Chip Production Archives - Gizmochina

The Long Road to US Chip Independence: An Overview

Anubhav — Thu, 30 Nov 2023 13:24:46 +0000

In a world increasingly reliant on technology, the production and control of semiconductor chips have become vital. Jensen Huang, CEO of Nvidia, a leading player in the semiconductor industry, recently highlighted the considerable time the United States may need to achieve independence in chip manufacturing. According to Huang, the US could be a decade or two away from self-reliance in this crucial sector.

Semiconductors are a globally valued product right now, and it shows

The semiconductor industry is a complex and globally interconnected web, with significant components originating from various parts of the world, notably Taiwan. The current geopolitical climate, marked by tensions in US-China relations, has intensified the focus on semiconductor production. The US government’s efforts to bolster domestic manufacturing capabilities, as evidenced by President Biden’s visit to a new Taiwanese chip-making plant in Arizona, reflect a growing desire to mitigate reliance on foreign production.

However, this shift towards domestic production is not just a U.S. trend. Europe, too, is striving to localize semiconductor manufacturing. This global movement signifies a departure from decades of globalization that distributed production across the world, creating vulnerability through concentrated production hubs in places like Taiwan and South Korea.

The semiconductor industry’s strategic importance goes beyond economic factors; it’s also a matter of national security. This is evident in the US government’s recent export restrictions on high-end artificial intelligence processors to China, impacting companies like Nvidia. These restrictions are part of broader efforts to safeguard national security and maintain technological competitiveness.

Huang’s comments also reflect the delicate balance companies like Nvidia must maintain. While adhering to US regulations, they also need to sustain their market presence in China, the world’s largest chip market. Adapting to regulatory changes and developing new, compliant products is crucial for these companies to continue their global operations.

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China’s Baidu Strikes a Deal with Huawei to Buy AI Chips

Anubhav — Tue, 07 Nov 2023 13:44:51 +0000

Baidu, the country’s web search giant, has chosen to buy a batch of homegrown AI chips from Huawei Technologies. Amidst the political pressures and trade constraints from the US, this deal shows a pivot towards local tech solutions, a trend that could reshape the tech landscape.

An order of 1600 chips has been placed, estimated at around $61 million

With an order of 1,600 of Huawei’s Ascend 910B AI chips, Baidu is preparing for a future less reliant on foreign technology, specifically Nvidia’s AI chips, which have been the industry’s gold standard. The deal, estimated at around 450 million yuan ($61.83 million), is modest compared to the massive orders usually placed with Nvidia, but it’s the significance that counts here – it’s a step towards technological self-sufficiency for China.

Previously, Baidu wasn’t known to use Huawei’s AI chips, making this a noteworthy partnership. Although Huawei’s chips aren’t yet on par with Nvidia’s in performance, they represent the most advanced AI chips China has to offer. This shift isn’t just about Baidu’s preference; it’s a response to stringent US rules that have barred Nvidia from selling some of its top AI chips to Chinese companies.

The collaboration between Baidu and Huawei isn’t new. They have been working together since 2020, making Baidu’s AI platforms run smoothly on Huawei’s hardware. Even though Baidu has its own line of Kunlun AI chips, the reliance on Nvidia’s technology has been significant until the US restrictions prompted a change in strategy.

While analysts see US restrictions as a door opening for Huawei to claim more of the domestic market, the question remains: Can China accelerate its chipmaking prowess to not just compete but lead in the tech arena? This deal might just be a glimpse into a future where China’s tech independence is not just an aspiration but a reality.

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China’s YMTC Unveils World’s Most Advanced 3D NAND Memory Chip Amidst Challenges

Anubhav — Thu, 26 Oct 2023 14:14:51 +0000

Despite facing stringent sanctions and being placed on the US Commerce Department’s Entity List, China‘s leading memory chip manufacturer, Yangtze Memory Technologies Co (YMTC), has showcased resilience and innovation. The company, in a recent unveiling, has produced what is being hailed as the “world’s most advanced” 3D NAND memory chip by TechInsights, a notable semiconductor analysis firm.

3D NAND Memory holds potential in AI and machine learning

This significant stride by YMTC is particularly noteworthy as 3D NAND memory holds a pivotal role in high-performance computing applications, especially in artificial intelligence and machine learning. The success of YMTC‘s chip is a testament to China’s unwavering commitment to advancing its domestic semiconductor supply chain, even in the face of international challenges.

Interestingly, this isn’t the first time a Chinese tech entity has stunned industry insiders. The Kirin 9000S 5G processor, housed in the Huawei Mate 60 Pro smartphone, was another product that defied expectations, given the US restrictions it faced.

As of mid-December 2022, escalating trade and geopolitical tensions saw YMTC, alongside 21 other key players in China’s chip sector, added to the US Entity List. Yet, YMTC, based out of Wuhan, remained undeterred. Their focus was on dethroning memory chip giants like Samsung Electronics, SK Hynix, and Micron Technology with their flagship 3D NAND flash chip, the 232-layer X3-9070. Although mass production of this chip faced obstacles, shifts in the memory chip market dynamics and an emphasis on cost-efficiency seem to have given YMTC a leg up.

Further bolstering YMTC’s position, reports in April indicated that the company had intensified collaboration with Chinese suppliers, aiming to produce its top-tier chips using its “Xtacking 3.0” architecture. This endeavor was part of a covert project, Wudangshan, which sought to rely solely on Chinese equipment.

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Former ASML Employee Joins Huawei: What This Means for Global Chip Technology

Anubhav — Tue, 24 Oct 2023 13:20:52 +0000

A former ASML employee accused of stealing trade secrets has surfaced at Huawei Technologies, sparking concerns over how deeply Chinese firms may be trying to infiltrate the closely guarded world of semiconductor technology.

Huawei recently released a 5G smartphone with 7nm architecture as well

In February 2022, ASML, a leading name in semiconductor manufacturing technology, revealed that one of its China-based employees had taken proprietary data without permission. While the company downplayed the impact, referring to it as “one piece of a puzzle you don’t have the box for,” recent reports indicate that the same individual now works for Huawei. This could spell trouble given Huawei’s placement on the U.S. Entity List since 2019, restricting its access to advanced chip tech.

What’s unsettling is that ASML holds a near-monopoly in extreme ultraviolet (EUV) lithography machines, critical for making cutting-edge chips. Their main customer? Taiwan Semiconductor Manufacturing Co (TSMC), which used to be a big supplier to Huawei until the U.S. sanctions.

While Huawei released a 5G smartphone featuring a 7-nanometer processor in August, this chip likely didn’t benefit from ASML‘s most advanced tech, suggesting the company might be exploring alternative paths to keep its edge in chip manufacturing. This move can also be read as China’s attempt to show resilience amid U.S. sanctions.

Importantly, ASML has not been the only company to sound the alarm on Chinese firms’ ambitious activities. IP theft and talent poaching have been on the rise, with Beijing notably aiming to snag Taiwan’s tech talent, and a flurry of U.S. investigations into other Chinese companies like Innoscience. With ASML set to comply with new Dutch regulations that further limit its exports to China, Huawei’s new employment choice paints a darker picture of the complex web that’s global tech trade.

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Is China’s New Chip-Making Tool a Game Changer? SMEE Says Yes!

Anubhav — Mon, 09 Oct 2023 01:50:10 +0000

In spite of the global tech restrictions, Shanghai Micro Electronics Equipment (SMEE), China‘s leading lithography scanner producer, is gearing up to roll out its first 28nm-class fabrication process scanner by year-end. Notably, the company’s current advanced scanner only reaches the 90nm level, making the upcoming SSA/800-10W a significant milestone.

