Tag: TSMC

November 14, 2024
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
Tags: Exynos, Samsung, TSMC
November 13, 2024
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
Tags: Exynos 2500, Samsung, TSMC
November 7, 2024
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.
Tags: Huawei, semiconductor talent recruitment, TSMC
November 4, 2024
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.
Tags: ASML Twinscan EXE:5000, high-NA EUV, TSMC
November 4, 2024
Samsung Foundry May Spin Off into New Company
Samsung Foundry Faces Challenges
Samsung Foundry is currently facing difficulties, as shown by a recent report indicating that the company plans to shut down part of its 7 nm, 5 nm, and 4 nm production lines due to low demand. This decision has led to a significant loss of 1 trillion KRW. Although the situation could potentially improve with the introduction of newer nodes, such as 3 nm and beyond, some within Samsung believe it may be wiser to completely separate the foundry business.
Task Force Formation for Separation
According to a report from South Korean news outlet Topdaily (H/T @Jukanlosreve on X), Samsung has reportedly established a ‘task force’ aimed at detaching Samsung Foundry from Samsung Electronics. This project is expected to be resource-heavy and could take anywhere from 3 to 5 years to complete. Despite this, Lee Jae-Yong, the leader of Samsung Electronics, is against the plan. There appears to be tension within Samsung regarding this matter, suggesting that it may take some time before any definitive decisions are made.
The Potential for Increased Autonomy
On paper, spinning off Samsung Foundry from Samsung Electronics could grant the foundry more independence. However, the company still needs to tackle fundamental issues with its production processes. While TSMC’s N3 family of nodes has attracted major clients like Qualcomm, Apple, MediaTek, and even Intel, Samsung’s equivalent nodes have struggled to find customers, even though they utilize the advanced GAAFET technology.
Tags: GAAFET, Samsung Foundry, TSMC
October 31, 2024
OpenAI and Broadcom Team Up to Create AI Inference Chip
OpenAI has been reported to have teamed up with Broadcom, a US-based chip design company, to develop a specialized AI inference chip. Insiders from OpenAI shared with Reuters that the organization is aiming to broaden its supply chains to help lower costs.
Shift in Manufacturing Plans
Previously, OpenAI had ambitions to create a network of foundries to produce chips internally. However, those ambitions are currently paused due to the high expenses and the lengthy duration required to establish them.
New Partnerships and Strategies
As OpenAI works towards an in-house chip, it has started integrating AI chips from AMD and Nvidia into its operations. The sources mentioned that the company plans to utilize collaborations with other companies to manage chip supplies, combining both internal and external resources.
Team Expansion and Future Production
Two insiders informed Reuters that OpenAI is evaluating its chip design components and might bring on additional external partners. The organization has assembled a team of about 20 individuals, which includes Thomas Norrie and Richard Ho, who have prior experience working on TPUs (Tensor Processing Units) at Google.
OpenAI has successfully arranged for manufacturing capabilities with TSMC (Taiwan Semiconductor Manufacturing Company) thanks to Broadcom’s assistance and aims to start the production of its in-house chips by 2026. However, this schedule may be subject to adjustments, according to the insiders.
Reuters
Image Source: OpenAI
Tags: Broadcom, OpenAI, TSMC
October 20, 2024
TSMC Denies Intel Fab Acquisition Rumors
TSMC, the biggest contract chipmaker in the world, has clearly shut down any discussions about acquiring Intel’s manufacturing facilities. This comes at a time when Intel’s foundry division is having a hard time attracting clients, raising questions about CEO Pat Gelsinger’s IDM 2.0 strategy and its potential success.
TSMC’s Firm Stance
During a recent earnings call, TSMC’s CEO, C.C. Wei, was very straightforward, stating, “Are we interested to acquire one of IDM’s fabs? The answer is no, OK? No, not at all.” This direct response effectively ends the rumors about who might take over Intel’s fabs if they choose to sell their manufacturing operations.
Reasons Behind the Speculation
The talk surrounding Intel’s fabs stems from various considerations. To begin with, there’s the financial aspect. Intel’s extensive manufacturing infrastructure would require a substantial amount of money to take control of, and even TSMC, despite its vast resources, would think long and hard before proceeding. Additionally, there’s the technical challenge. Intel’s fabs are specifically designed for their own products and processes, making it a difficult and costly task to adapt them for use by other companies.
Different Business Models
The contrasting operational styles of the two companies further contribute to TSMC’s lack of interest. TSMC maintains a streamlined corporate structure, which is quite different from Intel’s approach of tackling large projects and engaging in deep fundamental research. Furthermore, any significant acquisition like this would likely face considerable pushback from antitrust regulators and could potentially escalate geopolitical tensions.
A Fundamental Clash
Perhaps the most significant reason for TSMC’s disinterest lies in their differing business philosophies. TSMC focuses solely on being a pure-play foundry, while Intel adopts an IDM model, managing both design and manufacturing internally. These diverging strategies simply do not align, making the possibility of TSMC acquiring Intel’s fabs virtually impossible.
Tags: chip manufacturing, Intel, TSMC
October 5, 2024
Can Samsung’s 2nm Technology Beat TSMC and Boost Semiconductors?
