On July 1st, according to a report from Reuters, the French antitrust authority plans to file charges against NVIDIA, accusing the company of engaging in anti-competitive practices, making France the first country to take such action against NVIDIA.

The French competition regulator had raided NVIDIA’s local offices in September last year. At the time, they did not disclose the details of the investigation or the company involved, only stating it was related to the graphics card sector.

However, as per a previous report from Bloomberg, NVIDIA claimed that the French agency collected information from them regarding their business and competition in the graphics card and cloud service provider market as part of an ongoing inquiry into competition in those markets.

Sources cited by Reuters’ report indicated that last year’s raid was part of a broader investigation into cloud computing. With the surge in global chip demand following the advent of ChatGPT, NVIDIA, as the world’s largest manufacturer of AI and computer graphics cards, has naturally attracted close scrutiny from antitrust authorities in Europe and the United States.

NVIDIA previously disclosed in regulatory filings that both EU and French regulators had requested information about its graphics card products. The French antitrust authority has been actively investigating to understand NVIDIA’s key role in AI processors, its pricing policies, chip shortages, and the impact on prices.

Last Friday, the French authorities released a report on competition in generative AI, highlighting the risk of chip suppliers abusing their power. The report pointed out concerns about the chip industry’s heavy reliance on NVIDIA’s CUDA software for chip programming. Additionally, NVIDIA’s focus on investing in AI cloud service provider CoreWeave has also raised significant concerns among the authorities.

Reportedly, it is understood that companies violating French antitrust rules could face fines of up to 10% of their global annual revenue, though they can choose to make concessions to avoid penalties.

Moreover, the European Commission is currently gathering informal feedback to determine if NVIDIA has breached its antitrust rules, although it has not yet launched a formal investigation into anti-competitive behavior.

On the other hand, the New York Times reported on June 5th that the U.S. Department of Justice and the Federal Trade Commission (FTC) have reached an agreement, led by senior officials of both agencies, over the past week. The DOJ will investigate whether NVIDIA has violated antitrust laws, while the FTC will examine the conducts of OpenAI and Microsoft.

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(Photo credit: NVIDIA)

In recent years, global semiconductor market has seen cut-throat competition. Amid complicated international environment, countries and regions such as South Korea, the United States, Japan, and Europe have launched chip subsidy measures to strengthen the development of their domestic semiconductor industries.

To revive semiconductor production, the United States officially passed the CHIPS and Science Act in 2022, which includes a fund of approximately USD 52.7 billion for supporting the semiconductor industry and an investment tax credits worth USD 24 billion to companies.

• Subsidy Application System for Semiconductor Manufacturing Fab Closed

Since December 2023, several semiconductor companies have received subsidies from the U.S. government under the CHIPS and Manufacturing Act. Preliminary statistics showed subsidy amounts reached billions of dollars, including Intel (USD 8.5 billion), Micron (USD 6.14 billion), Samsung (USD 6.4 billion), TSMC (USD 6.6 billion), GlobalFoundries (USD 1.5 billion), and Microchip Technology (USD 162 million).

From this it can be seen that early U.S. subsidies in the semiconductor sector mainly focused on semiconductor chip manufacturing. However, due to limited funds and the large number of applications, the CHIPS program office previously announced plans to close funding application system for semiconductor manufacturing plants until “further notice.”

And it’s worth noting that lately, another semiconductor company announced it had received U.S. chip subsidies, indicating the government’s target has shifted to the semiconductor materials sector.

• Entegris Received a Subsidy of USD 75 Million

On June 26, the U.S. Department of Commerce and semiconductor materials company Entegris jointly announced that Entegris would receive a USD 75 million chip subsidy from the U.S. government.

It is reported that Entegris has signed a non-binding preliminary terms memorandum (PMT) with the U.S. Department of Commerce. As per the CHIPS and Science Act, the Department of Commerce will provide Entegris with a direct fund of up to USD 75 million.

This fund will support the development of a state-of-the-art factory in Colorado Springs, supporting the company’s Advanced Materials Handling (AMH) and Microcontamination Control (MC) divisions. The aim is to produce products critical to the future of U.S. semiconductor manufacturing.

The factory is planned to put into initial commercial operation in 2025 and will be constructed in multiple phases: The first phase will support the production of front-opening unified pod (FOUP), currently entirely produced abroad, and liquid filtration membranes. The second phase will support the production of advanced liquid filters, purifiers, and fluid handling solutions.

Front-opening unified pod is an important product for transporting and protecting wafers in the semiconductor manufacturing process. The U.S. Department of Commerce press release stated that Entegris mainly supplies products for Intel, TSMC, Micron, and GlobalFoundries, holding a significant position in the global semiconductor supply chain.

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• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: Entegris)

According to a report from the Economic Daily News, amid the escalating US-China tech war, Chinese President Xi Jinping emphasized the need to enhance the sense of urgency and intensify efforts in technological innovation. Particularly in six key areas, including semiconductors, industrial machinery, and advanced materials, China aims to ensure the independence, security, and control of crucial industrial and supply chains, striving to become a technological powerhouse by 2035.

During the speech Xi delivered while presenting China’s top sci-tech award on June 24th, he stated that building China into a technological powerhouse has been a persistent goal of the Chinese nation since modern times. As per the same report, by 2035, China aims to possess world-leading technological strength and innovation capability, which will support a significant leap in economic strength, national defense strength, and comprehensive national power.

Xi also called for China to focus on six key areas, including addressing bottlenecks in integrated circuits (semiconductors), industrial machinery, basic software, advanced materials, and scientific research instruments by intensifying technological research and development efforts. The goal is to ensure that critical industrial and supply chains are self-sufficient, secure, and controllable, providing technological support for these areas.

