The next imbalance in markets caused by semiconductors
The memory market, a key driver of the semiconductor cycle, is experiencing intense shifts as traditional practices give way to constant, full-capacity manufacturing. Before 2019, memory companies manipulated production in hopes competitors would follow suit, but that era has ended; manufacturing is now nonstop, which led to drastic consequences in the 2022/23 downturn, with top memory companies suffering a brutal average negative gross margin of 17% in Q1-2023. This destructive phase pushed companies to seek new business models.
The surge in demand for large language models (LLMs) and the prominence of Nvidia accelerated a pivot toward High Bandwidth Memory (HBM), transforming business strategies. While Samsung responded quickly, SK Hynix now leads, signaling intentions to abandon the cyclical memory market due to long-term HBM contracts and stable pricing. HBM capacity for 2025 is already sold out, and 2026 will soon follow. The top three memory companies have benefited, but smaller competitors continue to face sluggish profit recovery and lack the capital for new investments.
Embargoes on AMD and Nvidia’s GPUs destined for China have affected both general memory and HBM revenue growth, with such policies expected to persist into Q3-2025. HBM, though representing only 18% of revenue for market leaders, is squeezing out capacity for conventional DRAM and NAND products, which will impact industrial sectors further. HBMs require 2–3 times more manufacturing capacity than standard DRAM; their price has risen steeply—from 4–5x DRAM initially to 8–12x as markets shift toward HBM3E, with expectations of even greater disparity with HBM4.
Micron’s Q3-2025 financial results highlight this transformation: the company beat its revised guidance, achieving $11.3B revenue and massive profit growth, with net income rising 69.8% quarter-over-quarter and 261% year-over-year. Even with softer Q4 growth projections, profitability appears set to increase further. Gross margins are forecast to exceed 50%, and net margins to climb from 28.3% to 33.9%—giving Micron the third highest net margin among major semiconductor firms, surpassed only by Nvidia and SK Hynix. This turnaround from the harsh -62.6% net margin of Q1-2023 illustrates why memory companies are so eager to move beyond the commodity cycle.
Micron’s updated divisional structure provides more transparency, particularly for its cloud business, regarded as the key future growth engine and an avenue away from cyclical volatility. The Mobile and Client division now rivals the Cloud Memory division in size, while smaller segments try to remain significant. Importantly, Cloud Memory encompasses more than HBM, as cloud servers consume a range of DRAM types. The industry’s reorganization, driven by competitive and resource pressures among divisions, aims to optimize for growth and resilience in a volatile landscape.
Overall, the semiconductor market’s current imbalance is shaped by rapid shifts to high-value memory products, sustained demand from AI and cloud technologies, and ongoing geopolitical disruptions. This is redefining how top memory companies operate, profit, and strategize for the future.
Written by Claus Aasholm
Claus is an expert at peeling back the layers of polished corporate messaging. His curiosity drives him to explore semiconductor companies, focusing on the complexities of their supply chains—both upstream and downstream. He compares companies to their competitors, uncovering key insights that often go unnoticed.
Subscribe to Claus’ Substack with a 40% discount
Winning big in Semiconductors: The Blueprint for Predictable Growth
Written by Shari Begun
Let’s be honest: in semiconductors, great tech gets you in the door—but it doesn’t win the deal. The companies that consistently win big? They’re not just reacting to what customers say—they’re uncovering what hasn’t been said yet. Then they move fast, execute with precision, and stay focused on what matters.
The real differentiator? It’s not luck. It’s a blueprint—a repeatable way of thinking, prioritizing, and working that turns opportunity into predictable revenue and profitable growth, even in the most volatile markets.
Focus on What You Don’t Know
The biggest growth often hides in the blind spots. What’s around the corner for your customer? Who’s really influencing the next design? Where are the dollars actually going next year? Too many teams spend the majority of their time servicing existing business. Yes, we need to deliver flawlessly—but that shouldn’t consume most of your day. If your team is only protecting what’s already won, you’re playing defense. Growth comes from chasing new programs, new people, and new problems to solve. Curiosity wins. Go find what you don’t know.
Be Strategic, Then Get Scrappy
You can’t win everywhere. So prioritize. Where’s the revenue? Which customers matter most? What programs actually have legs?
