According to SEMI, the global shipments of silicon wafers are projected to decline 2% to 12,174 million square inches (MSI) in 2024, while strong rebound of 10% is expected in 2025, with shipments projected to reach 13,328 MSI as demand continues to recover.

The report suggests that strong silicon wafer shipment growth is anticipated to continue through 2027.

Increasing demand related to AI and advanced processing is expected to drive improved fab utilization rate for global semiconductor production capacity, according to SEMI.

In addition, the growing demand for silicon wafers is also driven by new applications in advanced packaging and the production of high-bandwidth memory (HBM), as indicated by SEMI.

According to the forecast report from SEMI, global silicon wafer shipments will reach 14,507 MSI in 2026. In 2027, it is expected to reach 15,413 MSI, surpassing the highest record of 14,565 in 2022.

(Photo credit: Intel)

As Qualcomm unveiled the Snapdragon 8 Elite chipset earlier this week, Samsung, which has been working on its in-house Exynos 2500 to improve the 3nm yield, is said to abandon the plan and go Snapdragon 8 Elite only for the entire Galaxy S25 series. To turn the tide, it is reportedly embarking on the development of its next-gen Exynos chip, set to be featured in the Galaxy S27, according to Korean media outlet Sedaily and Wccftech.

The chip is expected to be manufactured with Samsung’s 2nm node, probably the SF2P process, which is an improved version of its first generation 2nm process, the reports note. Therefore, this would be a key battleground for Samsung, as it has been suffering from yield issues regarding 3nm node with GAA architecture for long.

And it does look like that Samsung aims high for the chipset, as the next-gen Exynos chip has been reportedly codenamed “Ulysses,” the Roman name for Odysseus, the hero from Greek mythology, according to Sedaily.

According to the reports, the SF2P process is slated for mass production in 2026, with enhancements in both performance and power efficiency. To be more specific, SF2P aims to improve performance by 12% while reducing power consumption by 25% and chip area by 8% compared to its predecessor.

It is also worth noting that Samsung’s foundry division is reportedly producing test chips and verifying the process design to refine the node.

Citing an industry expert, Sedaily notes that Samsung’s foundry has consistently relied on Exynos APs as a key customer. By refining its processes through managing substantial Exynos orders, Samsung has the potential to enhance its competitiveness against TSMC in next-generation chip manufacturing, although the challenge remains significant.

The challenges ahead for Samsung is formidable for sure. Foundry giant TSMC’s 2nm is expected to enter volume production in 2025, and it is already creating a buzz, as Chairman C.C. Wei said earlier that customer inquiries for 2nm are even higher than those for 3nm. According to previous market speculations, tech giants such as Apple, NVIDIA and AMD are believed to be the first batch of TSMC’s 2nm customers.

Another major rival, Intel, has shelved the 20A process node to focus entirely on the more advanced Intel 18A, aiming to enter mass production in 2025.

Japanese chip manufacturer Rapidus, on the other hand, plans to establish a fully automated production line using robots and AI in northern Japan to produce 2nm chips for advanced AI applications, with mass production anticipated as early as 2027.

Read more

• [News] Samsung’s Next Move? Early HBM4 Mass-production and 2nm Foundry Solutions Could Be the Cure
• [News] Despite 3nm Issues, Samsung Plans to Speed up 2nm/1.4nm Expansion Next Year

(Photo credit: Samsung)

The global race to develop semiconductor industries is heating up, with countries like Singapore, Malaysia, Vietnam, and India making significant strides. Now, the Philippines is joining the fray with a new push to expand its presence in the sector.

According to a Bloomberg report, the Philippines is actively reaching out to Taiwanese semiconductor giants such as TSMC and United UMC in an effort to secure equipment and expertise needed to build its own chip fabrication operations.

Dan Lachica, head of the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), explained that they are encouraging companies like TSMC and UMC to send their older, depreciated equipment to the Philippines. In return, Filipino workers would be trained to support these companies’ global operations.

The Philippines, home to more than 100 million people, lags behind its neighbors such as Malaysia and Singapore in the complex chip manufacturing industry, which requires billions of dollars in initial investment. Taiwan, led by TSMC, dominates the global semiconductor market, and its companies are expanding overseas to mitigate risks posed by tensions with China.

Neither TSMC nor UMC provided detailed responses to Bloomberg’s inquiries. TSMC declined to comment, while UMC reiterated its policy of not addressing market speculation.

The Philippines’ strategy is part of a broader effort to move beyond low-margin chip testing and packaging into more advanced areas such as IC design and semiconductor wafer fabrication.

