2003网站太阳集团(中国)官方网站

01

Policy Trend（November 11）

Taiwan official says TSMCs 2nm chips wont be produced overseas

According to the news of Taipei Times, Taiwans Minister of Economic Affairs said that, although TSMC can build fabs in the USA, Europe and Japan, TSMC will not be transferring its most cutting edge chip production technology overseas because they are protected by local regulations in Taiwan. In other words, TSMC cannot produce chips in the USA using its N2 (class 2nm) manufacturing technology, which is its most cutting edge process node. "Since Taiwan has regulations to protect its own technologies, TSMC cannot produce 2nm chips overseas currently, “Taipei Times reported. "Although TSMC plans to make 2nm chips abroad in the future, its core technology will stay in Taiwan."

Taiwanese law stipulates that domestic chipmakers can only produce chips abroad that are at least one generation behind those manufactured at home, so as to retain its most cutting-edge technology at Taiwan. Perhaps the minister was a little too cautious, because it will take TSMC many years to complete its 2nm production facilities in the USA. However, his message is clear: Taiwan wants TSMC to retain its cutting edge technology in Taiwan. Although not directly stated, these regulations are designed to ensure that the Taiwan, especially TSMC, remains a key business center for the worlds leading chip designers who need cutting edge technology, and these designers just come from the USA.

Comments: At a forum in Hsinchu, Taiwan Semiconductor Industry Association (TSIA) chairman said that Taiwan-US semiconductor cooperation will remain stable as leadership changes in the USA. Although there may be some adjustments, the core partnership between Taiwan and the USA remains stable and durable, as it has been for decades. In addition, Taiwan’s expertise on semiconductor equipment and materials is very important, and foreign companies hold a dominant position in these fields currently. The semiconductor industry and the government are working hard to attract foreign partners to build design and materials centers in Taiwan, thereby strengthening its semiconductor ecosystem, another way to enhance Taiwans important position in the global microelectronics supply chain.

02

Policy Trend （November 11）

Samsung will discontinue supplying 7nm chips to Chinese mainland!

According to the report of Economic Daily News of Taiwan, the USA further tightened its export control restrictions, not only requiring TSMC to stop supplying 7nm process products to non-consumer AI chip customers in Chinese mainland because of compliance but also barring Samsung from accepting related orders in the similar way.

The report points out that the market generally believes that the tightened export control restrictions almost confirms that specific AI/GPU and ASIC manufacturers in the Chinese mainland market will not be able to obtain the production capacity of advanced processes of 7nm and below in the short term. In addition, Intels IFS business is also subject to the regulatory restrictions that prevent it from providing services to related manufacturers.

It is worth noting that rumor says that TSMC has notified all AI customers in Chinese mainland that it will suspend supplying products of 7nm process node or below from November 11. At the same time, Samsungs foundry division has issued similar notices to its customers, which has been widely discussed in the industry.

Comments: Although SMIC in Chinese mainland has made some progress on the 7 nm process, its actual output is limited due to the low yield. Commercial customers are less willing to tapeout wafer in the field of AI and GPU applications, even if they produce chips with DUV (deep ultraviolet lithography) technology regardless of cost. As a result, TSMC and Samsung have suspended accepting orders due to regulatory restrictions, which has undoubtedly dealt a big blow against the AI/ASIC manufacturers in Chinese mainland.

In addition, if the news is true, it will be a heavy blow to Samsung. The reason is that Samsung lacks support from big customers from the USA and Europe in the field of 7nm process node and below. Most of Samsung’s orders for its 4nm, 5nm, 7nm capacity are from the fabless chip designers in Chinese mainland. In particular, the only major customer of Samsungs first generation 3nm chips (with a yield of about 60%) is a cryptocurrency ASIC chip manufacturer in Chinese mainland. However, as the USA imposed trade restrictions on the semiconductor industry of Chinese mainland, Samsung also suffered the loss of some Chinese customers, which undoubtedly brought more challenges to it.

03

Market Trend （November 12）

SMIC warns of serious overcapacity

Recently, SMIC said that overcapacity in mature node chips will persist through 2025. This industry trend reflects the current challenges faced by the global semiconductor industry. Since the end of 2022, the recovery in the global semiconductor industry has been difficult. Due to the COVID-19 pandemic, there was a massive shortage of chips at that time. However, the chip shortage eventually turned to chip oversupply, and many end-users, including car manufacturers, continue to cope with overstocking. The co-CEO of SMIC said in the company’s third-quarter earnings call that the company’s capacity utilization rate hovers around 70%, well below the optimal level of 85%, indicating significant overcapacity. This situation is unlikely to improve significantly, if not worsen further.

At present, the industry is moving out of the winter and is recovering slightly. However, it still awaits the recovery of the global economy and the emergence of revolutionary applications. Due to differentiated demands, the Chinese market has shown its support capacity. Although the global chip sales show a positive trend in general, the demand of chips is structurally differentiated in the application market. On the one hand, the chip demand from AI applications remains strong; on the other hand, the chip stock adjustments in automotive, industry and other areas continue, and the cyclical recovery is still pending. SMIC plans to expand its capacity layout of power devices, mainly for automotive and industrial scenarios. This could be a strategic measure for SMIC to seek new growth points in the context of overcapacity.

Comments: The cyclical fluctuations in the semiconductor industry are normal, and overcapacity is often a natural adjustment after the rapid development of the industry. The current overcapacity may be caused by the previous overestimation of chip demand and imbalances in supply and demand due to changes in the global economy. However, with technological progress and the demand growth from the emergence of new applications, such as AI, 5G, IoT, and more, the overcapacity is likely to be absorbed in the coming years and the industry will be driven into a new growth cycle. In addition, SMIC is accelerating the layout of power devices to support the development of the automotive industry and new energy market, which shows that the company is actively addressing the challenge of overcapacity and looking for new growth points. Generally speaking, although the industry may face pressure in the short term, the semiconductor industry still has the potential to grow and adjust in the long term.

