China’s Semiconductor Progress, Samsung’s Wins, and Europe’s Solar Concerns
This week’s highlights include China’s progress in DUV lithography, Samsung’s secured 8nm foundry order from Nintendo, TSMC’s expansion with eight new fabs, and Europe’s potential ban on Chinese solar inverters due to cybersecurity risks. These events reflect significant shifts within the tech and semiconductor landscapes.
In this week’s roundup, key topics from May 12 to May 18 include China making strides in DUV lithography, significant foundry wins for Samsung, and TSMC’s bold expansion efforts. The shifts in power dynamics across the semiconductor landscape are increasingly evident, with major players adapting to a rapidly evolving market.
China is notably progressing in domestic DUV lithography capabilities despite ongoing US export restrictions. The country plans to unveil a 193nm dry ArF lithography system by September 2024, achieving 65nm resolution and an 8nm overlay accuracy. While this development still lags behind international standards, Chinese entities such as the Academy of Sciences and Beijing RSLaser are leading efforts. Additionally, there are rumors of SMEE delivering a 28nm immersion prototype, though it remains unverified and not ready for production. China’s long-term ambition for semiconductor self-sufficiency is clear, yet they still have years of work ahead to refine advanced lithography technologies.
On a different note, Samsung Electronics has successfully secured a pivotal 8nm foundry order from Nintendo for its Switch 2, which is on track to ship 15 million units by fiscal 2025. This order utilizes an Nvidia Tegra SoC and might pave the way for future collaborations with Nvidia and Qualcomm as both companies evaluate Samsung’s cutting-edge 2nm GAA process. Currently, Samsung’s 2nm yields are hovering around 40-50%, with aspirations to boost them to 60% for full-scale production. As idle production lines resume operations, Samsung gears up for a complete ramp-up in the latter half of 2025.
Meanwhile, as Chinese Integrated Device Manufacturers (IDMs) rise, Europe’s semiconductor giants are losing ground. The global power semiconductor market has dipped to $32.3 billion, with Chinese firms Silan and BYD climbing to sixth and seventh in market share. Silan reported revenues of $1.066 billion, while BYD’s electric vehicle sales hit 4.25 million units. Despite this progress, China’s local chip self-sufficiency stands at a mere 15%, with aspirations to reach 25% by 2025, fueled by governmental support. Silan expands its IGBT and SiC capabilities in Chengdu and Xiamen, while Hua Hong Semiconductor partners with STMicro to enhance foundry capabilities.
In 2025, TSMC plans to accelerate its expansion, announcing the construction of eight new wafer fabs and an advanced packaging plant to accommodate rising demands in AI and high-performance computing (HPC). New 2nm fabs in Hsinchu and Kaohsiung are set to start production this year, while Fab 25 in Taichung is expected to be operational by 2028. The projected surge in AI chip shipments is impressive, anticipated to multiply twelve times from 2021 to 2025. MediaTek is also pivoting towards LLMs, edge computing, and 6G applications, indicating an increase in demand for energy-efficient silicon.
In another significant move, MediaTek plans to collaborate with Nvidia on a new AI PC platform scheduled for launch in 2025. The partnership will see the introduction of the GB10 Grace Blackwell chip and N1X/N1C processors, offering up to 200 TOPS. Engaged partners like Dell, HP, Lenovo, Asus, and MSI support this endeavor. However, an emerging concern looms over talent migration from MediaTek to Nvidia, posing potential challenges for MediaTek’s ongoing projects.
In financial news, TSMC has agreed to sell equipment valued at $71–73 million to VisionPower Semiconductor Manufacturing Company (VSMC), a collaboration between Vanguard International Semiconductor and NXP Semiconductors. VSMC’s Singapore facility broke ground in December 2024 and expects to reach mass production by 2027, with the first output samples targeting late 2026. TSMC also reported first-quarter revenues of NT$839.25 billion (about $25.53 billion) and a net income of NT$361.56 billion, all while authorizing $15.25 billion in new capital expenditures.
Finally, Europe is contemplating a ban on Chinese solar inverters—particularly from Huawei and Sungrow—due to cybersecurity concerns similar to actions taken by the US in 2019. With approximately 80% of inverters in Europe sourced from China, there are rising apprehensions about remote disruptions, especially as Huawei commands significant capacity in the sector. The European Solar Manufacturing Council has proposed creating an “Inverter Security Toolbox,” while Huawei may face exclusion from key EU industry groups. Critics express that such a ban could significantly inflate costs by 30-50%, although the EU Commission is examining systemic risks to ensure grid resilience.
This week’s developments underscore a rapidly changing landscape in the global semiconductor and technology sectors. China pushes forward with its lithography ambitions, Samsung secures valuable foundry orders, and TSMC expands its manufacturing capabilities. Meanwhile, challenges persist in Europe as cybersecurity concerns regarding Chinese technology intensify, particularly in the solar industry. The interplays among these giants will likely shape the dynamics of global tech far into the future.
Original Source: www.digitimes.com
