Tag: TSMC

  • TSMC Warns US Chip Tariffs May Impact $165 Billion Arizona Investment

    TSMC Warns US Chip Tariffs May Impact $165 Billion Arizona Investment

    Key Takeaways

    1. TSMC has requested an exemption from U.S. Section 232 tariffs on semiconductor imports, citing concerns over demand and U.S. industry leadership.
    2. The company is investing $165 billion in Arizona for the construction of six wafer fabrication plants and associated facilities.
    3. TSMC warns that increased tariffs could raise product prices, negatively impacting chip demand and the viability of its Arizona operations.
    4. The firm emphasizes the need for duty-free access to foreign equipment and materials for companies with significant U.S. semiconductor production.
    5. Once fully operational, TSMC’s Arizona fabs could produce 100,000 wafers monthly and generate $200 billion in indirect economic activity, creating tens of thousands of jobs.

    Taiwan Semiconductor Manufacturing Co. (TSMC) has requested that the U.S. Department of Commerce exempt semiconductor imports from the new Section 232 tariffs. The firm expresses concerns that increased tariffs could lower demand in downstream markets and “endanger current U.S. leadership” in the semiconductor industry. This request was outlined in a letter from TSMC’s Arizona branch, sent on May 5, during the comment period set by the department regarding potential trade actions.

    Investment in Arizona

    Currently, TSMC is investing $65 billion into three wafer fabrication plants located in Phoenix. Of these, one plant is already in production, the second is close to completion, and the third just started construction last month. Additionally, in March, TSMC announced an extra $100 billion for the development of three more fabs, two advanced packaging facilities, and a research and development center, totaling their investment commitment to $165 billion.

    Concerns Over Tariffs

    The company has communicated to regulators that imposing tariffs which raise end-product prices would negatively impact chip demand and weaken the economic justification for the Arizona manufacturing site. TSMC is requesting that companies with “significant U.S. semiconductor production” retain duty-free access to foreign equipment and materials, many of which are not available within the U.S.

    As the Commerce Department works on its Section 232 report, which is anticipated to come out shortly after May 26, the timing of TSMC’s letter is notable. Former President Donald Trump has suggested tariffs as high as 100 percent on semiconductors produced in Taiwan, alleging that the island has “stolen” business from the U.S.

    Economic Impact

    The filing indicates that once all six fabs are fully operational, Arizona could produce around 100,000 wafers each month, which would be approximately 30 percent of TSMC’s expected capacity for 2-nanometer and more advanced nodes. TSMC believes that its U.S. operations could generate $200 billion in indirect economic activity and create tens of thousands of jobs. The company argues that these benefits are reliant on stable, tariff-free supply chains.

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  • Google Pixel 10 and 10 Pro Colors Leaked with TSMC Chip Boost

    Google Pixel 10 and 10 Pro Colors Leaked with TSMC Chip Boost

    Key Takeaways

    1. Google Tensor G4 struggles to compete due to its 4 nm production process at Samsung, while rivals use TSMC’s 3 nm technology.
    2. Google is signing a 3-5 year contract with TSMC to produce its ARM chips in Taiwan, starting with the upcoming Tensor G5.
    3. The Tensor G5 is expected to feature advanced cores, including an ARM Cortex-X4 Prime core, with a significant performance boost of about 43% over the Tensor G4.
    4. The new manufacturing process for the Tensor G5 is anticipated to improve chip efficiency.
    5. The Pixel 10 series will offer various color options, enhancing its appeal in the smartphone market as the Tensor G5 launches.

    Up to this point, the Google Tensor G4 has been produced using a 4 nm process at Samsung, which has hindered its ability to compete with other high-end processors. Both the Qualcomm Snapdragon 8 Elite and MediaTek Dimensity 9400 take advantage of more advanced, faster CPU cores and are built using TSMC’s 3 nm production method.