Build your funnel based on reality—real volumes, real timelines, real competitive dynamics. Use the tools: block diagrams, site maps, stakeholder charts. And when things slow down? Escalate early. Follow up relentlessly. Never confuse interest with commitment.
Big Customers, Big Complexity
Large customers are never simple. There’s no single decision-maker, and priorities shift constantly. Legal terms, ESG, supply assurance—those aren’t afterthoughts. They’re critical. So get ahead of them. Know who needs to be in the room. Build relationships across supply chain, design teams, and leadership. Don’t wait to be told what matters—go ask.
Land Smart, Expand Fast
Sometimes, the only way in is through a small win. That’s okay—as long as you treat it like the first step, not the finish line. Show up in engineering reviews. Share insights before they ask. And always define next steps: If we do this, will you do that? Small wins become strategic when you deliver value fast and follow through.
Sales Is Everyone’s Job
This isn’t just on the account manager. Your BU, ops, and customer service teams are part of the sales engine too. Help them think like sellers. Ask smart questions. Listen first. Connect the dots back to the customer’s goals. Strong internal alignment builds even stronger external trust.
Lead with Clarity. Push with Urgency
The best leaders don’t micromanage—they unblock. They align teams, confront friction, and push on the right priorities. They ask, “Where’s the next $10M?”—and they don’t wait for perfect conditions.
In semiconductors, growth isn’t an accident. It’s intentional. It’s built. And with the right blueprint, it’s repeatable. Let’s go win.
Circular Economy in Electronics: A Comprehensive Overview
The circular economy in electronics addresses one of the most pressing environmental challenges of the 21st century: the rise of electronic waste (e-waste). Unlike the conventional linear model of “take-make-dispose,” the circular approach prioritizes strategies such as recycling, refurbishing, and reusing products at the highest possible level.
This model emphasizes extending product life cycles, conserving resources, and minimizing environmental impact. With global e-waste projected to increase dramatically in the coming decade, shifting away from the throwaway culture of electronics is both urgent and achievable.
Key Concepts
Several concepts form the backbone of circular economy practices in electronics. The EU Green Deal, which targets climate neutrality by 2050, specifically addresses e-waste, currently the world’s fastest-growing waste stream. Policies encourage reuse, recycling, and sustainable product design, thereby embedding circularity into industrial frameworks.
Urban mining is another cornerstone, focusing on recovering valuable metals such as gold, copper, and aluminum from discarded electronics. This decreases dependency on virgin resource extraction, reduces environmental degradation, and supplies critical materials for new devices. Equally important is the Product Carbon Footprint (PCF), which tracks emissions across a product’s life cycle. While PCF integration into electronics is still developing, it offers a way to link emissions reduction with circular practices.
The WEEE Directive further enforces producer responsibility by mandating collection and recycling programs. These policies align with the concept of R-strategies—a hierarchy that includes Refuse, Reduce, Reuse, Repair, Refurbish, Remanufacture, and Recycle—providing structured guidance for maximizing resource efficiency.
The Mandate from the E-Waste Crisis
E-waste represents a global crisis accelerating at alarming rates. In 2022, approximately 62 million tonnes of e-waste were generated worldwide, and by 2030, this figure may reach 82 million tonnes. Yet only around 22% is effectively recycled. The environmental consequences are severe, given the presence of hazardous elements like mercury, lead, and brominated plastics. Beyond pollution, resource loss is another major issue. Electronics contain valuable critical materials that, when discarded, drive
further mining and carbon-intensive production, reinforcing the need for circular alternatives.
Current Implementation of R-Strategies
Evidence of circularity exists across the electronics sector but varies in effectiveness.
Recycling is the most widespread, especially targeting high-value metals, though it typically destroys intact components that still hold utility. Refurbishment, a growing practice, extends the life cycle of laptops, smartphones, and household appliances, benefiting affordability and sustainability.
Reuse at the product level provides the greatest preservation of value. For instance, electric vehicle (EV) batteries are increasingly finding second-life applications in stationary energy storage, reducing waste and stabilizing renewable energy supply chains.
