ANNY Y.’s Post

Taiwan's semiconductor industry is set for significant growth, with a projected production value increase of 16.5 percent next year, reaching NT$6.17 trillion (approximately US$192.28 billion). Strong demand for artificial intelligence (AI) and high-performance computing (HPC) devices like servers and data centers is driving this growth, contrasted with a global semiconductor growth rate of 12.5 percent, reaching US$684 billion. The foundry sector is expected to lead this expansion, with a 20.1 percent increase in production value to NT$3.86 trillion. Demand for advanced chips using 3-nanometer and 2-nanometer technologies is significantly driven by generative AI applications. Taiwan Semiconductor Manufacturing Company (TSMC) generates over half of its revenue from HPC-related chips and plans to be the first to offer 2-nanometer technology next year. The chip packaging and testing service sector is also projected to grow by 12.7 percent to NT$700 billion, aided by advanced packaging technologies that meet the needs of AI and HPC devices. Rising sales in smartphones, PCs, and consumer electronics are expected to further bolster the industry. Notably, the advanced packaging market is anticipated to exceed traditional chip packaging, representing about 51 percent of the total market. The Industrial Technology Research Institute (ITRI) has revised its growth forecast for Taiwan's semiconductor producers to 22 percent, or NT$5.3 trillion, marking the highest annual increase since 2021. This revision reflects a rapid acceleration in the foundry sector, now expected to rise by 27.5 percent. Local chip designers are also anticipated to grow by 16.5 percent, a significant upward adjustment from 5.1 percent. Conversely, forecasts for chip packagers and testers have been reduced to 8.6 percent and 5.2 percent, respectively. #Semiconductors #Taiwan https://lnkd.in/gscnGdDC

THE CHIP GLOBAL RACE CONTINUES ! TAIPEI -- Taiwan Semiconductor Manufacturing Co. says it will start production of ultra-advanced 1.6-nanometer chips by 2026 as the world's top chipmaker races to secure its leadership over the next decade.  TSMC unveiled its A16 technology at the North America Technology Symposium in Santa Clara, California, on Wednesday, saying the introduction of 1.6-nm chipmaking technology can "greatly improve logic [chip] density and performance." “At TSMC, we are offering our customers the most comprehensive set of technologies to realize their visions for AI [using] the world’s most advanced silicon," chief executive C.C. Wei said at the event. The technology features nanosheet transistors with "backside power rails," a brand-new approach that delivers power to chips from the bottom up, rather than from the top down, avoiding complicated internal wiring and improving energy efficiency. Intel was the first in the industry to announce it would start using backside power, saying it will be available in Intel's 20A and 18A (2-nm and 1.8-nm) technologies as soon as 2025.   The top American chipmaker also unveiled its 14A (1.4-nm) technology earlier this year. Samsung is targeting mass chip production at the 1.4-nm level in 2027.  In general, a smaller nanometer size indicates a more advanced and powerful chip. Traditionally, the number referred to the distance between transistors on a chip. Smaller distances allow for more transistors to be packed into the same space, leading to significant performance gains. However, modern chipmaking has become increasingly complex. Pushing the boundaries of computing power now requires not only shrinking the size of transistors, but also a complete overhaul of their structure. Starting from 2-nm tech, TSMC and Intel will adopt the so-called gate-all-around, or nanosheet transistor, structure. Samsung began trialing such technology with its 3-nm node. Apple's latest premium iPhone Pro uses TSMC's 3-nm technology. Many industry executives expect that generative AI will eventually need even more advanced chips.   Currently, only TSMC, Intel and Samsung are able to continue investing to make ever-smaller transistors and push chip production to new frontiers.  The U.S. government has awarded these three companies a total of $21.5 billion under its CHIPS Act to bring the most advanced chip production to American soil.   TSMC is the leader in foundry services, the business of making chips for others, with a market share of nearly 60%, according to the technology market research firm Counterpoint. Samsung follows in second place with a share of around 13%, trailed by Taiwan's UMC at 6%. Intel previously mainly produced chips for in-house use but has entered the arena, pledging to become the No. 2 player by 2030.

