According to a report by the Economic Daily News, TSMC’s first high numerical aperture extreme ultraviolet lithography (High-NA EUV) equipment will arrive this month, aiding the company in progressing its advanced process technology.

Regarding these rumors, ASML stated on September 9 that it does not comment on individual customers. TSMC has also declined to respond to market speculation.

The report has cited industry rumors, pointing out that TSMC’s first High-NA EUV machine is expected to be moved to its Global R&D Center for research purposes, addressing the development needs of future advanced processes like A14.

As for pricing, it’s reportedly rumored that TSMC President C.C. Wei personally negotiated a favorable deal, reducing the overall price by nearly 20% through a combination of purchasing the new equipment while also selling older models.

The same report further suggests that the High-NA EUV is priced at over EUR 400 million. Due to the inability to disassemble the optical lens components, the equipment is taller than a conference room and significantly longer than the previous generation. 

The report, quoting statistics, claiming that TSMC is currently the world’s largest holder of extreme ultraviolet (EUV) lithography systems, estimated to account for 65% of the global EUV wafer equipment output. It was also said to be the first manufacturer to introduce EUV equipment into the 7nm process.

ASML has already received orders for next-generation products from all of its EUV equipment customers.

Greet Storms, ASML’s Vice President of High NA EUV Product Management, recently stated that ASML is advancing new technologies and has gained the support of all EUV customers during the R&D phase.

She addressed that, these customers, who have also placed orders for High-NA equipment, are expected to move toward mass production by 2026, although the timeline will ultimately depend on customer process costs and other factors.

ASML had previously confirmed that it will deliver its latest High-NA EUV to TSMC by the end of this year. ASML emphasized that the next-generation EUV equipment began shipping at the end of last year, with a capacity to expose over 185 wafers per hour.

This will support mass production of sub-2nm logic chips and memories with similar transistor densities.

Read more

• [News] ASML’s Second High-NA Equipment to be Installed in Intel’s Oregon Fab Soon
• [News] Price for ASML’s Hyper-NA EUV Rumored to Double, Causing TSMC, Samsung and Intel to Hesitate

(Photo credit: ASML)

As per a report from Bloomberg citing sources, it’s pointed out that TSMC’s first US fab in Arizona began producing engineering wafers using the 4nm process in April, with yields reportedly comparable to those manufactured in its Southern Taiwan Science Park facility, showing promise in meeting its targets.

Addressing on the matter, TSMC reportedly stated that the project is proceeding as planned and is making good progress, without further commenting on the yield.

TSMC plans to build three plants in Arizona, each with cleanroom spaces twice the size of typical logic fabs in the industry. The first fab is expected to begin mass production in the first half of 2025.

TSMC’s second fab in Arizona will use 2nm process technology to meet strong AI-related demand, with production expected to begin in 2028. The third fab will employ 2nm or even more advanced process.

TSMC stated that once the fabs are fully operational, they will deliver the same level of manufacturing quality and reliability in Arizona as is provided in its Taiwan facilities.

The U.S. government officially announced in April that it will provide a USD 6.6 billion subsidy to TSMC, and confirmed that TSMC will build its third fab in Arizona, USA, with total investment rising to USD 65 billion.

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(Photo credit: TSMC)

Intel has outsourced the production of its Lunar Lake processors to TSMC. According to a report from Commercial Times, due to recent setbacks in Intel’s wafer foundry business, the company has decided to outsource all sub-3nm process manufacturing to TSMC.

The company is also said to be implementing a global 15% workforce reduction plan in an effort to reverse its decline. However, industry sources also reveal that the layoffs are primarily targeting the foundry business, while Intel’s Taiwan branch remains unaffected to maintain production partnerships with local chip manufacturers.

Intel remains committed to its wafer foundry business, as it reportedly released the 18A process design kit (PDK) to IC manufacturers in July.

However, recent reports indicate that Broadcom has expressed concerns about the feasibility of Intel’s 18A process, concluding that it is not suitable for mass production. A Broadcom spokesperson cited by the report has indicated that it is currently evaluating Intel Foundry Services’ products and services, though no final assessment has been reached yet.

Industry sources cited by Commercial Times further note that Broadcom has been collaborating with TSMC for many years, particularly in advanced processes below 7nm, positioning itself as a key player and securing a spot among TSMC’s top ten customers.

Looking at Intel’s latest quarterly report, its foundry business posted a loss of USD 2.8 billion, with an operating profit margin of -65.5%. The company acknowledged that the ongoing expansion of its Intel 4 and Intel 3 facilities in Ireland, along with increased R&D and startup costs for advancing its technology development, will impact profitability.

