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Chinese Chip Gear Imports Reach All-Time High of $26 Billion in 2024

Chinese Chip Gear Imports Reach All-Time High of $26 Billion in 2024

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In a striking development, Chinese imports of semiconductor manufacturing equipment have surged to a record high of nearly $26 billion for the first seven months of 2024. This figure, released by China’s General Administration of Customs this week, exceeds the previous record set in 2021. The spike in imports underscores China’s aggressive strategy to secure essential chipmaking technology amid escalating restrictions from the United States and its allies.

Increased Purchases Amid Tightening Controls

Chinese Chip Gear Imports Reach All-Time High of $26 Billion in 2024

Image Source: business-standard.com

The dramatic increase in spending reflects Chinese companies’ efforts to bolster their supply chains in anticipation of further restrictions. As the US, Japan, and the Netherlands enhance controls on advanced technology exports, Chinese firms have shifted their focus towards procuring more lower-end equipment. This strategic move is aimed at circumventing restrictions on cutting-edge technologies while continuing to advance their semiconductor production capabilities.

Dutch Exports to China Reach New Heights

A notable impact of this surge is the substantial increase in Dutch exports to China. In July, exports from Dutch companies exceeded $2 billion, marking only the second time this milestone has been achieved. ASML Holding NV, a leading Dutch semiconductor equipment supplier, saw its sales to China soar by 21% in the second quarter. ASML’s revenue from China now represents almost half of its total revenue, driven by the demand for its older generation lithography systems. These systems are crucial for producing mature semiconductor technologies, which China is increasingly focusing on as it strives for self-sufficiency in chip production.

China’s Growing Semiconductor Output

China’s semiconductor industry is poised for significant growth. According to trade group SEMI, Chinese chipmakers are expected to increase their output by 14% to 10.1 million wafers per month by 2025, which would represent nearly one-third of the global production. This projected expansion follows a 15% increase in output this year, demonstrating the rapid development and scaling of China’s semiconductor capabilities despite international constraints.

Also Read: UK Wraps Up Google, Apple Investigations as New Digital Rules Regime

Ongoing US Restrictions and Their Impact

The US has imposed stringent export controls to limit China’s access to advanced semiconductor technologies and other critical components. These measures are part of a broader effort to curb China’s technological advancements in key areas like artificial intelligence and high-performance computing. As China navigates these restrictions, its increased imports of semiconductor manufacturing equipment highlight both the challenges and the determined responses shaping the global tech landscape.

As the geopolitical landscape continues to evolve, China’s record-breaking import figures reflect a dynamic and rapidly changing sector, driven by both strategic necessity and geopolitical maneuvering.

U.S. Allocates $285 Million for 'Digital Twin' Chip Research

U.S. Allocates $285 Million for ‘Digital Twin’ Chip Research

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The semiconductor industry, critical for modern technology, is about to receive a significant boost in the United States. President Biden’s administration has unveiled plans to invest $285 million in digital twin projects aimed at enhancing semiconductor manufacturing processes.

Understanding Digital Twins

U.S. Allocates $285 Million for 'Digital Twin' Chip Research

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Digital twins are virtual replicas or models of physical objects and systems. They enable real-time simulation, monitoring, and optimization of various processes. For instance, in the automotive sector, digital twins are utilized to fine-tune manufacturing procedures without interrupting ongoing production.

The Biden Administration's Initiative

This funding initiative encompasses a diverse range of objectives. It includes research into semiconductor digital twin development, establishing and maintaining integrated physical/digital facilities, conducting industry demonstration projects, facilitating workforce training, and operating the newly envisioned CHIPS Manufacturing USA Institute.

During a recent press briefing, Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology and NIST Director, emphasized the potential of digital twins in reducing chip manufacturing costs. She highlighted the collaborative possibilities in chip design and development that digital twins unlock.

Global Semiconductor Landscape and the CHIPS Act

The funding aligns with the CHIPS and Science Act of 2022, a substantial $280 billion legislation aimed at bolstering domestic semiconductor manufacturing. President Biden had previously noted a decline in the US semiconductor production share from 40% to under 10%. This investment seeks to reverse this trend and reinvigorate American leadership in the semiconductor industry.

Addressing Concentration and Enhancing Innovation

Arati Prabhakar, Assistant to the President for Science and Technology, pointed out that semiconductor manufacturing had become overly concentrated in specific regions, potentially referencing China. This funding initiative not only aims to address this concentration but also to foster innovation, collaboration, and technological breakthroughs in semiconductor development.