This advancement will help China become more self-reliant with its Chips

For context, lithography is a core element in chip manufacturing, and a 28nm scanner would gradually allow China to depend less on imports for chipmaking tech. With an eye on self-reliance, China is pushing hard to overcome technological boundaries, especially when global export laws make it increasingly difficult to acquire advanced chip production tools.

U.S. policies have already put a wrench in the plans of Chinese chip producers, restricting access to critical sub-14nm technologies. Additional regulations from the Netherlands, Japan, and Taiwan have compounded the issue. As a result, home-grown giants like SMIC and YMTC face roadblocks in advancing their newest manufacturing processes.

SMEE’s upcoming scanner is seen as a strategic asset that will primarily benefit either SMIC or a designated research institute. However, challenges remain. The major question isn’t just whether SMEE can create a 28nm scanner, but whether they can manufacture it at scale. Unless mass-produced, its positive impact would remain theoretical.

While the new scanner won’t bridge the advanced tech gap overnight, it will be a small yet significant step towards China’s broader ambitions in the semiconductor landscape. By carving out a domestic alternative, albeit for older but still relevant tech, China gains ground in a sector where independence is becoming ever more crucial. After all, the journey of a thousand miles begins with a single step—or in this case, a single chip.

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Honor establishes chip design subsidiary following Oppo’s exit, joins Huawei, Xiaomi, and Vivo

Soumyakanti — Sat, 03 Jun 2023 09:12:24 +0000

Chinese smartphone brand Honor, formerly a sub-brand of Huawei, has launched a new subsidiary dedicated to chip design. This move comes shortly after rival company Oppo shut down its in-house chip unit and laid off numerous employees. The subsidiary, called Shanghai Honor Intelligent Technology Development Co, was established in Shanghai’s Lingang Free Trade Zone with a registered capital of 100 million yuan ($14 million). It operates under the ownership of Honor Terminal Co.

Honor’s New Chip Design Subsidiary

The primary focus of the new unit includes chip design, sales, related services, and the development of artificial intelligence (AI) application software. Honor has stated that the subsidiary will be one of its five research centers in China, with a particular emphasis on core software, graphics algorithms, communications, and photography. The other research centers are located in Beijing, Shenzhen, Xian, and Nanjing.

Although Honor has not explicitly confirmed whether chip development will be a part of the subsidiary’s activities, this move has garnered significant attention, especially following Oppo’s decision to disband its chip design team and release thousands of engineers. Oppo attributed the decision to uncertainties in the global economy and smartphone market, but speculations regarding non-financial factors, including US-China geopolitical tensions, have surfaced.

In contrast, Xiaomi, another major Chinese smartphone vendor, recently reaffirmed its commitment to chip development, considering it a crucial element of its core business that necessitates long-term investments.

Honor’s CEO, Zhao Ming, has stated that the company’s chip strategy will be determined based on specific requirements. He emphasized that the decision to pursue in-house development or collaborate with external partners will depend on the needs of their products. In March, Honor introduced its first self-developed radio frequency communication chip, the Honor C1, designed to enhance 5G signals. However, the company acknowledges that for more complex system-on-chip designs, collaborations with established suppliers like Qualcomm and MediaTek will be essential.

Established in 2013 by Huawei, Honor has rapidly gained popularity as one of China’s leading smartphone brands. It has expanded its presence to 20 international markets across Southeast Asia, Europe, the Middle East, and Latin America. In November 2020, Honor was sold to a consortium led by the government of Shenzhen, its home city, as a strategic move to evade US trade sanctions that have affected Huawei.

Despite a 14% decline in total smartphone shipments in China due to an economic downturn, Honor managed to increase its shipments by 30% to reach 52.2 million units last year. Consequently, its market share rose from 12% to 18%, trailing only behind Vivo, the sibling brand of Oppo.

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Samsung plans to cut memory chip production by 25%

Soumyakanti — Mon, 01 May 2023 14:12:05 +0000

Samsung Electronics, the South Korean technology giant, reported a staggering 95% drop in operating profit for Q1 2023 compared to the same period last year. The company has attributed this significant decline to the reduced demand for memory chips. While Samsung has not disclosed the exact extent to which it will reduce its memory module production, industry analysts predict a cut of around 25%.

Semiconductor Analyst Minbok Wi from Daishin Securities estimates that Samsung could reduce memory chip production by 20% to 25% in the first half of 2023, compared to the same period in 2022. KB Securities, on the other hand, forecasts that Samsung will reduce NAND flash chip production by 15% and DRAM chip production by over 20%, starting in Q3 2023. Min Seong Hwang, an Analyst at Samsung Securities, believes that if inventory levels do not decrease as expected, the company may need to further reduce production.

Samsung to reduce the production of low-Cost DRAM modules, focus on DDR5

Samsung has stated that it has a sufficient inventory of memory chips to meet mid to long-term demand and is planning to reduce the production of legacy products. Although the company has not specified which memory chips will see a decrease in production, The Korea Herald reports that Samsung will focus on cutting the production of low-cost DRAM modules such as DDR3 and DDR4 due to their dwindling demand. Instead, the company will concentrate its efforts on advanced memory chips like DDR5, which are rapidly gaining popularity.

Recent market trends have not been favorable for Samsung, with the average contract price of an 8GB DDR4 RAM module falling by 19.9% last month, following an 18.1% drop in January. Although prices stabilized in February and March, they have begun to fall once again, despite Samsung’s announcement of a production cut. Market research firm TrendForce predicts a further 15% to 20% drop in prices during Q2 2023 as suppliers grapple with high inventory levels.

While the current outlook for Samsung and the chip industry appears bleak, some analysts remain optimistic, suggesting that a turnaround could be on the horizon in 2024. As the market continues to shift and advanced memory chips like DDR5 gain traction, Samsung’s decision to focus on next-generation technologies could position the company well for a recovery in the coming years.

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Huawei sees breakthrough in 14nm chip production development

Sean — Fri, 24 Mar 2023 11:45:32 +0000

Huawei has apparently made breakthroughs in its 14nm process technology. The company has made advancements in electronic design automation (EDA) tools for chips that are produced using the 14nm technology.

The news arrives from a speech by a senior executive of the Chinese tech giant. According to rotating chairman Xu Zhijun, the company will complete its testing on the tools within this year. The speech was made back in February and revealed that Huawei has developed 78 tools that are related to chip hardware and software. Although, the news clearly hints at the company’s efforts in focusing on semiconductor technology. The announcement also arrives as Huawei and other Chinese tech based firms are looking to localize their supply chains.

These Chinese brands are rushing to shift to more local suppliers due to looming threat of US sanctions. For those unaware, Huawei had been cut off from various key technologies like its primary chip supplier TSMC after being designated by the US as a national security threat. This basically means that other companies can also face such sanctions at any given moment, which has led them to look to localize their supply chains to avoid this issue.

In the recent speech, Xu had added that the company will be cooperating with domestic EDA companies to create the software to “basically realizing the localization of EDA tools above 14nm.” To put things simply, chip design companies use EDA software to produce the blueprints for chips before they begin mass production at fabrication plants. 14nm chips powered smartphones that were quite a few generations behind the smartphones available in today’s market. But this signifies that Huawei is working on making advances in semiconductor technology to catch up to the global rivals.

