With Donald Trump’s victory in the U.S. presidential election, the whole semiconductor industry, especially those Asian-based tech giants making strides in overseas expansion, are concerned about the development of the U.S. CHIPS and Science Act.

According to the latest reports by Bloomberg and Business Korea, while TSMC has finalized binding agreements for multi-billion dollar grants and loans to back its U.S. factories, Samsung and SK hynix are both concerned that potential reductions in semiconductor subsidies could result from policy amendments.

Regarding who may be receive the funding from the Biden administration soon, another report by Reuters names TSMC, GlobalFoundries and at least one other chipmaker as the lucky ones.

The Reuters report further explains that the U.S. Commerce Department recently informed Congress that at least three companies are near receiving their final awards. Under the CHIPS Act, the Commerce Secretary is required to notify the relevant committees at least 15 days before finalizing any deal over USD 10 million, according to Reuters.

TSMC More Assured as Binding Agreements Reportedly Finalized

According to Bloomberg, the CHIPS Act allocated USD 39 billion in grants, along with additional billions in loans and 25% tax credits, aimed at revitalizing U.S. semiconductor manufacturing after years of production moving to Asia. At this moment, over 20 companies are in line to receive government funding, which suggests that it is highly probable that some of the funding will be finalized under Donald Trump’s leadership when he takes office in January, 2025.

Following Trump’s previous remarks that the CHIPS and Science Act is “so bad” and House Speaker Mike Johnson’s suggestion that Republicans may try to repeal the Act if they win Congress, industry officials are eager to finalize matters quickly, both to ensure that funds begin flowing to projects meeting established benchmarks, according to Bloomberg.

TSMC’s package, announced in April, includes USD 6.6 billion in grants and up to USD 5 billion in loans to aid the construction of three semiconductor factories in Arizona, with the total capital expenditure for the site amounting to more than USD 65 billion, according to its press release.

The deal, initially announced as tentative agreements earlier this year, comes as the Biden administration pushes to disburse funds before the end of its term in January, according to Bloomberg. Though it remains uncertain when the agreements will be officially signed and the incentives revealed, the award amounts are rumored to align with the preliminary agreements.

Samsung and SK hynix More Concerned about Direct Losses if Subsidies Are Not Granted

On the other hand, South Korean memory giants Samsung and SK hynix are more concerned that whether semiconductor subsidies may be reduced due to potential cuts to the U.S. CHIPS and Science Act.

Both companies are set to receive subsidies—around USD 6.4 billion in direct funding for Samsung and USD 3.87 billion for SK hynix—on the condition that they establish semiconductor manufacturing plants in the U.S.

However, an industry official cited by Business Korea stated that while the scale of the subsidies has been confirmed, the timing of the payments remains uncertain, which is worrisome. If the subsidies are not granted, it will result in direct losses.

Samsung had planned to invest USD 44 billion to build two semiconductor plants and an advanced packaging R&D center in Taylor, Texas. However, due to its current struggles, it has reportedly delayed construction and orders for the second foundry plant in Taylor.

Furthermore, concerns are also rising about the potential negative impact on semiconductor exports due to the U.S. government’s policies toward China. According to the Business Korea report, a reduction in Chinese finished product exports to the U.S. would likely cause a decline in sales for Korean companies that export intermediate goods, such as semiconductor equipment.

Not all news is bad news, though. An industry observer cited by Business Korea notes that although China is still unable to produce advanced process DRAM, they are quickly closing the gap in general semiconductor production. If Chinese memory companies face tighter regulations, it could lead to indirect advantages for their South Korean counterparts.

Read more

• [News] With Trump’s Odds of Winning Rising, Concerns Arise on Potential Adjustments in Chip Subsidies
• [News] TSMC’s First Plant in Arizona Achieves Early Chip Production Yields Higher than Taiwan’s

(Photo credit: TSMC)

TSMC founder Morris Chang is about to release the second volume of his autobiography. According to Economic Daily News, in this second volume of his autobiography, Chang reveals that he once considered inviting NVIDIA founder Jensen Huang to take on the role of TSMC’s CEO in 2013.