The infusion of $285 million into digital twin projects signifies a strategic move towards advancing semiconductor manufacturing capabilities in the US. It underscores the importance of leveraging cutting-edge technologies like digital twins to enhance competitiveness, drive innovation, and secure critical supply chains in crucial industries like semiconductors. This initiative is poised to have far-reaching implications, not only for the semiconductor sector but also for broader technological advancements and economic growth in the country.

South Korea's Ambitious $470 Billion Plan to Forge a Global Chipmaking Hub

South Korea’s Ambitious $470 Billion Plan to Forge a Global Chipmaking Hub

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South Korea is set to redefine the global semiconductor landscape with an audacious plan involving leading tech giants like Samsung Electronics and SK Hynix. The government’s unveiling of a groundbreaking initiative on Monday marks a pivotal moment in the race to secure and fortify domestic chip supplies.

In a strategic move, the South Korean government has charted a course for the private sector, beckoning an investment of a staggering 622 trillion won (approximately US$471 billion) in the period leading up to 2047. This colossal sum is slated to fund the establishment of 13 cutting-edge chip plants and three state-of-the-art research facilities. 

Expanding Horizons: From 21 to 34 Fabs

South Korea's Ambitious $470 Billion Plan to Forge a Global Chipmaking Hub

Image Source: interestingengineering.com

The visionary plan is set to transform the South Korean landscape, adding 13 new chip plants and three research facilities to the existing 21 fabs. This expansive network will sprawl across the regions of Pyeongtaek to Yongin, creating the world’s largest chipmaking cluster. By 2030, the area is projected to boast a staggering production capacity of 7.7 million wafers monthly, a testament to the scale of South Korea’s ambitions.

Rapid Evolution from 2023 to 2047

The trajectory of investment has witnessed a remarkable ascent since the initial revelation of Samsung’s and Hynix’s plans in 2023. South Korea’s commitment to fortifying its domestic chip sector has become increasingly evident, with the government and private firms collaborating closely on this critical national imperative. The significance of the chip sector is highlighted by its contribution of approximately 16% to the country’s total exports.

Also Read: How to Use iPhone as Webcam in 2024 on Mac or Windows PC

Global Implications

As South Korea enters the fray to establish the preeminent chipmaking hub, global dynamics in the semiconductor industry are poised for significant shifts. The initiative not only underscores the nation’s commitment to technological sovereignty but also sets the stage for increased competition among nations vying for supremacy in the semiconductor realm.

In conclusion, South Korea’s monumental plan to invest $470 billion in creating a sprawling chipmaking ecosystem is a bold step towards securing its position at the forefront of global technological innovation. As the nation embarks on this transformative journey, the ramifications are sure to reverberate across the semiconductor landscape for years to come.

United Microelectronics Corporation

United Microelectronics Corporation – Taiwan’s First Semiconductor Company.

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United Microelectronics Corporation is a chipmaker based in Taiwan with around a $10 billion market capitalization. It sells CMOS wafers, memory chips, and high-voltage integrated circuits, among other things. UMC has offices in Taiwan, Japan, South Korea, China, Singapore, the United States, and Europe, with over 17,000 employees worldwide.

About
United Microelectronics Corporation

The
silicon foundry business was where United Microelectronics
Corporation (UMC) established its niche. UMC is a leading silicon
foundry, or contract semiconductor maker, trailing only archival
Taiwan Semiconductor Manufacturing. Design, engineering,
manufacturing, packing, sorting, and testing are among the company’s
production services. It supplies
complementary metal-oxide-semiconductor logic wafers, mixed-signal
wafers, radiofrequency complementary metal-oxide-semiconductor
wafers, embedded memory products, high voltage integrated circuits,
and complementary metal-oxide-semiconductor image sensors through its
semiconductor foundry. UMC has offices in Taiwan, Japan, Korea,
China, Europe, the United States, and Singapore, and it continues to
expand capacity and invest in sophisticated manufacturing technology.
Taiwan is the company’s largest market, accounting for 33% of net
sales. Singapore (24 percent), the United States (12 percent), and
China are the other key markets (9 percent ).

