These are the most-read DIGITIMES Asia stories in the week of January 13 – January 17.
Europe's chip ambitions falter: STMicroelectronics, GF shelve fab plans, turn to China
Europe's efforts to expand semiconductor manufacturing are losing steam as the US, under President Biden, wraps up a term marked by the CHIPS Act. Germany has secured TSMC's investment for a 2027 semiconductor plant, while Intel's Magdeburg fab faces prolonged delays. France's EUR5.7 billion (approx. US$5.9 billion) STMicroelectronics-GlobalFoundries (GF) project, once a centerpiece of its chip strategy, appears shelved, with no clarity from either company.
TSMC maintains CoWoS equipment orders despite Nvidia demand concerns
TSMC has maintained its equipment orders despite rumors of reduced demand for CoWoS packaging from Nvidia, with an increase anticipated in 2025. Industry observers link this to capacity and scheduling adjustments for Nvidia's Blackwell architecture and uncertainties regarding 2026, though TSMC's CoWoS capacity targets remain stable.
China's semiconductor sector reels from 10,000 bankruptcies as hiring frenzy collapses
China's economy is struggling, with weak domestic consumption and significant income disparity. Around 65% of the population earns less than CNY3,000 (approx. US$410) per month, while semiconductor professionals earn substantially more, with average annual salaries reaching CNY340,000 in 2024. Ph.D. holders with over 10 years of experience earn as much as CNY1.05 million annually. Analysts highlight technological decoupling, weak supply chains, and fierce domestic competition as driving factors behind the closures that followed rapid, capital-fueled growth.
US sharpens focus on China's semiconductor ambitions with new lithography sanctions
The US Department of Commerce (DOC) has intensified efforts to block China's semiconductor advancements, particularly in photolithography, with a focus on curbing progress below the 7nm process node. Just before President Biden's departure, the DOC added 11 Chinese organizations, including the Changchun Institute of Optics, Fine Mechanics and Physics and the Shanghai Institute of Optics and Fine Mechanics, to its entity list.
Samsung targets Chinese foundry market as TSMC pulls back
Amid US-China tensions and TSMC's reduced engagement with Chinese AI chip clients, Samsung is positioning itself as a key alternative supplier to Chinese companies. This strategic pivot aims to leverage Samsung's mature processes and low utilization rates to meet Chinese demand while navigating regulatory constraints.
From rivals to clients: Samsung places orders with TSMC
Samsung Electronics, once determined to surpass TSMC in the foundry market, has shifted its competitive stance to one of cooperation with TSMC due to challenges in process technology and HBM production. Regarding whether Samsung has placed orders with TSMC, TSMC Chairman CC Wai stated in an earnings report, "All semiconductor customers outside of China are my customers," indirectly confirming that cooperation with Samsung has already begun.
US AI chip ban drives up prices for Nvidia RTX 5090 before its launch
The latest US AI chip ban has spurred a surge in demand and prices for Nvidia's GPUs, particularly the upcoming RTX 5090, as Chinese firms increase stockpiling efforts to circumvent restrictions. Current operations for Nvidia and affiliated supply chains are unaffected. It remains to be determined whether US President-elect Donald Trump will implement aggressive measures to address the gaps left by previous ineffectual AI chip bans.