Furthermore, he urged targeting the strategic high ground of future technological and industrial development, accelerating innovation in next-generation information technology, artificial intelligence (AI), quantum technology, biotechnology, new energy, and new materials. The aim is to foster the growth of emerging and future industries.

Regarding the current international situation, Xi mentioned that the technological revolution and major power rivalries are intertwined, making high-tech fields the forefront and main battleground of international competition. He also acknowledged that China’s capability for original innovation remains relatively weak, with some critical core technologies dependent on others and a shortage of top scientific talent.

Earlier this month, Huawei also reportedly acknowledged that China’s semiconductor development may have plateaued. Per a report from Business Korea, Zhang Ping’an, the Chief Executive Officer of Huawei Cloud Services, noted that manufacturing 3.5 nm semiconductors necessitates EUV lithography machines, which Huawei is reportedly working on independently. However, overcoming U.S. and Dutch patents to internalize this technology is considered highly challenging.

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• [News] US to Lobby Netherlands and Japan to Contain China’s Chip Development, Focusing on HBM
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(Photo credit: iStock)

According to a report from Nikkei citing sources, memory giant Micron Technology is building a pilot production line for advanced high-bandwidth memory (HBM) in the United States and is considering producing HBM in Malaysia for the first time to capture more demand from the AI boom.

Reported on June 19, Micron is said to be expanding its HBM-related R&D facilities at its headquarters in Boise, Idaho, which include production and verification lines. Additionally, Micron is considering establishing HBM production capacity in Malaysia, where it already operates chip testing and assembly plants.

Nikkei’s report further noted that Micron’s largest HBM production facility is located in Taichung, Taiwan, where expansion efforts are also underway. Micron is said to have set a goal to triple its HBM market share to 24-26% by the end of 2025, which would bring it close to its traditional DRAM market share of approximately 23-25%.

Earlier this month, a report from a Japanese media outlet The Daily Industrial News also indicated that Micron planned to build a new DRAM plant in Hiroshima, with construction scheduled to begin in early 2026 and aiming for completion of plant buildings and first tool-in by the end of 2027.

Per industry sources cited by TechNews, Micron is expected to invest between JPY 600 to 800 billion in the new facility, located adjacent to the existing Fab15 facility. Initially, the new plant will focus on DRAM production, excluding backend packaging and testing, with a capacity emphasis on HBM products.

Micron, along with SK Hynix, has reportedly received certification from NVIDIA to produce HBM3e for the AI chip “H200.” Samsung Electronics has not yet received approval from NVIDIA; its less advanced HBM3 and HBM2e are currently primarily supplied to AMD, Google, and Amazon.

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• [News] HBM Supply Shortage Prompts Micron’s Expansion, Expected Schedule in Japan and Taiwan Revealed
• [News] Micron Slightly Raises Capital Expenditure for 2024, HBM Expected to Further Drive Revenue Growth in 2025

(Photo credit: Micron)

According to a report from Reuters on June 19, to further restrict China’s semiconductor industry and prevent the use of semiconductor manufacturing equipment in military applications, Alan Estevez, the U.S. Commerce Department’s Under Secretary for Industry and Security, will visit the Netherlands and Japan.

Reportedly, Estevez will visit the Netherlands and Japan, with the primary objective of further limiting China’s ability to manufacture advanced semiconductors and preventing China from using chip manufacturing equipment to enhance its military capabilities. Additionally, the U.S. may add another 11 Chinese chip companies to the restricted list.

Sources cited by the report indicate that this move includes limiting the activities of equipment suppliers such as ASML and Japan’s Tokyo Electron in the Chinese market. Special attention will be given to Chinese chip manufacturers developing high-bandwidth memory (HBM) chips.

The report from also states that in July 2023, to align with U.S. government policies aimed at curbing China’s technological advancements, Japan, home to several chip equipment manufacturers like Nikon and Tokyo Electron, imposed restrictions on the export of 23 types of machinery to China. These machines range from those used for depositing thin films on silicon wafers to etching micro-integrated circuits. Similarly, the U.S. has imposed related restrictions on American companies such as Applied Materials and Lam Research.

Following Japan, the Dutch government also restricted ASML from exporting deep ultraviolet (DUV) lithography machines to China. The U.S. has not allowed some Chinese foundries to purchase additional advanced DUV machines. Prior to this, ASML had already ceased the export of even more advanced extreme ultraviolet (EUV) lithography machines to China.

With the Netherlands imposing new restrictions on the export of advanced chip manufacturing equipment effective from January, ASML previously announced that starting from 2024, they would not be able to ship NXT:2000i and higher DUV lithography equipment to China.

Equipment below NXT:2000i, including NXT:1970i and NXT:1980i, would also be restricted from shipment to advanced process fabs in China. ASML’s Chief Financial Officer, Roger Dassen, anticipated that this will impact 10% to 15% of sales in the Chinese market in 2024.

On the other hand, it has been reported that the U.S. government is in discussions with its allies about adding another 11 Chinese chip manufacturers to the blacklist. During a visit to the Netherlands in April this year, U.S. officials attempted to prevent ASML from continuing to provide maintenance services for equipment used in China. However, since ASML’s service contracts with Chinese customers are still valid and the Dutch government lacks the extraterritorial authority to terminate these contracts, this effort faced significant challenges.

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• [News] Strengthening Controls on Semiconductor Equipment Exports to China, Japan Reportedly Tightens Export Control Measures Further
• [News] ASML Reports Partial Revocation of Export Licenses for DUV Equipment

(Photo credit: iStock)