Samsung Semiconductor, known as the second-largest chipmaker in the world, is at a crucial point as it rushes to begin mass production of advanced 2nm chips. The outcome of this project could significantly impact its ability to rival the top company, TSMC, and reclaim some of its lost market share.
The Stakes for Samsung Semiconductor
Despite pouring in considerable funds, Samsung has not been able to reach TSMC’s level of profitability and scale. Currently, TSMC dominates the semiconductor foundry market with a substantial 62.3% market share, while Samsung only holds 11%. This gap has led to significant financial downturns for Samsung, highlighting the pressing need for a major technological advancement.
Focus on 2nm Technology
Samsung’s plan revolves around its 2nm and smaller manufacturing technologies. The company is making big investments in its production facilities, with intentions to add new production lines at its Hwaseong and Pyeongtaek locations. The target date for mass production of 2nm chips is set for 2025, with a further goal of achieving 1.4nm by 2027, which is in line with TSMC’s schedule.
Challenges Ahead
A critical element for Samsung’s success will be gaining significant clients for its 2nm technology. The company is in talks with Qualcomm, aiming to persuade the American semiconductor firm to select Samsung’s technology for its next-generation Snapdragon processors. If these partnerships can be established, it could greatly enhance Samsung’s foundry business and draw in additional clients.
However, the path is not without obstacles. Samsung has faced difficulties before, including the postponed launch of its 3nm Exynos processor. Additionally, reports indicate that the upcoming Samsung Galaxy S25 series will utilize Qualcomm’s Snapdragon 8 Gen 4 globally, implying that Samsung might not have complete faith in its Exynos chips versus the Snapdragon option. Meanwhile, the Exynos 2500 is anticipated to power the Galaxy Z Fold 7 and Flip 7, which are expected to launch later in 2024.
The triumph of Samsung’s 2nm technology could have significant consequences for the global semiconductor market. Should Samsung manage to narrow the gap with TSMC, it might incite heightened competition and potentially bring down prices for consumers. Furthermore, it could bolster South Korea’s status as a key player in the high-tech arena.
Tags: 2nm chips, Samsung Semiconductor, TSMC
October 4, 2024
TSMC’s 2nm Process Costs Over $30,000 Per Wafer
The next major development for TSMC is its future N2 manufacturing process. As of early October, this technology is still under development, but an article from Commercial Times reveals potential costs associated with producing chips using this advanced method.
Cost of N2 Technology
The information suggests that creating a single 300-mm wafer with N2 technology will exceed $30,000. This is a significant amount, especially compared to past processes.
In comparison, wafers made with N3 technology (commonly known as the 3nm process) are priced at around $18,500. Older technologies like N4 and N5 are even cheaper, costing about $15,000 each. This indicates that the expense of utilizing the upcoming N2 technology could be nearly double that of the N4 and N5 processes.
Benefits of N2 Technology
The increased costs might be largely justified by the various advantages the new technology promises to deliver. As reported by Tom’s Hardware, the 2nm process is expected to be highly efficient, boasting over 25% lower energy usage compared to N3E.
It is important to mention that these figures are not officially provided by TSMC, so they should be viewed with caution. Additionally, pricing may fluctuate based on several factors, including order size and customer needs.
Potential Early Adopters
Apple is likely to be one of the first companies to adopt N2 technology. This includes the M5 series chips for devices like iPads, Mac minis, iMacs, and MacBooks, as well as the next A-series chips for iPhones. Other companies such as Qualcomm, Intel, AMD, Mediatek, and Nvidia may join later on in the process.
Commercial Times (in Chinese) via Tom’s Hardware
Tags: Apple M5, N2 technology, TSMC
September 24, 2024
Qualcomm Snapdragon 8 Gen 5 May Have Huge Clock Speed Boost
With the Qualcomm Snapdragon 8 Gen 4 set to debut later this month, we have gathered substantial information about its specifications through various Geekbench listings and leaks. A well-known leaker on Weibo has now shed some light on its successor, the Snapdragon 8 Gen 5.
Improved Performance Specs
The Snapdragon 8 Gen 5 will maintain the same 2+6 core layout as its predecessor. However, the performance cores (codenamed Pegasus) are expected to reach clock speeds of 5.0 GHz, while the efficiency cores will run at 4.0 GHz. These speeds are notably higher compared to the Snapdragon 8 Gen 4, which features performance and efficiency cores clocked at 4.32 GHz and 3.53 GHz, respectively.
Manufacturing Details
It’s important to note that only the Snapdragon 8 Gen 5 produced on TSMC’s N3P node will achieve the aforementioned clock speeds. Previous rumors indicated that Qualcomm intended to source its flagship SoCs from both TSMC and Samsung Foundry.
The standard Snapdragon 8 Gen 5 will be fabricated on a TSMC process, whereas the Snapdragon 8 Gen 5 designed for Galaxy devices will utilize Samsung’s SF2 process. Currently, the clock speeds for the latter remain unknown, but if SF2 lives up to its reputation, it may either match or even surpass the performance of its TSMC counterpart.
Tags: Qualcomm, Snapdragon 8 Gen 5, TSMC