    Google’s New Plans

    Recent information from DigiTimes suggests that Google is aiming to improve its standing in this competitive market. The company is reportedly entering into a contract lasting three to five years with TSMC, which will allow the production of its ARM chips in Taiwan moving forward. The first chip to benefit from this agreement is the Tensor G5, which is set to debut in just a few months alongside the Pixel 10 and Pixel 10 Pro. A significant leak has indicated that the Tensor G5 will feature an ARM Cortex-X4 Prime core, five Cortex-A725 performance cores, and two Cortex-A520 efficiency cores, along with an Imagination Tech DXT-48 GPU.

    Performance Expectations

    The leaked details suggest that the multi-core performance of the Tensor G5 may be approximately 43% greater than that of the Tensor G4 found in the Pixel 9. Additionally, the newer manufacturing process is anticipated to enhance the chip’s efficiency. In related news, an insider known as Mystic Leaks, who has a history of accurately revealing new Android features, has shared information regarding the color options for the Pixel 10 series. Reportedly, the Pixel 10 will come in Obsidian (black), Blue (blue), Iris (purple), and Limoncello (yellow). Meanwhile, the Pixel 10 Pro will be offered in Obsidian (black), Green (green), Sterling (gray), and Porcelain (white).

    Conclusion

    With these advancements, Google aims to close the gap in the competitive smartphone market. As the launch of the Tensor G5 approaches, many are eager to see how it performs against its rivals, especially given the significant updates in its architecture and production techniques. As always, more details are likely to surface in the lead-up to the official release.

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  • TSMC Launches 1.4nm Process Technology for Next-Gen Devices

    TSMC Launches 1.4nm Process Technology for Next-Gen Devices

    Key Takeaways

    1. TSMC has unveiled its 1.4nm process technology, set to begin production in 2028, showcasing advancements over the 2nm process.
    2. The 1.4nm process promises a 30% reduction in power consumption and a 15% performance improvement.
    3. TSMC’s next-generation 2nm process is expected to power devices from major companies like Apple, Nvidia, and AMD.
    4. The 1.4nm process offers a 20% increase in logic density compared to the 2nm process, making it 30% faster and 60% more efficient than the 3nm process.
    5. Apple’s iPhone 17 will use the 3nm N3P node, indicating a gradual transition to the 2nm and 1.4nm technologies in the coming years.

    Back in June 2024, Samsung made waves by introducing advancements in its foundry for the 4nm, 2nm, and 1.4nm process nodes. Now, TSMC (Taiwan Semiconductor Manufacturing Company) has revealed its own state-of-the-art 1.4nm process technology, which will be utilized in upcoming products from major players like Nvidia, Apple, AMD, and more.

    TSMC’s 1.4nm Process Unveiled

    The largest contract chipmaker in the world has disclosed that the 1.4nm A14 process is set to start production in 2028, featuring several enhancements over the 2nm process. This new process technology promises a 30 percent decrease in power consumption while improving performance by approximately 15 percent. To put it in context, TSMC’s 2nm process is on track to begin production later this year.

    TSMC’s 2nm Node Overview

    With a diverse client base, TSMC’s next generation process will likely supply power to upcoming iPhones, Nvidia GPUs, AMD processors, and a whole lot more. According to TSMC, there is a 20 percent boost in logic density, which contributes to the performance increase over the 2nm process. When you compare it to the current TSMC 3nm process, the 1.4nm is nearly 30 percent quicker and 60 percent more efficient.

    To refresh your memory, Apple’s upcoming iPhone 17 series is anticipated to incorporate the latest N3P node (3nm) for the A series chips, indicating that the transition to 2nm could take a couple of years to materialize. In simple terms, the technology from the 1.4nm process is still a few generations down the line as well. That’s all we have for now, so keep an eye out for more updates!

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  • Huawei Ascend 920: Nvidia H20 Replacement Expected This Year

    Huawei Ascend 920: Nvidia H20 Replacement Expected This Year

    Key Takeaways

    1. Huawei is finding new ways to obtain advanced hardware for AI training despite TSMC blocking its chip production efforts.
    2. The newly released Ascend 910C shows potential to compete with Nvidia, but has significant limitations.
    3. The Ascend 920 chip is expected to launch soon, built using SMIC’s 6 nm class N+3 technology, with mass production starting in the latter half of 2025.
    4. The Ascend 920 is designed to deliver 900 TFLOPS of BF16 performance and 4,000 GB/s memory bandwidth with HBM3 memory.
    5. SMIC’s 6 nm class node may also be used in future products like Kirin chips for Huawei smartphones, with whispers of a developing 5 nm class node.

