Leading foundries have been making significant moves, reshaping the semiconductor industry landscape. Vanguard International Semiconductor Corporationrecently announced its entry into the 12-inch wafer foundry business, marking the beginning of a new phase in its strategic transformation for the next 30 years, with silicon carbide (SiC) also included in its development plan.

Meanwhile, India’s first 12-inch wafer plant has begun operations, with the Indian government approving five semiconductor plant construction projects valued at approximately USD18 billion. Additionally, TSMC’s world-first 2nm wafer plant is set for completion by the end of this month. Industry sources indicate that AI-related demand is expected to surge, further boosting TSMC’s profitability.

Vanguard International Semiconductor Corporation Enters 12-Inch Wafer Foundry Market, Aiming for TWD 100 Billion in Annual Revenue in Five Years

On November 2, Vanguard Chairman Mr. Leuh Fang announced that the company officially entered the 12-inch wafer foundry sector and is building a new plant. Both the company and stakeholders have high hopes for the plan, aiming for annual revenue to grow from TWD 50 billion to TWD 100 billion in five years once the new plant reaches full capacity. Fang emphasized that Vanguard announced a USD 7.8 billion investment in collaboration with NXP Semiconductor to build a 12-inch wafer fab, with TSMC providing all necessary critical technology and resources.

On June 5, Vanguard and NXP jointly announced plans to construct a 12-inch wafer fab in Singapore with a total investment of USD 7.8 billion. The fab will employ 130nm to 40nm technology and produce mixed-signal, power management, and analog products for automotive, industrial, consumer electronics, and mobile device markets.

India’s First 12-Inch Wafer Plant Begins Operations

On November 1, Powerchip Semiconductor Manufacturing Corporation (PSMC) announced the official launch of its joint project with Tata Electronics to construct India’s first 12-inch wafer fab. PSMC has received the first payment for Fab IP from Tata, and the construction project will proceed actively. Meanwhile, high-capacity interposer chips, validated by customers, will also begin mass production and delivery.

This 12-inch fab, with a total investment of USD 11 billion, will focus on power management ICs, panel driver chips, microcontrollers, and high-speed computing logic chips. It is projected to have a monthly capacity of 50,000 wafers, primarily serving automotive, computing, data storage, wireless communication, and AI applications. The plant is scheduled for completion and mass production by 2026.

World’s First 2nm Wafer Plant Nears Completion by End of Month

According to recent supply chain news, TSMC’s Kaohsiung P1 site for its first 2nm wafer fab is nearing completion, with a ceremony planned for November 26 and equipment installation set to begin on December 1.

TSMC’s 2nm production will take place at its Hsinchu Science Park (HSP) Baoshan F20 fab and Kaohsiung Nanzi F22 fab. The Baoshan fab is expected to complete a mini production line by the end of the year, targeting volume production by Q4 2025 with a monthly capacity of around 30,000 wafers. Commercial production at the Kaohsiung F22 fab will commence in Q1 2026, also with a monthly capacity of 30,000 wafers.

TSMC’s Chairman and CEO C.C. Wei have highlighted unprecedented demand for the 2nm process. Current planned capacity for the 2nm process has already surpassed that of the previous 3nm generation, underscoring the strong market demand for advanced process technology. Reportedly, TSMC has validated its 2nm product roadmap with customers, with process quotes exceeding USD 30,000 per wafer.

(Photo credit: Vanguard)

According to a report from Bloomberg, a drug company in Mumbai, India, Shreya Life Sciences has engaged in trading chips of advanced technology to Russian, raising concerns among the U.S. and its European allies.

The report indicated that Shreya exported 1,111 units of Dell’s most advanced servers to Russia between April and August of this year. The servers, known as PowerEdge XE9680, feature chips made by NVIDIA or AMD.

The servers, which contain chips made by NVIDIA or AMD, are among the items restricted by the U.S. and the EU. However, the report noted that these shipments are only part of a series of advanced technology exports that Shreya has legally made to Russia since September 2022. The shipments, valued at $300 million, were imported by two Russian trading companies: Main Chain Ltd. and I.S. LLC, as indicated by the report.

According to the report, Shreya’s shipments highlight a loophole in Western governments’ efforts to restrict Russia’s access to dual-use technology with potential military applications. The Bloomberg report noted that India has gradually become the second-largest supplier of restricted technologies to Russia, following China.

Notably, while India serves as an intermediary helping Russia access restricted processors, the actual origin of the shipments may be Malaysia, as the report noted that Indian import data from March to August 2024 shows that 1,407 of the same Dell units were imported into India from Malaysia.

Regarding India’s business relationship with Russia, the report noted that Prime Minister Narendra Modi’s government is not participating in the various rounds of U.S. and EU sanctions against Moscow. In fact, India has been relying on Russia for military equipment.

