As China keeps reducing its reliance on the global semiconductor supply chain with strong support from the authority, two major smartphone manufacturers reportedly claim to have already taped out their own 4nm mobile processors. According to the reports by Liberty Times and Commercial Times, Xiaomi and Unisoc, by using foreign IP cores from ARM and IMG, have successfully taped out domestic 4nm chips.

According to the latest data from TrendForce, Xiaomi (including Xiaomi, Redmi, and Poco) has moved past last year’s high inventory issues, achieving a total production of 41.1 million units in the first quarter and ranking third globally in market share, only after Samsung and Apple. Oppo, Transsion and Vivo are the other three Chinese smartphone brands having made it to the top six regarding global shipments.

Shanghai-based fabless chip firm Unisoc, on the other hand, is specialized in areas including 2G/3G/4G/5G, Wi-Fi, Bluetooth, TV FM, satellite communications and other related technologies, according to its website.

Citing comments from Chinese tech blogger “Oneline Technology,” the reports point out that Xiaomi’s self-developed chip has made a significant leap forward, while the performance of its 4nm chip is similar to that of Huawei’s Kirin 9000s, and is expected to be seen this year. Huawei’s Kirin 9000s is reportedly manufactured by SMIC’s 7nm.

Citing another Chinese blogger, “Fixed Focus Digital,” the reports mention that Unisoc’s 4nm chip has already taped out, achieving performance levels comparable to Qualcomm’s Snapdragon 888.

Regarding the timeline for Chinese domestically produced smartphone SoCs to reach 4nm, the reports, citing industry insiders, state that it is more likely to happen in 2026. For now, MediaTek and Qualcomm still dominate Chinese’s smartphone chip market.

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• Q1 Smartphone Production Increases Due to Low Base Last Year, Expected to Decline 5–10% in Q2, Says TrendForce

(Photo credit: Unisoc)

According to a report from Nikkei citing sources, TSMC is developing a new advanced chip packaging technology that uses rectangular panel-like substrates, rather than the traditional circular wafers currently in use.

This technology allows for more chips to be placed on a single substrate, addressing the future demand trends driven by AI. Although the research is still in its early stages and may take several years to reach mass production, it represents a significant technological shift for TSMC, the report notes.

Reportedly, TSMC is currently experimenting with rectangular substrates measuring 515 mm by 510 mm, providing more than three times the usable area compared to the current 12-inch wafers, and therefore can better suit the demand for AI chipsets.

In response to Nikkei’s inquiry, TSMC stated that the company is closely monitoring advancements and developments in advanced packaging technologies, including panel-level packaging.

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• [News] TSMC Advanced Packaging Crucial for AI Computing Power

(Photo credit: TSMC)

According to a report from Nikkei citing sources, memory giant Micron Technology is building a pilot production line for advanced high-bandwidth memory (HBM) in the United States and is considering producing HBM in Malaysia for the first time to capture more demand from the AI boom.

Reported on June 19, Micron is said to be expanding its HBM-related R&D facilities at its headquarters in Boise, Idaho, which include production and verification lines. Additionally, Micron is considering establishing HBM production capacity in Malaysia, where it already operates chip testing and assembly plants.

Nikkei’s report further noted that Micron’s largest HBM production facility is located in Taichung, Taiwan, where expansion efforts are also underway. Micron is said to have set a goal to triple its HBM market share to 24-26% by the end of 2025, which would bring it close to its traditional DRAM market share of approximately 23-25%.

Earlier this month, a report from a Japanese media outlet The Daily Industrial News also indicated that Micron planned to build a new DRAM plant in Hiroshima, with construction scheduled to begin in early 2026 and aiming for completion of plant buildings and first tool-in by the end of 2027.

Per industry sources cited by TechNews, Micron is expected to invest between JPY 600 to 800 billion in the new facility, located adjacent to the existing Fab15 facility. Initially, the new plant will focus on DRAM production, excluding backend packaging and testing, with a capacity emphasis on HBM products.

Micron, along with SK Hynix, has reportedly received certification from NVIDIA to produce HBM3e for the AI chip “H200.” Samsung Electronics has not yet received approval from NVIDIA; its less advanced HBM3 and HBM2e are currently primarily supplied to AMD, Google, and Amazon.

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• [News] HBM Supply Shortage Prompts Micron’s Expansion, Expected Schedule in Japan and Taiwan Revealed
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)

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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• [News] Intel CEO Gelsinger Unveils Lunar Lake Processors, Giving Credit to TSMC
• [News] CoWoS Booming, TSMC Price Hikes Reportedly Imminent

(Photo credit: Intel)

According to a report from Reuters on June 19, to further restrict China’s semiconductor industry and prevent the use of semiconductor manufacturing equipment in military applications, Alan Estevez, the U.S. Commerce Department’s Under Secretary for Industry and Security, will visit the Netherlands and Japan.

Reportedly, Estevez will visit the Netherlands and Japan, with the primary objective of further limiting China’s ability to manufacture advanced semiconductors and preventing China from using chip manufacturing equipment to enhance its military capabilities. Additionally, the U.S. may add another 11 Chinese chip companies to the restricted list.

Sources cited by the report indicate that this move includes limiting the activities of equipment suppliers such as ASML and Japan’s Tokyo Electron in the Chinese market. Special attention will be given to Chinese chip manufacturers developing high-bandwidth memory (HBM) chips.

The report from also states that in July 2023, to align with U.S. government policies aimed at curbing China’s technological advancements, Japan, home to several chip equipment manufacturers like Nikon and Tokyo Electron, imposed restrictions on the export of 23 types of machinery to China. These machines range from those used for depositing thin films on silicon wafers to etching micro-integrated circuits. Similarly, the U.S. has imposed related restrictions on American companies such as Applied Materials and Lam Research.

Following Japan, the Dutch government also restricted ASML from exporting deep ultraviolet (DUV) lithography machines to China. The U.S. has not allowed some Chinese foundries to purchase additional advanced DUV machines. Prior to this, ASML had already ceased the export of even more advanced extreme ultraviolet (EUV) lithography machines to China.

With the Netherlands imposing new restrictions on the export of advanced chip manufacturing equipment effective from January, ASML previously announced that starting from 2024, they would not be able to ship NXT:2000i and higher DUV lithography equipment to China.

Equipment below NXT:2000i, including NXT:1970i and NXT:1980i, would also be restricted from shipment to advanced process fabs in China. ASML’s Chief Financial Officer, Roger Dassen, anticipated that this will impact 10% to 15% of sales in the Chinese market in 2024.

On the other hand, it has been reported that the U.S. government is in discussions with its allies about adding another 11 Chinese chip manufacturers to the blacklist. During a visit to the Netherlands in April this year, U.S. officials attempted to prevent ASML from continuing to provide maintenance services for equipment used in China. However, since ASML’s service contracts with Chinese customers are still valid and the Dutch government lacks the extraterritorial authority to terminate these contracts, this effort faced significant challenges.

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• [News] Strengthening Controls on Semiconductor Equipment Exports to China, Japan Reportedly Tightens Export Control Measures Further
• [News] ASML Reports Partial Revocation of Export Licenses for DUV Equipment

(Photo credit: iStock)