Ahead of AMD’s October launch of Instinct MI325X, the U.S. chip giant is said to have several issues with its laptop OEMs, which results in poor execution, a report by Tom’s Hardware notes. Citing remarks from analysts, the report describes the two parties’ relation now as a “Cold War ice age,” hurting their mutual trust.

The report, citing AC Analysis, says that the main contradiction arises from AMD’s current strategy of prioritizing enterprise chips over consumer products, with laptop OEMs complaining about the “miscommunication, unfulfilled promises, and generally poor treatment.” The situation, according to them, is similar to Intel’s behavior during its peak years.

It is interesting to note that the situation seems to coincide with AMD CEO Lisa Su’s recent exclamation that AMD is a “data center-first company,” as data center contributed to over 50% of the company’s revenue last quarter.

Another report by German media outlet ComputerBase also reports that AMD is still suffering from the same challenges it has had in the past. For instance, problems with supply and related issues have delayed the release of new Strix Point laptops. According to ComputerBase, one source even accused AMD of probably leaving billions of US dollars on the table with its partners over the years.

Tom’s Hardware observes that due to the aforementioned reasons, the reaction of AMD’s Strix Point chips among OEMs has been somewhat tepid, despite consumer interest.

The report notes that currently, BestBuy offers only three brands with AMD’s latest chips—Asus, HP, and MSI. HP and MSI each have one model, while Asus has 13 models featuring the AMD Ryzen AI 300 series chip.

This is in sharp contrast with Qualcomm, the report notes. Even the company is a latecomer in the laptop market, the smartphone chip giant’s launch of the Snapdragon X processor generated significant excitement among both the public and laptop manufacturers, as seven brands have already released 12 different models featuring the new Arm chip.

AMD is also lagging behind its rival Intel, which still dominates the laptop market despite its recent slump. According to Intel, its Lunar Lake, manufactured with TSMC’s 3nm, is expected to power more than 80 new laptop designs across more than 20 original equipment manufacturers, delivering AI performance at a global scale for Copilot+ PCs.

Read more

• [News] AMD MI325X Reported to Debut in October, Claiming AI Supercycle Has Just Started
• [News] AMD Could Emerge as a Prospective Buyer for Intel’s Potential Sale of Altera

(Photo credit: AMD)

Weekly Market Review:

Last week, a rebound in technology stocks propelled the S&P 500 to a 4% gain, positioning it to once again challenge historical highs. U.S. 2-year and 10-year Treasury yields continued to decline, reflecting expectations of Federal Reserve rate cuts, and the spread between the 10-year and 2-year Treasury yields widened to approximately 10 basis points. Meanwhile, the U.S. Dollar Index fluctuated around the 101 level.

Key Economic Data Review:

China CPI: China’s Consumer Price Index (CPI) increased by 0.6% year-over-year in July (previous: 0.5%). The rise in August was similarly influenced by extreme weather conditions, which drove food prices higher. Excluding food and energy, the core CPI stood at 0.3% (previous: 0.4%). Regarding the Producer Price Index (PPI), August’s PPI decreased by 1.8% year-over-year (previous: -0.8%), marking the 23rd consecutive month of decline. This indicates that deflationary pressures in China are persisting and showing signs of intensification.

Read more at Datatrack

United States CPI: U.S. CPI increased by 2.5% year-over-year in August (previous 2.9%), with a monthly rise of 0.2% (same as the previous 0.2%). Breaking down the components, the year-over-year growth rate of housing services prices rebounded to 5.2% in August (previous: 5.1%). However, due to energy prices declining by 4% year-over-year (previous: +1.1%) pulled the overall CPI lower. Core CPI remained steady at 3.2% year-over-year (same as the previous 3.2%), with a monthly increase of 0.3% (previous 0.2%). Both CPI and core CPI annual growth rates were the lowest since February 2021.

Read more at Datatrack

Eurozone Monetary Policy: In its September policy meeting, the European Central Bank (ECB) decided to cut the deposit facility rate by 25 basis points to 3.5% and announced the narrowing of the interest rate corridor, effective from September 18. The main refinancing rate and marginal lending rate were lowered by 60 basis points, reducing their respective spreads to 15 and 25 basis points relative to the deposit facility rate. On the economic outlook, the ECB raised its core inflation forecast for 2024 to 2026 to 2.9%, 2.3%, and 2.0% (June forecasts: 2.5%, 2.2%, and 1.9%), citing stronger-than-expected service sector inflation. However, due to restrictive financial conditions dampening private consumption and investment, the ECB lowered its economic growth projections for 2024 to 2026 to 0.8%, 1.3%, and 1.5% (June forecasts: 0.9%, 1.4%, and 1.6%).

