According to sources cited by Indian media outlet Financial Express, Apple is said to be in talks with Micron, Tata Group, and other Indian chip manufacturers to procure USD 12 billion worth of chips locally for iPhones produced in India.

Reportedly, Apple plans to shift 26% of its iPhone production to India by 2026. Industry sources cited by the report further suggest that by then, Apple will become the largest single buyer of Indian-made semiconductors, surpassing any other sectors such as defense, aerospace, and automotive.

Sources further point out that if Micron and Tata are able to produce chips that meet Apple’s requirements, a significant portion of the chips needed for iPhones will come from these companies, potentially creating substantial opportunities for the Indian semiconductor industry.

Before the outbreak of the pandemic, Apple iPhones and almost all other consumer products were manufactured in China. Following the introduction of the Production-Linked Incentive (PLI) scheme by the Indian government, potentially prompting Apple to begin shifting its production lines.

In 2022, the Indian government launched a USD 10 billion PLI scheme to stimulate domestic semiconductor production. To date, India has approved five chip manufacturing projects with a total value of roughly USD 18 billion and has reserved USD 1.2 billion for future projects.

Meanwhile, Micron’s chip plant in Gujarat, India, is expected to begin operations this year, marking the company’s first chip facility in India.

Additionally, Tata Group, in collaboration with PSMC, plans to build a packaging plant in Gujarat, with operations slated to commence in 2026, producing chips using 28nm, 40nm, 55nm, 90nm, and 110nm nodes.

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• [News] 300mm Wafer Fab Construction Picks up Steam Worldwide
• [News] Reducing Reliance on China, Apple to Produce High-End iPhones in India for the First Time

(Photo credit: Tata Group)

Recently, China has set two records in semiconductor chip sector: first, it mass-produced the world’s first 28nm embedded RRAM image quality adjustment chip; second, it developed the world’s first 16-bit quantum bit semiconductor microprocessor chip.

• Mass Production of the World’s First 28nm Embedded RRAM Image Quality Adjustment Chip

As per the official account of “Beijing Yizhuang,” the world’s first 28nm embedded RRAM (Resistive Random Access Memory) image quality adjustment chip, developed by Chinese semiconductor company Xianxin Technology in collaboration with domestic research institutes, has achieved mass production in Beijing and has been successfully applied in the high-end series of Mini LED televisions of leading brands in China.

It is reported that this 28nm display chip adopts the “digital chip + embedded RRAM” technology solution. Compared with the mainstream counterpart in the industry, which uses the “TCON + external FLASH memory,”  this chip effectively addresses issues like the high cost of external memory devices and the slow read speed of compensation parameters.

Furthermore, the chip integrates RRAM IP directly on the 28nm process node, enabling lower cost, smaller size, and higher efficiency.

Data shows that this mass-produced 28nm embedded RRAM image quality adjustment chip is not only the first domestically developed 28nm display chip in China but also the world’s first advanced commercial image quality adjustment chip to use 28nm embedded RRAM IP.

It possesses fully independent intellectual property rights. Its built-in RRAM memory module and core RRAM IP technology are derived from the transformation of research institute results, and the image quality adjustment algorithm is independently developed by Xianxin Technology.

• HKPU Develops a 16-bit Quantum Bit Semiconductor Microprocessor Chip

Recently, a research team from Hong Kong Polytechnic University (HKPU) successfully developed the world’s first 16-bit quantum bit semiconductor microprocessor chip, providing a novel solution for simulating large and complex molecular spectra.

HKPU explained that the team used a linear photonic network and compressed vacuum quantum light source to simulate molecular vibration spectra. This 16-bit quantum microprocessor chip is manufactured and integrated on a single chip.

In addition, the research team also developed a complete system, including optoelectronic thermal packaging for the quantum photonic microprocessor chip and control module, driver software and user interface, as well as programmable underlying quantum algorithms. The developed quantum computing system can be applied to different computational models.

The quantum microprocessor can be used to handle complex tasks, such as faster and more accurate simulations of large protein structures or optimizing molecular reactions.

Dr. Zhu Huihui, a postdoctoral researcher and the first author of the research paper, stated that this method can break through traditional limitations, enabling early practical molecular simulations and potentially achieving quantum acceleration in related quantum chemistry applications.

It is reported that, in addition to HKPU, other collaborative institutions include Nanyang Technological University, City University of Hong Kong, Beijing Institute of Technology, Southern University of Science and Technology, Institute of Microelectronics (IME), and Chalmers University of Technology in Sweden.

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• [News] China’s Core AI Industry Achieved a Market Size of Nearly CNY 600 Billion
• [News] Nanjing, China Achieved Breakthrough in Manufacturing Key SiC Chip for the First Time

(Photo credit: Xianxin Technology)

Recently, the 54th “Statistical Report on China’s Internet Development” was released. In the first half of the year, generative artificial intelligence (AI) continued to be a global technology hotspot, and China’s AI industry has gradually entered a period of fast development. “AI+” continues to empower industrial upgrading, contributing to the acceleration of new productivity development and the deep advancement of new industrialization.

Data shows that the market size of China’s core AI industry has approached CNY 600 billion, with more than 4,500 AI companies, and the computing power ranks second globally.

On September 8, Vice Minister and Deputy China International Trade Representative Ling Ji explained that Chinese AI companies account for about 1/7 of the global total.