Requirements for High-Level Reuse
For reuse and second-life applications to scale, several challenges must be resolved. Extracting components—particularly semiconductors—can be costly, requiring modular designs that support easier disassembly. Component aging also demands rigorous testing to ensure performance and safety. Advanced degradation tracking tools that monitor stressors like temperature, load, and voltage are essential to predict failures. Software licensing needs to evolve to allow updates or transferable rights for refurbished devices. In parallel, user expectations for performance, reliability, and warranty equivalency must be met through stringent testing and quality processes.
Business Case for Circular Electronics
Circularity in electronics is not merely a sustainability ambition; it carries compelling economic incentives. Manufacturers can achieve significant cost savings by reusing first-life components instead of sourcing new materials. The refurbished market continues to expand, tapping into consumer demand for affordable, reliable devices. Moreover, firms adopting circular practices gain new competencies in logistics, repair services, and component recovery, creating avenues for innovation and revenue diversification while reinforcing brand responsibility.
Conclusion and Future Outlook
The shift toward a circular economy in electronics is both a necessity and an opportunity. With e-waste volumes climbing and linear production increasingly untenable, circular practices represent a pragmatic path forward. By embedding R-strategies, improving product design, and aligning with evolving regulatory frameworks, the sector can transition from waste-intensive operations to sustainable growth. Far from being an unavoidable burden, e-waste can become a rich resource base, powering future generations of electronics responsibly and profitably.
Written by Ole Gurkensmeyer
Vice President | EMEA Sales | Board Member | Semiconductors | Strategy | Sustainability | Power Electronics | E-mobility | Infrastructure
Shaping the Future of UK Deep Tech and Semiconductors — Q3 2025 Highlight
sJames Cunningham – Business Development Director
As well as writing long-term success stories, our aim is to contribute to the health of the industry as a whole.
IC Resources has been supporting the deep-tech community since 1999. We are an independent, founder-led recruitment consultancy with a team of 70 specialist consultants who operate across Semiconductor, Electronics, Software, AI, Photonics and Quantum. Our work spans technical operations, sales and marketing and executive search, and we offer both global reach and local expertise with offices in Reading, London, Munich, Austin and Pennsylvania.
Q3 2025 saw continued momentum across the UK’s deep tech and semiconductor landscape, with new collaborations and innovations driving the sector forward.
Silicon Catalyst USA
Q3 2025 was a strong quarter, with growing AI demand pushing the semiconductor market towards the $700 billion mark. Startups are drawing attention in areas such as AI accelerators, integrated photonics, and energy-efficient chips, even as supply chain and geopolitical challenges persist. Capital investment surged in manufacturing, while startups benefited from vital mentorship, funding, and industry connections to help scale groundbreaking semiconductor technologies.
TechWorks and Silicon Catalyst UK Form Strategic Alliance
In September 2025, TechWorks and Silicon Catalyst UK announced a Memorandum of Understanding to accelerate early-stage semiconductor startups. The partnership combines Silicon Catalyst’s incubation expertise with TechWorks’ extensive industry network, creating exceptional opportunities for UK innovators to scale from prototype to production. It also strengthens engagement across key industry events — great news for professionals keen to connect with emerging ventures and leading industry players.
ChipStart Programme Powers UK Startup Growth
Silicon Catalyst UK’s government-backed ChipStart programme continues to nurture semiconductor startups, with recent cohorts showing strong funding traction. The incubator supports companies developing everything from integrated photonics to energy-efficient chip technologies — offering exciting collaboration and career opportunities for professionals driving next-generation hardware innovation.
UKESF Tackles Semiconductor Skills Gaps
To address the sector’s growing skills shortage, the UK Electronics Skills Foundation (UKESF) launched its Semiconductor STEP programme in 2025. Through scholarships, internships, and outreach initiatives such as Girls into Electronics, UKESF is building a strong, diverse talent pipeline. These efforts are helping ensure a steady flow of skilled candidates ready to meet the needs of a fast-evolving semiconductor industry.
At IC Resources, we remain committed to supporting this dynamic ecosystem — connecting exceptional deep tech professionals with opportunities across the globe.
For more information on any of the articles featured in this edition of The IC Resource, or, if you would like to contribute to our future editions, please get in touch – james.cunningham@ic-resources.com or, +44 (0)118 988 1166.
1530 Arlington Business
Park, Berkshire.
RG7 4SA
© Intellectual Capital Resources Ltd 2024
