Tag: TSMC

  • Samsung Foundry May Spin Off into New Company

    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.

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  • OpenAI and Broadcom Team Up to Create AI Inference Chip

    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

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  • TSMC Denies Intel Fab Acquisition Rumors

    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.

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  • Can Samsung’s 2nm Technology Beat TSMC and Boost Semiconductors?

    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.

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  • TSMC’s 2nm Process Costs Over $30,000 Per Wafer

    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

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  • Qualcomm Snapdragon 8 Gen 5 May Have Huge Clock Speed Boost

    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.

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  • Apple Orders A16 SoC Production at TSMC US Plant

    Apple Orders A16 SoC Production at TSMC US Plant

    TSMC has begun production of Apple’s mobile chips in Arizona, but they aren’t the models you might expect.

    Taiwan Semiconductor Manufacturing Company Limited (TSMC) has officially opened its new chip fabrication facility in the U.S. Based in Arizona, one of the top semiconductor producers has already started making its first chips. Interestingly, these are not the latest models but rather the iPhone chips from two generations back.

    Production of A16 SoC

    The Arizona facility has commenced the manufacturing of Apple’s A16 System on a Chip (SoC), which was first introduced with the iPhone 14 Pro and iPhone 14 Pro Max. These devices are now two years old and can be found refurbished on Amazon for $679.95, having originally hit the market in 2022.

    The A16 chips produced in Arizona utilize the same N4P process as those from the main facility in Taiwan, as reported by Tim Culpan. While it may seem unusual for Apple to request chips for a two-year-old device, it’s important to note that the A16 also powers the iPhone 15 and iPhone 15 Plus. However, there could be additional reasons behind Apple’s order for these new chips.

    Speculations on Future Devices

    The commencement of this production has sparked speculation that the upcoming iPhone SE 4, which is rumored to adopt the design of the iPhone 14, might be equipped with the A16 chips being manufactured in Arizona. There are also hints that a new iPad Mini could be another potential recipient of the silicon made in the U.S.

    The U.S. government has been investing significantly to promote the establishment of semiconductor manufacturing plants within the country. With Apple producing an SoC for an upcoming iPhone or iPad, this move is likely to boost domestic manufacturing efforts even further.

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  • Explosion at TSMC Phoenix: Facility Remains Undamaged

    Explosion at TSMC Phoenix: Facility Remains Undamaged

    A reported explosion at the Taiwan Semiconductor Manufacturing Company (TSMC) facility in Phoenix on Wednesday raised concerns. However, the company clarified that there were no injuries or damage to the facility.

    The incident involved a waste disposal truck, and the driver was taken to the hospital. TSMC confirmed that no employees or construction workers were harmed. Firefighters responded swiftly, but additional details from fire officials have yet to be released.

    TSMC's Role in the Industry

    TSMC is a critical player in the global semiconductor market. Recently, the company received a substantial $6.6 billion grant under the CHIPS and Science Act from the Biden administration.

    In an effort to enhance chip manufacturing capabilities in the United States, TSMC has been expanding its operations beyond Taiwan. These expansions include new facilities in Japan, Germany, and notably, Arizona in the USA, where the Phoenix campus is situated.

    Arizona Expansion and Challenges

    The Arizona project is part of TSMC’s broader strategy to bring advanced chip manufacturing to the U.S., promising to create thousands of jobs in both the manufacturing and construction sectors. However, the project has encountered hurdles, such as initial construction delays due to safety concerns from local unions and objections to the inclusion of workers from Taiwan.

    Despite these issues, Arizona's importance in the semiconductor industry has been growing, with investments in the state surpassing $100 billion since the CHIPS Act was introduced.

    Future Plans and Market Response

    The incident at the TSMC Arizona site occurs at a crucial time, as the company recently announced an additional $25 billion investment, bringing their total commitment to $65 billion. This includes plans to add a third factory by 2030, demonstrating TSMC's dedication to U.S.-based production.

    Technological advancements are also in the pipeline, with the second Arizona factory slated to produce the world's most advanced 2-nanometer technology, expected to commence production in 2028.

    Initially, the market response to the incident was mixed, with TSMC's shares rising before paring gains upon the news. Nevertheless, the company remains positive about its expansion plans and technological progress, despite this temporary setback.

