semiconductors

SoftBank, NEC, Sony, Toyota + more team up for Rapidus, Japan’s bid for next-gen chip domination • ZebethMedia

By zebethcontrolPosted on November 11, 2022Posted in Enterprise, Government & Policy, Japan, semiconductors, VentureNo Comments

As the tech war between the U.S. and China intensifies, Japan has spotted an opening to build a viable alternative for semiconductors — not least so that its own consumer electronics firms do not run out of memory chips. Now, eight major Japanese tech firms and car makers, including Kioxia, NEC, NTT, SoftBank, Sony and Toyota, are teaming up in a consortium to launch an advanced chip maker. Rapidus, as it will be called, aims to develop and mass-produce the next generation of logic semiconductors by 2027. The Japanese government said Friday it will back Rapidus with 70 billion yen (~$500 million), joining the eight tech corporations to reduce its dependency on chip production in other countries like Taiwan. According to Japan’s industry ministry, each participating company will invest approximately 1 billion yen (~$ 7 million) in Rapidus, with MUFG Bank injecting 300 million yen. “Semiconductors are going to be a critical component for developing new leading-edge technologies such as AI, digital industries and health-tech,” Minister of Economy, Trade and Industry Yasutoshi Nishimura said at a news conference today. “Semiconductors are becoming even more important from an economic security perspective” due to the rising geopolitical risks. Last week, Japan unveiled its plan to allocate 350 billion yen ($2.38 billion) to build a joint research center with the U.S. with the goal of developing 2-nanometer advanced chips. A number of research institutions and semiconductor companies in the U.S, Japan and Europe will participate in the research hub to collaborate. In addition to the new joint research hub investment, the Japanese government plans to invest 450 billion yen in advanced production and 370 billion yen in securing materials required for manufacturing. IBM is reportedly partnering with Rapidus, which will have to get a license from IBM to manufacture sub-2 nanometer chip technology in Japan. Rapidus aims to develop 2-nanometers chips, which can be used for 5G, quantum computing, data centers, self-driving vehicles and digital smart cities. Japan has previously subsidized global semiconductor allies, including Taiwan Semiconductor Manufacturing, Micron, and Western Digital, to expand their chip production in Japan. The idea here is to strengthen its competitiveness in the semiconductor sector with R&D and production of its own advanced chips, primarily for Japanese car makers and tech companies’ use, but potentially for others, too. While global competitors have outperformed in the industry, Japan’s latest logic semiconductor production lines are for 40-nm chips, per media outlet. Samsung has started mass production of 3 nm this year, and TSMC plans to begin its 3 nm mass production late this year.

China’s smartphone shipments slumped 23% in Jan-Aug • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in Apple, China, chips, Gadgets, Hardware, Huawei, iPhone, oppo, Phone, semiconductors, shipment, XiaomiNo Comments

Smartphone shipment is often seen as the bellwether of China’s consumer spending, and right now, the picture isn’t very rosy. The world’s largest market for smartphones shipped 175.1 million handsets between January and August, marking a sharp 22.9% decline year-over-year, according to research from a state-backed institution. In August alone, shipments dropped 21.9% year-over-year. The global smartphone market as a whole is experiencing a slowdown, logging a 9% decline in the second quarter due to a mix of challenges including a COVID-struck economy, inflation, and deceleration following years of frantic growth. China’s growing consumer appetite obviously played a big part in driving the boom, and now that the world’s second-largest economy is hitting a speed bump, the smartphone industry is inevitably taking a hit. The era of economic miracles is coming to a close in China. On Monday, official data reported a 3.9% GDP growth rate from July to September, which beat forecasts but was way below the double digits that propelled the country’s economy forward for three decades. China is not only the world’s largest market for hanset users but is also its largest phone producer, with home-grown brands like Huawei, Oppo, Vivo, and Xiaomi rising over the years to rival Apple and Samsung. These domestic phone markers began seeking overseas expansion well before their home market start cooling down. And they’ve successfully carved out their international market share and have in recent years consistently shared the top five spots alongside Apple and Samsung. The smartphone industry is notoriously cut-throat with modest margins, so it wasn’t unsurprising when Xiaomi and Oppo, which are long known for selling budget phones, started offering higher-end models in recent years. Huawei established a strong presence in the premium handset space before the U.S. cut off its supply of critical chipsets and key Android services. Having seen how overdependence on advanced U.S. technologies and geopolitical tensions has wrecked Huawei’s revenues, Oppo and the likes are rushing to work on their own smartphone processors. The need for Chinese firms to have their own high-end chips is getting dire as the Biden administration hit China with possibly the strictest export controls earlier this month. Analysts are still parsing the impact of the policy, but initial observation shows that the new rules will not only restrict Chinese companies’ access to high-end U.S. chips but will also bar their access to chip-making equipment, which will hobble the country’s ability to develop such advanced technologies.

