According to a report from Commercial Times, after suffering a multi-billion-dollar loss in its foundry business, Intel has recruited Naga Chandrasekaran, a veteran responsible for process technology development at Micron, as its Chief Operating Officer.

Intel is reportedly facing setbacks in developing chip manufacturing. After experiencing a staggering USD 7 billion loss in its foundry business in 2023, the company incurred an additional USD 2.5 billion loss in the first quarter of this year.

Thus,to drive the growth of its foundry business, Intel has recruited Naga Chandrasekaran from Micron, who will oversee all of Intel’s manufacturing operations and report directly to CEO Pat Gelsinger.

Chandrasekaran’s appointment will take effect on August 12. He will oversee Intel Foundry’s global manufacturing operations and strategic planning, including assembly and test manufacturing, wafer fabrication, and supply chain management. Essentially, Chandrasekaran will be responsible for all of Intel’s manufacturing activities.

In the announcement of the employment, Intel CEO Pat Gelsinger noted, “Naga is a highly accomplished executive whose deep semiconductor manufacturing and technology development expertise will be a tremendous addition to our team.”

“As we continue to build a globally resilient semiconductor supply chain and create the world’s first systems foundry for the AI era, Naga’s leadership will help us to accelerate our progress and capitalize on the significant long-term growth opportunities ahead,”  Gelsinger said.

As per a report from tom’s hardware, Chandrasekaran has spent over 20 years at Micron, holding various management positions. Most recently, he led global technology development and engineering focused on scaling memory devices, advanced packaging, and emerging technology solutions. His extensive background encompasses process and equipment development, device technology, and mask technology.

He will replace Keyvan Esfarjani, who is set to retire at the end of the year. Esfarjani, who has served at Intel for nearly 30 years, will remain with the company to assist with the transition. He has made significant contributions to Intel’s global supply chain resilience and manufacturing operations.

On the other hand, in an attempt to narrow down the gap with TSMC, Intel is also said to be recruiting the foundry giant’s senior engineers for its foundry division, according to a report by Commercial Times.

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(Photo credit: Intel)

As the U.S. presidential election approaches, uncertainties also arise. Compared with the stance in President Biden’s term, U.S. presidential candidate Trump shows a remarkably different attitude regarding the “Taiwan issue,” while he highlights the “America First” agenda further.

However, according to a report by Technews, Trump may overlook the fact that Taiwan’s semiconductor is closely tied to shaping the “America First” stance that he values. By standing as a crucial ally in semiconductor, Taiwan could help the U.S. secure a foothold in the arms, AI, and technology race. Without Taiwan’s support, it is hard to say whether U.S. may face the risk of being overtaken by China, as the latter is developing semiconductor at full throttle. Read below for more analysis from Technews:

Intel’s “Five Nodes in Four Years” Roadmap: Details of Intel 20A Still Vague

Let’s look at Intel’s progress first. The tech giant has announced a plan to advance through five nodes in four years (5N4Y), as the latest update includes Intel 14A in its top-tier node strategy.

However, in the chart below, Intel 7, which has been categorized as a mature process, is already being caught up by SMIC’s 7nm and 5nm processes. This is happening despite the U.S.-China trade war, with the U.S. placing SMIC on the entity list and imposing equipment restrictions.

From the perspective of advanced nodes, Intel’s latest Lunar Lake platform will be manufactured with TSMC’s 3nm process this year. In addition, its next-generation Nova Lake processors will also adopt TSMC’s 2nm process, with a potential release date in 2026.

Intel CEO Pat Gelsinger has stated that the first-generation Gate-All-Around (GAA) RibbonFET process, Intel 20A, is expected to launch this year, with Intel 18A anticipated to go into production in the first half of 2025.

However, it is worth noting that Intel 20A was originally reported to be used for Arrow Lake and Lunar Lake processors, but Gelsinger confirmed at COMPUTEX that the latter will use TSMC’s 3nm process, with no mention of Arrow Lake’s progress. The market expects that some Arrow Lake processor orders may be outsourced to TSMC, which also suggests that the progress of Intel 20A may not meet expectations.

On the other hand, SMIC, limited by equipment constraints, has progressed to 7nm but faces delays with 5nm, so it will advance gradually with N+1, N+2, and N+3 processes.