    Even with TSMC blocking Huawei’s efforts to produce its Ascend 910B chips using advanced technology, the large Chinese company has discovered new methods to obtain top-tier hardware for AI training. The Ascend 910C was released shortly after that setback, and a detailed analysis from SemiAnalysis indicates that it has the potential to compete with Nvidia, though there are several important limitations. Recently, a report from DigiTimes indicates that its successor, the Ascend 920, is expected to launch soon.

    Manufacturing Insights

    Well-known leaker Jukanlosreve on X has shared that the Ascend 920 will be built using SMIC’s 6 nm class N+3 technology. Mass production is set to begin in the latter half of 2025. The chip is said to deliver 900 TFLOPS of (presumably) BF16 performance and boasts a memory bandwidth of 4,000 GB/s, made possible by HBM3 memory. It is designed to replace Nvidia’s Hopper-based H20 chip, which has recently been banned for use in China.

    Future Developments

    The introduction of the Ascend 920 also marks the debut of SMIC’s new 6 nm class node, which is likely to be implemented in other products, including Kirin chips for Huawei smartphones. Although the previously anticipated Kirin 9100 didn’t succeed, there are indications that it may still launch later this year. Additionally, there have been whispers about a 5 nm class SMIC node under development, but advancements in that area may be sluggish due to limited access to EUV machinery.

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  • TSMC Faces $1 Billion Fine Over Huawei Ascend 910B Issue

    TSMC Faces $1 Billion Fine Over Huawei Ascend 910B Issue

    Key Takeaways

    1. Huawei has faced challenges with TSMC since being cut off, specifically regarding the Ascend 910B chip.
    2. TSMC may face fines up to $1 billion for allegedly violating export control regulations.
    3. TSMC previously informed the US Commerce Department about Huawei’s failed purchase attempts.
    4. The US Commerce Department has not publicly commented on the situation, and TSMC claims compliance.
    5. The outcome for TSMC remains uncertain, especially considering the US’s reliance on its chip manufacturing.

    It has been some time since Huawei was cut off from TSMC, with the Kirin 9000 being the last chip produced on TSMC’s 5 nm technology. Recently, Huawei faced difficulties when attempting to utilize TSMC nodes for its Ascend 910B chip. TSMC and Technsights discovered a chip resembling Huawei’s too closely and swiftly put a stop to it. Nonetheless, this might not be the end of the issue, as a new report suggests that the chip manufacturer could be facing significant fines.

    Potential Fines for TSMC

    Sources who wish to remain anonymous have informed Reuters that TSMC could be penalized up to $1 billion for reportedly breaching export control regulations. This situation seems questionable since TSMC had previously notified the US Commerce Department about Huawei’s unsuccessful attempt to make a purchase. However, there might be more details in this case that haven’t yet come to light. The Commerce Department has not issued any public statements regarding this matter, and TSMC claims it has maintained compliance throughout.

    TSMC’s Future in Question

    Considering the confusing timeline surrounding these events, it is quite possible that TSMC will manage to avoid penalties, particularly during these challenging times when the US relies on TSMC’s chip manufacturing capabilities to maintain an edge over China. Still, there might be some truth to the claims, especially since Chinese companies have increasingly turned to offshore or proxy firms to obtain materials that are otherwise restricted, like how DeepSeek recently acquired advanced Nvidia chips for AI development.