Semiconductor Industrial News 1. In its latest foundry industry report, JPMorgan Chase pointed out that foundry destocking will end, and the industry's prosperity will be widely restored in the second half of 2024 and further strengthened in 2025. The industry's prosperity bottomed out in Q1, and with the continued rise in AI demand and the gradual recovery of non-AI demand. What’s more important, emergency orders began to appear, including large-size panel driver ICs, power management ICs, WiFi 5 and WiFi 6 chips, etc., all of which clearly indicate that the foundry industry has escaped the bottom and turned to recovery. 2. Taiwan Economic Daily: Industry sources said that Apple COO Jeff Williams recently visited TSMC in a low-key manner. TSMC President Wei Zhejia personally received him. The two sides discussed Apple's self-developed AI chips and planned to use TSMC's advanced process capacity to produce related chips. According to institutional analysis, Apple has previously taken the lead in using TSMC's first batch of 3-nanometer production capacity. If the first batch of 2-nanometer or even more advanced process capacity is reserved in the future, it is estimated that Apple's contribution to TSMC's annual revenue output value will steadily increase, and this year has the opportunity to reach US$18.565 billion. 3. Glass substrate concept continued to strengthen, Voge Optoelectronics and Jinrui Mining rose for two consecutive days. Leman Optoelectronics and Wufang Optoelectronics rose to the limit. Sanchao New Materials, Ancai High-Tech, Delong Laser and others followed suit. On the news, Morgan Stanley revealed that Nvidia GB200 may use glass substrates. Intel, Samsung, AMD, Apple and other pricinpal manufacturers have previously stated that they would introduce or explore glass substrate chip packaging technology. 4. TrendForce's latest research points out that the three major original equipment manufacturers (Samsung, Micron, and SK Hynix) have begun to increase their investment in advanced process wafers, and the capital investment of each factory has also begun to increase. The increase in production capacity will be concentrated in the second half of 2024. It is estimated that by the end of 2024, the investment in wafers above 1alpha nanometer will account for about 40% of the total DRAM wafer investment. Among them, HBM production capacity has the highest priority. By the end of 2024, advanced process HBM will account for 35%, and the rest will be used to produce LPDDR5(x) and DDR5 products. In addition, since NVIDIA GB200 will be released in 2025, with the specifications of HBM3e 192/384GB, HBM output is expected to increase by nearly one-fold, and original equipment manufacturers will soon usher in the development of HBM4. If investment is not greatly expanded, DRAM products may fall into a situation of supply exceeding demand due to the capacity squeeze effect. #destocking #AI #WiFi5 #WiFi6 #Apple #TSMC #Glasssubstrate

Close-up gloved hands holding detail microchip Wong Yu Liang | Moment | Getty Images Semiconductor firms such as Taiwan Semiconductor Manufacturing Company are at risk of water shortages as processing technology advances, S&P Global Ratings said in a report. Semiconductor chips are found in everyday consumer devices from smartphones to TVs. TSMC is the world’s largest contract chipmaker and manufactures the most advanced processors for companies like Nvidia and Apple. The chip making industry is a thirsty one, as factories consume vast amounts of water every day to cool machinery and ensure wafer sheets are free of dust or debris. “There is a direct line between water use and chip sophistication, as fabs use ultrapure water — fresh water processed to extremely high purity — to rinse wafers between each process. The more advanced the semiconductor, the more process steps, the more water consumed,” said S&P Global Ratings credit analyst Hins Li. TSMC’s water consumption per unit grew over 35% after it advanced to 16-nanometer process nodes in 2015, data from S&P revealed. “We believe this was mainly due to the migration to advanced nodes, which require more fabrication processes,” S&P said. “Given TSMC’s dominance in advanced chipmaking, potential water-related disruptions to operations could disrupt the global tech supply chain.” But the credit ratings firm noted TSMC’s dominance allows the chip giant to “lock in end demand and compensate for lower unit sales with price rises.” “Should the company be able to maintain its technology leadership, the impact on TSMC’s business profile and profitability from any output volatility is likely manageable,” said S&P. The Taiwanese chip giant makes around 90% of the world’s advanced chips that are used for AI and quantum computing applications. TSMC could also focus on producing more advanced chips over typically lower-margin mature chips when there is a limited water supply, which S&P said could boost earnings. The report noted that water consumption in the semiconductor industry is on track to increase by a mid- to high-single-digit percent each year, driven by capacity expansion and the demands of advancing process technology. The world’s chipmakers already consume as much water as Hong Kong, a city with a population of 7.5 million, said S&P. “Water security will be an increasingly important factor to semiconductor firms’ credit profiles. Mishandling of water resources could disrupt a firm’s operations, hurt financial performance, and potentially hit customer relationships,” said Li. “Meanwhile, climate change is raising the rate of extreme weather, the frequency of drought, and the volatility of precipitation, limiting chipmakers’ ability to manage production stability.” Source link

