-positioned as a first mover in the 200mm transition and expects its automotive revenues to grow through a broad customer base. SiC demand from I&E applications is beginning to show signs of recovery, but visibility into the coming quarters remains uncertain.

The automotive sector continues to be a primary focus for semiconductor firms as demand from the industrial and energy sectors remains weak. With the increasing push for electrification, semiconductor companies are recalibrating their strategies, focusing on innovations like SiC wafer production and ramping up investments in manufacturing capacity to meet growing automotive demand.

IperionX Expands Forging Capacity to Meet Growing Titanium Demand

IperionX

US Titanium Producer Advances Production Capabilities and Technology for Enhanced Efficiency

IperionX, a leading US titanium producer, is significantly expanding its forging capacity to meet the rising demand for high-quality, near-net-shape titanium products. The company has recently commissioned a new 100-metric ton uniaxial hydraulic press and is set to acquire additional critical equipment in late 2024 to further boost production.

These expansions follow IperionX's breakthrough in enhancing its titanium angular powder production process. This innovation aims to increase output beyond its current capacity of 125 metric tonnes per year, with expectations for further growth by late 2025. As a result, the company is positioning itself for greater market demand, particularly from industries seeking specialized titanium products.

IperionX's Hydrogen-Based Technology Brings Efficiency Gains

One of the key factors driving IperionX's expansion is its proprietary hydrogen sintering and phase transformation (HSPT) technology. This cutting-edge process allows the company to produce products with "forged-like" quality while maintaining lower costs compared to traditional ingot-to-forging manufacturing methods. The company's approach offers an efficient, innovative solution to meet the needs of various industries, including aerospace and defense.

IperionX has already started ramping up its pressing and sintering capabilities in 2025, ensuring faster product commercialization. Additionally, the company has significantly increased its prototyping and validation efforts to keep up with growing demand and to fine-tune its production processes.

Looking to the Future: Machining and New Alloys

IperionX is also exploring opportunities to expand its offerings further down the value chain. The company has received increasing interest from industrial and defense sectors for products such as titanium fasteners. As a result, IperionX is evaluating the addition of machining capabilities to better serve these markets.

Additionally, the company is reconfiguring its pilot plant in Salt Lake City, Utah, to focus on producing new titanium alloys, including those incorporating zirconium, tantalum, and niobium. This move reflects IperionX’s commitment to diversifying its product range and strengthening its competitive position in the titanium market.

In conclusion, IperionX is setting the stage for a significant increase in production capacity and product innovation. With its advanced technologies and strategic expansions, the company is poised to meet the surging demand for titanium products in the coming years.

US Semiconductor Manufacturers Expand with CHIPS Act Funding

US Chip

The US Department of Commerce has allocated CHIPS Act funding to boost domestic semiconductor production. Companies Analog Devices, Coherent, IntelliEPI, and Macom will use this funding to increase manufacturing capacity, modernize facilities, and enhance the US semiconductor supply chain.

Investments in Key Semiconductor Companies

On January 16, the Department of Commerce announced preliminary funding agreements for four semiconductor manufacturers:

• Analog Devices will receive up to $105 million to expand mature node semiconductor manufacturing at its Oregon and Washington facilities. The investment will boost capacity by 70%, focusing on 180nm and 350nm process nodes. It will also expand module production at its Massachusetts facility for commercial, space, and defense applications.

• Coherent will receive up to $79 million to increase 150mm and 200mm silicon carbide (SiC) wafer production at its Easton, Pennsylvania facility. The expansion will add 750,000 substrates per year and double epitaxial wafer output, supporting energy and military applications.

• IntelliEPI will use $10.3 million to modernize its Allen, Texas facility, which produces epitaxy materials for indium phosphide, gallium arsenide (GaAs), gallium antimonide, and gallium nitride (GaN) wafers. These materials are essential for defense, AI, data centers, telecommunications, and automotive industries.

• Macom has announced a $345 million investment over five years, supported by up to $180 million in CHIPS Act funding, federal tax credits, and state funding. The company will modernize its Massachusetts and North Carolina wafer fabrication plants. Its Massachusetts facility will upgrade 100mm production lines for GaAs, GaN, and silicon materials and install 150mm GaN-on-SiC manufacturing. In North Carolina, Macom will develop 150mm wafer production and expand metal-organic chemical vapor deposition (MOCVD) epitaxial growth.

Strengthening the US Semiconductor Supply Chain

The CHIPS Act investments will expand domestic semiconductor production, ensuring a more resilient supply chain for key industries such as automotive, defense, telecommunications, and AI. These companies will also benefit from the Advanced Manufacturing Investment Tax Credit, which covers 25% of qualified capital expenditures.

By scaling up domestic semiconductor manufacturing, the US aims to reduce dependence on foreign suppliers and strengthen its position in advanced technology sectors.

TSMC Boosts 2024 Revenue by 30% Fueled by Rising AI Chip Demand

TSMC

Surge in High-Performance Computing and AI Applications Drives Growth

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading semiconductor manufacturer, reported a 30% increase in revenues last year, reaching $90.08 billion. This significant growth was primarily driven by heightened demand for chips utilized in high-performance computing (HPC) and artificial intelligence (AI).

