According to a report from Wccftech, it’s indicated that with soaring market demand, the shipment volume of NVIDIA’s Blackwell architecture GB200 AI servers has also significantly increased.

As NVIDIA claims, the Blackwell series is expected to be its most successful product. Industry sources cited by Wccftech indicate that NVIDIA’s latest GB200 AI servers are drawing significant orders, with strong demand projected to continue beyond 2025. This ongoing demand is enabling NVIDIA to secure additional orders as its newest AI products remain dominant.

The increasing demand for NVIDIA GB200 AI servers has led to revenue performances of Taiwanese suppliers such as Quanta, Foxconn, and Wistron exceeding expectations. Reportedly, NVIDIA is expected to ship 60,000 to 70,000 servers equipped with GB200 AI server. Each server is estimated to cost between USD 2 million and 3 million, resulting in approximately USD 210 billion in annual revenue from the Blackwell servers alone.

NVIDIA’s GB200 AI chip servers, available in NVL72 and NVL36 specifications, have seen greater preference for the less powerful models due to the growing number of AI startups choosing the more financially feasible NVL36 servers.

Notably, according to the industry sources previously cited in a report from Economic Daily News, TSMC is gearing up to start production of NVIDIA’s latest Blackwell platform architecture graphics processors (GPU) on the 4nm process.

The same report further cited sources, revealing that international giants such as Amazon, Dell, Google, Meta, and Microsoft will adopt the NVIDIA Blackwell architecture GPU for AI servers. As demand exceeds expectations,NVIDIA is prompted to increase its orders with TSMC by approximately 25%.

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• [News] NVIDIA Reportedly Developing Tailored Version of the Blackwell Series for Chinese Market
• [News] TSMC Reportedly Sees Strong 4nm Demand, with NVIDIA’s Order Up by 25%

(Photo credit: NVIDIA)

As TSMC and other major chip manufacturers compete for AI business opportunities, chip production capacity is unable to keep up with demand. Industry sources cited in a report from NIKKEI claimed that the slow expansion of high-end chip production capacity is due to different packaging and testing technologies used by various companies and calls for the industry to standardize as soon as possible.

Jim Hamajima, President of the Japan office of the Semiconductor Equipment and Materials International (SEMI), recently stated in an interview with NIKKEI that leading chip manufacturers like Intel and TSMC should adopt international standards for back-end processes to effectively and quickly increase production capacity.

Hamajima further noted that each company is trying to apply unique solutions in back-end processes, with TSMC and Intel using different technical standards, which leads to inefficiencies.

Semiconductor manufacturing is divided into two major parts: front-end and back-end processes. While the photolithography technology used in front-end processes widely adopts international standards set by SEMI, packaging and testing in back-end processes vary among manufacturers. For example, TSMC uses CoWoS technology for advanced packaging, while Samsung Electronics uses I-Cube technology.

In recent years, chip manufacturers have actively invested in the development of advanced packaging technologies, primarily because front-end processes face technical bottlenecks, making back-end processes the key to gaining a competitive edge.

Hamajima believes that the current state of back-end processes in the semiconductor industry is “Balkanized,” with each company adhering to its own technologies, leading to a fragmented industry. He warns that this issue will start to impact profit margins as more powerful chips are produced in the future.

Hamajima stated that if semiconductor manufacturers adopt standardized automated production technologies and material specifications, it will be easier to acquire manufacturing equipment and upstream material supplies when expanding production capacity.

Hamajima is a director of a recently launched consortium led by Intel and 14 Japanese companies to jointly develop automated systems for back-end processes. The collaborating companies include Japanese companies such as Omron, Yamaha Motor, Resonac, and Shin-Etsu Polymer, a subsidiary of Shin-Etsu Chemical Industry.

Hamajima noted that Japan, with its numerous automation equipment and semiconductor material suppliers, is an ideal location to test international standards for back-end processes.

He also acknowledged that currently, Intel is the only multinational chip manufacturer in the alliance, which might lead to the development of technical standards that favor Intel. However, he emphasized that the alliance welcomes other chip manufacturers to join, and the research outcomes will serve as a reference for future industry standard-setting.

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• [News] Intel Reportedly Collaborates with 14 Japanese Companies to Develop Semiconductor Backend Process Technology
• [News] HBM Boom May Lead to DRAM Shortages in the Second Half of the Year

(Photo credit: TSMC)

According to sources cited in a report from Reuters, NVIDIA is said to be planning to design a new flagship AI chip tailored for the Chinese market, which will still comply with current U.S. export control regulations.

