Tag: TSMC

  • TSMC Rejects Samsung’s Request for Next-Gen Exynos Chips

    TSMC Rejects Samsung’s Request for Next-Gen Exynos Chips

    Samsung could be running into another challenge with its Exynos line of chipsets. It’s being said that Samsung Foundry may entirely bypass using Exynos chips for the Galaxy S25 series of flagship smartphones, and the situation doesn’t appear to be improving anytime soon. A recent report indicates that TSMC has turned down Samsung’s proposal to outsource the production of Exynos chips.

    No Next-Gen Samsung Exynos from TSMC

    It’s important to remember that there were speculations last year about Samsung finally opting to outsource Exynos chip production to TSMC. There were discussions happening internally about this shift, which could have benefited Samsung Foundry’s chip offerings. However, it looks like this agreement won’t be happening. According to insider @Jukanlosreve, TSMC (Taiwan Semiconductor Manufacturing Company) has refused Samsung’s proposal for Exynos production.

    Samsung Exynos Situation

    Sadly, there isn’t any information available on the reasons behind TSMC’s rejection of Samsung’s Exynos deal. If TSMC had partnered with Samsung, it would have added another significant tech player to its roster, joining the ranks of Apple, Nvidia, and Qualcomm. Jukanlosreve noted that TSMC, being the largest contract chip manufacturer, might have declined the agreement to safeguard its own internal processes.

    To clarify, Samsung Foundry has the capability to produce chips, unlike fabless companies such as AMD and Nvidia. This strategy could help TSMC avoid any potential leaks of their technology or processes. As far as we know, the upcoming Galaxy S25 series is set to launch with the Snapdragon 8 Elite SoC, meaning it could take some time before we see Exynos chips in the next generation of Samsung Galaxy devices. Stay tuned for more information!

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  • TSMC Approved for U.S. 2nm Chip Production Amid Taiwan Tech Easing

    TSMC Approved for U.S. 2nm Chip Production Amid Taiwan Tech Easing

    Taiwan’s Ministry of Economic Affairs has removed the restrictions that previously prevented TSMC from producing 2-nanometer chips in its overseas factories. This change is a significant shift from past rules that required foreign production to lag at least two generations behind domestic advancements.

    “Those were outdated regulations. The world has evolved,” remarked Minister of Economic Affairs J.W. Kuo during a press conference. “Private companies ought to make their own strategic decisions based on their technological advancements.”

    TSMC’s Expansion Plans

    This decision aligns with TSMC’s growth in Arizona, where total investments might exceed $65 billion. The company’s second fabrication plant is expected to begin producing 2nm and 3nm chips by 2028, after the first plant starts 4nm chip production in early 2025.

    Additionally, TSMC’s third facility in Arizona, which is set to be finished by the end of the decade, aims to focus on 2nm or more advanced technologies. Despite these new regulations, Minister Kuo noted that TSMC will be careful about investing the substantial $28 to $30 billion needed to establish a 2nm factory.

    Strengthening Global Partnerships

    This policy adjustment is part of Taiwan’s broader initiative to strengthen the global chip supply chain. In the coming year, the Ministry of Economic Affairs will concentrate on forming alliances with countries such as the United States, Germany, Japan, and the Philippines. They are also planning to establish an office in Fukuoka, Japan, to assist semiconductor-related businesses near TSMC’s forthcoming Kumamoto site.

    This change occurs as Taiwan updates its “Silicon Shield” strategy, which previously restricted the country’s advanced chip production to maintain a technological lead. The government recognizes the evolving semiconductor landscape, particularly with 60 percent of the world’s chip design companies being located in the U.S.

    Source:
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  • TSMC Founder: Intel Should Focus on AI, Not Foundry Business

    TSMC Founder: Intel Should Focus on AI, Not Foundry Business

    Morris Chang, the founder of TSMC, recently critiqued Intel’s approach. He stated that the company should have placed greater emphasis on AI development instead of attempting to pivot into a contract chip manufacturing role. These remarks were made at the launch of his autobiography on Monday.

    Intel’s Leadership Changes

    This statement follows the resignation of Intel’s CEO, Pat Gelsinger. The board was dissatisfied with the progress of Gelsinger’s bold turnaround strategy, which was failing to deliver results. During Gelsinger’s tenure, Intel aimed to regain its status as the leading manufacturer of chips for external clients, a title currently held by TSMC.

    Chang’s Critique

    "Compared to AI, he appeared to concentrate more on becoming a foundry. Obviously, it now looks like Gelsinger should have prioritized AI instead," Chang remarked, taking a shot at Intel’s strategic direction. He also pointed out that Intel lacks both a definitive strategy and a CEO, labeling it a challenging scenario.

