Semiconductor Power Moves: New GPUs, Strategic Alliances, and On-Shoring Efforts

?? We welcome you to the Eleventh Edition of yieldWerx Insights as we continue to explore key advancements in the global semiconductor industry, including strategic expansions, product launches, groundbreaking innovations, and international partnerships.

Here's what we cover in this edition:

1) Arm reportedly developing GPU to compete with Nvidia and Intel

2) Texas Instruments and U.S. DC partner on $1.6 Billion funding deal Under CHIPS Act

3) Intel launches new GPU for cars in China

4) Samsung to install the first High-NA EUV lithography tool

5) China imposes export controls on Antimony and superhard material processing

6) China accelerates efforts to replace foreign chip-making tools

Texas Instruments and U.S. Department of Commerce Partner on $1.6 Billion Funding Deal Under CHIPS Act

德州仪器 (TI) and the U.S. Department of Commerce have signed a non-binding agreement for up to $1.6 billion in proposed funding under the CHIPS and Science Act to support the construction of three 300mm wafer fabs in Texas and Utah.

TI also expects to receive an additional $6-8 billion from the U.S. Department of Treasury's Investment Tax Credit for U.S. manufacturing investments. These funds will help TI ensure a stable supply of essential analog and embedded processing semiconductors.

The funding will support the completion of cleanrooms and production lines at two fabs in Sherman, Texas, and one in Lehi, Utah. These facilities will produce semiconductors in 28nm to 130nm technology nodes, crucial for a wide range of electronic devices.

The project is expected to create over 2,000 TI jobs and thousands of indirect jobs, further boosting the U.S. semiconductor industry and securing the supply chain for critical chips. The new fabs will be powered by renewable energy and designed to meet LEED Gold standards, emphasizing TI's commitment to sustainable manufacturing.

Arm Reportedly Developing GPU to Compete with Nvidia and Intel

Arm, the company behind the architecture used in Qualcomm and Apple chips, is reportedly developing a GPU to compete with industry giants like Nvidia and Intel. This project, involving around 100 engineers in Arm's Israel office, is focused primarily on gaming but could also have applications in AI processing. It's unclear whether Arm is working on a discrete GPU or a stronger integrated graphics solution for PCs.

Arm already creates the Immortalis and Mali GPUs for mobile devices, which feature advanced technologies like Ray Tracing and Super Resolution. There’s also speculation that Arm might develop a GPU architecture for others to license, particularly for ARM-based processors, potentially filling a gap in the market as ARM-based systems like Qualcomm’s Snapdragon X gain traction.

Intel Launches New GPU for Cars in China Amid Semiconductor Competition

英特尔 has introduced a new discrete graphics processing unit (GPU) designed for cars in mainland China, aiming to capture a share of the rapidly growing electric vehicle market. The Arc Graphics for automotive GPU, set to be deployed in vehicle cockpits next year, enhances in-car AI capabilities, enabling the use of large language models (LLMs) and advanced gaming experiences directly within vehicles.

China's fast-paced electric vehicle development makes it an ideal testing ground for Intel's next-gen technologies. This move follows Intel's recent decision to relocate its automotive headquarters to China, reflecting its strategy to deepen ties with the country despite increasing U.S.-China tensions. The launch comes as Intel faces declining financial performance and intense competition from rivals like Nvidia and AMD in the automotive semiconductor market.

Samsung to Install First High-NA EUV Lithography Tool for Next-Gen Chip Development

Samsung is set to install its first high-NA EUV lithography tool, the ASML Twinscan EXE:5000, at its Hwaseong campus between late 2024 and early 2025. This advanced tool, which offers a 0.55 numerical aperture, will primarily be used for research and development to advance next-generation logic and DRAM fabrication technologies. Samsung's High-NA EUV tool will be operational by mid-2025, slightly behind Intel but ahead of competitors 台积公司 and SK hynix .

Samsung is also collaborating with companies like レーザーテック株式会社 , JSR, and TOKYO ELECTRON LIMITED to build a robust high-NA EUV ecosystem, including specialized inspection tools and curvilinear photomask designs. High-NA EUV technology, capable of achieving 8nm resolution, will eliminate the need for the costly double patterning process used in current low-NA systems, simplifying production and potentially improving yields.

However, the technology presents challenges, including higher costs, changes in chip design, and the need for new fab layouts. Samsung aims to implement high-NA EUV in mass production by the latter half of the decade.

China Imposes Export Controls on Antimony and Superhard Material Processing Amid U.S. Tensions

In response to escalating tensions with the U.S., China has announced export controls on rare antimony metals, ores, oxides, and equipment for processing superhard materials like diamonds, effective September 15. The move, aimed at defending national security and fulfilling non-proliferation obligations, is seen as a countermeasure to U.S. sanctions on semiconductor technologies.

Antimony is crucial for military equipment production, and China’s restrictions are expected to impact global arms manufacturing, particularly in the U.S., which heavily relies on Chinese antimony imports. The export controls are also a signal that China, like the U.S., can impose restrictions on dual-use technologies.

This latest measure follows China's previous controls on other critical materials such as graphite, gallium, and germanium, used in defense and semiconductor industries. China's dominance in antimony production, accounting for nearly half of the global output, underscores the significance of this move in the ongoing trade and tech tensions between the two nations.

China Accelerates Efforts to Replace Foreign Chip-Making Tools Amid U.S. Export Restrictions

In response to U.S. export restrictions on advanced chips and technologies, China is intensifying efforts to develop and adopt domestic chip-making tools. Leading Chinese companies like NAURA Technology Group Co.,Ltd. and AMEC (Advanced Micro-Fabrication Equipment Inc. China) are pushing local chip foundries to use and improve homegrown equipment, with an unwritten rule suggesting that 70% of production lines should be equipped with locally-made tools.

Despite significant progress, especially in producing legacy chips for cars and appliances, lithography remains a major bottleneck. China still heavily depends on foreign suppliers, particularly Dutch company ASML, for critical lithography systems required for advanced chip manufacturing. Only 1.2% of lithography tools in Chinese foundries are sourced locally.

While China is making strides in developing other semiconductor tools, such as ion implantation and metrology systems, it remains reliant on foreign technologies in these areas as well. However, experts believe China could eventually achieve breakthroughs in lithography, potentially accelerating its self-sufficiency in chip manufacturing.

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