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Here’s Why Smartphones Could Become More Expensive if Chips Are Made in the US

Sean — Fri, 10 Mar 2023 12:15:56 +0000

The Biden administration has been pushing chipmakers to have their foundries setup within the US. While the move to bring advanced chip production is to achieve various economic or industrial policy goals, it will also come at a cost that can affect the overall market for smartphones.

If the US succeeds in bringing chip production from major foundries like TSMC (Taiwan Semiconductor Manufacturing Company), then the average cost of smartphones could rise across the globe. This is likely due to unavoidable factors like higher wage in American jobs compared to their Asian counterparts. The world’s largest contract chipmaker, TSMC, has told investors that US chip plants will cost much more than the same plants that are situated in its home country of Taiwan.

For those unaware, the US’ CHIPS Act was designed to incentivize chipmakers to setup facilities in the US. However, the 54 billion US Dollar effort can help bring in the foundries, but it can’t make the chips cheaper. Apart from this, it would also create a widening geopolitical-technological rivalry with China. This move can affect brands like Apple, Samsung, Google, and many other OEMs in the market.

Breaking down an iPhone 14 Plus, 54 percent of the estimated 527 US Dollars manufacturing cost of the device is just the semiconductor alone. Out of this, 81 US Dollars is the cost for just the core A15 processor. Despite the chipset being designed by the Cupertino based giant, TSMC is the partner that builds this SoC. Thus, we can also affect such changes to affect Qualcomm Snapdragon chips that are made by TSMC.

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TSMC Pushes Back Opening of European Factory by Two Years

Oğuz Çakır — Mon, 20 Feb 2023 19:13:00 +0000

TSMC, one of the world’s largest semiconductor manufacturers, has postponed its plans for a new factory in Europe due to the changing supply and demand of automotive semiconductors. Originally set to open earlier, the European factory will now be delayed for at least two years, and it’s not expected to be completed until 2025.

TSMC Pushes Back Opening of European Factory by Two Years

TSMC had been exploring the possibility of establishing a special process fab in Europe focused on automotive technology, based on customer needs and the support of governments in various countries. However, with the current correction of the semiconductor economy, major foundries are now dispatching more production capacity to produce automotive chips, resulting in an improvement of the chip shortage and even a balance between supply and demand.

The delay in TSMC’s European factory could mean that European automotive chip customers will continue to stay in TSMC’s Taiwan plant, or even move to new plants in Japan and the United States, which would help TSMC use the production capacity of its overseas plants. Meanwhile, Japanese officials are encouraging TSMC to set up a second fab in Japan, supported by the introduction of extreme ultraviolet light (EUV) machines. This could allow TSMC’s Japanese plant to support more advanced process needs of local and international automotive semiconductor customers.

Industry analysts believe that this shift could be beneficial for TSMC, especially given the fluctuating economic climate and high inflation pressure, which make the cost of setting up factories in Europe much higher than in the United States and Japan.

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Samsung sees rising yields on its 3nm chip production line

Sean — Thu, 12 Jan 2023 09:21:35 +0000

Samsung has been working on perfecting its advanced 3nm process technology and it seems like that production yield results for its most cutting edge chip fabrication line has almost been perfected.

Back in 2022, the South Korean tech giant was the first to kick off mass production of 3nm chips. Around this period, the company’s rate of production yield was in the range of 10 percent. Now, it appears that the first generation of 3nm process nodes have reached a “perfect” level of production yield, as per a source close to the matter. The report also claimed that the Samsung Foundry had begun taking orders from fabless clients to begin mass production of its most advanced chips earlier this week.

According to the source, “We are now developing second-generation 3nm chips without delay.” For those unaware, the production yield is basically how many chips remain on the wafer and are key to the profitability of the semiconductor process node. Notably, the 3nm process technology is all the first process node where Samsung applied its first generation GAA structure transistors. Simply put, it is a method on improving the chip performance and energy efficiency.

On the other hand, the world’s largest contract chipmaker TSMC (Taiwan Semiconductor Manufacturing Company) employs its FinFET technology for the 3nm process, which entered mass production just last month. But while TSMC was months behind Samsung, the former also has Apple as one of its major customers.

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AMD Ryzen 7000 CPUs & Radeon 7000 GPUs see surge in production

Sean — Wed, 13 Apr 2022 09:38:00 +0000

Despite the ongoing supply shortages issue, AMD is seemingly raising production for its upcoming series of graphics cards and processors. So we can expect the new Ryzen 7000 series CPU and Radeon 7000 GPUs to see better inventory.

The news arrives from Tongfu Microelectronics, who is a production partner of Team Red (Via 91Mobiles). According to the supplier, it is increasing the production of new AMD CPUs and GPUs to alleviate the ongoing shortages within the supply chain. Furthermore, Tongfu Microelectronics’s deputy general manager Xia Xin said that TSMC (Taiwan Semiconductor Manufacturing Co) is also expanding the output of its advanced processes. This will help grow the company’s packaging and testing requirements.

For those unaware, there is an ongoing shortage of semiconductors all that has impacted various industries across the globe. This issue paired with raw materials becoming costlier led to companies like AMD to suffer, since their latest Ryzen 5000 CPU and Radoen RX 6000 GPUs were in short supply. Customers had to wait for resupplies or buy the PC parts at hiked prices from scalpers. So, the production rise should help the PC parts maker to better prepare for its next gen’s launch.

As of right now, the AMR Ryzen 7000 chips that are based on the Zen 4 architecture is rumored to begin mass production later this month and will launch sometime around late September 2022. This would be in line with the brand’s H2 2022 launch timeline that it had announced back in CES 2022. The new processors will compete with Intel’s latest 12th Gen Core processors and even its next gen 13th Gen CPUs as well.

Nvidia in talks with Intel for its chip production: CEO

Sean — Thu, 24 Mar 2022 11:20:46 +0000

Nvidia Corp is apparently interested in joining hands with Intel Corp or the production of its chipsets. The news arrives from the former’s Chief Executive Officer Jensen Huang, who made that statement on a call with reporters earlier this week.

According to a Reuters report, Huang said that “They’re interested in us using their foundries. We’re very interested in exploring it.” Although, the senior official also said that the foundry discussions would take a long time since they would have to integrate their supply chains. Back in early 2021, Team Blue had stated that it will be expanding its business into chipmaking, rather than its primary chip designing business. In other words, it would be growing its plans for a foundry business.

Since then, the company has also announced several multi billion dollar projects to setup new manufacturing centers in the United States and even Europe. Notably, Intel’s shares also saw a rise of 2.5 percent following Huang’s comments. Recently, Intel CEO Pat Gelsinger told Reuters that it will be “thrilled for their interest in using our foundry capabilities.” However, he also added that there is currently “no particular timeline.”

But Gelsinger did confirm that the company is in talks with Nvidia. As per Bernstein analyst Stacy Rasgon, “I’m sure he’s interested in having more options … and it doesn’t cost him anything to say that. But it doesn’t tell you anything at all about what it’s actually going to look like when they get there.” At the moment, a majority of Nvidia’s chip production is done by the world’s largest contract chipmaker, TSMC. Interestingly, when asked about concerns for sharing company secrets with Intel, Huang said that he trusted the brand and added that “Intel has known our secrets for years.”

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Toshiba semiconductor production to rise by over 200% with new site

Sean — Mon, 07 Feb 2022 12:55:08 +0000

Toshiba has recently announced that will be building a new wafer fabrication facility to boost its semiconductor manufacturing capabilities. With its new 300 millimeter site, the company is aiming on more than doubling its existing capacity.