    Chang’s comments resonate strongly, particularly in light of Intel’s recent difficulties with AI. The company disclosed that it will not meet its $500 million sales goal for its Gaudi 3 AI accelerators this year, citing software challenges—another indication that the commitment to AI may have been insufficient.

    Insights from Chang’s Autobiography

    Chang’s autobiography, which chronicles his journey from 1964 to 2018, also sheds light on Intel’s historical choices. For instance, he discusses how Intel declined the opportunity to invest in TSMC during the 1980s, only to later become one of its major customers. The book further explores TSMC’s partnerships with firms like Apple and Qualcomm.

    Source: Link

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  • TSMC 2nm Trial Run Exceeds Expectations with 60% Yield

    TSMC 2nm Trial Run Exceeds Expectations with 60% Yield

    Chips designed with the advanced 2 nanometer (2nm) technology are expected to deliver better performance and/or energy efficiency than their 3nm versions, which are already used in devices like the latest iPhone 16 Pro series, the newest MacBook Pros, and flagship Android devices, such as the OnePlus 13.

    Challenges in Production

    Nonetheless, the next-generation silicon’s potential benefits indicate that it is becoming increasingly challenging to manufacture, a reality Intel is currently experiencing with negative consequences. On a positive note, TSMC’s ongoing 2nm pilot project seems to be moving ahead of schedule, with production yields reported to be at or above 60%.

    Location of Production Trials

    The trial run is taking place at TSMC’s Zhuke Baoshan facility, located in Hsinchu County, Taiwan. The first 2nm production process is expected to transition to the Kaohsiung factory afterward.

    This facility is set to become the very first site for mass production of TSMC’s 2nm chips. The silicon is anticipated to hit the market by late 2025, likely emerging in products like the next-generation iPad Pro.

    Future Product Expectations

    Moreover, TSMC’s upcoming offerings are projected to include the A20 Pro for the next iPhones, MediaTek’s future flagship Dimensity 9600 SoC, NVIDIA’s Rubin series, and AMD’s Zen 6 platform.

    This might explain why Wei Zhejia, TSMC’s chairman and president, has described the demand as being "beyond imagining." The 2nm chips produced by TSMC are also expected to significantly contribute to the rollout of next-gen AI technologies.

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  • TSMC to Start 2nm Chip Production in Arizona by 2028

    TSMC to Start 2nm Chip Production in Arizona by 2028

    Taiwan Semiconductor Manufacturing Co. (TSMC) is set to introduce its 2-nanometer chip-making technology at its facilities in Arizona around 2028, as stated by Wu Cheng-wen, the head of Taiwan’s National Science and Technology Council (NSTC).

    Timeline and Regulations

    This schedule is in line with Taiwan’s rules, which require a three-year delay between the production of advanced semiconductor technology domestically and internationally. TSMC aims to begin large-scale production of 2nm chips in Taiwan by 2025, with initial test production already taking place at its site in Hsinchu County.

    Arizona Expansion Plans

    The expansion in Arizona will feature three fabrication plants (fabs). The first fab is expected to kick off production of 4nm chips in early 2025. The second fab is preparing to manufacture 3nm and 2nm chips starting in 2028. The third facility, which is part of a potential $6.6 billion subsidy agreement, will focus on 2nm technology or even more advanced options, with production anticipated to commence by late 2030.

    Progress in Taiwan

    Meanwhile, TSMC is also advancing its 2nm production in Taiwan. The Baoshan plant in Hsinchu County is planned to enter full production in 2025, followed by another plant in 2026. Additionally, a facility in Kaohsiung is on track to begin production in 2026, while another one is currently under construction.

    Just last month, TSMC received final approval for $6.6 billion in funding via the CHIPS Incentives Program. This agreement will help bring forth A16 technology, which incorporates advanced nanosheet architecture and a feature known as Super Power Rail tech. These enhancements will increase chip efficiency by allowing more logic to fit while also improving power delivery.

    Oversight and Strategy

    The transfer of cutting-edge technologies overseas is under strict scrutiny. Taiwan’s Ministry of Economic Affairs is closely watching the situation, emphasizing that TSMC must achieve domestic production of its most sophisticated processes before contemplating any overseas ventures. This approach helps Taiwan maintain its lead in the technology sector while supporting allied nations in boosting their semiconductor manufacturing capabilities.

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  • Samsung Considers Halting Exynos 2600 Production Due to Issues

    Samsung Considers Halting Exynos 2600 Production Due to Issues

    Samsung’s Exynos 2600 chip, once thought to be a groundbreaking advancement in mobile technology, might not be released at all. A recent report indicates that Samsung is thinking about stopping its production due to difficulties with the 2nm manufacturing process. This news brings up concerns about the future of Samsung’s own chip production and how it will compete in the semiconductor industry.