Biden’s new restrictions on exporting semiconductor tools hit China where it hurts • ZebethMedia

By zebethcontrolPosted on October 18, 2022Posted in China, EC Hardware, export laws, Government & Policy, Hardware, semiconductorsNo Comments

Chinese semiconductor manufacturers and their U.S. suppliers should have seen the Biden administration’s latest export restrictions coming. It’s possible they did. The question is whether they’re prepared. Years ago, the Trump administration sent the first shot across the bow, first cutting off Huawei from advanced chips and later successfully pressing the Dutch government to bar the sale of EUV lithography machines made by Netherlands-based ASML to leading Chinese semiconductor firm SMIC. The EUV ban kept SMIC and, by association, China, from getting a chance at producing leading-edge chips with smaller transistors. Smaller transistors make for faster, more energy-efficient chips, and there were concerns that EUV-made Chinese chips would have facilitated myriad military and surveillance applications, including hypersonic missiles and AI-powered video and cyber monitoring tools. Though SMIC said it could produce chips that were similar to some of its competitors’ second-best designs, the yields were reportedly atrocious. Without EUV, the process was unlikely to be profitable anytime soon. China is likely trying to develop its own version, but it’ll be a long road. Even if Chinese companies could get their hands on EUV and related technologies, whether through espionage or some other means, they still would have to duplicate ASML’s global supply chain of more than 5,000 suppliers, some of which are the only ones that have the expertise to make those specific parts.

Chinese chipmakers, U.S. suppliers caught in crosshairs of new export restrictions • ZebethMedia

By zebethcontrolPosted on October 17, 2022Posted in China, export laws, Government & Policy, Hardware, semiconductorsNo Comments

Over the last week and a half, the Chinese semiconductor industry’s circumstances have taken a sharp turn for the worse. The Biden administration announced on October 7 a sweeping set of export restrictions that prevent the export of certain chips and, more important, the sale of tools using certain technologies to Chinese chipmakers. The rules go well beyond those introduced during the Trump administration and are likely to keep Chinese companies several generations behind the leading edge. The goal of the new rules is to “protect our national security and prevent sensitive technologies with military applications from being acquired by the People’s Republic of China’s military, intelligence, and security services,” Alan Estevez, Undersecretary of Commerce for industry and security, said in a statement. Previously, semiconductor equipment manufacturers were prevented from supplying companies that sold to Huawei, which had the effect of cutting the device maker off from the most advanced chips. The Trump administration also barred the sale of EUV lithography tools that are required to make chips with features under 10 nanometers in size. Leading edge chips today are at least two generations more advanced than that. The new rules leverage the United States’ dominance of the semiconductor equipment market, using it as a choke point to prevent Chinese firms that supply the country’s military from advancing too rapidly. Specifically, the rules restrict companies using U.S. technology from selling to factories and R&D centers that focus on a handful of technologies, including so-called non-planar designs like FinFET and GAAFET at 14 to 16 nanometers, which have enabled increasingly denser transistor counts, DRAM memory made at the 18-nanometer node or smaller, and NAND flash memory with 128 layers or more. The export restrictions prevent sales to any Chinese facility by default. Foreign companies that operate factories in China, like Intel, TSMC, or SK Hynix, must apply to receive exemptions from the rules. Both Intel and SK Hynix have reportedly obtained exemptions, and other companies from the U.S. and its allies that have Chinese factories will probably receive waivers, too. Already, U.S. suppliers including KLA and Lam have halted deliveries and support for existing tools provided to Yangtze Memory Technologies Co., also known as YMTC, The Wall Street Journal reported. YMTC and 30 other companies were added to the “unverified list,” which doesn’t explicitly prevent U.S. companies from dealing with them, but it does heighten scrutiny of any deals and transactions. Semiconductor Manufacturing International Corporation, also known as SMIC, is also thought to be a key target of the new rules. Already, Apple has reportedly pulled out of plans to use YMTC’s memory chips in upcoming iPhones, despite having completed a lengthy certification process, according to Nikkei Asia. American executives at Chinese chipmakers may also fall in the crosshairs. The Wall Street Journal said that at least 43 senior executives might be barred from working at 16 publicly listed Chinese companies. The financial ramifications could be far-reaching, and not just for Chinese companies. Applied Materials, for example, cut its fourth-quarter sales projections by $400 million as a result of the new rules. Semiconductor makers and suppliers have long said that revenues from sales to Chinese firms help bankroll R&D efforts that help keep American companies on the leading edge. But critics have said that those sales risk American competitiveness by helping Chinese firms more quickly climb the ladder. Exemptions may temper the blow somewhat, and while the breadth of the new restrictions caught the industry by surprise, they continue the trend of using U.S. chip prowess as lever to control the rate of progress at Chinese semiconductor companies.