The construction of the new semiconductor production site will be located in the Ishikawa Prefecture in Japan. This site will begin construction in Spring 2023 and is expected to be completed by the same season in the following year. The Japan based company added that the new site will enable its semiconductor manufacturing to rise by around 2.5 times compared to its 2021 capacity. The brand stated that the new fab will also feature a “quake absorbing” structure as well as dual power supply lines, artificial intelligence, and automated wafer transportation systems.

Furthermore, the plans for the new facility arrives amid an ongoing semiconductor shortage that has impacted various industries across the globe. One of these segments include automobiles, with carmakers struggling due to the chip shortage. Toshiba claimed that it had managed to meet the growing demand for chipsets by increasing the production on its 200 millimeter sites.

The company said that “Going forward, Toshiba will expand its power semiconductor business and boost competitiveness by timely investments and research and development that will allow it to respond to fast growing demand, and to contribute to a low energy society and carbon neutrality.”

Intel to receive $2 billion in incentives from Ohio for its chip factory projects

Sean — Mon, 31 Jan 2022 10:00:27 +0000

US State of Ohio is seeking to offer large incentives to Intel over its chip factory project. The state government will offer 2 billion US Dollars in incentives to bring in the company’s 20 billion US Dollar manufacturing plans.

According to a Cleveland report, the American chipmaking giant will receive 2 billion US Dollars in grants, infrastructure spending, and tax credits. These benefits were pledged by Ohio Department of Development Director Lydia Mihalik last week. In other words, this deal would be the largest economic incentive package in Ohio history. Furthermore, the aforementioned sum does not include the state’s economic development non profit, and millions more in local government money.

As per Mihalik, these pricey incentives are worth the cost, as Intel has been planning on setting up two computer chip production factories would potentially create thousands of jobs. It would even boost Ohio’s gross state product by an estimated 2.8 billion US Dollars per year. The director further added that Team Blue is possibly looking to invest up to 100 billion US Dollars in its Ohio operations, which also makes it one of the largest semiconductor factory plans.

Mihalik said that “When you look at what we’re giving Intel and compare it to what we’re getting in return, some may wonder if it’s worth it. And the answer is yes” Out of the 2 billion US Dollars sum, 1.3 billion will be through direct cash incentives. This includes a 600 million US Dollars “onshoring” grant. On the other hand, the state also agreed to provide 691 million US Dollars to improve infrastructure, such as 300 million US Dollars for a new water reclamation facility, 290 million US Dollars for roadwork, and around 101 million US Dollars for other water and wastewater systems as well.

TSMC & Sony to invest $7 billion for its new chip factory in Japan

Sean — Wed, 10 Nov 2021 08:01:41 +0000

Earlier this week, TSMC (Taiwan Semiconductor Manufacturing Company) has announced that it would be investing a sizeable amount of 7 billion US Dollars for its new chip plant that will be constructed in Japan.

The new chip plant is a major step for the world’s largest contract chipmaker who is shifting its advanced semiconductor production outside of its home country for the first time. Notably, the firm will be investing the large figure along with Sony, who has pledged to invest 500 million US Dollars into this factory as well. As per our previous report. this new chip plant will also be the one that supplies Sony with semiconductors that will be used for its reputed image sensor business.

According to Reuters, the construction of the new chip plant will begin next year, while the production is expected to start by the end of 2024. In a joint statement, Sony and TSMC stated that the “The fab is expected to directly create about 1,500 high tech professional jobs and to have a monthly production capacity of 45,000 12 inch wafers.” Furthermore, the site will also produce 22 nanometer and 28 nanometer chips to address the robust demand for specialty chip technologies.

The project also has great support from the Japanese government, although, whether this support included financial backing is currently unknown. However, we do know that Japanese industry ministry officials are considering this a success since they have sought to bring TSMC’s plant to the country. Amid the global shortage of semiconductors, unsteady supply chains, and even the trade disputes between US and China, the demand for key components for production still grows. So, Japan will likely benefit from this new chip plant.

MediaTek chip prices rises by 15% due to supply constraints: Report

Sean — Mon, 08 Nov 2021 07:40:34 +0000

While MediaTek chipsets have seen a rise in demand, supply constraints and the global semiconductor shortage have made them short in supply. And Now, the company is following other chipmakers and is apparently raising the prices of its processors as well.

According to a UDN report, the Taiwanese chipmaking giant is raising the prices for some of its smartphone chips that are in high demand this month. The bump in prices are as high as 15 percent, so the company is also expected to see stronger performance and higher profits due to the robust momentum. Unfortunately, the company did not offer any comments on its chip price hike, although, sources close to the matter confirmed that MediaTek has raise the prices of smartphone processors.

The sources stated that 4G LTE enabled chips saw a sharp price rise since the primary focus of chipmaker’s is usually the 5G smartphone market. 4G chips now hold a smaller stake in the market but demand for 4G smartphones is still high in markets such as India where 5G networking is still not commercialized. Furthermore, the order of 4G handsets have caused the supply of LTE enabled phones to surpass the demand. Similarly, the brand’s rival, Qualcomm, is also expected to raise the prices of its chipsets, although, this has yet to be confirmed.

The rise in prices of MediaTek processors is as high as 15 percent for 4G chips and 5 percent for 5G enabled chips. The primary reason for the hike in price is due to the increase cost of production from TSMC’s foundry. Previously, the company had also raised the prices of its WiFi chips by about 20 percent as well while we had also reported on other foundries like Samsung raising their prices.

Sony confirms considering partnership with TSMC for Japanese chip plant

Sean — Fri, 29 Oct 2021 11:56:28 +0000

Earlier this week, Sony confirmed that it was considering a plan to partner up with TSMC (Taiwan Semiconductor Manufacturing Co.) for a new chip plant that will be situated in Japan.

According to AsiaNikkei, the Japanese tech giant confirmed that it is considering joining hands with TSMC during a news conference that it held to showcase its earning for the first half of this year. In this conference, the company’s Chief Financial Officer stated that “The stable procurement of semiconductors is a crucial issue amid the chip crunch, and [TSMC’s plant] could be a solution.” As of right now, Sony outsources the production of most of its logic chips that are key components to its image sensors.

Furthermore, the company is also raising efforts in attracting more clients and improve the quality of its sensors to broaden their applications across multiple different product ranges. Totoki further added that the brand will hold discussions with TSMC and Japan’s Ministry of Economy, Trade and Industry for the partnership. This collaboration would bring together Sony’s expertise in Japanese chip operations to the world’s largest contract chipmaker that manufactures chips for giants like AMD, Nvidia, MediaTek, Qualcomm, and others.

While the CFO avoided directly commenting on the investment for this chip plant, he added that “It will be very meaningful for us to further strengthen and deepen our partnership with TSMC, which has the world’s most advanced semiconductor production technology.” For those unaware, TSMC has been planning to open its first advanced chip production site outside of its home country of Taiwan, and will be building a plant in Japan (western Japanese prefecture of Kumamoto to be particular). The construction will start sometime next year and productions are expected to begin in 2024.

Italy in talks with Intel for a multibillion dollar chip plant: Report

Sean — Mon, 25 Oct 2021 12:45:59 +0000

Rome is apparently seeking to win over Intel and have it invest billions to build a chipmaking plant in Italy. The news arrives amid a global shortage of semiconductors that has affected various economies and industries across the globe.

