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

Due to various construction and chip incentive factors, TSMC announced in 2023 that the commissioning of Fab 21 (Fab 1) in Arizona, originally planned for 2024, was postponed to 2025. In January 2024, it was further announced that Fab 2 (originally scheduled to commence operations in 2026) would not begin mass production until 2027 or 2028.

According to the latest information released by TSMC, Arizona’s first fab is on track to begin production leveraging 4nm technology in first half of 2025. The second fab will produce the world’s most advanced 2nm process technology with next-generation nanosheet transistors in addition to the previously announced 3nm technology, with production beginning in 2028.

The third fab will produce chips using 2nm or more advanced processes, with production beginning by the end of the decade. Each of the three fabs, like all of TSMC’s advanced fabs, will have cleanroom area approximately double the size of an industry standard logic fab.

TSMC’s confirmation of plans to build a third fab in Arizona signifies its move towards more advanced semiconductor production in the United States. However, based on the current construction progress in the U.S., market estimates suggest that mass production may not begin until after 2030.

“The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Dr. Mark Liu.

“Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”

“We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models,” said TSMC CEO Dr. C.C. Wei.

“They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”

This market news emerged shortly after the major earthquake in Hualien, Taiwan, leading to speculation within the industry about its connection to the earthquake. Nevertheless, according to industry sources, the recent news about the Fab 3 project in Arizona was not triggered by the recent earthquake but was actually finalized by TSMC after discussions with the U.S. government on future plans.

Read more

• [News] TSMC’s Latest Statement Indicates Equipment Largely Recovered, Revenue Forecast Unchanged
• [News] TSMC’s US Fab Reportedly Eyeing for Early Mass Production

(Photo credit: TSMC)

Currently, the global foldable phone market is dominated by non-Apple players, with Samsung and Huawei acting as the key players, continuously expanding their related product lines. Although Apple has yet to debut any foldable hardware, rumors cited by a report from Economic Daily News suggest they are actively working to catch up by accelerating product development.

Sources cited by the same report suggest that Apple is highly likely to launch its first foldable hardware product either this year or next year, potentially signaling a shift to a three-way competition in the foldable phone market.

Currently, Samsung and Huawei collectively hold over 80% of the global foldable phone market share, making them highly influential in the market. Industry sources cited by the report believe that with Apple entering the foldable phone market, a reshuffle is inevitable, offering consumers not only more product choices but also potentially lower prices compared to the current landscape.

It is reported that in the past, most foldable phones were priced starting at USD 1,000, with some flagship models even priced at USD 1,500. With Samsung and Huawei potentially introducing more affordable foldable phones this year, it is expected that foldable phones priced below USD 1,000 will become increasingly common in the future.

Industry sources cited by the same report point out that the battleground for mobile phone brands will still be in flagship models, as the specifications and features of flagship phones determine the technological prowess of the brand. Therefore, whether it’s Samsung, Huawei, or even Apple, they will all compete vigorously in this market.

The market for budget-friendly phones is currently not well-defined and is primarily in the early stages of development, focused on testing the waters. It is estimated that it will take another two to three years for this market segment to become more stable.

Same sources cited by the report suggest that with Samsung and Huawei continuously investing in the foldable phone market, Apple is pressured to launch a foldable phone to keep up and not fall behind. However, the biggest challenge lies in how Apple can launch a foldable phone later but still seize the initiative, potentially attracting loyal Apple fans without affecting the sales of existing iPhone models.

According to the analysis released by TrendForce in the second half of last year, Apple’s development in the folding field still requires time. Apple’s foray into foldables has been tepid, to say the least.

Yet, Apple’s unwavering obsession with user experience could be the culprit. Furthermore, persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back.

But here’s the kicker: Achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. Could this mean Apple might leapfrog right into medium-sized foldable products—like laptops or tablets? Only time will tell.

Read more

• [News] Is a Foldable iPhone on the Horizon? Samsung Display’s ‘Apple Team’ Strengthening Spurs Speculation

(Photo credit: Apple)

As TSMC’s earnings call approaches on April 18th, according to a source cited in a report from Commercial Times, it has predicted a downturn in the smartphone industry as it enters a slow season. However, TSMC is reportedly benefiting from AI demand, bolstering its operations through HPC (High-Performance Computing). Additionally, the increasing revenue share from the 3nm process is expected to contribute positively to performance in the second quarter.

TSMC has issued updates for three consecutive days, indicating that the overall recovery rate of its fabs has exceeded 80%. They reiterated their annual performance outlook from January’s earnings call, forecasting revenue growth in the low-to-mid twenties percentage range for the full year. Notably, in the fourth quarter of last year, the revenue share from high-performance computing matched that of smartphones, both reaching 43%, serving as dual engines for operational growth.

The same report, citing sources, indicates that TSMC’s advanced process technology and yield rates lead the industry, making it the primary foundry choice for most global customers.

Based on overall market share, TrendForce’s latest report reveals that in 2023, global foundry revenues hit US$117.47 billion, with TSMC capturing a dominant 60% share. This figure is expected to climb to around $131.65 billion in 2024, increasing TSMC’s share to 62%. It is also estimated in the report from Commercial Times that TSMC holds a market share of approximately 70-80% in 5nm technology, and this is expected to exceed 90% for 3nm, covering nearly all major players in the market.

TSMC has also emphasized that besides traditional smartphone applications, High-Performance Computing (HPC) is becoming an increasingly important application for their advanced processes. This means that even during the second quarter when demand for smartphone chips is typically lower, it will be supported by HPC demand.

