While TSMC faces overwhelming demand for its 3nm technology, with orders from major clients like Apple and NVIDIA pouring in, Intel has now announced its progress on the 3nm technology. According to the latest report by Tom’s Hardware, Intel 3 has entered high-volume production at two sites, the Oregon and Ireland factories, with datacenter-related applications being the node’s primary focus.

However, the capacity seems to be mainly allocated to in-house chips for now. Citing Walid Hafez, Vice President of Foundry Technology Development at Intel, the report notes that Intel’s recently launched Xeon 6 “Sierra Forest” and “Granite Rapids” processors are being manufactured with the company’s 3nm node. Eventually, Intel will utilize this production node to produce datacenter-grade processors for its customers, the report states.

According to Tom’s Hardware, in addition to the standard Intel 3, Intel will also provide various versions for its 3nm node. The semiconductor giant plans to offer Intel 3T, which supports through silicon vias and can serve as a base die. Looking ahead, Intel aims to introduce the feature-enhanced Intel 3-E for chipsets and storage applications, as well as the performance-enhanced Intel 3-PT, designed for various workloads such as AI, HPC, and general-purpose PCs.

According to the report, the Intel 3 process offers both higher performance and increased transistor density, and it supports 1.2V for ultra-high-performance applications. In terms of performance, Intel claims that the new node will deliver an 18% improvement compared to Intel 4.

Regarding major competitors’ development on the 3nm node, TSMC is reported to receive strong demand from clients like Apple and NVIDIA, booking its capacity through 2026, and possibly leading to a price increase by over 5% in the node.

Like Intel, TSMC also offers various choices for its 3nm process. The members of TSMC’s 3nm family include N3, N3E, N3P, as well as N3X and N3A.

As the existing N3 technology continues to be upgraded, N3E, which began mass production in the fourth quarter of last year, targets applications such as AI accelerators, high-end smartphones, and data centers.

N3P is scheduled for mass production in the second half of this year and is expected to become mainstream for applications in mobile devices, consumer products, base stations, and networking through 2026. N3X and N3A are customized for high-performance computing and automotive clients.

On the other hand, Samsung’s second-generation 3nm production line in South Korea will reportedly commence operations in the latter half of this year  The first product to be manufactured on this line will reportedly be the application processor (AP) for the upcoming Galaxy Watch7, tentatively named “Exynos W1000,” which is expected to be unveiled in July.

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(Photo credit: Intel)

Samsung is reportedly mulling to update its fabrication capabilities in the Taylor fab near Austin from 4nm to 2nm, and delaying the related equipment orders, according to reports from Tom’s Hardware and Korea media outlet ETnews. The decision is said to be made in Q3 2024.

Samsung’s initial projection, announced in 2021 when the investment plan was disclosed, had anticipated the Taylor plant to start its mass production of 4nm in the second half of 2024. But afterwards, the tech giant has reportedly postponed the schedule to 2025.

Now, according to the latest reports, with the AI hardware race intensifying and Nvidia, one of Samsung’s biggest clients, keeps advancing in its GPU platforms, 4nm production may no longer suffice. Therefore, Samsung has postponed its equipment orders for the Taylor fab as it considers the upgrade from 4nm to 2nm. The plant may not begin operations until 2026, US local media MySA noted.

According to information from Samsung’s press release, the company plans to provide one-stop solution for clients to expedite their production of AI chips, while its updated 2nm node with backside power delivery is expected to enter the market in 2027. SF4U, its high-value 4nm variant that offers PPA improvements by incorporating optical shrink, plans to enter mass production in 2025.

Earlier in April, the U.S. government announced that it will provide up to USD 6.4 billion in subsidies to Samsung for expanding advanced chip production capacity at its Texas plant, while it previously approved subsidies of up to USD 8.5 billion for US chip giant Intel and USD 6.6 billion for TSMC, respectively.

Regarding major semiconductor companies’ capacity expansion plans in the U.S., TSMC’s new fab in Arizona aims to complete all preparations for mass production by the end of this year, and commences mass production using the 4-nanometer process in the first half of 2025. On the other hand, TSMC also plans to build a third fab in Arizona, which will use 2nm process or even more advanced technologies to manufacture wafers for customers, though the date for construction has yet to be disclosed.

Meanwhile, Intel plans to mass-produce its 20A and 18A nodes at its Arizona and Ohio plants in 2024 and 2025, respectively.

(Photo credit: Samsung)

According to Chinese media ChinaFund, there are reports that TSMC is increasing prices for its advanced 3nm and 5nm process nodes and advanced packaging. The report also cites a Morgan Stanley Securities prediction that Hua Hong Semiconductor may raise prices by 10% in the second half of the year.

Notably, China’s wafer foundries are showing signs of reducing domestic competition. While foundry price increases are not yet confirmed, utilization rates at major foundries have significantly improved, with many operating at full capacity or even exceeding 100%.

Industry sources cited by ChinaFund believe that the sustained increase in utilization rates and full capacity at some foundries could lead to potential price hikes in the future.