https://lnkd.in/e5Q9AYex The Great Taiwan Semiconductor Manufacturing Company Few companies are as important to today's world as Taiwan Semiconductor Manufacturing (NYSE: TSM). It produces the chips that go into devices that power artificial intelligence (AI) models, iPhones, and nearly any other application with a microchip. Taiwan Semiconductor is a leading business in this field, but it's not done growing. Currently, Taiwan Semiconductor is valued at $845 billion, making it the ninth-largest company in the world. However, by the time 2025 comes around, it could easily cross the $1 trillion point in value. Taiwan Semiconductor is a class-leading chip foundry Part of Taiwan Semiconductor's success is its position in the chip market. As a foundry that sells its capabilities and manufacturing prowess to businesses that need chips, it doesn't have to worry about marketing its products; it leaves that to its customers. In many cases, Taiwan Semiconductor produces chips for companies that are competing against each other, like Nvidia and Advanced Micro Devices. But these competitors go to the same place because of Taiwan Semiconductor's leading technology.

The Chips Race.. Pretty much all modern electronic devices – be it smartphones, laptops or modern machinery like EVs or Commercial Aircrafts are heavily reliant and powered by microchips.  The production of semiconductor chips is an extremely complex and intricate process which requires a highly controlled and sterile environment. Brief summary as follows: Silicon Wafer Manufacturing: Foundation for Semiconductors.Most wafers are made from silicon extracted from sand. Crystallization Process: Sand is heated until it melts into a high-purity liquid. The liquid silicon is then solidified by crystallization, resulting in a silicon rod called an ingot. These ingots are sliced into thin discs, which become the wafers. Polishing: The wafer surfaces are polished to remove defects, ensuring precision for electronic circuits. Oxidation: An oxide film is created on the wafer surface. This layer serves as insulation and protects against contamination. Photolithography: Circuit designs are drawn onto the wafer using light-sensitive materials (photoresists). UV light exposure transfers the design onto the wafer. Etching: Unnecessary materials are removed from the wafer using chemical or plasma etching. Deposition and Ion Implementation: Thin films (such as metal or insulators) are coated onto the wafer at the molecular or atomic level. Metal Wiring: Thin metal films are deposited to create electrical pathways (wiring) between components. EDS (Electrical Design and Testing): Rigorous testing ensures flawless semiconductor chips. Packaging: The final wafer is cut into individual chips, ready for use in electronic devices. Taiwan’s TSMC produces roughly 50% of the world’s semiconductors - TSMC is now mass producing Chips with 3nm Fabrication – which are faster, longer lasting and more power efficient. South Korea, the US and Japan are the other leading players in this space. China is working aggressively to dominate semiconductor manufacturing – China’s SMIC is now producing 7nm chips being utilised in Huawei Mate 60 smartphone released last year ( which is outselling Apple’s iPhones there). India is taking aggressive steps to not be left behind in the Chips space – However we are quite some distance away from the lading players. Our focus is right now on the 28nm chip space where there is still decent demand. Government and Industry are taking ambitious steps to ensure India transforms into a major player in this space going forward. The Union Cabinet on February 29 approved the country’s first semiconductor fab to be set up by the Tata Group in partnership with Taiwan’s PSMC. Startups in the space like Morphing Machines , Mindgrove Technologies,InCore Semiconductors are powering India's march.. https://lnkd.in/eTE4z_8B #semiconductorindustry #semiconductormanufacturing #india