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  • Trump Urges TSMC to Build in U.S. or Risk Up to 100% Tariff

    Trump Urges TSMC to Build in U.S. or Risk Up to 100% Tariff

    Key Takeaways

    1. Trump criticized financial support for foreign chip manufacturers and emphasized a tough trade stance during his presidency.
    2. He warned TSMC of a potential 100% tax if they did not build factories in the U.S., contrasting with the current administration’s $6.6 billion subsidy for TSMC in Arizona.
    3. TSMC plans a $100 billion investment in the U.S., including five new factories.
    4. Taiwan is engaging in diplomatic talks with the U.S. to address tariff threats and has proposed zero tariffs and increased investment.
    5. Taiwan’s stock market is volatile, prompting the government to activate a $15 billion stabilization fund to support investor confidence.

    U.S. President Donald Trump has ignited renewed discussion regarding trade ties between the U.S. and Taiwan, particularly focused on semiconductor manufacturing strategies. As reported by Reuters, Trump expressed strong opinions during an event for the Republican National Congressional Committee, where he critiqued the government’s financial support for foreign chip manufacturers and shared insights on his tough stance while in office.

    Trump’s Warning to TSMC

    At this gathering, Trump disclosed that he had cautioned Taiwan Semiconductor Manufacturing Company (TSMC) about a possible tax reaching as high as 100 percent if the company failed to build its factories in the U.S. In contrast to the present administration’s decision to grant TSMC’s American division a $6.6 billion subsidy for expanding its operations in Arizona, Trump noted that he provided no monetary aid, instead relying on taxation to drive his agenda. TSMC had earlier confirmed a substantial investment plan of $100 billion in the U.S., which involves constructing five new factories.

    Diplomatic Efforts by Taiwan

    In light of Trump’s tariff threats, officials from Taiwan indicated that they have begun talks with Washington to address the issue through diplomatic means. The Director-General of Taiwan’s National Security Bureau confirmed that there is “strategic communication” happening with U.S. representatives, with the goal of establishing a negotiation pathway that avoids any retaliatory actions. Taiwan has proposed zero tariffs, an increase in investment, and procurement in the U.S. as a way to ease tensions.

    Market Reactions and Stability Measures

    Meanwhile, a report from Investing highlighted that Taiwan’s stock market has been experiencing fluctuations due to these developments, leading the government to activate a $15 billion stabilization fund to bolster investor confidence. While TSMC shares remained steady, significant suppliers like Foxconn faced noticeable drops in their stock prices.

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  • Samsung Foundry May Scrap 1.4 nm Node Plans

    Samsung Foundry May Scrap 1.4 nm Node Plans

    Key Takeaways

    1. Samsung Foundry is facing issues with low yields from its SF3 node, delaying the launch of the Exynos 2500.
    2. The upcoming 1.4 nm node (SF1.4) may be abandoned, with potential delays instead of a complete scrapping.
    3. Samsung is currently focused on the Exynos 2600 and AI chips while receiving new orders for its 4 nm nodes.
    4. Samsung Foundry’s market share is only 8.2%, significantly lower than TSMC’s 67.1%, raising concerns about its future.
    5. Possible restructuring within Samsung Foundry may include integrating the Exynos division into Samsung MX for better oversight.

    Samsung Foundry’s troubles could be getting even worse. After disappointing yields from its SF3 node, which caused the Exynos 2500 launch to be delayed, the company had to scale back some of its older 5 nm and 7 nm processes due to low interest. Now, reliable insider @Jukanlosreve has suggested that Samsung’s upcoming 1.4 nm node (SF1.4) might be completely abandoned.

    Potential Changes to SF1.4

    A prior roadmap from Samsung Foundry indicated that SF1.4 was set to begin high volume manufacturing (HVM) by 2027. This node was supposed to run alongside SF2A, which is geared toward automotive applications, and SF2Z, marking the first node featuring a Backside Power Delivery Network (BSPDN). However, there is a chance that SF1.4 could be delayed further instead of being entirely scrapped.

    Current Developments

    For the moment, Samsung Foundry is still working on the Exynos 2600 utilizing SF2, along with some artificial intelligence chips for PFN. Additionally, some of its 4 nm nodes have received new orders from a few Chinese fabless companies affected by trade restrictions. However, key players continue to turn away from Samsung, opting for TSMC or even Intel instead.