TSMC was the first to signal a price hike in the wafer foundry sector. Reports indicate that the global leader in foundry will increase prices for its advanced 3nm and 5nm nodes, with a potential 5% increase for 3nm and a 10%-20% rise for advanced packaging next year.

TSMC’s 5nm node continues to receive AI semiconductor orders, maintaining high capacity utilization.

At the same time, a recent Morgan Stanley report stated that Hua Hong Semiconductor, one of China’s leading foundries, is currently operating at over 100% capacity and may raise wafer prices by 10% in the second half of this year.

In an interview with ChinaFund, United Nova Technology CEO Michael Zhao stated that the semiconductor industry’s basic pattern of change starts with memory, then digital, and finally analog ICs. “Whether it’s a downturn or recovery, this is the sequence,” he emphasized.

“We are experiencing the same trend in the power semiconductor sector. We were at full capacity in Q4 last year and saw a significant recovery in Q1 this year.”

According to tracked data cited by ChinaFund, power semiconductor manufacturers have collectively raised prices this year. Sanliansheng increased prices by 10%-20%, Bluecolor by 10%-18%, Gaoge Microchip by 10%-20%, and Jiejie Microelectronics raised prices for its Trench MOS by 5%-10%.

For the memory sector, TrendForce forecasts that Q2 DRAM contract prices will rise by 13%-18%, and NAND Flash contract prices by 15%-20%.

Huafu Securities projects that, given the gradual increase in foundry utilization rates and rising inventory levels in consumer electronics and other fields, end-market demand will clearly drive growth across the semiconductor supply chain.

ChinaFund reports that several chip companies have recently announced price increases, with some as high as 20%. For instance, Yaxin Microelectronics, Chiplink, and iCM have all issued price hike notices.

(Photo credit: SMIC)

The US government’s CHIPS and Science Act is reportedly injecting funds into chip manufacturing at an unprecedented rate. According to a recent report by the U.S. Census Bureau, the growth rate of construction funding for computer and electrical manufacturing is remarkably high. The amount of money the government is pouring into this industry in 2024 alone is equivalent to the total of the previous 27 years combined.

Due to the substantial funding provided by the U.S. CHIPS Act, the construction industry in the United States is experiencing explosive growth. Companies such as TSMC, Intel, Samsung, and Micron have received billions of dollars to build new plants in the U.S.

Research by the Semiconductor Industry Association indicates that the U.S. will triple its domestic semiconductor manufacturing capacity by 2032. It is also projected that by the same year, the U.S. will produce 28% of the world’s advanced logic (below 10nm) manufacturing, surpassing the goal of producing 20% of the world’s advanced chips announced by U.S. Commerce Secretary Gina Raimondo. 

Currently, new plant constructions are underway. Despite the enormous expenditures, there have been delays in construction across the United States, affecting plants of Samsung, TSMC, and Intel.

Notably, a previous report from South Korean media BusinessKorea revealed Samsung has postponed the mass production timeline of the fab in Taylor, Texas, US from late 2024 to 2026. Similarly, a report from TechNews, which cited a research report from the Center for Security and Emerging Technology (CSET), noted the postponement of the production of two plants in Arizona, US. Additionally, Intel, as per a previous report from the Wall Street Journal (WSJ), was also said to be delaying the construction timetable for its chip-manufacturing project in Ohio.

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(Photo credit: TSMC)

After naming its new head for the semiconductor business in May, claiming to strengthen the company’s competitiveness in cutting-edge chips, Samsung has now disclosed its latest developments regarding AI chips. According to information from Reuters and Samsung’s press release, the company plans to provide one-stop solution for clients to expedite their production of AI chips, while its updated 2nm node with backside power delivery is expected to enter the market in 2027.

According to a report from Reuters, the semiconductor giant plans to provide a turn-key solution by integrating its leading services in memory chips, foundry, and chip packaging to capitalize on the AI surge. The production time needed for AI chips usually takes weeks, while under this scheme, it could potentially be reduced by approximately 20%.

Driven by the strong demand from AI chips, Samsung expects the revenue of global chip industry to grow to USD 778 billion by 2028, according to Siyoung Choi, President and General Manager of the Foundry Business in Samsung, the report noted.

On the other hand, the tech heavyweight has introduced on 13^th June its latest developments on 2nm and GAA technologies, as tools to empower its AI solutions.

According to Samsung’s press release, its latest 2nm process, SF2Z, has incorporated optimized backside power delivery network (BSPDN) technology, which places power rails on the backside of the wafer to eliminate bottlenecks between the power and signal lines, and thus does better in PPA (power, performance and area), IR drop and performance of HPC designs compared to SF2, its first-generation 2nm node.

Samsung targets mass production for SF2Z in 2027, while SF4U, a high-value 4nm variant, is slated for mass production in 2025. It also confirms that preparations for SF1.4 (1.4nm) are progressing well, with performance and yield targets on track for mass production in 2027, the press release noted.

Regarding the progress on backside power delivery solution, TSMC’s Super PowerRail, which is expected to be used in A16 process, targets mass production in 2025. Intel’s PowerVia on its 20A process, on the other hand, is set for production in 2024.

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(Photo credit: Samsung)