NVIDIA, the global AI chip giant, unveiled its Blackwell chip series in March this year, with mass production expected to start later this year. The B200 chip in this series boasts powerful performance, capable of completing chatbot response tasks at speeds up to 30 times faster than the previous generation.

The sources cited by Reuters further point out that NVIDIA will collaborate with China’s Inspur to launch and sell this chip, tentatively codenamed B20. Inspur is one of NVIDIA’s primary distribution partners in China.

Currently, NVIDIA’s spokesperson has declined to comment on this news, and Inspur has also not issued any statements.

The U.S. government, citing national security concerns, began strictly tightening controls on the export of advanced semiconductors to China in 2023. Since then, NVIDIA has released three chips specifically for the Chinese market.

Per a previous report from TechNews citing industry sources, it is also believed that the US will significantly escalate the trade war after the presidential election, intensifying export restrictions on China.

It is noteworthy that the US government previously announced the imposition or increase of tariffs on Chinese electric vehicles, semiconductors, lithium batteries, and other products, with the semiconductor tariff rate set to rise from 25% to 50% by 2025.  Meanwhile, for the future direction of the US, it can be inferred that chips manufactured in Taiwan and South Korea may also face tariffs.

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• [News] U.S. Reportedly Enhancing Chip Export Restrictions to China, while NVIDIA’s H20 Might Get Banned
• [News] China’s Third Big Fund Reportedly Set to Inject USD 27 Billion to Counter US Chip Restrictions

(Photo credit: NVIDIA)

According to a report from The Information, generative AI application giant OpenAI has held talks with several chip designers, including Broadcom, to discuss plans for developing new AI chip.

It’s reported that OpenAI is currently exploring the possibility of manufacturing its own AI chip. This move would not only allow for efficient integration of software and hardware,  but also help alleviate the current shortage of AI chips. Moreover, OpenAI is said to be actively recruiting former Google employees, hoping to leverage their experience and expertise in developing Tensor processors to create its own AI chip.

The report emphasized that there is little possibility for OpenAI to develop AI server chip that can rival that of NVIDIA, and it would take years of research and development to achieve any significant results.

However, OpenAI might be able to shorten the development time by actively drawing in former talents from Google and harnessing their expertise and experience in developing Tensor processors.

Previously, the industry pointed out that OpenAI CEO Sam Altman has formulated an ambitious AI chip development plan, aiming to raise USD 7 trillion to renovate the global semiconductor industry ecosystem and promote the development of the general AI industry.

Sam Altman also stated that this USD 7 trillion would bring about considerable investment in AI, enabling the fabrication of AI chip and the construction of AI-related infrastructures, which will ultimately translate into vast services to the world and substantial value to everyone.

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• [Insights] OpenAI CEO’s Ambition to Build Semiconductor Plant Grows Stronger
• [News] OpenAI Reportedly Expected to Gather with Samsung and SK Group for Deepened Chip Collaboration

(Photo credit: Broadcom)

Lithography machine giant ASML released its financial report for the second quarter of 2024, with net sales amounting to EUR 6.2 billion and net income reaching EUR 1.6 billion. The gross margin was 51.5%.

According to the previous financial forecast, net sales for the second quarter were expected to be between EUR 5.7 and 6.2 billion, with a gross margin of 50% to 51%, making the overall performance for the second quarter slightly better than expected.

Additionally, with the continued increase in demand for AI chips, the order intake for the second quarter was EUR 5.6 billion, significantly up from EUR 3.61 billion in the first quarter, returning to the levels of the fourth quarter of 2023. It is also worth noting that in the order intake for the second quarter, EUR 2.5 billion were EUV orders.

This performance was said to be due to the strong sales of immersion DUV systems. ASML President and CEO Christophe Fouquet noted ongoing improvements in overall semiconductor inventory and further increased utilization rates of lithography equipment by logic and memory chip customers. Despite market uncertainties, ASML anticipates continued industry recovery in the second half of the year.

Fouquet also projected third-quarter net sales for 2024 to range between EUR 6.7 and 7.3 billion, with a gross margin of 50% to 51%. Estimated R&D investments are around EUR 1.1 billion, and sales and general administrative expenses (SG&A) are expected to be approximately EUR 295 million.

ASML reportedly regards 2024 as a transitional year, maintaining unchanged full-year expectations and continuing to invest in capacity and technology enhancements. Additionally, strong developments in AI are driving much of the semiconductor industry’s recovery and growth, positioning it ahead of other markets.

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• [News] ASML Projects Strong Demand Until 2026, New EUV Shipments Reportedly to TSMC
• [News] ASML Reports China Accounts for 49% of Q1 Total Sales and 20% of Backlog Orders

(Photo credit: ASML)