According to TianYanCha.com, the third phase of the National Integrated Circuit Industry Investment Fund Co., Ltd. has recently been established in China. The legal representative is Zhang Xin, with a registered capital of RMB 344 billion.

The fund’s business scope includes private equity fund management, venture capital fund management services, and activities such as equity investment, investment management, and asset management through private equity funds, as well as business management consulting.

Shareholder information reveals that the company is jointly held by 19 shareholders, including the Ministry of Finance, China Development Bank Capital, Shanghai Guosheng Group, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China.

As reported by the Commercial Times, the National Integrated Circuit Industry Investment Fund, known as the Big Fund, was established in 2014. Its aim is to leverage fiscal funds to attract private capital, focusing on key segments of the integrated circuit industry chain, including chip design, manufacturing, packaging and testing. The fund’s overall plan spans 15 years, highlighting a long-term strategic investment perspective.

The Big Fund not only provides financial support but also integrates resources, guides private capital investment, and promotes cooperation within the industry chain. These efforts have significantly enhanced the overall competitiveness of China’s integrated circuit industry. The fund plays a crucial role in advancing strategic national industries, accelerating industrial restructuring and upgrading, and strengthening national competitiveness.

The first phase of the National IC Industry Investment Fund, established in 2014, had a scale of approximately RMB 130 billion. Its primary goal was to support the development of the domestic semiconductor industry and reduce reliance on foreign chip technology. Public data indicates that its investments were distributed approximately as follows: 67% in integrated circuit manufacturing, 17% in design, 10% in packaging and testing, and 6% in equipment and materials, highlighting the manufacturing sector as a key focus.

The second phase of the National IC Industry Investment Fund was launched in 2019 with a scale of about RMB 200 billion, significantly larger than the first phase. While continuing to support the semiconductor industry, the second phase places greater emphasis on the upstream and downstream segments of the industry chain, including IC design, manufacturing, packaging, testing, and the R&D of related equipment and materials.

▲The detailed information of the National Integrated Circuit Industry Investment Fund Phase Three Co., Ltd. as shown on TianYanCha.com.

(Photo credit: SMIC)

Google has reportedly collaborated with TSMC on the upcoming Tensor G5 chip, slated for use in the Pixel 10 series smartphone to be released next year, according to media outlet Android Authority, based on information it spotted in trade databases.

Google has been cooperating with Samsung on its self-developed Tensor processors since 2021, including the Tensor G4 used in the Pixel 9.

The US tech giant’s latest strategic move is reportedly making Tensor G5 the first Google smartphone chip not produced by Samsung.

According to industry insiders cited by the aforementioned report, despite Google’s relatively low smartphone market share, the act would signify TSMC’s leading position in advanced nodes, and is expected to foster closer collaboration between the two companies in the future.

According to the market share data released by Trendforce in March, in 4Q 2023, Apple ranked as 1^st in global smartphone production, with a 23.3% market share, while Samsung (15.9%) and Xiaomi (12.8%) ranked as 2^nd and 3^rd, respectively. Google, on the other hand, has not made it to the top six.

Regarding other major smartphone players’ product roadmaps next year, in addition to Google’s Pixel 10, Apple is also rumored to cooperate with TSMC on the A19 Pro chip in the iPhone 17 Pro and iPhone 17 Pro Max, based on a previous report from Wccftech.

Samsung, on the other hand, is reportedly planning to use its 2nm process on the latest Exynos 2600 chip, which is expected to start mass production in 2025, and be used in the Galaxy S26 series smartphone, according to a previous report by the Korea media outlet ET News.

Read more

• [News] Samsung Reportedly to Challenge Apple/TSMC with 3nm Exynos W1000

(Photo credit: Google)

According to Taiwan’s Economic Daily News, UMC has recently engaged in discussions with global giants such as Texas Instruments and Infineon about long-term cooperation plans. Additionally, Taiwan’s two leading IC design companies, MediaTek and Realtek, have seen their inventories of WiFi 6/6E chips depleted, prompting them to increase their orders with UMC.

TrendForce recently reported that the White House announced on May 14th the imposition of additional tariffs on semiconductor products manufactured in China. This move has accelerated a shift in supply chain orders, leading Taiwanese foundries to receive increased orders, boosting capacity utilization beyond expectations.

For the second half of this year, Vanguard’s capacity utilization is expected to rise above 75%, PSMC’s 12-inch capacity utilization will reach 85-90%, and UMC’s overall capacity utilization will settle between 70-75%.