According to a Reuters report, sources close to the matter have revealed that Italy is drawing up offers to convince the chipmaking giant to setup an advanced chip production site in the country. As per the three sources, the government is already in talks with team blue regarding the potential investment, with its preliminary estimates being more than 4 billion euros (roughly 4.7 billion US Dollars).

Notably, the new chip plant in Italy would be in line with the drive by the US group that seeks to build advanced semiconductor based factories in Europe. This, in turn, would help prevent major shortages or supply constraints in the future. For those unaware, the world is currently facing a global shortage of chipsets. The issue in supply was so sizeable that automobile production for certain carmakers had halted entirely earlier this year.

Now, it seems that Rome is ready to fund part of this multi billion dollar plan that could reach around 8 billion euros just to build a cutting edge chip plant with Intel. This factory would also create more than 1000 jobs in the nation. One of the sources told Reuters that “The government is preparing a very detailed offer with the aim of clinching a deal by the end of the year. Discussions with Intel are at an advanced stage. There is no deal yet, but if the government works hard on this it has a good chance of bringing the plant to Italy.”

Intel hopes to gain orders from Apple for its Mac M1 chips

Sean — Thu, 21 Oct 2021 07:58:54 +0000

Back in 2020, Apple had shifted away from Intel processors in favor of its own chips. Now, the iPhone maker had just launched its latest generation of custom silicon, namely the M1 Pro and M1 Pro. But despite team blue losing orders from Apple for its chips, it still seeks on doing business with the iPhone maker.

According to a DigiTimes report, the American chipmaking giant is hoping to acquire chip orders from the smartphone brand, along with South Korea’s Samsung Electronics. In other words, the Cupertino based giant might be planning on diversifying its supply chain away from just TSMC, the world’s largest contract chipmaker. Notably, this news arrives after we had reported on Intel’s CEO, Pat Gelsinger, stating that he hoped to win back chip orders from Apple by making better processors that the smartphone brand.

M1 Max

And now, the report from DigiTimes has revealed that the chipmaker is still trying to enter Apple’s supply chain. The report said that Intel and Samsung are “striving to win orders for Apple’s in house developed Mac processors.” Although, sources close to the matter did point out that this is still unlikely as of right now. While Intel is still seeking orders from Apple for its M1 chips, its actions in the past had suggested otherwise. Previously, the brand had even launched smear campaigns against custom the Mac processors by highlighting their shortcomings.

TSMC announces its plans to build its first chip factory in Japan

Sean — Thu, 14 Oct 2021 09:03:09 +0000

TSMC (Taiwan Semiconductor Manufacturing Company) revealed its plans of building its first chip plant in Japan earlier today (14th October 2021). The news arrives as Japan seeks to strengthen its supply chain amid an ongoing global semiconductor shortage.

According to a NikkeiAsia report, the world’s largest contract chipmaker’s CEO C.C. Wei told investors that the firm has received support from both its customers and the Japanese government for this investment. Wei added that the plant will focus on the 22 nanometer and 28 nanometer process technology that can be used across many chip types, ranging from image sensors to even microcontrollers. The construction of the new chip site is planned to start next year, with production scheduled to begin in 2024.

The senior official has yet to disclose the exact size of the investment. Although, the company did share its financial report on the same day, which revealed its net profits for the period between July and September 2021. During this time, the firm saw a near 14 percent rise in net profits as it ramped up the production of processors for the new Apple iPhone 13 series. Furthermore, TSMC’s gross margin was 51.3 percent while its operating margin came in at 41.2 percent.

Notably, TSMC’s shift to Japan marks a major move considering the company had retained its decades long strategy of having its production based in Taiwan. Similar to Japan, the company is also constructing an advanced chip plant in the US as well, in the state of Arizona. Interestingly, a plan for a German site is also being considered as of right now.

Hyundai to develop chips to reduce its reliance on chipmakers

Sean — Thu, 14 Oct 2021 08:03:39 +0000

The Chief Operating Officer of Hyundai Motor revealed earlier this week that the company is planning on developing its own chips. This move arrives amid the global chip shortage as the company seeks to reduce its reliance on chipmakers.

For those unaware, the world is facing a shortage of semiconductors that has impacted various industries across the globe, including the automobile industry. The shortage even led to certain carmakers halting production entirely due to supply constraints. Now, the South Korean automobile maker, Hyundai, is apparently seeking to develop its own chips to cut off its dependence on chipmakers. The news comes after the company saw the “toughest months” in August and September 2021 (Via Reuters).

The company’s COO Jose Munoz stated that the worst has passed for the industry chip shortage. He further added that “But also in our case, we want to be able to develop our own chips within the group, so we are a little bit less dependent in a potential situation like this. This takes a lot of investment and time, but this is something we’re working on.”

The senior official said that the company is also aiming on delivering vehicles at the level of its original business plan in the fourth quarter of this year. Furthermore, the South Korean automobile manufacturer is also on track to produce electric cars in the US in 2022. Hyundai Motor is one among many other car brands like Tesla and Toyota that faced supply constraints amid the global semiconductor shortage.

Intel 12th Gen Alder Lake Mobile CPU production to start between Q4 2021 and Q1 2022: Report

Sean — Thu, 07 Oct 2021 10:31:28 +0000

A new report has revealed that the Intel 12th Generation Alder Lake Mobile CPUs might be entering production soon. The news claims that the production for the upcoming chips will begin sometime between Q4 2021 or Q1 2021.

According to a NotebookCheck report, a leaked roadmap has revealed certain information regarding the Alder Lake series of Mobile SKUs. This includes the Alder Lake P and Alder Lake M series. The former has a TDP range between 15W and 43W while the latter will have a 9W TDP. Furthermore, the new Alder Lake P range will take the place of the existing Tiger Lake H35, Tiger Lake H45, and UP3 lineups and will feature configuration up to six Golden Cove (GLC) and eight Gracemont (GRT) cores.

The Alder Lake P chips will also support Thunderbolt 4, PCIe Gen 5, WiFi 6E, along with DDR5 and LPDDR5 memory natively. On the other hand, the Alder Lake M series will replace the Tiger Lake UP4, although, it will be limited to the PCIe Gen 4 but will support Thunderbolt 4 and WiFi 6E alongside LPDDR4X and LPDDR5 memory. Both chips are expected to be paired with team blue’s Xe GT2 or GT3 iGPUs with up to 96 execution units (EUs).

While the exact month in which the production will start is unknown, it is expected to be between the month of November 2021 and March 2022 for the Alder Lake P series, and between January 2022 and April 2022 for the Alder Lake M series. We can expect to hear more about these new chips in the arriving months from Intel, so stay tuned for more updates.

India in talks with Taiwan for Chip Plant, could raise tensions with China

Sean — Tue, 28 Sep 2021 09:43:49 +0000

India is in talks with Taiwan over a deal regarding chip production. The new discussions would have both countries enter into a semiconductor manufacturing agreement, bringing a new chip plant to India.

According to a Bloomberg report, the talks are related to chip plant and new trade deal between both nations. However, this move might spark new frictions with China. As per sources close to the matter, the officials from New Delhi and Taipei have met in recent weeks to discuss a possible agreement that would bring a chip plant to India. This chip manufacturing site would have an estimated worth of 7.5 billion US Dollars and would supply the nation with various components related to 5G to even electric cars.

As of right now, India is also surveying potential locations that can provide this site with sufficient water, land, and manpower. Furthermore, the country also seeks to provide financial support of 50 percent of the capital expenditure from 2023. This would also includes other benefits like tax breaks and other incentives as well. Notably, the officials from Taipei also wanted fast progress on a bilateral investment agreement that would include lowered tariffs for various products that are used to make semiconductors.