    Market Share Concerns

    According to the Korea Economic Daily, Samsung Foundry might undergo significant changes due to its low market share of just 8.2%, which pales in comparison to TSMC’s dominating 67.1%. This could lead to substantial restructuring within the organization. Business Post reports that the Exynos division may be integrated into Samsung MX, which would provide greater oversight over upcoming smartphone SoC designs.

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  • Intel Partners with TSMC for Long-Term Strategy Amid 18A Yield Issues

    Intel Partners with TSMC for Long-Term Strategy Amid 18A Yield Issues

    Key Takeaways

    1. Intel is delaying the production of its Panther Lake mobile processors due to low yields from its 18A semiconductor manufacturing process.
    2. The company has formed a long-term alliance with TSMC to outsource wafer production, moving away from its goal to eliminate outsourcing.
    3. TSMC’s manufacturing process for 3nm and 2nm technologies is more efficient than Intel’s current in-house capabilities.
    4. The delay in Panther Lake production may push shipments to 2026, missing potential sales opportunities in late 2025.
    5. Intel’s new strategy suggests a recognition of the advantages of partnering with TSMC for future production.

    It has been recently reported that Intel is possibly delaying the production of its next-generation Panther Lake mobile processors due to disappointing yields from its own 18A semiconductor manufacturing process. In the latest Intel earnings call, the company revealed a long-term alliance with TSMC to outsource the wafers needed for making its processors. This call featured a discussion between Intel’s John Pitzer and Morgan Stanley’s Joe Moore, as transcribed by Seeking Alpha.

    Challenges with In-House Production

    Intel has faced difficulties in successfully bringing semiconductor manufacturing in-house, as the 18A process developed by Intel Foundry has not achieved satisfactory yields. Conversely, TSMC boasts a more seasoned and efficient manufacturing process for 3nm and 2nm technologies. During the earnings call, Intel’s Corporate Vice President of Investor Relations mentioned that the company has been outsourcing around 30% of its wafers, largely to TSMC, for some time. However, not long ago, Intel aimed to reduce this number to zero.

    New Direction for Partnership

    Currently, it seems Intel has adopted a new approach that includes a prolonged partnership with TSMC. Pitzer reportedly commented, “We think it’s always good to have at least some of our wafers with TSMC. They’re a great supplier. It creates a good competition between them and Intel Foundry.”

    The announcement of this strategy comes soon after industry analyst Ming Chi Kuo indicated that production of Intel’s Panther Lake mobile processors has been postponed due to the underperformance of the 18A process. This delay means that the company will likely not be able to ship Panther Lake notebooks until 2026, causing them to miss potential sales in the fourth quarter of 2025. This will negatively impact the revenue, profits, and trust in the supply chain for the latter half of 2025.

    Implications for Future Production

    This strategic shift may indicate that Intel has acknowledged the benefits of a longer-term collaboration with TSMC. Still, it remains uncertain how this will influence the Panther Lake processors, which were expected to be the first mobile SoCs developed using the 18A process.

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  • Apple announces $500 billion US investment plan amid tariff concerns

    Apple announces $500 billion US investment plan amid tariff concerns

    Key Takeaways

    1. Apple plans to invest over $500 billion in the US over the next four years, including a new server manufacturing facility in Houston.
    2. The company is doubling its US Advanced Manufacturing Fund to $10 billion and launching a skills academy in Michigan to boost manufacturing skills.
    3. Apple will collaborate with thousands of suppliers nationwide, creating direct jobs and infrastructure for its Apple Intelligence systems and data centers.
    4. The new Houston server plant will be crucial for Apple Intelligence and is expected to create thousands of local jobs by 2026.
    5. Apple aims to add around 20,000 new positions focused on research, development, and advanced technologies over the next four years.

    Apple has just revealed an unprecedented investment strategy, planning to pour over $500 billion into the US within the next four years. This initiative encompasses the establishment of a server manufacturing facility in Houston, aimed at powering its Apple Intelligence systems. Additionally, Apple is doubling its US Advanced Manufacturing Fund to $10 billion and will be initiating a skills academy in Michigan to enhance manufacturing skills.

