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)

Recent comments from former U.S. President Donald Trump on protection fees have hit semiconductor stocks hard and brought TSMC back into the spotlight for investors.

As per a report from Barron’s, it’s suggested that America’s stance towards Taiwan is not the best diplomatic strategy. The following key figures highlight TSMC’s importance to both the U.S. and the global economy.

• 700 Billion

After Bloomberg published an exclusive interview with Trump, the Nasdaq Composite Index plummeted 2.8% on July 17th. Large semiconductor stocks, including TSMC and the seven major U.S. tech giants, collectively lost about USD 700 billion in market value overnight.

The report from Barron’s suggested that this phenomenon indicates that the market views TSMC not just as a foundry but also as a crucial supplier of key components for America’s largest and most important enterprises.

• 92%

According to the Semiconductor Industry Association, TSMC manufactures 92% of the world’s advanced semiconductors, while South Korea produces the remaining 8%.

Barron’s noted that though the U.S. aims to increase domestic production of advanced chips, targeting 20% of advanced chips to be produced locally by 2030,. However this will take some time to achieve.

• 33%

TSMC taks pride in itself that it is the world’s first dedicated semiconductor foundry. Namely, all chips produced by TSMC are supplied to semiconductor companies that do not manufacture their own chips. For companies like NVIDIA, AMD, Broadcom, Qualcomm, and others, TSMC is a major supplier.

Barron’s noted that approximately one-third of their chip manufacturing expenses go to TSMC. This has further underscored the significance of the company.

• 45%

NVIDIA and other companies purchase chips from TSMC and then resell them to other companies. According to Barron’s, Microsoft, Meta, Alphabet, Amazon, and Tesla contribute about 45% of NVIDIA’s sales. Although Apple currently doesn’t purchase many chips from NVIDIA, about 27% of Qualcomm’s sales and 17% of Broadcom’s sales come from Apple.

In theory, without TSMC, there would be no iPhone, AI servers, or other electronic products people rely on. For this reason, Tae Kim, a technology journalist at Barron’s, refers to the true risk of disruptions in TSMC’s operations as a “Global Depression.”

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• [News] TSMC Dominates High-End Packaging Market, Potentially Impacting Opportunities for OSAT
• [News] TSMC Introduces “Foundry 2.0” to Include Packaging, Testing, Mask making and Others

(Photo credit: TSMC)

MediaTek and Qualcomm’s new wave of 5G flagship smartphone chip competition will begin in the fourth quarter. MediaTek is launching the “Dimensity 9400” to directly compete with Qualcomm’s “Snapdragon 8 Gen 4.” According to a report from Economic Daily News, both major manufacturers are using TSMC’s 3nm process to produce their new chips, which have recently entered the production phase.

Alongside this, NVIDIA, AMD, and Apple are also actively seeking TSMC’s 3nm capacity, resulting in TSMC securing another order and seeing a surge in its advanced process business.

It is understood that the queue for TSMC’s 3nm process capacity has extended all the way to 2026. To ensure the smooth launch of the Dimensity 9400, MediaTek has already started production at TSMC to secure sufficient supply capacity. The 3nm process is currently the most advanced node technology. Previously, TSMC mentioned that its 3nm process capacity will triple this year, but it still remains in short supply.

At the beginning of this year, MediaTek CEO Rick Tsai announced that the Dimensity 9400 would be unveiled in the fourth quarter. He stated that its performance would far exceed that of the current flagship chip, the Dimensity 9300, and that it would represent another significant peak in their technology.

MediaTek’s current flagship Dimensity 9300/9300+ chips are built using TSMC’s 4nm process. Reportedly, it is expected that with the support of TSMC’s 3nm process, the performance of the Dimensity 9400 will be further enhanced, making it a powerful tool for MediaTek to capture the market.

Although Qualcomm has not yet announced the launch schedule and details of its next-generation flagship chip, the Snapdragon 8 Gen 4, the same report believed that this chip will also be produced using TSMC’s 3nm process and will be launched in the fourth quarter, with upgraded performance.

Ming-Chi Kuo, renowned Apple analyst, previously reported that the Snapdragon 8 Gen 4 will be produced using TSMC’s N3E process, and its price may be 25% to 30% higher than the current Snapdragon 8 Gen 3, with each chip priced at $220 to $240.

In the second half of the year, numerous AI products will be launched in the consumer market. Per industry sources cited in an earlier report from Commercial Times, besides Qualcomm’s Snapdragon 8 Gen 4 and MediaTek’s Dimensity 9400,  Apple’s A18 and M4 series are also said to be built using TSMC’s N3 family. Moreover, Google’s Tensor G5 may compete in the market as well.

Read more

• [News] IC Design Companies Adopting TSMC’s 3nm Process Trigger Cost-driven Price Hikes
• [News] Major Clients Reportedly Fully Allocate TSMC’s Production Capacity Until 2026, 3nm Process in High Demand
  

(Photo credit: Qualcomm)

While NVIDIA is likely to face accusations from the French antitrust regulators, the Non-NVIDIA Alliance like the UALink (Ultra Accelerator Link) Alliance and the UXL Foundation are reportedly launching a counterattack, significantly increasing their efforts in developing specialized ASICs.

