St. Louis Federal Reserve President James Bullard expressed optimism that the United States and China will reach a deal to end their trade war.World Economyread more
Qualcomm unlawfully suppressed competition in the market for cellphone chips and used its dominant position to impose excessive licensing fees, a U.S. judged ruled.Technologyread more
Target's e-commerce sales also surged 42%, as shoppers increasingly turned to its curbside pickup service for online orders, something Amazon can't offer.Retailread more
Consumers in China are taking to social media to express their support for Huawei as the U.S. government looks to ramp up pressure on the Chinese smartphone maker.Technologyread more
British Prime Minister Theresa May is expected to make a final attempt at persuading lawmakers to back her "new" Brexit deal on Wednesday.Europe Politicsread more
It's not fast and may be years from visiting your neighborhood, but a walking robot is part of Ford's vision for how its autonomous vehicles deliver packages and goods in the...Technologyread more
Tensions between the two parties have heightened in recent months as the campaign for seats in the Brussels and Strasbourg-based parliament has crescendoed.Europe Politicsread more
Brazilian makeup brand Natura Cosmeticos agreed to buy Avon Products, according to two media reports early on Wednesday.Retailread more
Shares of Saudi shopping mall operator Arabian Centres were trading at 24.34 riyals ($6.49) in early deals in Riyadh.IPOsread more
There is at least one thing in common between the U.S. and Russia – their willingness to weaken the European Union, a top EU official said.Politicsread more
U.S. President Donald Trump's latest tariff increase — and Beijing's plans to counter them — are hitting U.S. companies in China, according to a joint survey this month by...China Economyread more
The so-called Internet of Things (IoT) and big data will drive demand in the semiconductor space and the growth cycle will be very different from previous phases, according to the CEO of Tokyo Electron.
The Japanese company makes the equipment needed to produce semiconductors, and boasts a market cap of about $23.83 billion.
"As we look to the future, we believe IoT will be at the core of everything. The big data that comes out of that would determine the semiconductor demand," Toshiki Kawai told CNBC's Akiko Fujita in a Japanese-language interview. He added that new technologies such as artificial intelligence (AI), augmented and virtual reality and the fifth-generation of mobile networks will also influence the demand for semiconductors.
"IoT" basically describes millions of physical devices, such as smart televisions, home appliances and cars, that are connected to the internet and can be synced so that users are able to control everything at once.
"It's no longer like the past when the so-called silicon cycle began and ended with the number of smartphones sold. We're looking at a different phase of growth," Kawai said.
Global semiconductor revenue in 2017 came in at $420.4 billion, registering 21.6 percent growth from a year ago, according to research firm Gartner. That growth came mostly from the memory chip market, where insufficient supply drove prices higher.
But analysts and investors have predicted that the semiconductor sector is due for a significant decline because of falling memory chip prices, a build-up in inventory levels and a slowdown in demand from high-growth industries. The major drivers of demand for memory chips are smartphones, computers and data centers. Recently, one analyst noted that demand in each of those segments had worsened substantially and, as a result, led to a build up of inventories for suppliers.
There's also some concern about the ongoing trade war between the United States and China. Kawai said that there hasn't been any impact yet on Tokyo Electron as a result of the trade conflict, but the company will continue to monitor developments, especially those that could affect it in the short-term.
Another worry for major chip makers is that a number of technology companies are already working on making their own processors that can run artificial intelligence software. Those include the likes of Alphabet, Facebook, Apple and Alibaba.
For Tokyo Electron, which produces the equipment and technology those companies would need to build their own chips, the opportunity is attractive, according to Kawai.
"We believe AI will grow on average 67 percent between 2017 and 2022," he said, adding that artificial intelligence is "ripe with areas for innovation where our production equipment and semiconductor-producing technology will be utilized."