Recently, global chip giant Intel announced to acquire a stake in Dongguan Luxshare Technology Co., Ltd. (Referred to as “Dongguan Luxshare Technology”), a subsidiary of Luxshare Precision.

According to a report from WeChat account DRAMeXchange citing sources, it has shown that on June 12, Dongguan Luxshare Technology’s registered capital increased from around CNY 571 million to around CNY 589 million, an increase of about 3.1%, with Intel (China) Co., Ltd. as a new shareholder. It is reported that Intel China has invested CNY 17.662 million in the company.

Luxshare Precision primarily provides products for industries including consumer electronics, communications and data centers, automotive electronics, and medical sectors. As its subsidiary, Dongguan Luxshare Technology specializes in the production of communications equipment such as base station antennas, filters, and RRU, as well as interconnect products like connectors, cables, optical modules, and AOC, which have been widely used in applications like wireless communication base stations, data centers, servers, switches, and routers.

As a global leader in the semiconductor industry and computing innovation, Intel achieved a revenue of USD 63 billion in 2022. In the computing sector, statistics showed that in 4Q23, Intel shipped as many as 50 million PC processors, representing a year-on-year increase of 3% and a market share of 78%.

In the semiconductor field, Intel is developing foundry business at full throttle. According to its official website, to meet the growing global semiconductor demand and promote its IDM 2.0 strategy, Intel is ramping up its production capacity by investing about USD 20 billion in building fabs in Arizona and New Mexico, and over USD 20 billion in Ohio for the acquisition of Tower Semiconductor. It plans to pour up to EUR 80 billion to the EU in the entire semiconductor value chain over the next decade.

As per another report from the Securities Times, a source revealed that this cooperation does not involve the consumer electronics field but mainly the communications field. That means future products of Luxshare Precision in this field will be deeply integrated with Intel chips. For instance, both parties will engage in deep collaboration from the product development stage.

Furthermore, industry sources cited by the same report further explained that the transmission rate and bandwidth of communication-related products are fundamentally related to the chips they use. Therefore, Intel’s investment in Luxshare Precision’s subsidiary will enhance the competitiveness of Luxshare Precision’s products in the communications and data center sectors, contributing to the rapid development of this business.

As stated in Luxshare Precision’s annual report, the communications industry embraced new development opportunities amidst the wave of global digital transformation in 2023. Copper connectivity, optical connectivity, thermal modules, servers, and communication RF fields that Luxshare’s business has involved also saw significant growth, which became important drivers for the industry development.

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(Photo credit: Intel)

According to a report from TechNews, TSMC held a technology forum on May 23, where Senior Fab Director pointed out that benefiting from HPC and mobile phone demands, the 3nm production capacity this year has more than tripled compared to last year, but this is actually still not enough, so efforts are still being made to meet customer demand.

During the forum, TSMC also indicated that its compound annual growth rate (CAGR) in advanced processes below 7nm surpassed 25% from 2020 to 2024. Moreover, TSMC remains committed to investment, with capital expenditure in 2024 increasing by 10% compared to the preceding four years.

Due to the booming demand for AI and HPC, TSMC is actively expanding its capacity for advanced processes. Huang stated that TSMC’s capacity for SoIC and CoWoS is experiencing CAGRs exceeding 100% and 60%, respectively, from 2022 to 2026.

The topic of TSMC’s manufacturing has always been a focus of the industry. In the past, it was presented by Executive Vice President and Co-Chief Operating Officer Y.P. Chyn, Vice President of Fab Operations I Dr. Y.L. Wang, and TSMC Vice President of Advanced Technology and Mask Engineering Dr. T.S. Chang. This time, it is presented for the first time by the key driver of the most advanced process and plant-level executives in Taiwan.

He mentioned that the share of TSMC’s special processes in maturity has also steadily increased, from 61% in 2020 to the target of 67% in 2024.

Huang further pointed out that TSMC averaged the construction of five fabs per year  between 2022 and 2023, increasing to seven this year. Among them are three fabs, two packaging plants, and two overseas facilities.