Meanwhile, AI products have gained significant recognition and use among China’s vast internet user base. The report surveyed the usage of generative AI products, showing that by June 2024, the penetration rate of AI, particularly large models, reached 16.4%.

Moreover, the “National Artificial Intelligence Industry Comprehensive Standardization System Construction Guide (2024 Edition)” , jointly issued by the Ministry of Industry and Information Technology, the Office of the Central Cyberspace Affairs Commission, the National Development and Reform Commission, and the State Administration for Market Regulation, was officially released.

The guide is regarded as a key document for the formation of China’s standard system to drive the development of the AI industry.

The guide points out that by 2026, the level of integration between standards and technological innovation in the industry will continue to improve, with more than 50 new national and industry standards being developed, accelerating the formation of a standard system that promotes the high-quality development of the AI industry.

More than 1,000 companies will participate in the promotion and implementation of these standards, with the effect of standards on corporate innovation becoming more prominent. China will also participate in the development of more than 20 international standards, promoting the globalization of the AI industry.

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• [News] Nanjing, China Achieved Breakthrough in Manufacturing Key SiC Chip for the First Time
• [News] US Reportedly Weighs Stricter Limits on AI Memory Access for China

(Photo credit: pixabay)

TSMC’s fab in Kikuyo, Kumamoto Prefecture, Japan (Kumamoto Fab 1) is expected to begin mass production by the end of 2024, with plans for a second fab in the region. Thus, the influence of TSMC’s presence continues to expand, as per the latest estimates from local financial institutions.

Over the next decade, from now until 2031, the economic spillover effect of TSMC’s operations in Kumamoto is projected to surpass 10 trillion yen, marking a 60% increase from a previous estimate in August 2023.

According to a report from Nikkei citing Kyushu Financial Group (Kyushu FG), a new impact estimate has been released on September 5, showing that TSMC’s operations in Kumamoto Prefecture are projected to generate an economic spillover effect of approximately JPY 11.2 trillion over the next 10 years, until 2031.

This marks a 60% increase from the previous estimate of JPY 6.9 trillion published in August 2023. The projected impact on Kumamoto Prefecture’s GDP over the same period has also risen from JPY 3.4 trillion to JPY 5.6 trillion.

Reportedly, the previous estimate from Kyushu FG last August only considered the benefits of TSMC’s Kumamoto Fab 1. The latest report, however, includes the planned construction of the Kumamoto Fab 2 in its evaluation.

The upward revision is attributed to the expanded magnetic pull of TSMC’s Kumamoto operations (both fabs). The number of companies expected to set up or invest in the region has increased to 171, roughly double the previous estimate.

Initially, the first Kumamoto fab attracted strong interest from suppliers like Sony and Mitsubishi Electric. Following TSMC’s announcement in February to build a second fab, further investments are expected, not only from within Kumamoto but also from other prefectures and overseas suppliers, particularly from Taiwan.

Additionally, the economic impact is expected to extend to wage levels in Kumamoto Prefecture, with an estimated increase of JPY 380,000 in per capita annual income.

Meanwhile, as stated in an report from Bloomberg on May 11th, Kumamoto’s newly appointed governor, Takashi Kimura, once claimed that he would spare no effort to persuade TSMC to establish a third fab in the region.

In addition, a recent report from Kyodo News citing the interview with Taiwanese Minister of Economic Affairs J.W. Kuo has also hinted that TSMC plans to build a third fab in Japan, but with a projected timeline after 2030.

If the third fab is realized, the economic spillover effect is anticipated to expand further.

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• [News] TSMC to Build Third Fab in Japan? The Timing May Be Reportedly after 2030
• [News] TSMC’s Kumamoto Fab 2 Reportedly Begins Land Preparation

(Photo credit: JASM)

According to a report from Korean media ZDNet Korea, Chinese memory manufacturers like CXMT (Changxin Memory Technologies) are aggressively expanding production, which could negatively affect profitability in the traditional DRAM market. Both Samsung and SK hynix are said to be closely monitoring these developments.

Established in 2016, CXMT has become China’s largest DRAM producer with government backing, focusing on traditional DRAM and preparing to enter the HBM market.

Reportedly, CXMT has rapidly increased its DRAM production capacity, from 70,000 wafers per month in 2022 to 120,000 in 2023, and is projected to reach 200,000 wafers this year.

CXMT’s main products include 17nm and 18nm DDR4 and LPDDR4, with its latest offerings being 12nm DDR5 and LPDDR5X, which the company is also developing. Its aggressive DRAM expansion could negatively impact sales and profits for Korean memory manufacturers.

According to TrendForce’s data, the spot price of 16Gb DDR4 increased from $3 in the second half of 2023 to $3.50 in the first half of this year, before falling back to $3.30 in the second half of 2024.

For DDR5, prices have increased from $4.20 in October 2023 to over $4.50 in the first half of this year, approaching $5 in the second half.

By the end of August, the price premium of DDR5 over DDR4 had surged to 53.9%, up significantly from 36.9% six months earlier.

Per a recent report from Nomura Securities cited by ZDNet Korea, the rapid expansion of Chinese companies is expected to negatively impact the memory industry’s profitability, necessitating preparations for potential disruptions. CXMT’s production now accounts for about 5% of the market, potentially influencing prices.

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• [News] Samsung and SK hynix’s China Revenue Doubled in 1H24, Reportedly Driven by Semiconductor and HBM Demand
• [News] China-US Chip War Escalated as YMTC Sues Micron for Patent Infringement

(Photo credit: CXMT)