Semiconductor Foundry Market Latest Trends and Analysis, Future Growth Study by 2033 https://lnkd.in/dErKXCBu The global Semiconductor Foundry market size is projected to reach a valuation from USD 119 billion in 2023 to the valuation is anticipated to reach USD 245.27 billion in 2033. Is expected to record a CAGR of 7.5% from 2024 to 2033 The semiconductor foundry market, pivotal in manufacturing integrated circuits (ICs), has experienced substantial growth due to surging demand in electronics, automotive, and AI sectors. Foundries provide essential fabrication services, transforming design blueprints into physical chips. This market is dominated by leading players like TSMC, Samsung, and GlobalFoundries, who leverage advanced process technologies to meet the industry's ever-increasing performance and efficiency requirements. Recent trends include the push towards smaller nodes (e.g., 3nm) and the adoption of new materials and processes to enhance chip capabilities. The rise of AI, 5G, and IoT applications further propels demand, while geopolitical factors and supply chain complexities continue to shape market dynamics and investments in capacity expansion. Key Trends Advanced Process Nodes: Ongoing miniaturization, with leading foundries developing 3nm and 2nm technologies, drives performance and efficiency. Chiplet and Heterogeneous Integration: Adoption of chiplet architectures and advanced packaging techniques for enhanced performance and cost-effectiveness. Demand for Specialty Technologies: Rising demand for power management, RF, and automotive-specific technologies. Sustainability Initiatives: Increasing focus on eco-friendly manufacturing processes and reducing carbon footprints. Benefits Cost Efficiency: Outsourcing to foundries reduces capital expenditure and operational risks for semiconductor companies. Access to Cutting-edge Technologies: Companies gain access to the latest fabrication technologies without in-house development. Scalability: Foundries offer scalable production capabilities to meet varying demand levels. Faster Time-to-Market: Accelerates product development cycles through specialized manufacturing expertise. Growth Opportunities Expanding AI and ML Applications: Growth in AI, machine learning, and data centers drives demand for advanced semiconductor technologies. 5G and IoT Proliferation: The deployment of 5G networks and IoT devices boosts the need for high-performance chips. Automotive Electrification: The rise of electric vehicles and autonomous driving increases the requirement for semiconductor components. Geopolitical Shifts: Diversification of supply chains and investment in regional foundry capabilities present new opportunities. Challenges Supply Chain Disruptions: Ongoing supply chain issues can affect production timelines and cost stability. High Capital Costs: Continuous investment in advanced manuf

Deep Dive on Micron Technology (2 min read) From Humble Beginnings to Global Powerhouse Founded in 1978 in Boise, Idaho, by Ward Parkinson, Joe Parkinson, Dennis Wilson, and Doug Pitman, Micron Technology began as a four-person semiconductor design company operating from a dentist's office basement. Today, it's one of the world's largest semiconductor companies with 48,000 employees. Key milestones include developing the first 64K DRAM chip in 1981 and acquiring Texas Instruments' memory chip operations for $800M in 1998. In fiscal year 2024, Micron reported revenue of $25B, a 62% increase from the previous year. Competitive Advantage and Business Strategy Micron's core competencies lie in advanced manufacturing processes, innovative memory and storage solutions, and vertical integration across its 11 manufacturing sites. The company's competitive advantage stems from cutting-edge DRAM and NAND flash memory technology, enabling high-quality production at scale. Micron targets diverse sectors such as data centers, AI, automotive electronics, and mobile devices with key products including DRAM, NAND flash memory, and solid-state drives (SSDs). Recent achievements include mass production readiness for its advanced 1β (1-beta) DRAM node, which offers faster data processing and lower power consumption. Challenges and Future Opportunities As the world's third-largest memory semiconductor company, Micron faces competition from industry giants like Samsung Electronics and SK Hynix while navigating market volatility and geopolitical tensions. However, it is well-positioned to capitalize on emerging trends in 5G, AI, and IoT through next-generation memory technologies. Micron's recent supply chain transformation reflects a commitment to operational excellence by shifting to a more responsive strategy that adapts to changing customer demands. With a strong balance sheet and innovative culture, Micron is poised to play a pivotal role in advancing the future of memory and storage technologies. Credit: Jeffrey Cooper & Perplexity Jorge, in my LinkedIn network, requested the topic for this post. Let me know if you have a topic, and I will see what I can do. LinkedIn has a character limit for posts. See my home page at the link below for a slightly longer and more detailed post. 🙂 For more on AI, robots, and Semicon, check out my blog: https://lnkd.in/eWESid86