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  • TSMC Developing Advanced Chip Packaging for Apple M4

    TSMC Developing Advanced Chip Packaging for Apple M4

    TSMC recently won four high-profile customers for its latest SoIC packaging technology – AMD, Nvidia, Broadcom and Apple. As the semiconductor producer ramps up production capacity for CoWoS chip packaging technology.

    Apple Explores Advanced Packaging Solutions

    Apple is said to be exploring SoIC combined with Hybrid molding technology – which integrates thermoplastic carbon fiber board composite molding – for mass production by 2025. They currently are engaged in limited trial production phase but plan to ramp up mass production as early as 2019. They anticipate using this cutting-edge packaging approach with their forthcoming AI chip or M4 chip from Apple.

    TSMC’s SoIC technology represents an innovative high-density 3D chip stacking method for accommodating chips with different sizes through Chip-on-Wafer packaging. First introduced in 2018, SoIC will soon become one of the key elements at an advanced packaging facility planned in Chiayi, Taiwan which will feature both CoWoS plants as well as its SoIC facility.

    AMD Adopts SoIC Technology

    AMD was the pioneering client to embrace SoIC technology with CoWoS for data center AI accelerator chips; their Instinct MI300 AI Accelerators utilized these methods.

    Mark Gurman reports that Apple has officially begun development on an M4 chip destined to appear in their next-gen MacBook Pro laptops. TrendForce suggests Apple could switch over to 2nm process nodes with this chip design.

    Historical patterns for Apple Silicon releases suggest roughly one and a half year intervals between each version, such as November 2020 for M1, June 2022 for M2 and late October for M3. Therefore it seems plausible that they would reveal M4 by first half of next year.

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  • NVIDIA chip supply stable despite Taiwan 7.5-magnitude quake

    NVIDIA chip supply stable despite Taiwan 7.5-magnitude quake

    After the recent 7.5-magnitude earthquake near Taiwan, concerns have arisen about potential disruptions to the global chip supply chain. Taiwan plays a significant role in semiconductor manufacturing, leading to speculations about the status of semiconductor factories post-earthquake. However, NVIDIA, a prominent player in the AI industry, has reassured stakeholders that its chip supply remains unaffected.

    NVIDIA Confirms Unharmed Chip Supply

    US-based NVIDIA, a company heavily dependent on Taiwan Semiconductor Manufacturing Co. (TSMC) for chip production, has stated that the earthquake did not impact its supply chain in Taiwan. TSMC, known for producing chips for tech giants like Apple, AMD, Qualcomm, and NVIDIA, has reported no damage to crucial chip-making equipment, including the Extreme Ultraviolet Lithography machines.

    Despite some tools being affected at specific TSMC facilities, the core machinery remains unscathed. As a precautionary measure, TSMC temporarily evacuated certain production facilities to ensure employee safety. However, operations resumed at 70-80% capacity within just 10 hours after the earthquake.

    TSMC's Preparedness and Resilience

    TSMC attributes its quick operational recovery to preparedness for such incidents. Utilizing building dampers and conducting regular earthquake drills, TSMC mitigates seismic activity's impact on semiconductor production.

    Semiconductor manufacturing demands precise, uninterrupted processes in controlled settings. Even minor disruptions can lead to significant losses, such as discarding entire silicon wafers. TSMC's earthquake readiness and protective measures have proven vital in safeguarding its production line.

    Importance of TSMC to NVIDIA

    TSMC serves as NVIDIA's primary chip manufacturer, providing cutting-edge semiconductor technology. NVIDIA relies on TSMC's advanced manufacturing processes for high-performance GPUs, including the latest Blackwell architecture models.

    The collaboration between NVIDIA and TSMC ensures efficient chip designs and supply. Beyond GPUs, TSMC contributes essential semiconductor technologies crucial for NVIDIA's products. This partnership guarantees a dependable chip supply, essential for meeting market demands and sustaining NVIDIA's competitive edge.

    TSMC holds the largest global market share in chip manufacturing. Any disruption to TSMC would not only impact NVIDIA but also other top AI and tech firms, potentially disrupting their chip production and supply chains. Any threat to TSMC poses a concern for NVIDIA and the broader tech industry, potentially hampering global technological advancements.

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