TSMC’s angstrom-level A16 process is creating a buzz even before mass production. According to a report from the Economic Daily News, not only has major client Apple already booked the capacity for TSMC’s A16, OpenAI has also joined in to secure TSMC’s A16 capacity due to its long-term need for self-developed AI chips.

Regarding this matter, TSMC stated on August 30 that the company does not comment on market rumors or on business dealings with individual customers.

Despite that TSMC’s A16 process is scheduled to enter mass production in 2026, the report has hinted that the first batch of customers has already surfaced.

In addition to Apple, which has been in continuous collaboration with TSMC, the most notable new customer of TSMC’s A16 is said to be OpenAI, the developer of ChatGPT, which is actively investing in the design and development of its own ASIC chips.

Industry sources cited by the same report reveal that OpenAI had initially been in active discussions with TSMC about establishing a dedicated fab. However, after assessing the potential benefits, the plan to build a dedicated facility was shelved.

Strategically, OpenAI is now partnering with U.S. companies like Broadcom and Marvell to develop its own ASIC chips, and potentially emerging as one of Broadcom’s top four customers.

Since both IC design giants are long-term clients of TSMC, the ASIC chips they are helping OpenAI develop are expected to be produced using TSMC’s 3nm process family and the subsequent A16 process, according to the chip design roadmap.

It is worth noting that OpenAI not only holds a critical position in the development of AI applications beyond Apple’s ecosystem but also contributes to the advancement of AI applications in Apple devices.

In June of this year, Apple unveiled its personalized intelligent system, Apple Intelligence, which has integrated ChatGPT. This strategic move has led observers to believe that OpenAI plays a key role in Apple’s AI development.

As OpenAI continues to invest in the design and development of its own ASIC chips, it is reportedly expected to maintain its influence in the AI computing field.

TSMC unveiled its angstrom-class A16 advanced process during the company’s 2024 North America Technology Symposium on April 25, set to be mass-produced in 2026.

Per TSMC, Compared to TSMC’s N2P process, the A16 offers an 8% to 10% speed increase at the same Vdd (operating voltage), a 15% to 20% reduction in power consumption at the same speed, and a density increase of up to 1.1 times, supporting data center products.

Read more

• [Insights] OpenAI CEO’s Ambition to Build Semiconductor Plant Grows Stronger
• [News] Battle of the Titans in the Angstrom Era – TSMC’s A16 Competes with Intel’s 14A and Samsung’s SF1.4

Last week, rumors have been circulating that Intel has been working with investment bankers on options to navigate the company through potholes. Latest update: options may include selling off its FPGA unit Altera and putting a halt to its USD 32 billion investment project in Germany, according to the reports by Reuters and Wccftech.

Citing sources familiar with the matter, the reports suggests that Intel CEO Pat Gelsinger and senior executives are expected to present a plan to the board later this month to revitalize the company.

Their proposal, according to the reports, includes divesting non-essential businesses and cutting down capital expenditures, such as selling off Altera and freezing the construction of the fab project in Magdeburg, Germany.

As Intel would be now unable to allocate funds from its once substantial profits to support Altera, a major producer of field-programmable gate arrays (FPGA) it acquired in 2015 for USD 16.7 billion, the sale of the company has reportedly been brought to the table. In 2023, Intel is said to be planning to spin Altera out through an IPO in three years and sell a portion of its stake through the process, but no date has been set.

Reuters indicates that Altera could also be sold entirely to another chip company interested in expanding its business portfolio, and Intel has quietly started exploring the possibility of such a sale.

On the other hand, due to delays of subsidy approvals. Intel has already been said to postpone its construction of Fab 29.1 and 29.2 in Magdeburg, Germany, as the new timeline now pushes the start of construction to May 2025. The proposal to put a halt to the project would also align with the company’s plan to reduce its capital spending by 17 percent to USD 21.5 billion in 2025, Wccftech notes.

Sources familiar with the matter said that Intel’s plan does not currently include splitting up the company or selling its foundry business to buyers like TSMC, Reuters notes.

An Intel spokesperson declined to comment Sunday, Reuters notes.