04

Company Trend（November 12）

TSMC granted nearly US$15.5bn to build new fab and advanced node capacity

Recently, TSMCs board of directors has approved approximately US$15.48bn for the primary purposes of new fab construction, the installation of fab facility systems, and advanced technology capacity deployment to ensure the company to meet the market demand and keep its leadership in technology. In addition, the appropriation also includes R&D capital investment and ongoing capital expenditure in 2025 and capitalized lease assets in the following year, showing TSMCs long-term planning and investment in future development. At the same time, TSMC also plans to raise unsecured corporate bonds not exceeding NT$ 60bn (about US$1,850mn) in Taiwan to support its capacity expansion and pollution prevention and control-related expenditures, which further demonstrates TSMCs commitment to environmental protection and demand for capacity expansion. In response to the strong AI-related demand, TMSC’s capital expenditure is expected to be slightly higher than US$30bn in 2024, while its capital expenditure in 2025 is expected to exceed that in 2024. Therefore, TSMC is preparing for its future growth and expansion.

Comments: This initiative not only demonstrates TSMCs ambition and commitment in the semiconductor industry, but also reflects its positive response to the global demand for high-performance computing and mobile devices, especially in the areas of AI and data centers. TSMCs technology roadmap shows that it will adopt 2nm process node developed by Nanosheet(GAA) by 2025, which will further strengthen its leadership in advanced process technology. Meanwhile, TSMCs capital budget also shows its firm confidence in the future. By building new fabs and the deployment of advanced process nodes, TSMC will continue to expand its share of the global semiconductor market and drive technological progress of the whole industry. The investments and financing activities by TSMC will help keep its leading position in the global semiconductor industry, considering the increasing competition in the global semiconductor industry.

05

Domestic News（November 11）

BEHC invested RMB33bn in total to build 12-inch wafer fab in Yizhuang

Beijing Electronics Holding Company (BEHC) announced that it will invest RMB33bn in total to build a 12-inch wafer fab in Yizhuang and the planned capacity will be 50,000 units per month. It is expected that the plant will be completed and related equipment will be installed in it in Q4 2025, and that it will start mass production by the end of 2026. From 2024 to 2026, the planned investments are RMB6bn, RMB9.6bn and RMB8.8bn, respectively.

The project aims to enhance BEHCs competitiveness in the semiconductor field and accelerate the domestic independent production capacity of high-end chips. With the increasing demand from the global semiconductor market, especially the urgent demand for high-performance, low-power consumption chips, BEHC’s plan will help ease the domestic tension supply of chips and promote the improvement and development of the semiconductor industry chain in China.

06

Domestic News （November 12）

ACM Research Shanghai to raise RMB4.5bn for testing platform construction and equipment iteration R&D

According to the news of SEMI, ACM Research (Shanghai), Inc. announced on November 12 that it has received the "Notice on Accepting the Application of ACM Research (Shanghai), Inc. for Issuing Securities at Shanghai STAR Market" issued by the Shanghai Stock Exchange.

ACM Research (Shanghai), Inc. mentioned in the announcement that, "the R&D and process testing platform construction project" will draw on the experience of international semiconductor equipment leaders to build its self-owned process testing pilot line. Using its existing process testing cleanroom to simulate the manufacturing environment of wafer fab, ACM will equip the necessary R&D testing instruments, mask aligner, CMP, ion injection machine and other outsourced devices, and combine self-developed various process equipment to create IC equipment R&D and process testing platform to improve its R&D testing landscape, improve its R&D testing capability, and provide better support testing services for the companys products from R&D to styling.

The "High-end semiconductor equipment iterative R&D project”, mainly by purchasing and developing software and hardware, arranging corresponding R&D personnel, further conducts iterative development for projects where the company has developed a holistic equipment design plan, to ensure differentiated global independent IP rights in terms of key technologies and equipment to help the company expand its share in the Chinese market and expand its share in the international market.

07

Domestic News （November 13）

Taiwan Affairs Office of the State Council responded to TSMC’s halting supplying chips to Chinese mainland

In the morning of November 13 , Taiwan Affairs Office of the State Council held a routine press conference. A reporter asked whether the spokesman had any comments on the news that TSMC had agreed to halt supplying chips to clients in Chinese mainland from November 11 to follow the request of the USA. The spokesman for Taiwan Affairs Office of the State Council said that promoting cross-strait industrial cooperation is conducive to the development of the enterprises on both sides of Taiwan Strait and to enhancing the livelihood and well-being of the people of both sides. Relevant reports once again prove that the USA played the "Taiwan card" and raised tension in the Taiwan Strait with the aim of "using Taiwan to contain China." The DPP authorities attempts to “solicit external support for Taiwan Independence” and always follow the pace of the USA to “decouple and cut off industrial and supply chains”, which has imposed more and more artificial obstacles to cross-strait enterprise cooperation. This will finally harm the interests of the enterprises on Taiwan island, weaken the advantages of related industries in the Taiwan region and further deprive the Taiwan region of opportunities for industrial development.

It was previously reported that TSMC has sent an official email to all its AI chip customers in Chinese mainland, announcing that it will suspend the supply of all 7nm and below chips to AI/GPU customers in Chinese mainland from November 11. Another insider pointed out that relevant officials of the USA went to Taiwan last Friday to discuss further control export of advanced process chips to Chinese mainland. Recently, more and more IC designers in Chinese mainland have received TSMC’s emails informing that it will suspend the supply of 7nm process chips and below from November 11.