This has thus underscored the significant challenges Intel faced in achieving both technological breakthroughs and mass production in the semiconductor industry.

Intel is cutting costs and driving efficiency while actively pursuing transformation. The company aims to save USD 10 billion by 2025, even halted dividend payments—a move not seen in 30 years.

Additionally, its global expansion efforts have slowed. As per a recent report from Malaysian media outlet The Star, citing informed sources, it’s reported that Intel will temporarily halt its new chip packaging and testing project in Penang as part of cost-cutting efforts.

Read more

• [News] Amidst Rumors of Germany Plant Delay, Intel’s Penang Project Also Reportedly on Hold
• [News] Intel’s 18A Reportedly Runs into Trouble with Broadcom, while 20A Plan on Arrow Lake Cancelled

(Photo credit: Intel)

To counter the U.S.’s ongoing semiconductor restrictions launched the U.S., China has outspent the U.S., South Korea, Japan, and Taiwan combined on chip manufacturing equipment in the first half of this year.

However, sources cited by a report from Commercial Times have warned that China’s excessive investment could soon lead to global overcapacity issues in traditional chip production, which is similar to the oversupply problems seen in the electric vehicle and solar energy sectors in recent years.

Per the data cited by CNBC from the Semiconductor Equipment and Materials International (SEMI), China spent USD 24.73 billion on chip manufacturing equipment in the first half of 2024, surpassing the combined USD 23.68 billion spent by the U.S., South Korea, Japan, and Taiwan during the same period. This surge in spending is driven by China’s efforts to achieve semiconductor self-sufficiency amid U.S.-China tensions.

The report further notes that since the U.S. implemented stricter export restrictions in October 2022, Chinese companies have been rapidly accelerating their procurement. SEMI data suggests that China’s total procurement this year is expected to exceed USD 35 billion.

Citing Clark Tseng, Senior Director at SEMI, the report indicated that the current equipment stockpiling trend may continue into the second half of this year and is expected to ease only by 2025 as companies work to absorb excess capacity.

Citing Alex Capri, a Senior Lecturer at the National University of Singapore and Research Fellow at the Hinrich Foundation, CNBC pointed out that Chinese companies are preemptively stockpiling chip manufacturing equipment in response to the risk of further export restrictions from Washington before the U.S. presidential election.

Capri highlighted that as China is making smooth progress in traditional chip production, the world might soon face an oversupply of traditional chips, similar to the overcapacity issues seen in electric vehicles and solar panels.

As a result, companies outside China could struggle to compete in the sector with lower-priced products from Chinese companies.

A previous report from Bloomberg pointed out that China has thus become the largest market by revenue for top global chip equipment suppliers. The latest quarterly financial reports from companies such as Applied Materials, Lam Research, and KLA show that China contributes approximately 40% of their revenue.

For Japanese company TEL and Dutch company ASML, the contribution from the Chinese market is even more significant, with nearly half of their revenue coming from China.

Read more

• [News] China’s 1H24 Chip Equipment Purchases Exceed Taiwan, Korea, and US Combined, Reaching USD 25 Billion
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(Photo credit: SMIC)

According to Reuters citing sources, Intel, facing a critical survival crisis, has temporarily halted its new chip packaging and testing project in Penang.

Malaysian media outlet The Star, citing informed sources, reported that Intel will temporarily halt its new chip packaging and testing project in Penang as part of cost-cutting efforts. However, the operations of existing facilities will remain unaffected.

The U.S. chip giant had announced three years ago that it would invest approximately USD 7 billion to build new chip packaging and testing facilities in Malaysia, looking to make it its largest overseas packaging and testing base.

Facing what is described as the most challenging period in its 56-year history, Intel is making drastic survival moves, including suspending dividend payments and laying off 15% of its global workforce to significantly reduce expenses.

Per The Star, Intel employs around 14,000 people in Malaysia, meaning over 2,000 local employees may face the risk of job loss.

Three weeks ago, Penang Chief Minister Chow Kon Yeow stated that Intel would continue its expansion plans in Penang, though he admitted that Intel’s USD 10 billion cost-cutting initiative would inevitably impact its operations in the region.

The Star cited sources, pointing out that Intel has been reassessing its investment projects in Malaysia. While construction at its new facility in Penang is still ongoing, the number of workers has been reduced.

Read more

• [News] Intel’s 18A Reportedly Runs into Trouble with Broadcom, while 20A Plan on Arrow Lake Cancelled
• [News] Intel Reportedly Considering Foundry Spin-Off or Merger to Mitigate Losses

(Photo credit: Intel)