    Collaborations and Job Creation

    In this ambitious plan, Apple intends to collaborate with thousands of suppliers across all 50 states. This effort will create direct employment opportunities, strengthen the infrastructure for Apple Intelligence, and develop data centers. Furthermore, it includes building corporate hubs and supporting Apple TV+ productions in 20 different states. Currently, Apple supports more than 2.9 million jobs in the US through direct employment, partnerships with American suppliers and manufacturers, and roles for iOS app developers.

    New Server Plant in Houston

    The new server facility in Houston, which will cover 250,000 square feet and is set to begin operations in 2026, is anticipated to generate thousands of jobs in the area. These servers, previously manufactured overseas, will now be essential for Apple Intelligence and will lay the groundwork for what’s being referred to as Private Cloud Compute, a system that integrates AI processing with high-level security for cloud services.

    Investment in Advanced Manufacturing

    As part of its enhancement to the US Advanced Manufacturing Fund, Apple is making a significant multibillion-dollar investment in advanced silicon production at TSMC’s Fab 21 in Arizona, where it stands as the largest client. Notably, mass production of Apple chips commenced just last month at this state-of-the-art facility, which already has over 2,000 workers on its payroll.

    Future Hiring Plans

    Looking forward, Apple aims to add approximately 20,000 new positions over the next four years, primarily in research and development, silicon engineering, software development, as well as AI and machine learning. The company has nearly doubled its investment in advanced R&D in the US over the past five years and is keen to maintain this growth.

    All of this is happening amid potential tariff challenges, as the upcoming Trump administration signals a crackdown on Chinese imports. Recently, Apple CEO Tim Cook had a meeting with President-elect Trump, who suggested that Apple might withdraw from Mexico and increase its investments in the US. Meanwhile, the administration is considering a potential 25 percent tariff on chips and has already introduced a 10 percent tariff on goods from China.

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    Apple announces $500 billion US investment plan amid tariff concerns

     

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  • Arm Creates In-House Chip, Meta May Be First Customer

    Arm Creates In-House Chip, Meta May Be First Customer

    Key Takeaways

    1. Arm is reportedly developing its own customizable CPU for data centers, potentially launching it this summer.
    2. The company will collaborate with TSMC for the production of these new chips as a fabless chipmaker.
    3. Softbank, which owns Arm, recently partnered with OpenAI to create extensive AI infrastructure, with Arm as a key player.
    4. Arm’s chip designs are widely used in smartphones, mobile devices, and the latest Apple Macs, known for their power efficiency.
    5. The new processors may support AI applications, increasing Arm’s relevance in the evolving tech landscape.

    Arm could be set to reveal its own processor this year, according to new rumors. The well-known chipmaker might be developing in-house chips, potentially making Meta their first client. Here’s what we’ve learned so far.

    Arm’s New Chip Venture

    A report from The Financial Times suggests that Arm is creating a CPU aimed at data centers, which will be customizable to meet the needs of various clients. As a fabless chipmaker, Arm plans to collaborate with TSMC (Taiwan Semiconductor Manufacturing Company), the largest contract chip manufacturer globally, to produce these new chips. Industry insiders believe these in-house processors might be launched as soon as this summer.

    Partnership with OpenAI

    This development comes just a month after Softbank, which owns Arm, partnered with OpenAI to create up to $500 billion in AI infrastructure. This large-scale initiative will include Arm along with Microsoft and Nvidia as key tech partners. Arm could play a significant role in this project, possibly connecting with AI-driven personal devices being developed by John Ive (a former Apple designer) and Sam Altman from OpenAI.

    Arm’s Ubiquity in Technology

    For those who might not know, Arm’s designs power almost every smartphone available today. They’re also found in most mobile devices and even run the latest Apple Macs and Qualcomm-powered Windows PCs. CPUs that utilize the ARM architecture offer impressive power efficiency without sacrificing performance, rivaling Intel and AMD chipsets. This is a key factor in their growing popularity in data centers that support AI applications.

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