Applied Materials, the largest US semiconductor equipment manufacturer, has received subpoenas from the US Securities and Exchange Commission as well as the US Attorney’s Office of the District of Massachusetts in February, according to the latest report by Reuters.

Citing sources familiar with the matter, the report noted that Applied Materials is currently under investigation for allegedly sending equipment to SMIC, China’s leading chip maker, through South Korea without export licenses.

Previously, in November 2023, the semiconductor heavyweight received a subpoena from the US Commerce Department, requesting the company to provide information regarding specific shipments to Chinese customers, according to Reuters.

According to the financial report Applied Materials released in mid-May, China contributed 43% of its total revenue in the second quarter, while the country marked a 21% revenue share a year ago, showing a significant increase. On the other hand, Taiwanese and Korean markets contributed 15% of its total revenue, respectively, while the US market contributed 13%.

Recently, the U.S. government has been tightening sanctions on companies regarding their exports to China, in order to hinder the country from getting access to advanced technologies. In early May, the U.S. administration revoked the licenses of Intel and Qualcomm to supply semiconductor chips used in laptops and handsets to Huawei.

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)