The current major AI accelerators such as NVIDIA’s A100 and H100 GPUs, AMD’s Instinct MI250 and MI300, are all manufactured utilizing TSMC’s 7nm or 5nm nodes, highlighting TSMC’s critical position in the AI industry. Reportedly, as demand for AI-based Generative AI (AIGC) continues to rise, TSMC’s production volume is also expected to increase accordingly.

According to the same report citing sources, TSMC’s utilization rate for its 3nm production remains high and unaffected despite the impact of the recent earthquake on its facilities. TSMC has emphasized that key machines used for advanced processes, including all Extreme Ultraviolet (EUV), were undamaged.

However, in areas where the shaking was more severe, certain production lines are expected to require longer adjustments and calibration to restore automated production. TSMC is conducting a comprehensive review of the impact of this earthquake while maintaining close communication with its customers.

Furthermore, TSMC’s biggest challenge at the moment is how to catch up with customer expansion demands.

The most lacking capacity currently is in CoWoS production. Although TSMC maintains its stance of doubling capacity compared to 2023, market estimates cited in the report indicate that TSMC’s capacity is expected to increase from around 13,000 wafers to 30,000-35,000 wafers. This aligns with what founder Morris Chang described—AI chip demand in the future will no longer be in the tens or hundreds of thousands of wafers but will require the capacity of 3, 5, or even 10 fabs.

Read more

• [News] TSMC’s Latest Statement Indicates Equipment Largely Recovered, Revenue Forecast Unchanged
• [News] Taiwan Hit by 7.2 Magnitude Earthquake: TSMC and Other Semiconductor, Panel Supply Chain Updates

(Photo credit: TSMC)

According to a report from South Korean media outlet TheElec, Samsung’s Advanced Package (AVP) team has reportedly secured an advanced packaging order for NVIDIA’s AI chip, paving the way for future supply of NVIDIA’s high-bandwidth memory (HBM) chips.

The report, citing sources, reveals that Samsung Electronics’ Advanced Packaging team will provide interposer and 2.5D packaging technology for packaging NVIDIA’s AI processors. However, the HBM and GPU chips used in these NVIDIA AI processors will be supplied by others.

2.5D packaging technology enables the horizontal integration of chips like CPUs, GPUs, and HBMs on an interposer. Processors such as NVIDIA’s A100, H100, and Intel’s Gaudi all utilize this technology for packaging.

TSMC’s CoWoS advanced packaging facility utilizes 2.5D packaging technology, while Samsung Electronics employs their iCube technology, which also falls under the category of 2.5D packaging.

Over the past year, Samsung Electronics has been expanding its advanced packaging division by increasing personnel and developing its own interposer technology. They have also procured a large amount of 2.5D packaging equipment from Japanese semiconductor equipment suppliers such as Shinkawa and others.

The same report from TheElec also revealed that in the future, stacking eight HBM chips on a 12-inch wafer will require the use of 16 interposers. Therefore, Samsung Electronics is actively working to increase its silicon interposer production capacity.

Although Samsung Electronics has declined to comment on the rumors regarding NVIDIA’s packaging orders, industry speculation suggests a connection to insufficient capacity at TSMC’s CoWoS, compounded by recent earthquakes in Taiwan potentially further impacting TSMC’s CoWoS capacity. This has led to expectations of future growth in orders for Samsung Electronics’ Advanced Packaging Division.

Samsung Electronics’ plant located in Cheonan, South Korea, is where the company’s Advanced Packaging team is based. Recently, the production capacity at the Cheonan plant has reportedly been ramped up to full utilization, which is believed by industry observers to be one of the possible reasons why Samsung secured NVIDIA’s advanced packaging orders.

Previously reported by The Korea Times, Samsung Co-CEO Kye-Hyun Kyung stated that he expects the results of Samsung’s investment to come out in earnest from the second half of this year.

Kyung further noted that for a future generation of HBM chips called HBM4, likely to be released in 2025 with more customised designs, Samsung will take advantage of having memory chips, chip contract manufacturing and chip design businesses under one roof to satisfy customer needs.

TrendForce’s latest report reveals that in 2023, global foundry revenues hit US$117.47 billion, with TSMC accounting for close to 60% of the market share, while Samsung held approximately 11%.

Read more

• [News] Samsung Reportedly Commits to Advanced Packaging, Targets Over USD100 Million in Related Revenue This Year
• [News] Samsung Accelerates 3D Packaging with Hybrid Bonding Production Line in Korean Advanced Packaging Hub

(Photo credit: Samsung)

According to TechNews, TSMC announced its latest updates on the evening of the 5th, stating that equipment within its Taiwan wafer fabs has largely recovered. The company’s full-year performance outlook, denominated in USD, is expected to remain consistent with the forecast provided during the January earnings call. Annual revenue is projected to grow in the low-to-mid twenties percentage range.

TSMC noted its robust experience and capabilities in earthquake response and disaster prevention, regularly conducting safety drills to ensure preparedness. Within just 10 hours of the earthquake on April 3rd, equipment recovery rates in the wafer fabs exceeded 70%, with newly constructed fabs like Fab 18 surpassing 80% recovery.

As of the 5th, except for certain production lines in areas with greater seismic impact requiring longer adjustment and calibration times to restore automated production, thanks to the concerted efforts of TSMC colleagues and supplier partners, equipment within Taiwan’s wafer fabs has largely recovered.

TSMC emphasized its comprehensive assessment of the earthquake’s impact and continues to maintain close communication with customers, providing timely updates on relevant impacts.

(Photo credit: TSMC)