    Low Production Yields

    The Exynos 2600 was set to use Samsung Foundry’s cutting-edge 2nm process. Nevertheless, the production yield rate—a crucial factor that measures how many usable chips come from a single wafer—has apparently been quite low. Recent data shows yields ranging from only 10 to 20%, which is far from enough for mass production.

    Historical Challenges

    This isn’t the first time Samsung Foundry has faced these types of issues. Its 3nm process, utilized for the Exynos 2500, had similar problems, with yields dropping below 20%. This has sparked rumors that Samsung may consider outsourcing the production of its top Exynos chips to TSMC, which is well-regarded in advanced chip manufacturing.

    Shift in Production Strategy

    Complicating matters further, Samsung has reportedly closed down several manufacturing plants that were using older 4nm, 5nm, and 7nm technologies. The semiconductor division is also said to be dealing with a reduced workforce, restricted by South Korea’s regulation on a 52-hour workweek. A reorganization of Samsung’s application processor (AP) development team is in the works, but it may take years to fully implement.

    Potential Outsourcing Consequences

    While sending production to TSMC might help with yield problems, it could also raise production costs. Traditionally, Samsung has depended on in-house manufacturing to keep expenses low and maintain competitive prices for its products. Outsourcing might lead to even higher prices for consumers.

    Uncertain Future for Exynos

    Despite these challenges, Samsung Foundry is reportedly striving to enhance its 2nm process to stay competitive with TSMC. However, there isn’t much information available about the current state of progress, which leaves the future of Exynos in doubt.

    For consumers, Samsung’s possible switch to Snapdragon 8 Elite or MediaTek Dimensity 9400 for the Galaxy S25 series could offer improved performance and efficiency. Nonetheless, the potential cancellation of the Exynos 2600 underscores the difficulties Samsung faces in balancing innovation with cost efficiency.

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  • Samsung May Outsource Exynos Production to TSMC: Key Details

    Samsung May Outsource Exynos Production to TSMC: Key Details

    Samsung is said to be looking into a partnership with TSMC (Taiwan Semiconductor Manufacturing Company) for the mass production of its Exynos processors, as noted by user Jukanlosreve on X. This indicates a possible change in Samsung’s strategy as the company aims to improve the performance and efficiency of its in-house Exynos chips, which have fallen short compared to leaders like Apple and Qualcomm in recent years.

    A New Era for Exynos?

    Currently, Samsung’s Exynos chips lag behind MediaTek’s recent improvements in various important areas. A common thread among Exynos’ competitors is their collaboration with TSMC, a major player in semiconductor manufacturing praised for its efficient and high-performance production techniques.

    TSMC’s Advantage

    The advanced process nodes from TSMC have given fabless manufacturers a significant edge in enhancing chip performance and efficiency, something that Samsung Foundry has found challenging to replicate. This lack of efficiency, together with lower yield rates from Samsung Foundry, has played a role in Exynos’ relative stagnation in the market.

    Yield rate is a crucial measure in semiconductor production, representing the proportion of fully functional chips generated from a wafer against the total possible chip amount. A higher yield rate leads to fewer defective chips, thus improving production efficiency. Samsung’s yield rate has been problematic, particularly with its advanced 3nm nodes. Reports suggest that Samsung’s yield for 3nm is still under 20%, while TSMC boasts a yield rate comfortably above 80%, nearing 90%. These statistics make TSMC a more attractive choice for producing Exynos chips at scale with better reliability.

    Implications for Galaxy Users

    Samsung’s System LSI division, the team responsible for designing Exynos chips, is distinct from Samsung Foundry, which handles manufacturing. This separation could enable a shift towards outsourcing the fabrication of Exynos chips to TSMC.

    However, there are further factors to consider in this potential transition. Samsung initially planned to lower manufacturing costs for its Galaxy devices by using Exynos processors, aiming to cut production expenses while creating a chip that could appeal to other smartphone manufacturers. Despite the performance gap, Samsung has continued to use Exynos processors in its flagship devices mainly to keep costs down. If production moves to TSMC, it might enhance chip performance and efficiency; however, this could lead to increased production costs, impacting Samsung’s pricing strategy for its Galaxy devices.

    Should Samsung decide to transfer Exynos manufacturing to TSMC, it could mean a significant improvement in the processor’s performance, although likely at a greater expense. Whether Samsung will prioritize performance over cost savings is yet to be determined, but this transition could alter the future landscape of Exynos processors and Samsung’s competitive chip production strategy.

    Source: Link

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  • Rumor: Future Exynos Chip May Be Made by TSMC

    Rumor: Future Exynos Chip May Be Made by TSMC

    Recent news from South Korea indicates that Samsung’s Foundry division is facing some difficulties. Reports claim that the company has closed down parts of its older chip production lines due to a lack of demand. Furthermore, even their advanced 3GAP technology is experiencing disappointing yields, reported to be around 20%. As a result, Samsung might need to explore alternative options for producing high-end Exynos processors. A leaker known as @Jukanlosreve has mentioned that Samsung might have to reach out to its main competitor, TSMC.