Read more at Datatrack

Key Data to Watch This Week:

U.S. Retail Sales (9/17): U.S. retail sales grew by 2.7% year-over-year in July (previous 2.0%), with a monthly increase of 1% (previous -0.2%). The July rise was largely driven by a 4% rebound in auto sales, reflecting recovery from the June slowdown caused by a cyberattack. The market expects August retail sales to normalize, with year-over-year growth slowing to 2.2% and a monthly increase of 0.2%.

Read more at Datatrack

U.S. Monetary Policy (9/19): During the Jackson Hole symposium, Federal Reserve Chair Jerome Powell signaled that the time for policy adjustments had arrived, raising market expectations for a rate cut at the upcoming meeting. However, recent mixed U.S. economic data have created uncertainty regarding the size of the rate cut. According to Fed Watch data, the probabilities of a 25-basis-point and 50-basis-point cut are both at 50%.

Read more at Datatrack

Japan Monetary Policy (9/20): After the Bank of Japan raised rates in July and indicated that it would refrain from further hikes in times of market instability, the market expects the BOJ to hold rates steady at this meeting, with the possibility of another rate hike in October or December.

Read more at Datatrack

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(Photo Crited: Pixabay )

For Intel, there are finally some good news around the corner. According to a report by The Register, the EU has approved USD 1.9 billion in aid for the struggling giant’s plant in Poland, but with the condition that the company does not abandon the project amid its crisis.

The information was announced on Friday by Poland’s Deputy Prime Minister Krzysztof Gawkowski, the report notes, that the European Commission has approved a state aid package of USD 1.9 billion (7.4 billion zlotys) for Intel. Citing Gawkowski’s remarks, the report reveals that the investment, including the aid package and overall costs, amounts to more than USD 6.47 billion (25 billion zlotys).

The announcement follows just over a year after Intel revealed its intention to build a USD 4.6 billion assembly and testing facility near Wroclaw, Poland. According to The Register, this project is expected to complement Intel’s other projects in the region and beyond, including its€30 billion chip fabrication plant in Magdeburg, Germany.

According to Intel’s previous announcement, the investment in Poland will contribute to the Europeans goal of bringing back 20 percent of global semiconductor manufacturing capacity to the region by 2030. The company states that its planned back-end manufacturing investment in an assembly and test facility in Poland, combined with the existing fab or front-end chip manufacturing site in Ireland and the planned chip manufacturing site in Germany, will create an end-to-end leading-edge semiconductor manufacturing value chain in Europe.

A rendering shows the state-of-the-art semiconductor assembly/test facility that Intel announced plans to build in Wrocław, Poland. Announced on June 16, 2023, the site will help to meet demand for assembly and test capacity that Intel anticipates by 2027. (Credit: Intel)

However, it is worth noting that due to delays of subsidy approvals. Intel has already been said to postpone its construction of Fab 29.1 and 29.2 in Magdeburg, as the new timeline now pushes the start of construction to May 2025. As the possibility of putting a halt to the German project could not be ruled out amid the company’s crisis, whether a follow-up plan regarding delaying or canceling the Polish plant comes into spotlight.

The Register notes that Intel had previously stated that the Polish facility would employ around 2,000 workers and would be responsible for processing raw wafers produced by nearby fabs, cutting them into individual chips and chiplets for packaging.

If Intel’s Polish project has been carried out as planned, the semiconductor heavyweight may have to wait until the end of the year to access the funds as a few formalities remain, the report points out. For instance, the Polish government still needs to pass certain legislation and meet requirements set by the European Commission before the deal can be finalized.

Regarding the matter, a spokesperson of Intel said that the company values the Polish government’s ongoing support and partnership as the two parties work together towards the shared goal of a more resilient global semiconductor supply chain, according to The Register.

Read more

• [News] Intel Reportedly Sought Commerce Secretary Raimondo’s Help over U.S. Reliance on TSMC
• [News] Uncashed Checks of the Struggling Giant: Intel’s Unfulfilled Expansion Plans in a Nutshell

(Photo credit: Intel)

According to a report by the Central News Agency, China’s Ministry of Industry and Information Technology (MIIT) recently announced a major technological breakthrough: the development of a deep ultraviolet (DUV) lithography machine capable of producing chips at 8 nanometers and below. This technology is currently being promoted for broader application.