UMC’s orders from overseas clients are largely driven by the U.S. tariffs on Chinese semiconductor imports, which are projected to double to 50% by 2025. This has spurred a wave of supply chain relocations, with UMC leveraging its diverse manufacturing footprint to attract long-term cooperation plans from companies like Texas Instruments, Infineon, and Microchip.

From the perspective of Taiwanese market, UMC has benefited from a recent recovery in the networking sector. Taiwan’s top two WiFi 6 chip suppliers, MediaTek and Realtek, responding to customer restocking demands, have begun to increase their orders for WiFi chips with UMC.

Recent revenue data from Realtek indicates a rebound in the networking market. In April, Realtek’s consolidated revenue reached NT$10.068 billion, a 11.4% increase month-over-month and a 21.9% increase year-over-year, marking the first time in 20 months that monthly revenue has surpassed NT$10 billion.

MediaTek’s consolidated revenue in April was NT$42.028 billion, a 16.74% decrease month-over-month, yet still the second highest on record for the period, with a 48.25% year-over-year increase. Foundry sources indicate that MediaTek has placed additional orders for the third quarter, suggesting that networking customers are set to upgrade specifications this year.

UMC’s consolidated revenue in April was NT$19.741 billion, up 8.67% month-over-month and 6.93% year-over-year, reaching a 16-month high. UMC previously projected that as inventories in the computer, consumer, and communication sectors return to healthier levels, overall wafer shipments would see a slight increase this quarter. However, in the automotive and industrial sectors, slower-than-expected inventory digestion has kept demand subdued.

(Photo credit: UMC)

According to a report by Nikkei News, SK Hynix is considering expanding its investment to Japan and the US to increase HBM production and meet customer demand.

Reportedly, the demand for high-bandwidth memory (HBM) is surging thanks to the AI boom. SK Group Chairman and CEO Chey Tae-won stated at the Future of Asia forum in Tokyo on May 23rd that if overseas investment becomes necessary, the company would consider manufacturing these products in Japan and the United States.

Chey Tae-won also mentioned that SK will further strengthen its partnerships with Japanese chip manufacturing equipment makers and materials suppliers, considering increased investments in Japan. He emphasized that collaboration with Japanese suppliers is crucial for advanced semiconductor manufacturing.

When selecting chip manufacturing sites, Chey highlighted the importance of accessing clean energy, as customers are demanding significant reductions in supply chain greenhouse gas emissions.

Additionally, Chey stated that SK intends to enhance R&D collaboration with Japanese partners for next-generation semiconductor products.

Kwon Jae-soon, a senior executive at SK Hynix, stated in a report published by the Financial Times on May 21 that the yield rate of their HBM3e is approaching the 80% target, and the production time has been reduced by 50%.

Kwon emphasized that the company’s goal this year is to produce 8-layer stacked HBM3e, as this is what customers need the most. He noted that improving yield rates is becoming increasingly important to maintain a leading position in the AI era.

SK Hynix’s HBM capacity is almost fully booked through next year. The company plans to collaborate with TSMC to mass-produce more advanced HBM4 chips starting next year.

Read more

• [News] Reasons for Samsung’s HBM Chips Failing Nvidia Tests Revealed, Reportedly Due to Heat and Power Consumption Issues
• [News] HBM Boom May Lead to DRAM Shortages in the Second Half of the Year

(Photo credit: SK Hynix)

According to Bloomberg, mega economies like the US and the EU have invested tens of billions of dollars in the research and mass production of next-generation semiconductors, and notably, this is only the initial amount of funding already received.

Meanwhile, South Korea and Japan have also joined the “subsidy race” for chips. With substantial investments continuously pouring into the semiconductor industry, global chip competition will intensify.

• Korea to Allocate USD 19 Billion to Support Chip Industry

On May 23, Korea announced a comprehensive support plan for semiconductor industry, with an investment of up tp KRW 26 trillion (~ USD 19 billion). This plan intends to provide large-scale financing support and rev up investments in the construction of semiconductor parks and various infrastructures, and the cultivation of research and development personnel, involving companies include chip manufacturers, raw material suppliers, and chip design companies.

The core of this plan is a financing support project by the Korea Development Bank, valued at KRW 17 trillion (~USD 12.4 billion), specifically for semiconductor infrastructure investment. Additionally, Korea will extend tax concession for chip investment to ensure the smooth progress of semiconductor supercluster investment.

Semiconductor is a vital industry for Korea’s economic growth. In response to substantial subsidies for chip industry from the US and EU, Korea is actively promoting the development of its local chip industry.