Unfortunately, the Office of Trade Negotiations in Taiwan declined to comment on the matter while India’s trade ministry has yet to provide a comment regarding this matter. The report added that Taiwan has long sought a trade deal with India, however, official in New Delhi have been reluctant due to rise of new frictions with China caused by this move. For those unaware, China considers the island nation as its territory.

Huawei to build new HiSilicon chip factory in Wuhan to offset US sanctions: Report

Sean — Mon, 28 Jun 2021 06:57:32 +0000

A new report has revealed that Huawei is increasing its efforts to become more self sufficient. While the US sanctions had cut off its chip supply from TSMC in the past, the company is now apparently seeking to set up its first chip production factory in China to offset the sanctions.

According to a DigiTimes report (Via AsiaTimes), the Chinese tech giant is planning on building its first wafer fabrication manufacturing company in Wuhan, Hubei Province. This new ‘HiSilicon Factory’ is expected to begin the production in stages from next year. Furthermore, the report claimed that the factory will be used to produce optical communication chips and modules to gain self sufficiency and to manufacture microcircuit designs as well.

For those unaware, HiSilicon is Huawei’s chip designing subsidiary and is a fabless chip maker. In other words, while it has the capability to design advanced chips it used to contract TSMC for chip production. As per sources close to the matter, Huawei is set to invest 1.9 billion Yuan (roughly 278 billion US Dollars) in the Wuhan HiSilicon chip factory project, which will have it develop its own chipsets for smartphones and other IoT (internet of things) devices as well.

With the various US sanctions that have crippled its operations, Huawei and even China has been placing an emphasis on accelerating the development of domestic fabrication plants to localize the supply chain for its local tech firms. This would even have it reduce its reliance on foreign chipmakers as well. Although, keep in mind that this is just an unconfirmed report at the moment, so take it with a pinch of salt for now and stay tuned for more updates regarding this matter.

Global chip shortage worsens as wait times hit record 18 weeks

Sean — Wed, 23 Jun 2021 08:41:58 +0000

The semiconductor shortage issue has already affected various industries across the globe. Now, the situation has apparently worsened as wait times for chips have hit a record high of 18 weeks.

According to a Bloomberg report, automobile makers and consumer electronics based brand have to wait even longer for components since delays in filling orders continue to worsen. The lead times for chips, which is the gap between ordering a semiconductor and receiving the delivery, have risen from just a single week to a whopping 18 weeks back in May 2021. This is an indicator that chip makers are currently struggling to keep up with the demand.

Furthermore, the wait times are the longest since 2017, with the peak being four weeks back in 2018. The report added that power management chips that regulate the flow of electricity in machines and consumer electronic products are a primary reason for the overall increase in delivery periods. The lead times for this chip hit a significant 25.6 weeks, which is nearly two weeks longer than a month before.

Chris Rolland, an analyst from Susquehanna Financial Group, added that “The broad based nature of the shortages is highlighted by the data, as most key product categories (power management, discretes, analogs, passives) have seen LT expansion.” The rising demand also suggests of the panic buying from vendors across the globe that are ordering too much, which has further worsened the situation, as per Rolland.

TSMC considers setting up its first chip plant in Japan: Report

Sean — Fri, 11 Jun 2021 08:25:10 +0000

TSMC (Taiwan Semiconductor Manufacturing Company) is apparently considering building its first chipmaking plant in Japan. The news arrives as Tokyo is urging companies to expand their semiconductor production within the country.

According to a NikkeiAsia report, the world’s largest contract chipmaker, who is also a key supplier for the Japanese tech giant Sony, is currently considering building a plant in the Kumamoto Prefecture. At the moment, the firm is evaluating the plan to build a site in western Japan, as per sources close to the matter. Notably, the location of the site would also make the plants close to one of Sony’s plants.

In other words, the latter might receive help from the former to meet the high demand for image sensors, automotive microcontrollers, and other chips as well. One of the sources stated that “TSMC is considering a proposal by the Japanese government to build an advanced chip factory in Japan, though it has not yet fully committed and finalized.” Notably, the plant would TSMC’s first chipmaking site in Japan, with companies from the region accounting for 4.7 percent of its revenue in 2020.

Furthermore, this would also mark a major shift in the company’s strategy of only maintaining production in its home country of Taiwan. Similarly, TSMC is also building an advanced chip plant in the US due to pressure from Washington, which has also been urging firms to build semiconductor facilities in the region just like Tokyo. Another source added that “One of the key reasons for TSMC to pick this location is because its large Japanese client Sony has a plant there.”

Huawei unit invests in key chip production tech to ‘offset’ impacts of US Sanctions

Sean — Mon, 07 Jun 2021 09:50:00 +0000

A Huawei subsidiary has just invested in the field of lithography, which marks the company’s entry into tech related to chip production. The move from the company likely arrives to deal with the US sanctions and ‘forge a complete chip industry chain’.

The Hubble Technology Investment, a unit of the Chinese tech giant, recently invested 82 million Yuan (12.8 million US Dollars) in Beijing RSLaser Opto-Electronics Technology Co. This makes the investment unit the seventh largest stakeholder of the company that focuses on light source systems, which is one of the three core technologies of lithograph based machines. The investment unit from the Chinese brand was established back in 2019 and has investments in about 28 semiconductor based firms.

Fu Liang, a veteran telecom industry analyst told GlobalTimes that “Huawei’s move is mainly intended to offset loopholes and shortcomings caused by US restrictions while supporting enterprises with high recognition to produce a higher level of products through investments. This is crucial for reducing China’s reliance on certain countries and enterprises in the global semiconductor industry.” For those unaware, Huawei has been forced to rely on domestic foundries that fabricate 14 to 28nm chips since it had its chip supply for the advanced TSMC 7nm chips cut off by US sanctions.

Furthermore, analysts added that lithography machines are key to building an ecosystem of the chip industry. This paired with the fact that RSLaser Opto-Electronics was the first to independently design and develop the first domestic high energy excimer laser, which broke the long term monopoly that was held by overseas manufacturers. Fu further added that “Lithography machines and light sources determine the degree of precision of chips, but the global supply is still dominated by certain enterprises, so Huawei’s investment in the lithography field aims to reduce its reliance on foreign companies.”

TSMC to start 4nm trial production ahead of schedule, 5nm US chip factory begins construction

Sean — Wed, 02 Jun 2021 09:14:03 +0000

TSMC has recently announced that it is expecting to start the trial production for its 4nm process ahead of schedule. This news also arrives as the firm begins construction of a new 5nm process based chip factory in the US.

According to an iFeng report, the world’s largest contract chipmaker will be starting the trial production for the 4nm process in the third quarter of this year. In other words, the company will be beginning the trial production one quarter earlier than what was previously planned. Meanwhile, the 3nm process will be completed in the year 2022, as per schedule, with mass production starting within half a year.

In a recent tech forum, TSMC announced the latest technological developments in advanced logic technology, specialty technologies, and the additions of its 3DFabric advanced packaging and chip stacking technologies as well. Furthermore, the firm is also projected to lead the industry in mass production of 5nm technology in 2020, while its yield rate is said to increase faster than 7nm technology. The company’s CEO further added that 3nm process development is progressing as planned, with mass production to start from Fab 18 wafers in the second half of 2022.