Quarterly Performance and Sector Breakdown In the fourth quarter alone, TSMC's revenue soared by 37% year-over-year to $26.88 billion. HPC chips emerged as the primary revenue generator, accounting for 51% of total revenue, up from 43% in 2023. In contrast, revenue from smartphone applications slipped to 35% from 38%, reflecting a slight shift in market dynamics. Additionally, the Internet of Things (IoT) and automotive sectors contributed 6% and 5% to the revenue, respectively.

Strategic Expansions and Future Outlook 

TSMC is setting revenue targets between $25 billion and $25.8 billion for the current quarter, anticipating a seasonal dip in smartphone demand. Meanwhile, the demand for AI accelerators continues to grow, with TSMC's CEO, CC Wei, expecting it to remain a strong revenue driver in the foreseeable future. The company's strategic expansions include the commencement of high-volume production at a new fabrication plant in Arizona and plans for a new facility in Dresden, Germany, dedicated to automotive chip production.

LG Energy Solution Secures 7.5GWh ESS Deal with Excelsior for U.S. Market

LG Energy Solution

LG Energy Solution (LGES) has signed a multi-year contract to supply 7.5GWh of integrated energy storage systems (ESS) to Excelsior Energy Capital, a U.S.-based renewable energy infrastructure investor. The deal, set to take effect in 2026, marks another significant step in LGES’s expansion in the U.S. grid-scale battery storage market.

The ESS systems will be manufactured in the United States using LGES’s containerized battery solution, incorporating lithium iron phosphate (LFP) long cells to enhance energy efficiency and safety. The financial details of the transaction have not been disclosed.

U.S. Content Compliance and Service Integration

The ESS units will be designed to meet U.S. content requirements, reinforcing LGES’s commitment to localizing battery production in compliance with Inflation Reduction Act (IRA) incentives. The company’s subsidiary, LGES Vertech, will oversee integration and lifecycle services for the energy storage systems.

Excelsior Energy Capital focuses on mid-market wind and solar energy investments across North America, making this partnership a critical step toward expanding renewable energy storage infrastructure in the region.

Expanding Presence in the U.S. Energy Storage Market

The deal follows LGES’s 8GWh agreement with U.S. renewable energy producer Terra-Gen in November 2023, further cementing its position as a leading supplier of battery energy storage solutions (BESS) for the growing U.S. renewable energy sector.

Global Locomotive Demand Fuels Growth at Wabtec

Wabtec

Rising International Sales and Infrastructure Investments Drive Q4 Growth

Wabtec, a leading locomotive manufacturer, is forecasting a robust profit increase for the fourth quarter, underpinned by strong international sales and expanding market opportunities. Rafael Santana, Wabtec’s CEO, highlighted the global uptick in locomotive demand, stating it’s "the strongest it has been over the last five years."

Key Drivers of Growth

• Global Infrastructure Upgrades:

Investments in expanding and upgrading international infrastructure have bolstered Wabtec's locomotive pipeline. Governments worldwide are focusing on sustainable transportation solutions, driving the demand for advanced locomotive systems.

• Commodity-Driven Mining Equipment Demand:

The company's mining technology division has seen heightened demand due to rising commodity prices and the need to replace aging fleets.

• Transit Equipment Expansion:

Growth in public transit ridership and fleet refurbishments, alongside carbon emission reduction initiatives, have significantly influenced demand.

Notable Agreements and Expansions

• Kazakhstan: Wabtec inked a $405 million deal with Kazakhstan Temir Zholy (KTZh) to supply locomotives for the Trans-Caspian route. Production will take place at its Lokomotiv Kurastyru Zauyty plant in Astana, Kazakhstan.
• Germany: The company partnered with Siemens Mobility on a $70 million contract for passenger information systems in Munich S-Bahn trains.
• India: Wabtec extended a $30 million service agreement with Indian Railways.
• North America: A long-term $300 million parts agreement was signed with a Class I railroad, emphasizing Wabtec’s strong foothold in the region.

Q3 Financial Performance

In the third quarter, Wabtec reported an 18% increase in profits to $286 million, compared to the same period last year. Net sales grew 4.4% year-over-year, reaching $2.7 billion.

The company’s ability to leverage market trends and secure high-value contracts underscores its position as a global leader in the locomotive and transit equipment sectors.

Taiwan’s TSMC Reports Robust Q3 Revenue Growth Driven by AI and Smartphone Demand

TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) reported a stellar third-quarter performance for 2024, as surging demand for artificial intelligence (AI) chips and smartphones propelled its revenue to $23.5 billion. This represents a 13% quarter-on-quarter growth from $20.8 billion and an impressive 36% increase year-on-year from $17.3 billion. The company's results exceeded its prior guidance of $22.4-$23.2 billion, solidifying its position as a key player in the semiconductor industry.