According to a report from Commercial Times, relevant semiconductor intellectual property (IP) is expected to be widely adopted. The sources cited by the report point out that Taiwanese manufacturers, benefiting from their leading position in wafer foundry and comprehensive ASIC and IP layout, are poised to capitalize on the rise of the Non-NVIDIA Alliance.

The report further cites sources, indicating that major Taiwanese ASIC manufacturers such as Global Unichip, Faraday Technology, and Progate Group Corporation (PGC), along with silicon IP companies M31 Technology Corporation, eMemory, and the Egis Technology Group, are actively expanding in this field.

In order to challenge NVIDIA’s dominance in the market, UALink (Ultra Accelerator Link) Alliance, led by tech giants such Intel and AMD, was formed in May. The alliance aims to establish a new standard for AI accelerator links, aiming to challenge NVIDIA’s  NVLink.

Furthermore, the UXL Foundation’s Open Source Software Project, supported by tech giants Qualcomm, Google, and Intel, is said to be looking to rival NVIDIA’s CUDA software. By providing alternative software solutions, it aims to diminsh NVIDIA’s dominance in the AI field.

Semiconductor industry sources cited in the same report also note that CSPs are accelerating the development of their own chips, with Taiwanese manufacturers actively entering the market.

Although Broadcom and Marvell currently offer diversified design services, Taiwanese manufacturers have an advantage due to the tightly-knit semiconductor supply chain. This enables complete solutions for both chip manufacturing and packaging within Taiwan, giving them a strategic edge over competitors by being close to both the market and factories, thereby enhancing their position in the ASIC sector.

Global Unichip and PGC leverage TSMC as a strong ally. Reportedly, Global Unichip holds AI-related ASIC orders from Microsoft and is gradually finalizing collaborations with major South Korean companies, with business operations expected to improve in the second half of the year.

On the other hand, Faraday Technology closely collaborates with Intel, developing SoCs using Intel’s A18 process. Meanwhile, industry sources cited by the report suggest that Intel’s Gaudi series AI chips might seek collaboration opportunities beyond just working with Alchip.

Read more

• [News] Novatek, a Major Driver IC Manufacturer, Reportedly Eyes Entry into ASIC and Silicon IP Battlefields

(Photo credit: Shutterstock)

According to a report from South Korean media outlet The Financial News, MediaTek, Taiwan’s largest smartphone IC designer, has the opportunity to enter Samsung’s Galaxy S25 supply chain as one of the main chip suppliers for the next generation flagship smartphone. Samsung’s S series smartphones have traditionally adopted a “dual-track” strategy, using both in-house Exynos chips and Qualcomm’s Snapdragon. MediaTek, on the other hand, has declined to comment on this matter.

Samsung’s Galaxy Tab S10 is said to be equipped with MediaTek’s Dimensity 9300+ application processor, marking the first instance of MediaTek’s AP being adopted by Samsung’s flagship tablet, according to a report by the Korean media outlet The Chosun Daily.

The latest report by the Financial News further highlights that MediaTek’s APs have primarily been used in Samsung’s mid-to-low-end smartphones. The decision to use MediaTek’s AP in the Galaxy Tab S10 series, instead of Qualcomm’s or Samsung’s own APs, is a significant shift for Samsung.

The report indicates that Samsung’s Galaxy S25 smartphones will not only use Qualcomm’s Snapdragon 8 Gen 4 chips and Samsung’s own Exynos 2500 chips but may also use MediaTek’s Dimensity chips in some regions. It is speculated that the chip in discussion is the yet-to-be-announced Dimensity 9400. If true, the S25 could be available in versions with Exynos 2500, Snapdragon 8 Gen 4, and Dimensity 9400 chips.

The report cites sources, suggesting that this rumor is not entirely without merit, as Qualcomm’s Snapdragon 8 Gen 4 chip is expected to be 30% more expensive than its predecessor. Currently, the Snapdragon 8 Gen 3 chip is rumored to cost around $190-200 per unit, while the 8 Gen 4 could be priced at $260. Samsung’s consideration of incorporating MediaTek chips, or at least using this possibility as leverage in price negotiations with Qualcomm, is plausible.

Qualcomm has been releasing new flagship mobile chips annually and designing custom versions for Samsung’s high-end phones. For instance, the current Samsung S24 series, including the S24 Ultra and some regional versions of the S24 Plus and S24, use Qualcomm’s tailored Snapdragon 8 Gen 3 chip, designed specifically for Galaxy phones and featuring advanced AI capabilities.

It is worth noting that there is a close collaborative relationship between Samsung and Qualcomm. Some of Qualcomm’s chip manufacturing orders are handled by Samsung’s foundry division, while some of Samsung’s mobile chips use Qualcomm’s main processors. If MediaTek succeeds in integrating its Dimensity 9400 into Samsung’s smartphone supply chain, it would be a significant milestone for MediaTek.

The report from The Chosun Daily also highlighted that from Samsung’s perspective, choosing Dimensity to reduce costs and diversify the supply chain is a sensible decision.

Read more

• [News] Samsung Adopts Dimensity 9300+ Instead of Snapdragon, the First Time for Its Flagship Tablet to Feature MediaTek AP
• [News] MediaTek Announces 4nm Dimensity 7300 Series Chips, Supporting Foldable Devices

(Photo credit: MediaTek)