In January 2024, Korea launched the “World’s Largest and Best Semiconductor Supercluster Construction Plan,” proposing an investment of KRW 622 trillion (~USD 454 billion) by 2047, which is to build 16 new plants, inclusive of R&D facilities, and construct “Semiconductor Supercluster”in semiconductor-intensive cities such as Pyeongtaek, Hwaseong, Yongin, Icheon, and Suwon in southern Gyeonggi Province. It’s estimated that the chip production capacity will reach 7.7 million wafers per month by 2030.

• Europe to Draw in EUR 100 Billion in 2030

Recently, an EU Commission official revealed that the “European Chips Act” is expected to help the European semiconductor industry attract more than EUR 100 billion (~USD 108 billion) in funding by 2030.

The official also stated that the EU Commission plans to complete reviewing the support plan of four advanced semiconductor pilot lines by September and is planning another pilot line for silicon photonics chip with an unspecified investment scale.

The “European Chips Act” officially came into effect in September 2023, aiming to increase the EU’s share of the global semiconductor market from the current 10% to at least 20% by 2030. The act promises to allocate EUR 43 billion (~USD 46.4 billion) in subsidy funds, with EUR 11 billion (~USD 11.8 billion) for the development of advanced process chip technology.

Industry sources indicate that Europe’s two largest chip projects are located in Germany. Germany plans to provide USD 20 billion in subsidies to increase chip production, of which around 75% will go to Intel and TSMC.

Intel is projected to invest over EUR 30 billion (~USD 33 billion) in building a wafer plant in Magdeburg, Germany, with an expected government subsidy of nearly  USD 11 billion. TSMC plans to build its first European factory in Germany, which will also receive government subsidies. Recent media reports indicate that efforts in establishing this factory is proceeding as planned, with construction expected to begin in the fourth quarter of 2024.

• Japan to Raise USD 25.3 Billion for Chip Sector

To enhance semiconductor R&D and production capabilities, Japan is also providing massive subsidies in the semiconductor field, including taking in foreign investment to build factories and strengthening local state-of-the-art process R&D and production.

It’s reported that since Japan formulated the “Semiconductor and Digital Industry Strategy” in June 2021, the Ministry of Economy, Trade, and Industry has raised approximately USD 25.3 billion for its chip industry, involving companies like TSMC and Rapidus.

In February, TSMC’s Kumamoto plant officially opened, marking TSMC’s first factory in Japan (Fab 23). The total production capacity will reach 40-50Kwpm  wafers per month, focusing on 22/28nm processes and a small part on 12/16nm, paving the way for the main process of the second Kumamoto plant.

In April, Japan approved a subsidy of up to USD 3.9 billion for Rapidus, a domestic semiconductor manufacturing company to mass-produce 2nm chips by 2027.

In addition to wafer foundries, Japan is also spotlighting memory industry. Previously, the Ministry of Economy, Trade, and Industry announced a subsidy of JPY 242.9 billion (~USD 1.546 billion) for Kioxia and Western Digital to build two advanced NAND flash memory chip production plants in Mie and Iwate Prefectures, attempting to meet the demands from AI and big data center markets. The joint venture plants will produce 218-layer 3D NAND chips.

• The US to Offer USD 29 Billion to TSMC, Samsung and Intel

The US “CHIPS and Science Act” was introduced in August 2022, providing USD 52.7 billion for chip research, development, manufacturing, and workforce development in the US, and offering a 25% investment tax credit for capital expenditures on manufacturing chips and related equipment.

It’s reported recently that since December 2023, the US has allocated about USD 29 billion in subsidies to companies such as Samsung, TSMC, Intel, and Micron. These chip manufacturers have pledged to invest approximately USD 300 billion in current and future chip manufacturing projects in the US.

In April, Micron, Samsung, and TSMC received US funding subsidies. Micron will establish two new chip manufacturing plants in upstate New York and Boise, Idaho (Its headquarter), with a fund of USD 6.14 billion. Samsung will build a plant covering leading logic, R&D, and advanced packaging in Taylor, Texas, and expand the production of mature process nodes in Austin, Texas, with a fund of USD 6.4 billion. TSMC is developing three cutting-edge wafer plants in Phoenix, Arizona, receiving USD 6.6 billion in subsidies.

Previously, Microchip Technology and Intel also secured USD 162 million and USD 8.5 billion in funding, respectively. Intel’s USD 8.5 billion is the largest single subsidy provided under the CHIPS Act to date, with which Intel will advance its commercial chip projects in Arizona, New Mexico, Ohio, and Oregon.

Read more

• [News] South Korea Reportedly Unveils USD 19 Billion Semiconductor Subsidy to Boost R&D and Infrastructure Investment
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: Intel)