Without Taiwan’s Semiconductor Manufacturing, the AI Computing Power of the U.S. May Eventually Be Caught up by China

Industry experts believe that without Taiwan’s semiconductor manufacturing, it would be difficult for the industry to progress, especially for AI and HPC chips that require significant computing power and advanced processes.

Currently, AI chips primarily adopt TSMC’s 4nm and 3nm nodes and will continue to use the 2nm process in the future. Without TSMC’s technology, the U.S., if it solely relies on Intel for its foundry and capacity, may progress relatively slow in AI computing power, which may make the country eventually lose the AI race with China, falling behind in future commercial and military equipment advantages.

According to a report by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) in December last year, the global semiconductor IC design industry was valued at USD 248 billion in 2022, while integrated device manufacturers (IDM) were valued at USD 412 billion, totaling USD 660 billion. The U.S. accounted for 53% of this value, while Taiwan only accounted for 6%.

On the other hand, the global foundry services in 2022 was valued at USD 139 billion, while the packaging and testing industry was valued at USD 50 billion, totaling USD 190 billion. Taiwan accounted for 63%, while the U.S. only accounted for 8%.

Despite this, the overall semiconductor industry value in the U.S. remains at USD 365 billion, making it the largest beneficiary in the sector. That of Taiwan, on the other hand, is only USD 159 billion, less than one-third of the U.S. total.

Sanctioning Taiwan Would Be “Shooting Oneself in the Foot,” Making the U.S.  Harder to Win the Tech War with China

Regarding government subsidies, China is launching the third phase of its Big Fund, with a registered capital of 344 billion RMB (about USD 47.5 billion), which is significantly higher than the previous two phases. This represents a nationwide effort to invest in semiconductors, with a focus on enhancing semiconductor equipment and the overall supply chain.

The U.S. CHIPS Act, on the other hand, has a scale of USD 52.7 billion, which is comparable to China’s subsidies. However, as technology and arms races are long-term competitions, how related policies may evolve would also be subject to the results of the election.

On the other hand, China is currently working hard to better its semiconductor eco-industrial chain, expand its market share in mature processes, and continue advancing to more advanced process technologies, which may further shorten its gap with the U.S.

As the U.S. IC design sector is closely related to Taiwan’s semiconductor manufacturing technology, Taiwan’s role in the game has become a key factor for the U.S. to maintain its leading edge with China. Without Taiwan’s technological support, the techonological dominance of the U.S. might be threatened, as China’s semiconductor industry has gradually catching up.

According to a report from Nikkei, Japanese government is considering introducing a certain bill to provide guaranteed loans to the government-backed chip startup Rapidus. This measure is expected to help the company attract private investment and reduce its reliance on government subsidies.

Rapidus is reportedly building a plant in Chitose, Hokkaido, with the goal of mass-producing 2-nanometer chips by 2027. Before reaching this milestone, the company may need between JPY 3 trillion and 4 trillion (approximately USD 19 billion to 25 billion) in funding.

Yoshihiro Seki, one of the senior Japanese Liberal Democratic Party (LDP) figures on semiconductor policies, stated that most of this funding would likely come from bank loans, but he acknowledged that seeking loans without any output from Rapidus could deter financial institutions.

Established in August 2022, Rapidus was jointly founded by eight Japanese companies, including Toyota, Sony, NTT, NEC, Softbank, Denso, Kioxia (formerly Toshiba Memory Corporation), and Mitsubishi UFJ, which have collectively invested JPY 7.3 billion per Nikkei. However, this amount is still far short of the funds needed for mass production. 

The Japanese government has pledged to inject JPY 1 trillion into Rapidus. However, Yoshihiro Seki remarked that given Japan’s fiscal situation, it is indeed quite difficult to provide several trillion yen in funding to Rapidus annually. He hopes Rapidus can adapt to the trend and quickly become self-reliant, without depending on government financial aid.

Japanese Prime Minister Fumio Kishida recently visited Rapidus’s plant in Hokkaido and stated that the government would promptly submit a bill to the National Diet to support Rapidus in mass-producing the next generation of semiconductors. Seki revealed that the Japanese government is expected to submit the bill before the autumn session of the Diet.

Japanese law prohibits the government from providing guaranteed loans to specific companies unless the funding benefits the public. In the past, the Japanese government provided loans to Tokyo Electric Power Company (TEPCO) to compensate victims of the Fukushima nuclear disaster.

