As US-Sino chip tensions rise, Beijing strengthens its position in mature process chip manufacturing, echoing its earlier solar panel strategy. While the US maintains a lead in advanced semiconductor technologies, China's state-backed efforts could secure dominance in lower-tech yet vital segments within years.
The Biden administration is reportedly ramping up scrutiny of China's mature process chips during its transition period, potentially paving the way for tighter regulatory measures. Market analysts suggest the US could impose sweeping bans on electronic products utilizing chips made in China, intensifying geopolitical tensions in the tech sector.
While the semiconductor supply chain has driven Taiwan's recent surge in electricity use, a trend expected to continue, the exact power consumption requirements for AI remain uncertain. According to Chih-meng Tsai, VP and spokesperson of Taiwan Power Company (Taipower), the electricity provider has developed three strategies to address this challenge: increasing green energy development, optimizing natural gas consumption efficiency, and building backup power plants.
Despite the recent military maneuvers by China's navy and coast guard that threaten Taiwan's security, as well as challenges within China such as a struggling real estate market, US technological sanctions, and supply chain restructuring, the Mainland Affairs Council reports that cross-strait trade is steadily recovering.
The US trade deficit with Taiwan is projected to grow to US$59 billion in 2024, an increase only ranking behind Mexico and Vietnam. However, although US President-elect Donald Trump is now certain to target trade with Mexico, Taiwan should remain safe from restrictions for a number of reasons.
ChangXin Memory Technologies (CXMT), China's leading DRAM manufacturer, has reportedly begun mass production of DDR5 memory, according to market sources.
US President Joe Biden's administration is launching an investigation that will offer President-elect Donald Trump a choice about whether to enact new tariffs on Chinese-made semiconductor chips.
Amid intense competition from Chinese suppliers and a maturing consumer electronics market, Taiwan-based panel provider Innolux is pursuing transformation through its "More than Panel" strategy. The company is exploring advanced semiconductor packaging and maintains cautious optimism about Fan-Out Panel Level Packaging (FOPLP) while acknowledging the inherent challenges.
Lam Research has introduced Dextro, which the company claims is the semiconductor industry's first collaborative robot (cobot) designed to optimize critical maintenance tasks on wafer fabrication equipment. Currently deployed in multiple advanced wafer fabs around the world, Dextro enables accurate, high-precision maintenance to minimize tool downtime and production variability, while driving significant first-time-right (FTR) results that can enhance yield.
The Industrial Technology Research Institute (ITRI) has partnered with microcontroller unit (MCU) manufacturer Generalplus to develop a wireless oral sensing capsule for medical inspection services. This collaboration combines innovative 3D IC packaging technology with Generalplus MCU chips, demonstrating heterogeneous integration and advanced packaging technologies' potential in healthcare while enabling the rapid development of multifunctional sensors.
The year 2024 marks a pivotal shift in the silicon carbide (SiC) industry, as unprecedented production increases by Chinese manufacturers transform the global supply chain. This critical compound semiconductor material, once valued for its scarcity, has become a double-edged sword causing ripples throughout the sector.
TSMC introduced "Wafer Manufacturing 2.0" in July 2024, integrating packaging, testing, and photomask production into its portfolio. This move underscores a seismic shift in the advanced packaging supply chain, driven by fresh investments from OSAT providers, IDMs, and new entrants that are disrupting traditional roles.
Innolux has partnered with equipment manufacturer Contrel and the Industrial Technology Research Institute (ITRI) to establish a through-glass vias (TGV) process verification system. The initiative aims to enhance packaging testing for major semiconductor manufacturers, thereby boosting production capacity for fan-out panel-level packaging (FOPLP).
Display panel specialist Innolux is intensifying its push into the semiconductor sector, expanding its focus beyond fan-out panel-level packaging (FOPLP) to include silicon photonics. The company's strategic shift is reflected in its plans to allocate over 15% of its capital expenditure to semiconductors by 2025.
TSMC is leveraging strong demand for sub-7nm advanced processes and its exclusive CoWoS packaging services, emerging as the leading beneficiary of the AI boom in 2024. Despite a slow recovery in semiconductor demand, TSMC remains on track to achieve record-breaking growth.
While SEMICON Japan 2024 highlighted 3DIC and advanced packaging equipment essential for artificial intelligence (AI) chips, the event saw fewer physical machinery demonstrations than expected.
On December 16, Gree Electric Chairwoman Ming-zhu Dong told Sina Finance CEO Qing-xu Deng, "Gree's chips have succeeded. We have achieved everything from independent research and design to manufacturing and a complete semiconductor value chain," according to ICSmart.
The global wafer foundry landscape is undergoing a dramatic transformation. TSMC maintains its dominance in advanced nodes below 7 nanometers, while competitors Samsung and Intel continue to struggle with outdated IDM models. Meanwhile, Japan-backed Rapidus and China's SMIC face significant technological and financial challenges despite substantial government support.
Samsung Electronics Co. and Texas Instruments Inc. completed final agreements to get billions of dollars of government support for new semiconductor plants in the US, cementing a major piece of the Biden administration's Chips Act initiative.
US chip designer Synaptics Inc. aims to assemble and package at least 10% of its chips in India by 2027 to diversify its supply chain and reduce dependency on China.
Merck has announced plans to invest over EUR70 million(US$72.53 million) to construct a new advanced materials development center (AMDC) at its Shizuoka site in Japan. This latest investment brings Merck's total investment in the Shizuoka site to over JPY120 million since 2021.
Advanced Echem Materials Company (AEMC), a specialty chemical materials supplier for semiconductors, has secured a position in a major chipmaker's supply chain and is planning capacity expansion to support the customer's 2nm chip production ramp-up, according to the company.
The National Science and Technology Conference, held every four years by the Executive Yuan, is the highest-level meeting shaping Taiwan's technology policy. During the conference on December 16, 2024, Taiwan Semiconductor Industry Association Chairman Cliff Hou expressed industry concerns regarding the supply of green electricity, urging the government to make concrete commitments towards achieving its phased goals for 2030.
