Weekly News Roundup: Key Developments in Global Semiconductor and Tech Sector
Key stories this week include China’s advancements in lithography, Samsung’s new orders, TSMC’s expansion plans, and Europe’s potential ban on Chinese solar inverters highlighting critical shifts in the semiconductor landscape.
This week, major changes unfolded in the semiconductor landscape, underscoring shifting power dynamics. Key headlines from May 12 to 18 reveal China’s strides in lithography, Samsung’s bounce back in foundry orders, and TSMC’s ambitious expansion plans. Additionally, Europe faces a potential ban on Chinese solar inverters, diving deep into the cybersecurity concerns surrounding these technologies.
Let’s start with China’s advancements in lithography equipment, particularly DUV. Faced with US export restrictions, China is making strides in domestic DUV lithography, recently unveiling a 193nm dry ArF system. This system promises a 65nm resolution and 8nm overlay accuracy, expected to be operational by September 2024, though it still falls short of global benchmarks. Research spearheaded by the Chinese Academy of Sciences looks into immersion DUV technology, and while there are rumors about a 28nm immersion prototype from SMEE, these remain unverified and not ready for production just yet. China’s push signals its long-term ambitions for semiconductor self-sufficiency, although achieving advanced lithography maturity will take time.
In related news, Samsung Electronics has scored an important 8nm foundry order from Nintendo for the upcoming Switch 2, with plans to produce approximately 15 million units by fiscal 2025. The new device is set to utilize Nvidia’s Tegra SoC, potentially opening the door for future orders from both Nvidia and Qualcomm, who are both eyeing Samsung’s nascent 2nm GAA process. Currently, Samsung’s 2nm yields are hovering around 40% to 50%, but there’s an ambitious target of reaching 60% for volume production. As for existing 5nm orders, they’re increasingly transitioning to Samsung due to better pricing and quicker delivery timelines, with production lines gradually scaling back up ahead of a more substantial ramp-up later in 2025.
And then there’s the changing power dynamics in the global semiconductors. As the power semiconductor market is projected to drop to $32.3 billion in 2024, Chinese companies like Silan and BYD have been climbing the ranks, securing sixth and seventh positions with 3.3% and 3.1% market shares, respectively. Silan reported revenues of $1.066 billion, while BYD, with their booming EV sales, is pushing forward. Meanwhile, veteran companies like Infineon, Onsemi, and STMicro are witnessing market share declines. Although local chip self-sufficiency in China still lingers below 15%, the government aims for a 25% target by 2025, fueling initiatives like Silan’s expansion of IGBT and SiC production in Chengdu and Xiamen.
Turning to TSMC, they unveiled ambitious expansion plans during their 2025 Technology Symposium, aiming to build eight new wafer fabs and an advanced packaging plant to accommodate rising demands in AI and HPC sectors. The company is set to start 2nm fab production this year in Hsinchu and Kaohsiung, while Fab 25 in Taichung eyes a 2028 production goal. AI chip shipments are forecasted to surge twelve-fold from 2021 figures to 2025. MediaTek, in conjunction with Nvidia, is also sounding off growth trends in areas like edge computing and upcoming 6G technologies—suggesting energy-efficient silicon will be in high demand.
Separately, collaboration is on the horizon between MediaTek and Nvidia as they gear up for a joint AI PC platform launch in 2025. The platform boasts the GB10 Grace Blackwell chip set to support Nvidia’s upcoming Project Digits and promises revolutionary processing capabilities. However, MediaTek is facing challenges as some of its talent is being drawn away to Nvidia, causing potential issues for their partnership.
Lastly, TSMC made headlines by agreeing to sell equipment worth $71 million to VisionPower Semiconductor Manufacturing Company (VSMC), a new venture that aims to kick-start production in Singapore by 2027. TSMC’s financials also reflect strength, posting revenue of approximately $25.53 billion in Q1 2025.
In a noteworthy development, Europe is contemplating a ban on Chinese solar inverters from major players like Huawei and Sungrow, citing cybersecurity threats similar to earlier actions by the US. With the majority of Europe’s inverters sourced from China, concerns about potential remote disruptions have increased pressure on regulators. The European Solar Manufacturing Council has pitched an “Inverter Security Toolbox” as part of a proactive approach. Nonetheless, critics urge caution, warning that such a ban could push costs up by 30%-50%. However, the EU Commission is carefully balancing these cybersecurity risks against the need to maintain grid stability.
In summary, the past week highlighted significant developments in the global semiconductor industry, with China ramping up its lithography capabilities, Samsung securing major orders, and TSMC embarking on substantial expansion plans. Meanwhile, the European landscape faces potential upheaval regarding the use of Chinese solar inverters due to cybersecurity fears. These trends spotlight the precarious balance of technology advancement, market dynamics, and regulatory considerations on a global scale.
Original Source: www.digitimes.com