Some sources cited in Nikkei’s report question Rapidus’ competitiveness and the extent of government aid, as the company’s timeline for producing 2-nanometer chips lags behind major competitors like TSMC and Samsung Electronics by two years. Despite this, Yoshihiro Seki remains confident in Rapidus’s potential for success, citing the anticipated rapid growth of AI applications as one reason for optimism.

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(Photo credit: Rapidus)

As the semiconductor industry continues to advance, it has sparked an arms race among Samsung, Intel, and TSMC in acquiring extreme ultraviolet (EUV) equipment. When asked about when TSMC would adopt the extremely expensive High Numerical Aperture EUV (High-NA EUV) lithography equipment, as per a report from Economic Daily News, TSMC’s Senior Vice President of Business Development and Global Sales at TSMC, Kevin Zhang, also revealed his insight regarding the matter in an interview.

Reportedly, High-NA EUV machines are priced as high as USD 380 million each, more than double the cost of regular EUV machines. Samsung and Intel have already invested heavily, purchasing several High-NA EUV machines ahead of TSMC, hoping to gain a competitive edge through more advanced equipment.

Industry sources cited by the report point out that Kevin Zhang did not reveal the exact timeline for TSMC’s purchase of High-NA EUV, indicating that TSMC is confident and will not blindly expand its procurement just because competitors have made early purchases. Instead, TSMC will continue to strategically plan its advanced manufacturing processes, steadily preparing to meet upcoming challenges.

Youtube channel TechTechPotato recently uploaded a 29-minute interview with Kevin Zhang. During the interview, Zhang emphasized that TSMC was the very first in terms of bringing EUV into high-volume manufacturing as early as the 7nm generation.

Zhang pointed out that TSMC currently leads in the usage, mass production, and production efficiency of EUV technology. Zhang also mentioned that scalability and manufacturing costs are significant factors to consider. He believes that TSMC’s R&D team will make the best decision regarding when and where to apply the next generation of EUV technology.

Notably, according to a report from The Chosun Daily, it pointed out that TSMC was expected to maximize the capabilities of its existing EUV equipment and utilize them through multi-patterning techniques. Simultaneously, the company was also evaluating the scale at which additional equipment may be introduced.

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(Photo credit: ASML)

Recently, it was reported that Huawei filed a patent infringement lawsuit against MediaTek in a Chinese local court. According to a report from TechNews, in response, MediaTek and its subsidiaries, HFI Innovation and MTK Wireless, have initiated countermeasures by filing a lawsuit against Huawei in a UK court, accusing Huawei of patent infringement.

MediaTek has stated that the case against Huawei is now in the judicial process and has declined to comment further. On the other hand, Huawei has not publicly responded to the matter.

A report from Chinese media outlet YiCai further cited sources, revealing that the dispute between MediaTek and Huawei over patent fees has been continuing for two to three years, yet the two parties are still unable to reach an agreement due to pricing issues.

On July 18, a report from Nikkei indicated that Huawei had filed a patent infringement lawsuit against MediaTek in a Chinese local court, drawing industry attention. On July 19, MediaTek issued an announcement stating that the lawsuit has no significant impact on the company, that it has entered the judicial process, and that the company will not comment further.

Industry sources cited by TechNews further suggest that Huawei’s lawsuit against MediaTek for patent infringement likely involves 5G (and possibly 4G, 3G, etc.) cellular network mobile communication technology. Reportedly, the reason for the lawsuit is that Huawei proposed a corresponding fee to MediaTek based on terminal patent licensing prices, but MediaTek considered the price too high, leading to the impasse.

Notably, both Huawei and MediaTek hold a large number of related patents. As of the end of 2022, Huawei possessed over 120,000 validly authorized patents worldwide. According to another report from YiCai, it owns 20% of the world’s 5G and Wi-Fi 6 patents, 10% of 4G patents, and 15% of NB-IoT and LTE-M patents.

As for MediaTek, it held over 13,000 patents globally by the end of 2022, with 1,200 patents granted in that year alone. These figures only include granted patents, excluding pending applications. Additionally, MediaTek ranks first among Taiwanese companies in the number of global patents for 5G, Wi-Fi, and HEVC/VVC technologies.

Industry sources cited by the Commercial Times also note that in recent years, China’s technological capabilities have significantly improved, and companies have been actively applying for patents domestically and internationally. With the support of the Chinese government, they have also started to frequently engage in patent litigation. Last year, Chinese courts received 5,062 technical intellectual property and monopoly cases.

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(Photo credit: MediaTek)