Elsewhere in Southeast Asia, Vietnam has been increasing its focus on semiconductor development. Prime Minister Pham Minh signed Decision No. 1018/QD-TTg on September 21, as reported by the Vietnam Government News website. The decision outlines the country’s vision for semiconductor growth, with short-term goals set for 2030 and long-term projections extending to 2050.

India is also making strides in this field. During Prime Minister Narendra Modi’s visit to the U.S. in September, the two countries agreed to build a semiconductor plant focusing on infrared, gallium nitride, and silicon carbide chips, backed by India’s Semiconductor Mission and a strategic partnership with the U.S. Space Force.

(Photo credit: SEIPI)

Following the investigation launched by the U.S. Commerce Department on whether TSMC has manufactured smartphone or AI chips for Huawei, the foundry giant seems to have identified the underlying issue. According to a report by Reuters, TSMC announced on Tuesday that it has notified Washington about a possible effort by Huawei to bypass U.S. export restrictions.

It is worth noting that TSMC had reportedly informed the U.S. Commerce Department after receiving an order for a chip similar to Huawei’s Ascend 910B, a processor designed for training large language models, Financial Times reveals. How the chip ended up in Huawei’s possession remains unclear.

Before U.S. sanctions were enforced, TSMC had produced an earlier version of the 910B chip, Financial Times notes.

Citing a source close to TSMC, the report by Financial Times suggests that after receiving a questionable order, TSMC engaged in discussions with both the customer involved and the U.S. Commerce Department. The department’s investigation into the matter would be “related to” TSMC, but the company itself would not be the target of any probe.

Another insider cited by the Financial Times’ report shares the same view, indicating that there had been “conversations” between the Commerce Department and TSMC regarding a possible attempt to circumvent export controls. However, there was no implication of any willful violations of compliance on TSMC’s part.

TSMC stated that at this time, the company is not aware of it being under any investigation, noting that it has not provided chips to Huawei since mid-September 2020, Reuters indicates.

Last week, a report by The Information revealed that the U.S. Commerce Department has been examining whether TSMC has been engaged in the production of AI chips designed by Huawei, which have gained popularity among Chinese customers as an alternative to NVIDIA’s chips, as they are barred from purchasing due to U.S. export regulations.

Additionally, the inquiry is said to be exploring whether TSMC manufactured smartphone chips for Huawei’s devices as well.

Read more

• [News] U.S. Reportedly Investigates TSMC on whether It Manufactured AI or Smartphone Chips for Huawei
• News] Huawei Reportedly Begins Sampling of Ascend 910C to Rival NVIDIA

(Photo credit: Huawei)

According to a report by the Maeil Business Newspaper, U.S. semiconductor giant Intel has reached out to Samsung Electronics to explore the possibility of forming a foundry alliance.

Citing sources in the semiconductor industry, the report reveals that a senior Intel executive recently requested a high-level meeting between the two companies. Intel’s CEO, Pat Gelsinger, is reportedly seeking a direct meeting with Samsung Electronics Chairman Lee Jae-yong to discuss comprehensive cooperation plans for their foundry divisions.

Since the establishment of Intel Foundry Services (IFS) in 2021, Intel has secured contracts with Cisco and AWS but has struggled to attract larger-scale clients. Samsung Electronics, which launched its foundry business in 2017, has gained some traction with customers but still trails far behind TSMC.

According to data from TrendForce, in the second quarter of this year, TSMC and Samsung held 62.3% and 11.5% market shares in the foundry sector, respectively.

The report also highlights that if an Intel-Samsung foundry alliance materializes, the two companies could collaborate on various fronts, including process technology exchanges, shared production equipment, and joint research and development (R&D) efforts.

Samsung Electronics is known for its advanced 3nm GAA (gate-all-around) technology, which enhances performance and power efficiency in fine processes,. Meanwhile, Intel possesses technologies such as Foveros, which combines chips produced using different processes into a single package, and PowerVia, which improves power efficiency. These combined strengths could be crucial in developing high-performance, low-power designs for AI, data centers, and mobile application processors.

Additionally, Samsung operates manufacturing facilities in the U.S., South Korea, and China, while Intel has facilities in the U.S., Ireland, and Israel, enabling potential collaboration or equipment sharing when needed. The report also notes that with tightening controls on advanced semiconductor exports, particularly from the U.S. and EU, regional production capabilities are becoming increasingly important.

However, both Samsung and Intel declined to confirm whether a top-level meeting will take place, according to the Maeil Business Newspaper.

(Photo credit: Intel)