Fab 20 in Hsinchu and Fab 22 in Kaohsiung are both 2nm fabs, progressing smoothly and expected to commence production next year.

Taichung AP5 is expanding its capacity to meet the needs for CoWoS production, while the recently announced advanced packaging investment in Chiayi is for CoWoS and SOIC production.

In terms of global deployment, three fabs are planned in Arizona, USA. The first fab is already had its first tool-in, set to commence 4nm production next year, while the second fab is scheduled for 2028 production, and the third fab is expected to begin production by the end of the 2020s. In Japan, Kumamoto Fab 1 is slated for production in the fourth quarter of this year, with Fab 2 set for production in 2027.

In Europe, the Dresden fab will offer 16nm technology, with construction beginning in the fourth quarter of this year and production slated for 2027, mainly to meet European customer needs. Additionally, Nanjing Fab 16 in China continues to expand its 28nm capacity.

When discussing the application of EUV technology, he mentioned that TSMC’s EUV machine count has grown tenfold since 2019, now accounting for 65% of the global total. Both wafer output and efficiency have significantly increased along with learning.

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(Photo credit: TSMC)

Following Intel’s move to split its outsourced foundry model, TSMC is gearing up to expand its advanced manufacturing processes in Taiwan, ready to face the competition head-on.

According to China Time’s report, following the equipment first tool-in at the 2nm fab in Baoshan scheduled for April next year, industry sources suggest a high likelihood of the 1.4nm fab being established in the second phase of the Central Taiwan Science Park.

Additionally, TSMC is actively expanding its CoWoS process and considering the construction of its 7th advanced packaging and testing plant in the central region, with Chiayi Science Park and Yunlin actively under consideration.

Semiconductor industry insiders point out that TSMC is beginning to feel the pressure, and this year, founder Morris Chang’s main concern regarding competition has shifted from Samsung to the resurgent Intel.

Starting from the second quarter of next year, Intel, a rival of TSMC, plans to separately disclose financial reports for chip development and Intel Foundry Services (IFS), implementing its internal foundry outsourcing model.

Intel’s move aims to protect the assets and know-how of third-party customers. Coupled with international chip design firms gradually releasing orders to Intel due to diversified supply chain concerns, it shows that Intel’s outsourcing strategy is gradually proving effective.

Intel’s recent successes in foundry processes, including the PowerVia backside power delivery technology, glass substrates and Foveros Direct for advanced packaging.

According to TrendForce’s 3Q23 Ranking of  Global Top10 Foundries by Revenue, Intel’s foundry business has entered the global top 10 for the first time, ranking ninth with the industry’s fastest quarterly growth.

Confronted with growing competition from Intel, TSMC is intensifying its efforts and accelerating the construction of advanced process production capacity. The recent expansion plans are becoming clearer, with the 1.4nm fab likely located in the second phase of the Central Taiwan Science Park, aligning with the ongoing increase in demand for advanced packaging.

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(Photo credit: TSMC)

STMicroelectronics, following its EUR 7.5 billion wafer fab project with GlobalFoundries in Crolles, France. is set to invest EUR 5 billion in building a new SiC super semiconductor wafer fab in Catania, Sicily, Italy. The fab in Italy will specialize in producing SiC chips, a pivotal technology for electric vehicles with substantial growth potential, according to French media L’Usine Nouvelle on November 26th,

STMicroelectronics competitively plans to transition to 8-inch wafers starting from 2024. The company will integrate Soitec’s SmartSiC technology to enhance efficiency and reduce carbon emissions. Simultaneously, STMicroelectronics aims to increase capacity, achieve internal manufacturing, and collaborate with Chinese firm Sanan Optoelectronics to raise SiC chip-related revenue from the expected USD 1.2 billion in 2023 to USD 5 billion by 2030.

On June 7th earlier this year, STMicroelectronics and Sanan Optoelectronics announced a joint venture to establish a new 8-inch SiC device fab in Chongqing, China, with an anticipated total investment of USD 3.2 billion.

To ensure the successful implementation of this extensive investment plan, Sanan Optoelectronics said to utilize its self-developed SiC substrate process to construct and operate a new 8-inch SiC substrate fab independently.