United Microelectronics Corporation
Image source: www.taipeitimes.com

UMC
is aggressively developing internationally. The corporation invested
$48 million in a subsidiary of Fujitsu Semiconductor, which has a
12-inch wafer manufacturing facility in Japan. In Xiamen, UMC has
formed a joint venture with the city government of Xiamen and the
state-owned Fujian Electronics and Information Group to establish a
semiconductor fabrication plant. Starting in 2015, UMC will invest
$1.35 billion in the initiative over five years. In January 2015, the
company bought a 33 percent share in Xiamen-based chipmaker United
Semiconductor as part of the plan. Taiwan’s first semiconductor
company, UMC, was formed in 1980. Since 2012, Yen Po-wen, who joined
UMC in 1986, has served as CEO.

Manufacturing
Diversification

With
numerous modern 300mm fabs in operation, UMC is a foundry production
leader. Since 2002, Fab 12A in Tainan, Taiwan, has been producing
client products in volume and is currently producing 14 and 28nm
products. Phases 1&2, 3&4, and 5&6 make up the
multi-phase complex, which is essentially three independent fabs. The
entire monthly production capacity of Fab 12A is currently above
87,000 wafers. Fab 12i, UMC’s second 300mm fab, is located in Pasir
Ris Wafer Park in Singapore. With a monthly capacity of 50,000
wafers, this second-generation 300mm plant is also in volume
production. United Semi, UMC’s third 300mm fab in Xiamen, China,
began volume production in Q4 2016. When fully equipped, United
Semi’s overall design capacity is 50,000 wafers per month. In October
of this year, UMC bought USJC in Japan. This 300mm fab in Mie
Prefecture has a monthly capacity of 33,000 wafers for logic and
specialty processes down to 40nm. UMC provides reliable and
diversified manufacturing with leading production efficiency, thanks
to its seven 200mm fabs and one 150mm specialized fab.

John
Hsuan and Robert Tsao

From
1979 to 1981, Mr. Tsao was appointed Vice Chairman of the Electronics
Research & Service Organization (ERSO), where he played an
important role. He was a driving force behind the establishment of
the Industrial Technology Research Institute (ITRI), where he oversaw
the development of Taiwan’s first integrated circuit manufacturing
line, which later became the foundation for United Microelectronics
Corporation (UMC), a semiconductor contract manufacturer that
produced chips based on the designs of its customers.

John
Hsuan, who is soft-spoken and aloof at times, has been a driving
force behind UMC’s recent metamorphosis from a small Taiwanese chip
producer to a major IC wafer foundry. UMC was one of the first
foundries to implement a 0.25-micron process, is a pioneer in
0.18-micron technology, and aims to ship products with copper
interconnects early next year. UMC is the world’s second-largest
pure-play foundry, behind Taiwan Semiconductor Manufacturing Co.
Ltd., with sales expected to increase from $1.3 billion in 1998 to
$1.75 billion this year.

Nvidia and Arm Collabs to Build Energy-efficient Supercomputers

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Continuing with the collaborations with Arm, a British semiconductor design company, now Nvidia is again working together with the company to support the processors built by the former. Nvidia announced the news at the International Supercomputing Conference (ISC) going on in Frankfurt, Germany, saying that the partnership will be able to build supercomputers which will “exascale” on performance.

nvidia
Image Source: memeburn.com

According to Nvidia, the two companies are working towards developing the energy-efficient supercomputers that will be carrying out at least a quintillion (a billion) floating point, i.e. Flops, computations per second. Noticeably, one flop is equal to the multiplication of two 15-digit numbers.

Nvidia’s founder and CEO Jensen Huang, while announcing the news at the event, said, “As traditional compute scaling has ended, the world’s supercomputers have become power constrained. Our support for Arm, which designs the world’s most energy-efficient CPU architecture, is a giant step forward that builds on initiatives Nvidia is driving to provide the HPC industry with a more power-efficient future”.

The company will be extending its support for Arm with its high-performance computing and AI-focused software by 2020. The other services that the company will be offering Arm, includes software development kits, profilers, CUDA-X libraries, PGI compilers with OpenACC support, and graphics-accelerated frameworks, etc.

The partnership between the two companies will help Arm to expand its business and build trust among the investors, as no computer architecture from the company will be without the support of Nvidia. Though it is not the first time that the two are working together, previously, the two had joined hands for Nvidia’s AGX platform that incorporated Arm-based chips and also Nvidia’s Deep Learning Accelerator (NVIDIA).

On the other hand, with this partnership, Nvidia will be getting access to the most energy-efficient chip designs, specially built for mobile devices. According to Nvidia, the energy saving products are the next big thing that is going to be the most important in the coming future.