Interestingly, the company also announced new technologies like the N5A for automotive applications, N6RF for next-generation 5G smartphones and WiFi 6/6e performance, and enhancements across the range of 3DFabric technologies. For those interested, you can read more about these technologies by following this link here.

AMD, MediaTek, and Qualcomm drove up demand for TSMC’s 7nm process in Q1 2021

Sean — Wed, 02 Jun 2021 07:45:14 +0000

Despite the world suffering from a global shortage of semiconductors, the demand for various end devices has seen a sizeable surge in recent times. This has caused various tech giants to increase their component procurement efforts, which has led to foundries seeing record high revenues, with TSMC seeing a steady rise in revenue thanks to high demand for its 7nm process from AMD, Qualcomm, and MediaTek.

According to a TrendForce report (via BusinessWire), the top 10 foundries across the globe registered record high revenue in the first quarter of this year. This was enabled by the price hike for semiconductors since foundries are facing tight production capacities for semiconductors at the moment. These top 10 foundries accounted for 22.75 billion US Dollars in revenue in Q1 2021, with TSMC taking the lead.

The world’s largest contract chipmaker alone recorded 12.9 billion US Dollars in revenue in the first quarter alone. This was enabled due to high demand for its 7nm, 12nm, and even 16nm process node. Fabless chipmakers like AMD, Qualcomm, and MediaTek were a major part of the record high revenue as their orders remained consistent despite the price hike. TSMC saw a 23 percent rise quarter on quarter in revenue from the 7nm process in Q1 2021.

This is indicative of the high demand for chips built on the advanced processes as well. But due to the foundry capacity shortages that are expected to continue through the second quarter of this year, the prices of wafers will continue to rise. In other words, the revenue of top foundries is expected to continue to rise. Meanwhile, various governments and chipmakers are looking to invest in expanding chip production sites across the globe to help alleviate the semiconductor shortage issue.

Japan wants TSMC and Sony to build 20-nanometre chip production plant

Jeet — Thu, 27 May 2021 03:43:53 +0000

Japanese government wants Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s leading chip manufacturer, and Sony Group to build the country’s first 20-nanomemter chip plant.

The development, which was first reported by Nikkan Kogyo newspaper, indicates that the investment for building the 20nm chip plant in Japan would be around 1 trillion yen, which roughly converts to $9.2 billion.

If the companies agree to do this, then the factory would be built close to Sony’s image sensor plant in Southwest Japan. The details ceom from a proposal floated by Japan’s trade and industry ministry, says the report.

Sony CEO Kenichiro Yoshida said that “stable chip supplies are important for Japan to maintain its international competitiveness” but has not commented on this development of building a 20nm chip plant. A ministry spokesman said to Reuters that the report was not true but declined to elaborate.

Simlar to the United States, Japan is also looking for wats to boost semiconductor production in the country to ensure that its companies have easier access to critical components for making devices.

The issues come after the trade war between the United States and China, which resulted in concerns about majority of the chip production in the world is located in Taiwan. The global shortage of chips is also one of the contributing factors for expansion of facilities to other regions to ensure steady flow of critical components.

US could build up to 10 new chip plants with $52 billion proposed funding

Sean — Tue, 25 May 2021 07:40:36 +0000

Gina Raimondo, the US Commerce Secretary proposed a new 52 billion US Dollar funding that will boost the government’s efforts for semiconductor production and research and might even lead to seven to ten new chip factories.

According to a Reuters report, the government official proposed the funding earlier this week in an event outside of Micron Tech’s chip factory. Raimondo believes that the government could generate a “150 billion US Dollar plus” investment in chip production and research. The investment would also include contributions from state and federal governments and even private sectors as well. She further added that “We just need the federal money to unlock private capital. It could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done.”

Furthermore, Raimondo expects that different states will compete for federal funding for chip facilities, while the Commerce Department would run a transparent process for awarding the funds. For those unaware, the proposal from the Secretary arrives as the world is facing a major shortage of semiconductors. This has led various governments to scramble for chip supplies and even invest locally to build new plants, including the like of the US and even the European regions.

The chip shortage has already caused a supply issue in various industries like automobiles, smartphones, home appliances, and others. Similarly, US Senator Mark Warner also stated that he believed the funds could help build around “seven to 10” new plants, although, “This is not going to solve this overnight. It will take years for the Commerce Department to make these investments.”

TSMC seeking to raise investment on US Chip factories: Report

Sean — Fri, 14 May 2021 09:49:23 +0000

Taiwan Semiconductor Manufacturing Co (TSMC) is apparently seeking to raise its investment in the US for its planned chip factories. The is apparently aiming to further invest tens of billions of dollars into the US state of Arizona.

According to a Reuters report, the world’s largest chip maker is aiming on raising the invesment in the region as talks in Europe falters. As per sources close to the mater, the firm’s investment plans are being closely watched amid the global semiconductor shortage and its plans in the US and Europe to subsidize chip production. For those unaware, the company had announced last year that it would be investing 10 billion US Dollars to 12 billion US Dollars to build a chip factory in Phoenix, Arizona.

Earlier this month, it was also reported that the company’s chip factory would only be the first of six planned plants at the site. Furthermore, TSMC officials are reportedly debating if the next plants should be an advanced facility that will be produce 3nm based chipmaking process. The 3nm process is a more advanced and efficient than the 5nm technology that is currently used in the first factory. One of the sources stated that the more dvanced 3nm plant could cost anywhere between 23 billion to 25 billion US Dollars.

The new chip plants will also enable the company to rival other semiconductor giants like Intel and Samsung Electronics for subsidies from the US government. Recently, the US President Joe Biden announced a 50 billion US Dollars in fuding to grow the local semiconductor manufacturing industry.

Dell CEO believes that the chip shortage could last a few years

Sean — Tue, 11 May 2021 10:51:31 +0000

The world is currently facing a major semiconductor shortage that has affected the entire globe along with various industries. Now, the chief executive of Dell has stated that this shortage might last for a few years, which is longer than previous estimates.

According to a Reuters report, the American tech giant’s CEO and Founder believes that the global chip shortage might last for longer than what was expected. The shortage also arrives amid a surge in demand for electronic products along with US sanctions against Chinese tech firms that has caused various issues in the semiconductor industry. This shortage has even affected industries like smartphones, automobiles and even home appliances.

As per Michael Dell stated in an interview that “The shortage will probably continue for a few years. Even if chip factories are built all over the world it takes time.” This statement from the founder of the company that places an annual order volume of 70 billion US Dollars, signifies the gravity of the situation. Furthermore, Dell is an important client to various major chip makers, but still had to pay a premium to secure stable supply, as per the chief executive.

Dell further added that acquiring older and cheaper semiconductors are apparently harder, stating that “We are talking, in particular, about components that are in the one-dollar range and are used practically everywhere. But even newer technologies are not easy to come by.” Thus, we might see the world struggling with the semiconductor supply for at least a few more years. So, stay tuned for more updates regarding this matter.

Here’s why Samsung trails behind TSMC over cutting edge chips

Sean — Tue, 11 May 2021 09:03:19 +0000

In recent years, TSMC has been leading the semiconductor market with its cutting edge chips and advanced production capabilities. And now, a new report reveals certain information as to why Samsung Electronics trails behind in the industry.

According to a NikkeiAsia report, the South Korean tech giant’s Vice Chairman Lee Jae-yong had flown to the Netherlands back in fall 2020 despite the coronavirus pandemic. The senior official made the trip to meet up with AMSL, who is the exclusive semiconductor production equipment supplier. The equipment made by the firm are critical to Samsung’s semiconductor operations to produce cutting edge products. But out of the total 100 units ASML shipped worldwide, more than 70 percent of these went to the South Korean brand’s rival Taiwan Semiconductor Manufacturing Co.