This decision detail has immediately sparked widespread discussion in the industry. According to the report from Economic Daily News, the book’s chapter list shows that after appointing C.C. Wei, Mark Liu, and Shang-Yi Chiang as COOs in 2012, Chang approached Huang the following year to gauge his interest in leading TSMC.

Although Huang ultimately chose to continue leading NVIDIA, this historical moment highlights Chang’s high regard for his leadership abilities.

The report from Economic Daily News indicated that TSMC and NVIDIA have collaborated closely in the AI and high-performance computing fields, achieving significant commercial success and establishing themselves as key partners in the tech supply chain.

According to a report in Commercial Times, the partnership between NVIDIA’s Jensen Huang and TSMC’s Morris Chang began after a phone call, when the 32-year-old Huang reached out to Chang. NVIDIA was a young startup, and Huang was unsure if TSMC would collaborate with them. To his surprise, Chang personally called NVIDIA, and that call, answered by Huang, initiated a partnership that has endured for over 20 years.

Chang and Huang are often celebrated as intergenerational friends, admired for their insights into the technology industry and mutual respect for each other’s corporate cultures.

Huang has consistently emphasized the profound influence of Chang’s insights on his own approach to the industry, recognizing Chang as the godfather of Taiwan’s technology industry. According to a CNA report, when Morris Chang received the K.T. Li Award, Jensen Huang traveled from the U.S. to Taiwan specifically to attend the ceremony and personally congratulate him. Huang remarked that NVIDIA was built on the foundation laid by TSMC, stating that without TSMC, NVIDIA would not exist.

Chang has also expressed mutual respect for Huang. According to the report from Economic Daily News, in recent public appearances, he has frequently referenced Huang’s viewpoints and even endorsed his remarks on Intel’s entry into semiconductor foundry services, highlighting their shared perspectives on industry trends and the deep friendship that underpins their collaboration.

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• [News] TSMC Founder Morris Chang to Release Autobiography in November, Highlighting His Life at TI and TSMC
• [News] Jensen Huang Clarifies No Tension with TSMC After Blackwell AI Chip Design Flaw

(Photo credit: TechNews)

According to a report from Commercial Times, citing industry sources, TSMC has become the focus of active collaboration efforts from various parties. The governor of Texas, Greg Abbott, plans to visit TSMC after the U.S. elections to persuade the company to transfer its Arizona plant investment plan to Texas, offering discounts on water and electricity, along with subsidy incentives.

Texas is actively courting TSMC, offering more favorable policies in hopes of persuading the company to shift its original Arizona investment to the state. Furthermore, the report indicated that, citing industry sources, Texas offers a well-established supply chain cluster of Taiwanese factories, along with its proximity to Mexico.

The report also noted that Samsung Display has sought TSMC’s production support to meet Apple’s growing demand. According to the report, institutional investors highlighted that as the LCD market shifts to AMOLED, UMC’s display driver capacity is facing supply shortages, and TSMC is the only company capable of meeting Apple’s production capacity requirements. Additionally, next year’s capacity for mature process production is expected to be loose, and TSMC is anticipated to offer discounts to boost utilization rates.

Regarding the technological development from TSMC, the report also indicated that TSMC is advancing its 16nm FinFET process to produce driver ICs, enhancing their high performance and low power consumption, which is expected to appeal to Apple.

According to the report, industry sources indicate that FOPLP packaging technology is a key area of development for both Apple and TSMC, suggesting that FOPLP will be a major focus of advanced packaging innovation in the next phase. The report also speculates that the Texas governor’s visit to TSMC may have been arranged by Apple, a major client of TSMC.

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• [News] TSMC’s First Plant in Arizona Achieves Early Chip Production Yields Higher than Taiwan’s
• [News] TSMC Reportedly Begins Small-Scale Production in Arizona for Apple’s A16 with the N4P Node

(Photo credit: TSMC)

According to a report from TechNews, citing a report from Nikkei, TSMC is set to receive ASML’s most advanced High NA EUV lithography machines before the end of the year.

The machine, known as high numerical aperture extreme ultraviolet (High NA EUV) lithography equipment, costs over USD 350 million each and allows semiconductor manufacturers to produce wafers with smaller transistor line widths, according to Nikkei.

