All articles tagged with #chip production
Taiwan has rejected the U.S. proposal for a 50-50 split in semiconductor production, focusing instead on trade issues like tariffs, while the U.S. aims to onshore chip manufacturing to reduce reliance on Taiwan. The proposal has faced strong opposition from Taiwan's politicians, emphasizing the island's critical role in global chip supply and its national security.
The US plans to implement a 1:1 chip production rule requiring companies to manufacture as many semiconductors domestically as they import, aiming to reduce reliance on foreign supply and enhance economic security, potentially involving tariffs on non-compliant firms.
Nvidia has announced that its new Blackwell AI chips are in full production, contributing significantly to its record AI revenue and profits, which have surpassed its traditional gaming business. Despite reports of potential cooling issues, Nvidia assured investors of Blackwell's success, having shipped 13,000 samples this quarter. The company's AI data centers generated $30.7 billion in revenue, dwarfing its gaming segment. Nvidia and AMD are both accelerating chip development to meet growing AI demand, while Intel lags behind in the AI sector.
The Biden administration has pledged up to $6.6 billion to Taiwan's TSMC to support the construction of a third semiconductor factory in Arizona, as part of a $65 billion investment in the US. This move aims to boost domestic production of advanced chips and reduce dependency on Asian firms, particularly in the event of a geopolitical crisis. The funding is tied to the CHIPS and Science Act, signed by President Biden in 2022, and is part of efforts to revitalize the US semiconductor industry. Additionally, the administration is set to provide over $6 billion in funding to South Korea's Samsung to expand its chip output in Texas.
The United States Department of Commerce has announced $6.6 billion in direct funding and $5 billion in loans for TSMC's semiconductor production in Phoenix, Arizona, under the CHIPS and Science Act. TSMC plans to build a third chipset fab at its Arizona complex to meet customer demand for 2nm chipsets, with production expected to begin by the end of the decade. This investment represents the highest foreign direct investment project in U.S. history, and TSMC aims to start manufacturing 4nm chips in Arizona next year, followed by 3nm and 2nm chips in 2028.
President Biden is set to announce a multibillion-dollar grant for Intel to expand chip production in the United States as part of his efforts to strengthen the semiconductor industry and reduce reliance on technology from East Asia. The grant is part of the $39 billion CHIPS and Science Act and comes as Biden emphasizes his economic policies during a tour of the Southwest. The administration aims to accelerate semiconductor investments and prepare a workforce for manufacturing in states like Arizona and Texas.
The Biden administration has awarded a $1.5 billion grant to chipmaker GlobalFoundries as part of a government program aimed at revitalizing semiconductor manufacturing in the United States. An additional $1.6 billion in federal loans will also be made available to bolster the company, with the funding expected to triple its production capacity in New York over the next decade. This move reflects efforts to reduce America's reliance on foreign sources of chips and address supply chain vulnerabilities, particularly in the auto and defense industries.
Despite US efforts to restrict China's access to advanced chipmaking technologies, China's largest chipmaker, SMIC, is close to mass-producing 5 nm chips for Huawei smartphones using existing US and Dutch-made equipment. This move supports Beijing's goal of chip self-sufficiency and shows gradual progress in China's semiconductor industry. However, SMIC is facing lower yields and increased production costs compared to Taiwan's TSMC. The fate of China's chip industry and its technological development will depend on the success of these production lines.
Despite US restrictions, China is on the verge of achieving next-generation chip production, a significant milestone in the semiconductor industry. This development underscores China's determination to become self-reliant in advanced chip manufacturing, reducing its dependence on foreign technology.
Taiwan Semiconductor Manufacturing Co (TSMC) reported a 10% drop in projected 2023 sales and announced a delay in the start of chip production at its first plant in Arizona until 2025 due to a shortage of skilled workers. The company's second-quarter net profit fell by 23% as global economic challenges impacted chip demand. Despite short-term uncertainties, TSMC remains optimistic about its long-term growth prospects, driven by trends like 5G and high-performance computing. Analysts expect a strong outlook for TSMC in 2024 and beyond, particularly due to its leading position in AI chip manufacturing.
Foxconn, Apple's iPhone manufacturing partner, has dropped out of a $19.5 billion chip production deal with Indian company Vedanta in India. Concerns about incentive approval delays by the Indian government and questions about cost estimates were cited as reasons for the deal falling apart. Despite this setback, Apple remains focused on diversifying its manufacturing outside of China and expanding its presence in India, which is seen as a key market for the company.
Apple is reportedly set to receive a discount on TSMC's upcoming 2nm process, with each wafer costing $25,000. The high cost of TSMC's 3nm process has deterred other companies from placing orders, allowing Apple to secure 90 percent of the initial supply. TSMC's 2nm wafers are said to be 25 percent more expensive than the 3nm ones. Despite the high cost, Apple is expected to place enough orders to receive a discount, similar to its arrangement for the 3nm process. TSMC is in talks with various clients for mass production in 2025, but currently, Apple and NVIDIA are the only ones interested.
Samsung has reportedly improved its 4nm process yield during chip production, which is set to be used on Google's Tensor G3 in future Pixel phones. The yield is now comparable to that of TSMC, which has a superior process with better yields. AMD has entered into a new partnership with Samsung as a result of these improvements, and this new process is also going to be used for Google's next-generation Tensor chipset. The Pixel 8 and Pixel 8 Pro will apparently usher in Google's first 4nm smartphones with Tensor G3 using Samsung's updated and now improved process.
Microsoft is reportedly hiring engineers for key positions relating to chip production, including custom silicon accelerators and System on Chips, indicating a greater push to make Windows 12 work as well as possible on ARM chips. While Microsoft has been engineering ARM for a decade, the job postings point to a bigger effort to take on Apple Silicon. The company has also prepared developers for a more ARM-based future with the Windows Dev Kit 2023, which uses the Qualcomm Snapdragon 8cx Gen 3 compute platform for its processing.
Samsung Electronics reported a record loss in its semiconductor business in Q1 due to weak demand for tech devices, leading to a global downturn in semiconductor purchases and plummeting chip prices. The company expects a gradual recovery for chips in H2 2019, focusing on high-capacity server and mobile products. Samsung's mobile business was a brighter spot, reporting a profit of 3.94 trillion won in Q1, up from 3.82 trillion won a year earlier. Despite the record loss in chips, Samsung spent 10.7 trillion won in capital expenditures during Q1, the highest for the first quarter of any year.