Intel is currently facing significant challenges. On August 1, the company announced financial results that fell short of Wall Street expectations and revealed plans to cut over 15% of its workforce.

Shortly after, former Intel board member Lip-Bu Tan has stepped down after just two years. Tan served as the CEO and executive chairman of electronic design automation (EDA) software company Cadence Design Systems Inc.

Read more

• [News] Lip-Bu Tan Resigns from Intel Board Amid Reported Disagreements
• [News] Intel Reportedly Considering Foundry Spin-Off or Merger to Mitigate Losses

(Photo credit: Intel)

The Wall Street Journal reported that OpenAI is in talks for a new round of funding, with tech giants Apple and NVIDIA both interested in investing in the AI research company OpenAI.

It’s reported that this investment will be part of OpenAI’s new round of financing, which will bring its estimated value to exceed USD 100 billion.

Sources indicated that OpenAI plans to raise billions of dollars, and venture capital firm Thrive Capital will lead this round of funding with a USD 1 billion investment. Microsoft, OpenAI’s largest shareholder, will also be a part of this round.

Reportedly, sources have revealed that Apple is currently in talks with OpenAI for the potential investment, while NVIDIA has already discussed joining the latest round of funding, who reportedly considered investing USD 100 million.

Although it is not yet clear how much Apple and Microsoft plan to invest, the point is that the three most valuable tech giants in the world would all become shareholders of OpenAI if these negotiations end in success.

In a memo on Wednesday, OpenAI’s CFO Sarah Friar stated that the company is seeking new financing but did not disclose specific details. Friar mentioned that OpenAI would leverage this funding to strengthen computing power and cover other operational expenses.

With the rise of the AI industry, Microsoft, Apple, and NVIDIA have also accelerated their pace in developing AI technologies.

Microsoft has invested USD 13 billion in OpenAI since 2019, holding a stake of 49% in this company. Apple, at its Worldwide Developers Conference (WWDC) in June this year, launched the Apple Intelligence system and announced a partnership with OpenAI.

As for NVIDIA, it has long been closely collaborating with OpenAI and has been highly active in making investment in this field. Its investment arm, NVentures, has invested in several AI companies since 2023.

Read more

• [News] NVIDIA’s Q3 Forecast Fails to Impress, while It Claims Blackwell to Bring Several Billion Dollars Revenue in Q4
• [News] NVIDIA’s Dominance Under Threat? Challengers Are Launching New Products to Compete

(Photo credit: OpenAI)

As per Chongqing News Broadcast, the San’an-ST project, with a total investment of approximately CNY 30 billion, is close to completion. The substrate factory is expected to start production this month, two months ahead of schedule.

The project, jointly developed by Chongqing San’an and ST, includes a chip factory and a substrate factory, focusing on the production of SiC power chips and substrates. The substrate factory, fully funded by San’an Semiconductor, is set to produce 480,000 8-inch SiC substrates annually.

The chip plant, a joint venture between San’an Semiconductor and ST, aims for an annual production capacity of 480,000 automotive-grade SiC MOSFET power chips.

San’an, through its wholly-owned subsidiary Hunan San’an, established Chongqing San’an for the substrate factory. The total investment for this factory is approximately CNY 7 billion, focusing on the growth and manufacturing of SiC substrates, with an annual production capacity of 480,000 8-inch SiC substrates.

San’an STMicroelectronics, a joint venture between Hunan San’an (51%) and ST (China) Investment (49%), was established in August 2023 with a registered capital of USD 612 million.

This chip factory has a total investment of USD 3.2 billion and aims for an annual revenue of CNY 13.9 billion, with an annual production capacity of 480,000 8-inch automotive-grade SiC MOSFETs.

San’an has disclosed that the project is currently in the critical stage of equipment installation and commissioning, and the substrate factory is expected to be ready for operation by the end of August, while the chip factory is projected to be fully operational by the end of November.

Read more

• [News] ST to Build a New 8-Inch SiC Facility in Italy with EUR 5 Billion
• [News] A Price War in SiC Wafer Sector seems to Start

(Photo credit: STMicroelectronics)