For those unaware, TSMC is the world’s largest contract chip maker in the world has been leading the market while also being the primary supplier for various fabless chip makers like Qualcomm. Furthermore, the trip made by Samsung’s executive also signifies the sense of crisis for the company, as per the report. The crisis is likely caused by the lose of ground to TSMC for advanced semiconductors.

At the moment, the South Korean electronic maker is struggling with the mass production of advanced products such as CPU chipsets, which are the primary components that drive the smartphones. Thus, losing the market share in contract manufacturing due to inferiority in cutting edge products would weaken the brand’s competitive viability in the market in the industry.

Samsung to begin its P3 chip line ahead of schedule due to global shortage

Sean — Wed, 05 May 2021 08:46:47 +0000

Samsung Electronics is apparently planning on beginning the operations of its P3 semiconductor production line earlier than expected due to the chip shortage that has affected the world.

According to TheElec report, the South Korean tech giant is moving ahead with the P3 chip production line’s operations earlier than previously scheduled, as per the President of EcoPro HN, a supplier of the company. Samsung had requested EcoPro HN to supply its filter products by December 2020, instead of the previous deadline, which was set around early 2022. This was announced at EcoPro’s conference call earluer this week and marks a shipment date a year in advance.

Thus, it seems that the consumer electronics maker is planning on starting its P3 chip line three months earlier than planned due to the issue of chip shortage that has affected various industries and firms across the globe. For those unaware, the P3 line is the brand’s third chip production line at its Pyeongtaek plant in South Korea, with its construction beginning in the second half of last year.

Unfortunately, it is currently unknown how much the company has spent on the P3 line or its production capacity either. But sources close to the matter have claimed that Samsung might ue this line to manufacture memor chips as well as setup a foundry, or contract chip production, to make chips for other firms as well. At the moment, global foundries based firms like TSMC are seeing a surge in orders and are running their production plants at full capacity to make up for the shortage of chip supply.

TSMC seeks to expand its Arizona chip production plans: Report

Sean — Wed, 05 May 2021 07:19:21 +0000

TSMC (Taiwan Semiconductor Manufacturing Co) is apparently seeking to expand its plans for chip production in Arizona, US. The company is reportedly planning on building several more chip making factories in the State, over the one that it is already planned.

According to a Reuters report, the news arrives from three sources that are close to the matter. For those unaware, the world’s largest contract chip maker announced a year ago that it would be building a 12 billion US Dollars plant in Arizona. This was backed by the Trump administration and its win by bringing global tech supply chains back from China. The firm is set to build a 12 inch wafer fabrication plant in Phoenix and the facility is expected to start volume production in 2024.

At the moment, TSMC produces a majority of its chips in its home country Taiwan while its older chip facilities are set up in China and the US. As per the three sources familiar with the matter, the company is planning on setting up additional fabs in the US state of Arizona. The first fab being set up will have a planned output of 20,000 wafers, each of which contains thousands of chips. These wafers will offer the company’s most advanced 5nm process technology.

On the other hand, it is still unclear how much additional production capacity and investment the additional fabs might output in a month and which technology and process they would offer. Last month, TSMC had announced that it planned to invest 100 billion US Dollars over the next three years to increase production capacity. As per on of the sources, “The United States requested it. Internally TSMC is planning to build up to six fabs.”

Intel to spend $3.5 billion to upgrade its New Mexico fab to boost chip production in US

Sean — Mon, 03 May 2021 11:44:24 +0000

Intel is planning on investing 3.5 billion US Dollars to upgrade its chip manufacturing plant in Rio Rancho, New Mexico. This move in combination with 20 billion US Dollars to build two new facilities in Arizona that will help boost chip production in the US.

According to a CNET report, the chip making giant has confirmed that it will be spending 3.5 billion US Dollars on the upgrade. Keyvan Esfarjani, the company’s manufacturing chief, aims to reveal the plan at a press conference with New Mexico Governor Michelle Lujan Grisham, and New Mexico’s two senators, Martin Heinrich and Ben Ray Luján, and Rep. Teresa Leger Fernandez. Furthermore, the chip maker is also planning on spending its own money to invest more, rather than just spending it on buying its own stock.

The company’s CEO Pat Gelsinger stated that “We will not be anywhere near as focused on buybacks going forward as we have in the past.” The senior official further added that it has “been reviewed as part of my coming into the company, agreed upon with the board of directors.” While Intel has been a major figure in the semiconductor industry, the firm has recently lagged behind Taiwan Semiconductor Manufacturing Co. (TSMC) in recent years.

Now, the company is investing in its new chipmaking plant or fabs as a major effort to restore competitiveness under its new chief executive. The firm is also planning on building chips for other brands through a business called foundry, while also relying on other foundries to produce some of its own chips as well.

TSMC to build world’s first exclusive water plant, won’t shift chip production to China

Sean — Mon, 26 Apr 2021 08:34:40 +0000

The Taiwanese Ministry of Economic Affairs has recently denied rumors that TSMC (Taiwan Semiconductor Manufacturing Company) would be shifting its chip manufacturing capacity to China.

According to a WccfTech report, rumors had recently surfaced that the world’s largest contract chipmaker would be shifting its chip production to China. The move was reportedly due to the water shortage issue that the company is facing due to the drought that has affected the nation. For those unaware, a large amount of water is required by the firm for its operations. Thus, the Taiwanese Ministry denied these rumors regarding shift of production for processes like the 28nm nodes.

As per the Taiwanese Ministry, the chip maker has long term investment in the region has no plans on relocating its existing chip manufacturing capacities to China due to water constraints. Rather, the company is aiming on building a new facility that will help in facing a similar situation in the future. Unfortunately for the firm, while this new water plant will help in the future, it would not be able to help ease its current predicament.

This will also mark the world’s first exclusive water plant that is set up for a single company alone. In other words, the plant will be able to improve the water related enterprise risk management for TSMC in the future. For its current situation, the company has resorted to using water tankers to test groundwater for chip fabrication, which is a process that requires a large amount of water.

Intel CEO believes that the Chip Shortage could last for two more years

Sean — Fri, 23 Apr 2021 10:33:24 +0000

Intel CEO believes that the global chip shortage that the world is currently struggling with, could potentially last for a couple of more years. The company’s executive thinks that the issue could be prolonged by up to 2 more years.

According to a WallStreetJournal report, the senior official made the statement during the recent earnings report. Pat Gelsinger, the CEO of the semiconductor giant said that “This is a pivotal year for Intel,” after the company recorded a weaker quarterly earnings. Gelsinger stated that the supply constraints that has already affected various industry across the globe will continue until additional capacities are built. These new capacities could help ease the chip shortage and help supply catch up with demand.

The chips made will cushion the blow that has affected the automobile and consumer electronic products. In an interview, Pat said that “This will take a while until people can put more capacity in the ground. It’s just the way it is when you’re building new factories.” For those unaware, the global shortage has already disrupted manufacturing across numerous industries that has led to halting of automobile production and even certain home appliances as well.

Recently, US President Joe Biden met with various tech giants and semiconductor based firms to address the issue and even pledged 50 billion US Dollars for the semiconductor industry. As per Gelsinger, “The investment needed at the scale required is immense.” Pat also promised to have some production capacity made available to help in easing the chip shortage.