According to a report from Commercial Times, TSMC’s advanced processes continue to experience strong demand, with major tech companies such as Apple, Qualcomm, NVIDIA, and AMD nearly fully booking TSMC’s 3nm capacity, while the order visibility extends into 2025.

As per the same report, the supply chain of the foundry giant’s 3nm process is also expected to continue the momentum, benefiting companies like Gudeng Precision Industrial (Gudeng), KINIK Company (KINIK), Solar Applied Materials Technology Corp (Solar Applied Materials), YEEDEX and GreenFiltec.

Industry sources cited by the same report indicate that TSMC’s wafer prices for advanced process are expected to see double-digit percentage increases by 2025. Chairman C.C. Wei recently mentioned that TSMC’s wafer pricing is strategic, as values regarding products may differ. The progress in pricing negotiations with customers is “so far so good,” and TSMC is confident about achieving a balance between price and capacity.

A report from Wccftech also suggested that Apple’s upcoming A18 Pro SoC and NVIDIA’s next-generation “Rubin” architecture will both use the 3nm process. Following the widespread adoption of TSMC’s 3nm process, the 3nm supply chain has attracted significant market attention, with expectations for operational boosts in the coming year.

In the semiconductor industry, per the sources cited by Commercial Times, Gudeng has captured about 70% of the market share for EUV POD. As EUV lithography has become a standard in advanced processes, TSMC has been adopting EUV technology starting from the 7nm process node and increasing its usage in later generations. The number of EUV layers used per wafer has been growing, which bodes well for Gudeng as it continues to benefit from this trend.

In the semiconductor sputtering target materials sector, TSMC has traditionally relied on products from international suppliers. However, with a push towards domestic equipment and consumables, Solar Applied Materials entered TSMC’s advanced 7nm process supply chain last year and has now also become a supplier for the 3nm process. Solar Applied Materials’ revenue from semiconductor targets was 4% last year and is expected to reach 10% this year, with a target of 20% by 2026, according to the report.

YEEDEX specializes in supplying components for the front-end processes, such as precision vaccum chucks for EUV equipment. As the industry moves to 3nm processes, wafer thinness increases, making precision vaccum chucks crucial for improving yield rates.

GreenFiltec specializes in extractable chemical filters and AMC Micro Pollution Control services. Through innovative material research and development for filters, GreenFiltec prevents invisible gas molecules from settling in the air. These filters are key consumables for cost control and yield improvement. In the domestic advanced process market, GreenFiltec has captured over 50% of the market share, and its operations are expected to benefit similarly next year, the report noted.

KINIK produces reclaimed wafers and diamond discs. Its high-spec diamond disc products have gained continuous and expanded adoption from major clients, achieving over 70% market share in the 3nm segment. The sources cited by Commercial Times expect that as major clients’ 3nm production capacity reaches full utilization, KINIK’s performance will significantly improve starting next year.

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(Photo credit: TSMC)

According to a report from UDN, China’s largest semiconductor packaging and testing company, JCET, has completed the planning and verification work for the first phase of the “JCET Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Project.”

The project will soon be completed and put into production. Once operational, it will have an annual production capacity of 6 billion high-end advanced packaging chips, providing one-stop services from collaborative packaging design to chip production for 5G, artificial intelligence, and other applications.

As per WeChat account DRAMeXchange citing sources, the project is a major industrial initiative in Jiangsu Province, China, with a total investment of CNY 10 billion. Upon completion of the first phase, the project will have an annual production capacity of 6 billion high-end advanced packaging chips.

The project will focus on leading-edge high-performance packaging technologies, such as 2.5D/3D high-density wafer-level packaging. JCET Microelectronics commenced construction of its new plant in the eastern part of Jiangyin City on July 29, 2022, with the project expected to be completed and put into production between June and July 2024.

At the groundbreaking ceremony in 2022, JCET CEO Zheng Li stated that this project will represent the highest production technology level and largest single-investment smart manufacturing project in China’s integrated circuit packaging and testing and chip manufacturing industry. Thus, it will support end applications such as 5G, artificial intelligence, the Internet of Things, and automotive electronics, covering key strategic customers worldwide.

This project, per Li, will further enhance JCET’s global market competitiveness in the chip manufacturing sector, aiming to achieve a higher industrial position in the global integrated circuit industry.

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(Photo credit: JCET Group)

With the U.S.-China tech war heating up as the U.S. election approaches, industry sources cited by the Economic Daily News report that Chinese IC design companies are rushing to place more orders with TSMC for chip production using advanced processes before the U.S. potentially imposes stricter control policies. At the same time, they are initiating a backup plan by shifting orders to Samsung for chips manufactured with advanced nodes to avoid potential future U.S. bans on Chinese companies using Taiwanese foundries.

As a result, Samsung is becoming a beneficiary of the escalating U.S.-China tech conflict, sparking a new round of competition for orders with TSMC. As of the deadline for this report, TSMC has not responded to these rumors.

Per TSMC’s second-quarter financial report, the revenue proportion from China increased significantly from 9% in the first quarter to 16% in the second quarter. This surpasses other Asia-Pacific regions, making China the second-largest source of revenue after North America, which accounts for 65%.

The same report cites sources indicating that the increase in TSMC’s revenue share from China last quarter is likely due to Chinese IC design companies sensing potential future U.S. pressure that could prevent them from placing orders with TSMC.

