What are the topics covered? There’s a planned Intel fab for Magdeburg, Shenzhen being hit by Covid cases, Arm cutting its workforce, Alphawave buying the OpenFive business unit from SiFive, and Imagination Technologies looking to hire around 250 people…
5. Germany paying $5.5bn for Intel fab
Germany is prepared to stump up over $5.5 billion in subsidies to secure the Magdeburg site for its $18.7 billion 2nm fab, reports Bloomberg. Intel’s plan is to start building the fab next year and have it on-stream in 2027. Whether or not additional funds are available from the EU is not known. The European Chips Act is budgeted at $48 billion but where the money is coming from is uncertain. It seems that only €5 billion – or 15% of the Chips Act budget – is coming from direct EU funding and the rest has to be clawed back from already allocated spending.
4. Shenzhen shuts down
Shenzhen, a city of 17.5 million people, has been locked down because of 66 Covid cases. The lockdown is expected to last a week. A city health official, Lin Hancheng, told a press conference: “If prevention and control is not strengthened in a timely and decisive manner, it could easily become large-scale community transmission.” The decision has caused Foxconn to close operations at two factories in the city.
3. Arm to cut 12-15% of workforce
Arm is to cut between 12% and 15% of its workforce, reports the Telegraph, with the cuts coming mostly in the UK and US. CEO Rene Haas sent an email to staff saying: “This is going to be a tough time for everyone, so I want to be clear on why we are doing this. To be successful in the opportunities we have ahead of us, we need to be more disciplined about our costs and where we’re investing. To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done.”
2. Alphawave to buy OpenFive
Alphawave is buying the OpenFive business unit from SiFive. All definitive agreements have been completed and the transaction is expected to close in H2 2022 pending customary regulatory approvals. OpenFive brings a high-speed connectivity SoC IP portfolio to Alphawave and a team based in India and Silicon Valley that has been delivering custom silicon solutions for 15 years. The acquisition should significantly increase Alphawave’s customer base globally from 20 currently to over 75.
1. Imagination wants to hire 250 people
Imagination Technologies aims to increase its global headcount by more than 30% in 2022, from 800 to around 1050 people. 2021 was a strong year for Imagination, which grew across all core sectors and geographies, with significant uptake of existing solutions complemented by new product launches. Based on current momentum, the Company expects revenue and profit growth to continue into 2022 and beyond. Imagination opened its Cambridge office in August 2021 to complement its Bristol office and Kings Langley headquarters.