The World Sells 1 Trillion Chips a Year: What’s in It for Vietnam? https://ift.tt/dnFvA9c The Global Chip Industry at an “Inflection Point” At the seminar “Reality, Challenges, and Prospects of Vietnam’s Semiconductor Chip Industry” held on November 29 in Hanoi, Mr. Nguyen Thanh Yen, CEO of CoAsia SEMI, cited statistics from 2021, where one trillion chips were sold worldwide, while the global population of eight billion people consumed an average of 120 chips per person per year, buying about ten chips per month. “It’s very hard to find a device that doesn’t have a chip in it,” Mr. Yen emphasized the prevalence of microchips in modern society. Mr. Yen was particularly intrigued by a graph sketched by Dr. Nguyen Thi Bich Yen, a Vietnamese-American renowned in the global semiconductor industry. According to the graph, the global chip industry took 66 years to reach $500 billion in value in 2021, but it will take just nine more years to accelerate from $500 billion to $1,000 billion by 2030. According to Mr. Yen, the chip industry is at a crucial “inflection point” before it continues to explode. Looking back, the chip industry’s revenue of $500 billion was driven by the strong growth of computers, laptops, smartphones, 4G, and 5G. In the future, autonomous vehicles, high-performance computers, AI (artificial intelligence), and 6G will be the catalysts for the industry to accelerate towards the $1,000 billion mark. In the past, cars were often used to illustrate the concept of globalization, but now, chips have taken their place. Mr. Nguyen Thanh Yen, CEO of CoAsia SEMI. Photo: Binh Minh Creating an iPhone chip requires resources and coordination across multiple countries. Chip manufacturing equipment from the Netherlands and IPs (semiconductor intellectual property cores) from the UK are sent to the US. American engineers design the chip and send the design to Taiwan for manufacturing. During production, sand from Chinese deserts is refined into single-crystal silicon pillars, which are then cut and shipped to Japan. From there, the materials for chip manufacturing are sent to Taiwan, where they produce wafers (silicon semiconductors) that are sent to Malaysia. The wafers are then cut, packaged into chips, and sent back to China for PCBA (printed circuit board assembly) packaging to make iPhones. Finally, the iPhones are shipped back to the US for sale. It is evident that many of the world’s chip manufacturing processes are concentrated in Asia. It is predicted that Asia will be the hub for shaping the future of the chip industry. Vietnam’s Opportunities in the Next Three Years Discussing the prospects of Vietnam’s semiconductor industry, Mr. Yen quoted a research finding by Dr. Nguyen Thi Bich Yen on the significant issues facing the global semiconductor industry in the next three years. The first issue mentioned is the talent shortage. According to Dr. Nguyen Thi Bich Yen’s research, a senior expert at Soitec (USA), the...

HIGHLIGHTS FROM THE MOST ENGAGED SEMICON CONFERENCE IN PENANG - #ISESSEA2024 Once again, I was wow’ed by the quality of presentations. Deeptech sharing by the movers & shakers from Infineon, amsOsram, Amkor, AMD, STMicro, FutureX, Inari, SSIA, MSIA, INTI, StarFive, Silicon Island and others. No booths, no marketing.  Just plain talking and sharing on what matters. And deep discussions. Infineon Technologies’ Kok Tiong Ng pointed out that the EV market is more than 10X the semicon market(!)  And key trends driving semicon are: AI, Advanced Packaging, wide bandgap materials, EUV and silicon photonics. That last one was a surprise. Watch this space! He also announced Infineon’s proprietary COLD SPLIT technology is now in Malaysia; it uses less energy than common sawing techniques to split SiC material into wafers. Yvonne Keil of GlobalFoundries pointed out that change management will be the key to success for organisations today. She explained how GlobalFoundries transformed their fabs around the world to be managed remotely 24/7 by new ‘factory control towers’ in Penang and India. These towers are run by 650 people, all below 35. She says we need to know how to communicate with them, who are naturally more comfortable with digital solutions. . Only then can we leverage AI and advanced data analytics. Naturally, AI featured greatly in the presentations. Koen De Backer of Micron Technology argued how bigger is not necessarily better in AI because of the amount of effort, resources and talent needed. The ROI needs to be there. Micron already generates 40 million images annually for their image analytics. The question is how to train AI models with minimal datasets.  Targeted models may be more useful.  Getting the right use case is the key. Dr Florian Schuster articulated how they applied AI in MEMS sensor manufacturing at Bosch as the world’s #1 provider of sensors in automotive and consumer markets. Not easy, he said. But they made it work. The secret?  Make sure you identify your company’s high level executive to champion the initiative. Every Rambo still needs air-cover! Jinyoung Kim of Amkor Technology, Inc. showed how in the era of AI, memory and cameras are driving the tech in smartphones instead of previously RF and comms in the case of 5G. Eyes opened! Jimmy Chew of PEP Innovation opened our eyes even more.  He showed how his company has developed and licensed technologies for the next level of advanced packaging, panel level packaging.  Double wow! There's more. But I’ll need another post for the rest. Thank you Salah Nasri and the International Semiconductor Industry Group.  Well done Ellen Wendelin Loh for organising this amazing event. Thank you to all for the stimulating conversations. It's pure networking, due to the smaller crowd. Want to join in next time? Contact Ellen for details. Follow ET Tan for provoking thoughts on tech and humanity, and other highlights from I.S.I.G.