    Future Prospects for Exynos Chips

    At this point, that’s about the extent of the information available. If a partnership does come to fruition, it’ll likely take some time. The Exynos 2500, which is set for release in 2025, has already completed its initial development phase, with some early samples already seen in circulation. This leaves us looking forward to its next version, the Exynos 2600, codenamed Thetis, which has also started its developmental journey. It remains unclear whether this chip will utilize Samsung’s 2 nm SF2 technology.

    Speculation and Reality

    Naturally, there’s a good chance that this rumor could be mere speculation. However, considering the current situation of Samsung Foundry, it doesn’t seem entirely out of the question. It’s not likely this will happen anytime soon, especially since Samsung Foundry is still part of Samsung Electronics, which creates potential conflicts. Nonetheless, the scenario could shift if it were to become a separate entity in the future.

    @Jukanlosreve on X

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  • Huawei Offers Triple Salary to Attract TSMC Employees

    Huawei Offers Triple Salary to Attract TSMC Employees

    Chinese tech behemoth Huawei is said to be increasing its hiring initiatives, specifically looking to recruit prominent employees from Taiwan’s TSMC, which is the top semiconductor manufacturer in the world.

    High Salaries Offered

    Industry insiders claim that Huawei is providing salaries that are more than three times the current earnings of TSMC staff. As a key player in the fields of telecommunications and hardware, Huawei has consistently sought to enhance its internal semiconductor knowledge. With the global chip shortage starting to ease, it seems the company is preparing for a strategic move in this vital industry. TSMC, recognized for its cutting-edge technology and manufacturing capabilities, has become a major target in this talent acquisition race. Huawei insists that its hiring campaign is just a normal business operation.

    Concerns Over Talent Acquisition

    The success of TSMC is deeply rooted in its unique processes and technical expertise, and the thought of financially-driven employees possibly leaking these secrets to a rival raises significant alarms for TSMC and the broader Taiwanese tech sector. This bold hiring tactic aligns with Huawei’s mixed financial results. The company recently announced record-high revenue but also experienced a drop in profits, indicating heavy investments in research and development. This has sparked rumors about a major product launch on the horizon.

    Implications for the Semiconductor Industry

    If Huawei manages to attract talent from TSMC, it could not only acquire skilled workers but also gain potentially crucial technical insights. Understanding TSMC’s methods could fast-track Huawei’s ambitions to become a leading semiconductor manufacturer, heightening competition in the already intense global chip market. Meanwhile, Taiwanese authorities, including the Justice Investigation Bureau, are reportedly increasing scrutiny on recruitment practices aimed at local semiconductor talent. Firms suspected of misrepresenting job roles or offering inflated salaries to facilitate knowledge transfer could face legal repercussions.

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  • TSMC Invests $350M in High NA EUV for 1.4nm Chip Tech

    TSMC Invests $350M in High NA EUV for 1.4nm Chip Tech

    Taiwan Semiconductor Manufacturing Corporation (TSMC) is planning to buy ASML’s newest High NA EUV lithography system by the end of 2024. This is a big step for the semiconductor field. The machine, called the Twinscan EXE:5000, costs around $350 million and is filled with state-of-the-art tech for chip production.

    Advanced Technology Features

    This high-tech system has an incredible 8nm resolution and operates with a 13.5nm EUV light wavelength. It allows chipmakers to create smaller chips and fit in up to 2.9 times more transistors than what was possible before. TSMC aims to implement this technology in its upcoming 1.4nm (A14) manufacturing process, intending to start mass production by 2027.

    Industry Adoption

    Intel has already taken the leap by being the first to use High NA EUV, having set up two machines at its facility in Oregon earlier in 2024. Samsung is expected to follow suit, likely by early 2025. Currently, Intel, Samsung, and TSMC are the only confirmed companies with access to ASML’s advanced technology, primarily due to international trade regulations that prevent Chinese companies from obtaining it.

    Challenges Ahead

    Although ASML has claimed to receive 10-20 orders for these machines, bringing them into operation isn’t as easy as it sounds. Their large size means that manufacturers may have to significantly upgrade their existing facilities or even construct new ones. Additionally, these machines have a smaller imaging field compared to current NA EUV systems, which requires a redesign of chip architectures.

    TSMC’s decision to invest in High NA EUV highlights its dedication to leading in advanced chip manufacturing, especially as the demand for AI chips keeps rising. Even though it might take a few years before mass production with this technology truly begins, it represents a move towards the future of semiconductor manufacturing.

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