TrendForce: over 90% SiC market share by major global players        

According to TrendForce, the SiC industry is currently dominated by 6-inch substrates, holding up to 80% market share, while 8-inch substrates only account for 1%. Transitioning to larger 8-inch substrates is a key strategy for further reducing SiC device costs.

8-inch SiC substrates offer significant cost advantages than 6-inch substrates. The industry’s major players in China, including SEMISiC, Jingsheng Mechanical & Electrical Co., Ltd. (JSG), Summit Crystal, Synlight Semiconductor, KY Semiconductor, and IV-SemiteC, are advancing the development of 8-inch SiC substrates. This shift from the approximately 45% of total production costs associated with substrates is expected to facilitate the broader adoption of SiC devices and create a positive cycle for major companies.

Not only Chinese companies but also international semiconductor giants like Infineon Technologies and Onsemi are actively vying for a share of the market. Infineon has already prepared the first batch of 8-inch wafer samples in its fab and plans to convert them into electronic samples soon, with mass production applications scheduled before 2030. International device companies like Onsemi and ROHM have also outlined development plans for 8-inch SiC wafers.

Currently, major companies hold over 90% of the market share, intensifying competition. A slowdown in progress could provide opportunities for followers. According to TrendForce, the market share of the top 5 SiC power semiconductor players in 2022 was dominated by STMicroelectronics (36.5%), Infineon (17.9%), Wolfspeed (16.3%), Onsemi (11.6%), and ROHM (8.1%), leaving the remaining companies with only 9.6%.

(Image: STMicroelectronics)

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As TSMC speed up its global expansion, the developments in its overseas fabs and the appointments of key leaders are under intense scrutiny. According to reports from DeepTech’s Voice, TSMC is said to choose Ray Chuang as the General Manager/CEO for its Fab in Germany. Chuang is considered a rising star promoted from the 18A fab manager to Vice President of Fab Operations I in this year.

Ray Chuang, a TSMC veteran since 1997, originally served as the senior manager of the 18A fab, showcasing expertise in various process technologies. Notably, he successfully led teams in the mass production of N5 and N4 process. He was elevated to Vice President of the Fab Operations I in May, 2023.

The unveiling of fab managers for TSMC’s overseas sites is progressing. In addition to the already disclosed appointments of Rick Cassidy and Dr. Y.L. Wang as Chairman and CEO of the Arizona fab, respectively, the Japanese fab (JASM) will see Vice President Y.H. Liaw, responsible for mature process production, taking the helm as CEO, according to the press release from Taiwan OCAC.

Potential Impacts May Postpone TSMC’s Fab in Germany Progress

TSMC’s plan includes the establishment of a subsidiary, European Semiconductor Manufacturing Company (ESMC) GmbH, set to build a fab in Dresden, eastern Germany. The total investment stands at EUR 10 billion, with an expected subsidy of about EUR 5 billion from the German government. Noteworthy partners in this venture, including Infineon, NXP, and Bosch, will each hold a 10% stake, while TSMC retains substantial control with over 50% ownership. The fab’s primary focus will be on producing automotive chips using 28nm/22nm processes, with an estimated capacity of 30,000 to 50,000 wafers.

The fab in Germany was initially expected to receive an EUR 5 billion subsidy, with production scheduled for 2027. However, a report from Reuters on November 23rd highlighted a ruling by the Germany’s Constitutional court that the German government’s re-location of EUR 60 billion from the pandemic fund to the climate transition fund was unconstitutional. Consequently, the German Ministry of Finance issued an emergency notice, freezing spending plans across various federal budgets. This unexpected move may impact the subsidies initially earmarked for TSMC fab in Germany.

Insights from TrendForce indicate that ESMC’s total planned production capacity is approximately 40Kwspm. The fab is set to focus on 28/22nm and 16/12nm processes, with groundbreaking expected in the latter half of 2024 and full-scale production in 2027. Forecast from TrendForce suggest that TSMC’s overseas capacity share (includes China), will rise from 9% in 2023 to 15% by 2027.
(Image: TSMC)

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