Additionally, India has become a key buyer of Russian crude oil since European countries halted imports, taking advantage of significant discounts offered by Russia, according to the report.

In response to the report regarding the shipments, Dell stated that it stopped selling its products in Russia in February 2022, right after the full-scale invasion of Ukraine. Both NVIDIA and AMD also emphasized their commitment to full compliance with export controls, according to the report from Bloomberg.

(Photo credit: NVIDIA)

According to Economic Daily News, which cites the report by Indian media outlet The Economic Times, U.S. AI giant NVIDIA has proposed collaborating with India to develop AI chips, aiming to leverage the country’s semiconductor design talent and tap into its growing local market.

According to The Economic Times, NVIDIA CEO Jensen Huang proposed this idea during his meeting with Indian Prime Minister Narendra Modi in the U.S. earlier this year.

The Economic Times reported that Ashwini Vaishnaw, the Indian Union Minister for Electronics and IT, has confirmed that the country is currently in discussions with NVIDIA about jointly developing an AI chip. These discussions are still in the preliminary stage.

Citing local officials, the Economic Times indicated that NVIDIA intends to utilize India’s vast chip design talent pool to develop chips specifically for the Indian market. The government is currently discussing the details, including costs, benefits, and use cases.

This collaboratively developed chip could be tailored for specific use cases in the local market, such as the security system of Indian Railways, according to The Economic Times.

According to the press release from NVIDIA, the NVIDIA AI Summit India is scheduled to take place in Mumbai from October 23rd to 25th. The press release emphasized NVIDIA’s critical role in India’s emergence as an AI powerhouse, noting that the company has six locations across the country with over 4,000 employees.

Notably, CEO Jensen Huang will deliver a speech on October 24th, addressing how AI is revolutionizing industries worldwide and highlighting India’s growing significance as a global AI leader, as indicated by the press release.

Read more

• [News] PSMC and Tata Electronics Finalize Partnership on 12-Inch Wafer Fab
• [News] India’s First AI Chip, Developed by Ola, Reportedly to Hit the Market by 2026

(Photo credit: NVIDIA)

According to a report from Reuters, India is set to impose restrictions on the import of laptops, tablets, and personal computers starting in January, aiming to boost domestic manufacturing.

If implemented, the new plan could significantly impact the PC industry, worth USD 8 billion to USD 10 billion. Given that the Indian IT hardware market is heavily dependent on imports, this new plan is likely to transform the manufacturing industry and the local market in India, as indicated by the report.

The report stated that the Indian government attempted to limit imports of laptops, tablets, and personal computers last year. However, these restrictions were lifted in response to backlash from companies and lobbying from the United States.

Currently, laptop importers can freely import products into the Indian market after automatic online registration. According to the report, sources indicated that India’s Ministry of Electronics and Information Technology (MeitY) is developing a new import authorization system that will require companies to obtain prior approval for their imports.

The report highlighted that two-thirds of India’s demand is satisfied through imports, with a substantial portion coming from China. On the other hand, India’s IT hardware market, including laptops, is estimated at nearly USD 20 billion, yet domestic production accounts for only USD 5 billion of that total.

According to the report, India has federal subsidies totaling approximately USD 2.01 billion to encourage domestic production. India’s IT hardware production incentive program has drawn interest from major PC manufacturers, including Acer, Dell, HP, and Lenovo. Last year, India’s electronics minister stated that most of the approved companies are prepared to begin local manufacturing.

(Photo credit: Lenovo)

Powerchip Semiconductor Manufacturing Corp. (PSMC) announced on the 26th that it has signed a definitive agreement with Tata Electronics in New Delhi to collaborate on building India’s first 12-inch wafer fab in Dholera, Gujarat. PSMC will transfer mature process technologies and train local employees as part of the partnership.

According to PSMC, the $11 billion facility, with a monthly capacity of 50,000 wafers, is expected to create over 20,000 high-tech jobs in the region.

PSMC Chairman Frank Huang and CEO Martin Chu also met with Indian Prime Minister Narendra Modi at the Prime Minister’s Office. Huang urged Modi to foster a business-friendly environment for Taiwanese companies investing in India, highlighting the vast potential for collaboration between Taiwan and India in the semiconductor space. He noted that the semiconductor supply chain involves thousands of small and medium-sized enterprises, and expressed hope for future partnerships between Taiwanese chip designers and India’s talent-rich market.

Prime Minister Modi, in PSMC’s announcement, pledged full government support for the Tata-PSMC wafer fab project and praised Huang’s vision of Taiwan-India cooperation in the chip design industry. He encouraged PSMC to play a key role in India’s semiconductor development and promised to assist Taiwanese businesses looking to invest in the country.

(Photo credit: PSMC)