Despite initial market speculation that the ArF lithography machine might be suitable for 8nm processes, TrendForce’s latest market analysis suggests otherwise. The machine’s overlay accuracy of ≤ 8nm is inadequate for advanced processes, which require ≤ 3nm for 10nm processes and ≤ 2nm for 7nm processes. Additionally, for advanced processes, the resolution must be ≤ 38nm, while this machine’s resolution is ≤ 65nm, making it challenging to handle even 40nm processes.

On the 9th, the MIIT published a notice on its official website regarding the “Guiding Catalog for the Promotion and Application of Major Technical Equipment (2024 Edition),” urging local governments to enhance the coordination of national support policies across industries, finance, technology, and other sectors.

The MIIT emphasized that major technical equipment is a cornerstone of national strength and security. “China’s first (set of) major technical equipment” refers to equipment products that achieve significant technological breakthroughs domestically, hold intellectual property rights, but have not yet gained substantial market performance. This includes complete machinery, core systems, and key components.

The catalog indicates that, among the integrated circuit production equipment, one notable entry is the “ArF Lithography Machine” (DUV lithography machine). The core technical specifications are a “wafer diameter of 300mm, illumination wavelength of 248nm, resolution ≤65nm, and overlay accuracy ≤8nm.” This means that the domestically produced DUV machine is capable of manufacturing chips of 8 nanometers and below.

Reports suggest that the development of the domestic ArF lithography machine was primarily completed by several leading Chinese semiconductor equipment manufacturers and research institutions. Notably, Advanced Micro-Fabrication Equipment Inc. (AMEC) and Shanghai Micro Electronics Equipment (SMEE) were key participants. The Institute of Microelectronics of the Chinese Academy of Sciences also made significant contributions in this area.

On the 5th of this month, the United States announced tighter export controls on machines required to manufacture advanced semiconductor equipment. The Dutch government followed suit the next day, announcing expanded restrictions on semiconductor manufacturing equipment exports.

Reuters reported that ASML’s 1970i and 1980i DUV lithography machines, which are mid-range models in ASML’s DUV product line, will be impacted by these restrictions on exports to China.

According to a report by Central News Agency, if China successfully achieves domestic production of DUV lithography machines capable of 8-nanometer and below processes, most future chip manufacturing would no longer be dependent on ASML. However, as of now, there has been no official announcement from the Chinese government or manufacturers regarding this development.

Read more

• [Insights] China’s MIIT Unveils Latest Domestic DUV Equipment, Faces Challenges for 40nm Processes
• [News] Breakthrough in China’s Domestic DUV Equipment to 8nm? Experts Call It a Misunderstanding

(Photo credit: AMEC)

Recently, TSMC updated the progress of the expansion of its sub-2nm advanced process. On September 11, Hsu Mao-hsin, Director-General of Taiwan’s Central Taiwan Science Park Administration, announced the expansion of the Taichung Phase 2 park.

Currently, 95% of the land required for TSMC’s plant construction has been secured through agreed purchase prices. The full transaction is expected to be completed by the end of this year, with the land ready for TSMC by the first quarter of next year.

The Phase 2 park covers 89 hectares, of which the Hsingnong Golf Course occupies 67 hectares, representing about 76.8% of the total area and making it the largest landholder. The budget for land acquisition is approximately TWD 23.7 billion.

Currently, there are 111 landowners and structures in the park, with 70% of the owners agreeing to the acquisition, covering 95% of the total area.

In addition to supporting TSMC’s new plant, the rest of around 3 hectares are available for related industries to apply for residency. Several companies in semiconductor supply chain and precision machinery industry have already expressed interest in moving in, and the Central Taiwan Science Park Administration is encouraging IC design companies to join.

Presently, TSMC has concentrated most of its advanced process manufacturing facilities in Taiwan. Aside from three 2nm wafer fabs in its Kaohsiung Nanzi Park, there is also space available to accommodate sub-2nm technology fabs. Industry insiders revealed that Kaohsiung is already preparing for the deployment of the A14 (14 angstrom) process. The first 2nm fab in Nanzi is expected to start mass production in 2025.

Although 2nm product is still absent from the market, their output value is expected to surpass that of 3nm. Insiders indicated that future applications will include HPC (high-performance computing) and smartphone technology sectors.

Read more

• [News] Google’s Tensor G5 Reportedly Manufactured with TSMC’s 3nm and InFO-POP Packaging
• [News] TSMC Strengthens Its Advanced Process with Next-Generation EUV Equipment Reportedly Arriving This Month

(Photo credit: TSMC)