Advanced Technologies Drive Growth

Demand for TSMC’s cutting-edge technologies underpinned this growth. The company's 3-nanometer (3nm) process technology contributed 20% of Q3 revenues, up from 15% in Q2. Although the contribution from the 5nm process fell slightly to 32% from 35%, the steady performance of 7nm wafers, which accounted for 17% of revenues, indicates consistent demand for mature nodes.

High-performance computing (HPC) remained the largest revenue driver, comprising 51% of total revenue, while smartphones accounted for 34%. The Internet of Things (IoT) contributed 7%, and the automotive sector added 5%.

AI and Smartphones Lead Market Momentum

The rollout of AI applications and the launch of new flagship smartphones, including Apple's iPhone 16, were significant catalysts. According to data from the International Data Corporation (IDC), global mobile phone shipments rose 4% year-on-year in Q3, reaching 316 million units. Growth in Chinese smartphone brands, such as Huawei and Xiaomi, further bolstered this trend.

Future Outlook and Materials Innovation

TSMC projects its Q4 revenue to climb to $26.1-$26.9 billion, driven by sustained demand for AI and smartphones. AI advancements are expected to spur the adoption of compound semiconductors like gallium nitride (GaN) and gallium arsenide (GaAs), materials that are more energy-efficient than traditional silicon. These innovations could redefine energy efficiency standards in semiconductor manufacturing.

TSMC's strong third-quarter performance highlights its dominance in the global semiconductor market and its ability to meet evolving technological demands, reinforcing its role as a critical supplier for the AI and mobile computing revolutions.

Wolfspeed Secures $2.5B Funding to Expand Silicon Carbide Production in the US

Wolfspeed

Wolfspeed, a prominent US-based semiconductor manufacturer, is poised for significant expansion, targeting a $2.5 billion funding pool to boost its silicon carbide (SiC) production. This strategic move is aimed at addressing the surging demand from electric vehicle (EV) manufacturers and other industries reliant on SiC technology.

Key Funding Milestones

Wolfspeed has entered into a preliminary memorandum of terms (PMT) with the US Commerce Department, securing up to $750 million in direct funding under the Chips and Science Act. To meet the conditions for full funding, the company has also obtained $750 million in financing from a consortium of investment funds.

An additional $1 billion is expected in cash rebates through the advanced manufacturing tax credit provided by the Chips and Science Act. This credit allows companies to claim up to 25% of qualified capital expenditures, further bolstering Wolfspeed’s financial framework.

The funds will enable Wolfspeed to achieve two critical objectives:

Construction of a new SiC wafer manufacturing facility in Siler City, North Carolina.

30% expansion of its SiC power device production plant in Marcy, New York.

These projects are set to create the world’s largest 200mm SiC production footprint, serving key sectors such as automotive, industrial, and energy.

Supporting the EV Revolution

Silicon carbide is a pivotal material for the EV industry due to its superior efficiency in power conversion and thermal management. Wolfspeed’s expanded production capacity aims to solidify its leadership in the SiC market, addressing the rapidly increasing demand driven by global EV adoption.

Driving US Semiconductor Leadership

Wolfspeed’s ambitious initiatives align with the US government’s objectives under the Chips and Science Act, which seeks to strengthen domestic semiconductor manufacturing capabilities. These projects also underscore the growing importance of public-private partnerships in ensuring the US maintains its competitive edge in the global semiconductor industry.

With this funding in place, Wolfspeed is well-positioned to lead the SiC revolution, supporting advancements in clean energy, EV technology, and industrial applications.

GlobalFoundries Partners with Finwave to Advance GaN-on-Si Technology for Mobile Devices

Cutting-edge collaboration aims for mass production by 2026

US-based Finwave Semiconductor has secured a deal with GlobalFoundries (GF) to scale its gallium nitride (GaN)-on-silicon (Si) technology for mobile phone power amplifiers. The partnership targets large-scale manufacturing of Finwave’s high-electron mobility transistors (MISHEMTs) at GF's 200mm facility in Burlington, Vermont, with an eye on mass production by early 2026. This collaboration merges Finwave's advanced GaN-on-Si tech with GF’s US-based manufacturing and RF silicon platforms.

GaN-based MISHEMTs outperform CMOS and gallium arsenide (GaAs) devices in power output and energy efficiency, making them ideal for 5G and future 6G applications. The technology promises significant improvements in power density and efficiency for power amplifiers, essential for new high-frequency 5G bands, 6G, and Wi-Fi 7 systems.

GF is also advancing its own 650V GaN products and will soon introduce 100-200V variants. The company plans to modernize its Burlington facility and expand capacity, aided by a US Chips and Science Act grant aimed at boosting domestic semiconductor production. GF's recent acquisition of Tagore Technology’s power GaN IP portfolio underlines its commitment to high-volume manufacturing of power technologies in the US.

Anticipating a rebound in smart mobile device sales in 2024, GF’s CEO Thomas Caulfield highlighted AI-enabled devices as a catalyst for increased demand in efficient power semiconductors, starting in Q4 2024.