The report indicated that TSMC is likely to use the machines for its angstrom 10 (A10)  technology, expected to enter mass production sometime after 2030. The A10 technology is about two generations ahead of the 2-nm chips that TSMC plans to mass produce by the end of 2025.

The report from TechNews noted that acquiring High NA EUV lithography equipment does not guarantee a smooth entry into the “angstrom” (A10) domain. Chip manufacturers must still make design adjustments after acquiring the equipment.

According to the report from Nikkei, TSMC is not the first to acquire ASML’s latest and most advanced equipment—Intel was the first to adopt it. Intel’s Oregon fab received the first set of High NA EUV machines in the first quarter of this year, followed by a second set in the second quarter.

According to another report from TechNews, the CEO of ASML has announced that Intel’s second High-NA EUV system has been completely assembled in October.

On the other hand, according to Sedaily, Samsung is expected to begin bringing in its first High-NA EUV equipment between the end of this year and the first quarter of next year. However, the company is said to reduce the number of next-generation High NA EUV lithography machines it plans to introduce, according to a report from South Korean media outlet BusinessKorea citing sources.

Intel, Samsung, and TSMC are currently the only clients of ASML’s High NA EUV machines. Meanwhile, due to U.S. sanctions preventing Chinese companies from accessing ASML’s EUV products and services, ASML has lost the Chinese market. However, the company stated that it has still received orders for 10 to 20 units, as the report from TechNews indicated.

According to the report from TechNews, as ASML monopolizes the advanced EUV lithography market—essential for manufacturing next-generation semiconductors—the U.S. has started investing in EUV research to revive its domestic semiconductor supply chain. However, this effort may take years, or even decades, to bear fruit.

According to a report from eeNews, recently, the U.S. government is funding a billion-dollar research center focused on next-generation EUV process technology, marking the first CHIPS for America R&D flagship facility. This initiative is designed to advance domestic capabilities in semiconductor technology.

Read more

• [News] Samsung Reportedly Reduces Procurement of ASML’s Next-Generation EUV Lithography Equipment
• [News] Intel Completes Assembly of Second High-NA EUV System, ASML Confirms

(Photo credit: TSMC)

Driven by booming demand for AI chips, TSMC’s advanced CoWoS (Chip on Wafer on Substrate) packaging faces a significant supply shortage. In response, TSMC is expanding its production capacity and is considering price increases to maintain supply chain stability.

According to a recent report from Morgan Stanley cited by Commercial Times, TSMC has received approval from NVIDIA to raise prices next year, with CoWoS packaging expected to increase by 10% to 20%, depending on capacity expansion.

At TSMC’s Q3 earnings call, Chairman C.C. Wei highlighted that customer demand for CoWoS far outstrips supply. Despite TSMC’s plan to more than double CoWoS capacity in 2024 compared to 2023, supply constraints persist.

To meet demand, TSMC is collaborating closely with packaging and testing firms to expand CoWoS capacity. Industry sources quoted by CNA reveal that ASE Group and SPIL are working with TSMC on the back-end CoWoS-S oS (on-Substrate) process. By 2025, ASE may handle 40-50% of TSMC’s outsourced CoWoS-S oS packaging.

ASE announced investments in advanced packaging, covering CoWoS front-end (Chip on Wafer) and oS processes, along with advanced testing.

SPIL, a subsidiary of ASE, recently invested NT$419 million in land at Central Taiwan Science Park’s Erlin Park, boosting CoWoS capacity. Additionally, SPIL has allocated NT$3.702 billion to acquire property from Ming Hwei Energy in Douliu, Yunlin, for further expansion.

ASE also announced in early October that its new Kaohsiung K28 facility, slated for completion in 2026, will expand CoWoS capacity.

In early October, TSMC announced a partnership with Amkor in Arizona to expand InFO and CoWoS packaging capabilities. Industry sources cited by CNA suggest that Apple, a user of TSMC’s U.S.-based 4nm process for application processors, may leverage Amkor’s CoWoS capacity. Other U.S.-based AI clients utilizing TSMC’s advanced nodes for ASICs and GPUs are also expected to consider Amkor’s CoWoS packaging in the future.

(Photo credit: TSMC)