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.

Read more

• [News] AMD Reportedly Eyes Mass Production in 2025 for Zen 6 Architecture with TSMC’s N3E Process
• [News] Apple Not Adopting TSMC 2nm for iPhone 17? A19 Pro Chip Rumored to Use N3P Process

(Photo credit: TSMC)

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.

Read more

• [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)

Huawei’s Consumer Business CEO, Richard Yu, has publicly revealed plans for Huawei’s next-generation tri-folding phone for the first time. He stated that this product, widely considered challenging to achieve in the industry, is finally about to be launched after five years of development.

According to a report from the Chinese technology website ” Chinaz,” the tri-folding phone features an innovative inside-out folding mechanism and a dual-hinge design, with the screen size expected to reach approximately 10 inches.

Richard Yu pointed out that this new design will not only revolutionize the way phones are used but also broaden their use cases. When fully unfolded, the phone can rival a tablet, meeting basic office needs such as text and spreadsheet processing.

The latest industry news cited by the report further suggests that Huawei’s tri-folding phone will be unveiled in September, set to compete with Apple’s iPhone 16 series. Although the price of Huawei’s tri-folding phone is expected to be very high, potentially starting at nearly CNY 20,000, significantly surpassing the price of an iPhone, it showcases Huawei’s top-tier domestic technology and innovation in China.

However, despite the relatively noticeable growth in shipment volumes, the base number of foldable phones is very low, and the overall market size remains small.

Compared to the traditional smartphone market, which easily reaches sales volumes of over one billion units, TrendForce previously estimated that the shipments of foldable phones are expected to reach 17.8 million units in 2024, making up only 1.5% of the smartphone market. Despite high repair rates and costs, market penetration is projected to climb to 4.8% by 2028.

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• [News] Apple Reportedly Joins the Foldable Phone Market, Setting Stage for Three-Way Competition
• [News] Huawei Issues Rush Orders for Crucial Components, Focusing on CIS for Foldable Phones

(Photo credit: Huawei)

After Samsung announced a major breakthrough in 2nm, securing the first batch of orders from Japanese AI company Preferred Networks, its rival TSMC is also advancing. According to reports from Wccftech and ET News, TSMC is set to begin trial production of 2nm chips next week, which would reportedly be used in the upcoming iPhone 17 lineup in 2025.

The reports note that the trial production will be conducted in TSMC’s Baoshan Plant in Hsinchu, northern Taiwan, as facilities have been brought in during the second quarter. The iPhone 17 lineup is rumored to be the first to feature TSMC’s 2nm chips. Following that, the chips will likely be used in the 14-inch and 16-inch MacBook Pro models.

According to a previous report by MoneyDJ, TSMC’s 2nm production bases are located in Hsinchu Science Park and Kaohsiung, southern Taiwan, while the mass production is expected to kick off in Hsinchu first, with an initial monthly capacity of approximately 30,000 to 35,000 wafers.

Apple and TSMC share a long history of partnership, as the smartphone giant’s A17 Pro, M3 and M4 chips are all manufactured with TSMC’s 3nm node. As TSMC reportedly plans to enter 2nm trial production next week for Apple’s M5 chip, the company’s target for 2nm to enter mass production in 2025 would be on schedule, Wccftech notes.

According to Wccftech, The M5 chip, compared to its predecessor M4, is expected to have performance increase of 10 to 15 percent and a power consumption reduction of up to 30 percent compared to current 3nm-based chips.

Regarding the progress of other semiconductor heavyweights on 2nm, Samsung is said to commence mass production of 2nm chips for mobile devices by 2025. The initial SF2 2nm process will be ready next year, followed by an enhanced version, SF2P, in 2026. Its latest 2nm process, SF2Z, has incorporated optimized backside power delivery network (BSPDN) technology, and will enter mass production in 2027.

On the other hand, Intel’s 20A manufacturing technology (2nm) is reportedly scheduled for launch in 2024, introducing two technologies: RibbonFET surround gate transistors and BSPDN.

Read more

• [News] The Imminent Arrival of 2-Nanometer Advanced Process
• [News] TSMC Reportedly Invests over USD 12.3 Billion in EUV, Advancing in 2nm Production

(Photo credit: Apple)

Apple is reportedly pushing the boundaries of AI with the upcoming iPhone 16 series, which is expected to have computational power that surpasses industry expectations. According to a report from Economic Daily News, it has suggested that Apple is developing the A18 chip for this year’s iPhone 16 models, with performance potentially exceeding that of Apple’s current most powerful AI chip, the M4. This advancement means the iPhone 16 series will be more capable of running AI models on-device, adapting to various AI tasks.

While these applications are primarily aimed at high-end smartphones, the sources cited by the same report have shown optimism that TSMC and Foxconn, as parts of Apple’s supply chain, are likely to benefit from this development.

The same report further cites the rumor that the A18 chip developed for the iPhone 16 series will feature a highly powerful neural engine, crucial for handling generative AI functions. To keep up with the AI trend, Apple introduced its proprietary AI application, “Apple Intelligence,” in collaboration with OpenAI at this year’s Worldwide Developers Conference (WWDC). This application is designed for high-end models like the iPhone 15 Pro and Pro Max, with hardware capabilities exceeding expectations.

The iPad Pro which unveiled in May is the first to feature the M4 chip. Compared to its predecessor, the M2, the M4 chip boasts up to a 50% increase in CPU speed. Built with TSMC’s second-generation 3-nanometer technology, the M4 chip includes Apple’s fastest neural engine to date, capable of supporting up to 38 trillion operations per second.

If the A18 chip is equipped with an even more powerful neural engine, its computational speed will surpass that of the M4 chip. This means the iPhone 16 series will be able to run AI models locally with greater efficiency. Reportedly, TSMC is the exclusive supplier for the iPhone 16’s processors, therefore expected to be benefited from the strond demand of A18.

On the other hand, Foxconn, historically the largest assembler of iPhones, has recently focused on high-end models. As Apple intensifies AI functionality in new devices, the market anticipates a new wave of device upgrades, enhancing Foxconn’s performance in consumer electronics in the latter half of the year.

Read more

• [News] Apple Unveiled M4 Chip for AI, Heralding a New Era of AI PC
• [News] Battle in AI PCs: Exploring Intel, AMD, and Qualcomm Chips’ AI Computing Power

(Photo credit: Apple)