As a result, these companies have been placing larger orders in advance to stockpile chips, similar to the situation previously seen when Huawei’s HiSilicon placed massive orders with TSMC to stockpile chips just before being blacklisted by the U.S.

It is understood that although the related Chinese IC companies may not using the most advanced processes, they are employing relatively advanced processes, which have been developed over several years, and applied in areas such as ADAS, mobile phones, and high-speed computing. Recently, these customers have continued to place orders with TSMC and have also begun evaluating backup plan, which involves switching orders to Samsung.

Sources cited by the report also pointed out that while Chinese IC design houses would like to diversify risks regarding the relatively advanced nodes by placing orders with companies other than TSMC, they may not be allowed to collaborate with Intel. This is why Samsung may emerge as an option.

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• [News] TSMC Reportedly Received Urgent Orders from Chinese Clients, as They Offered to Pay up to 40% Extra
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(Photo credit: TSMC)

South Korean memory giant SK hynix, after announcing soaring financial results in Q2 and its massive investment in Yongin Semiconductor Cluster last week, is now reportedly considering another move: US IPO for its Solidigm subsidiary.

According to the reports by Blocks & Files and Korea media outlet Hankyung, Solidigm has achieved its first profit after 12 consecutive quarters of losses. On July 25^th, SK hynix announced second-quarter revenue of 16.42 trillion Korean won, a 125% year-on-year increase, setting a historical record. At the same time, profits reached their highest level since 2018. This was mainly due to strong demand for AI memory, including HBM, and overall price increases for DRAM and NAND products.

The reports stated that the rumor regarding the U.S. IPO seems to be plausible, as SK hynix had previously planned to spin off Solidigm, and the company’s recent rebound makes such a move more feasible. In addition, an IPO for Solidigm would allow SK hynix to obtain cash for part of its stake in the company and assist in covering the planned capital expenditures, according to the reports.

The company had just announced an ambitious plan of expanding its memory manufacturing capacity with an approximately 9.4 trillion won (USD 6.8 billion) investment to build an HBM fabrication plant at the Yongin Semiconductor Cluster, Korea. Construction of the fab will begin in March 2025 and is expected to be completed by May 2027. Following this, SK Hynix intends to add three more plants to the cluster.

However, the reports also pointed out that SK hynix’s success in this venture will likely depend on how the new organization is structured—such as which assets are included in Solidigm versus those retained by SK hynix—and how both entities address future technology plans. This is particularly important considering that the current roadmap for the memory giant’s NAND business at Dalian, China, including the QLC components that have contributed to Solidigm’s recent success in high-capacity enterprise SSDs, appears to conclude at 196 layers.

In 2020, SK hynix acquired Intel’s NAND and SSD division through a two-phase deal. The first phase involved the former purchasing Intel’s SSD business and NAND fabrication plant in Dalian, China, for USD 7 billion. The second phase will see SK hynix pay Intel an additional USD 2 billion in 2025 for intellectual property related to NAND flash wafer manufacturing and design, as well as for R&D employees and the Dalian fab workforce. SK hynix named the acquired business Solidigm in December, 2021, and has since developed and launched a few successful products, including the D5-P5336 61.44 TB QLC (4 bits/cell) SSD, the reports noted.

Regarding the rumor, SK hynix clarifies that Solidigm is exploring various growth strategies, but no decision has been made at this time.

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• [News] SK hynix Approves USD 6.8 Billion Investment for its First Fab in Yongin, Targeting Next-gen DRAMs
• [News] Battle between Memory Giants Heats up in 2H24 as Samsung and SK hynix Advance in HBM3/ HBM3e

(Photo credit: Solidigm)

TSMC announced last year that it would build a plant in Dresden, Germany. The plant is originally expected to break ground as early as Q4 this year, but now it may start sooner. According to a report from Deutsche Welle, TSMC’s Dresden plant will begin construction within a few weeks, which means it will start this fall, aligning with the company’s previously announced timeline.

The TSMC Germany plant was initially scheduled to begin construction in the second half of 2024 and to start production by late 2027. The new plant is expected to create approximately 2,000 direct high-tech jobs. TSMC will hold a 70% stake in the plant, with Bosch, Infineon, and NXP each holding 10% stakes, and TSMC will operate the facility. The EU and the German government are subsidizing about half of the plant’s investment.

To ensure the plant can commence production smoothly in 2027, the city of Dresden is investing EUR 250 million to build an industrial water supply system and enhance the reliability of the local power grid.

The TSMC Germany plant is expected to use 28/22nm planar CMOS and 16/12nm FinFET process technologies, with a monthly production capacity of approximately 40,000 300mm (12-inch) wafers.

On the other hand, another global semiconductor giant, Intel, was said to have delayed its construction of Fab 29.1 and 29.2 in Magdeburg, Germany, as the new timeline pushed the start of construction to May 2025, according to a report by Tom’s Hardware, citing German media outlet Volksstimme.

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• [News] TSMC Maintains Overseas Expansion Strategy, Unfazed by Geopolitical Disruptions
• [News] Intel’s 1nm-class Fabs in Germany Reportedly Delayed Due to Black Soil Concerns and Pending EU Subsidy Approval

(Photo credit: TSMC)