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US, Taiwan, Japan gallop ahead in advanced semiconductors while China remains stuck at mature-node chips

F-22Raptor

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The chip technology gap between China and the West is likely to further widen as the US, Taiwan and Japan forge ahead with leading-edge projects while mainland Chinese foundries remain stuck at mature nodes due to US export controls, according to analysts.


The 5-nanometre Arizona plant developed by Taiwan Semiconductor Manufacturing Co (TSMC)is expected to hold an official opening ceremony next month and TSMC founder Morris Chang said this week that an expansion to the more advanced 3-nm process was planned for the Arizona site.


At home, TSMC’s next-generation 3-nm process is expected to begin mass production in Tainan, southern Taiwan, in the second half of this year.


TSMC is developing the more sophisticated 2-nm process in Hsinchu, where its headquarters are located, while early stated 1-nm development is focused on a facility in Taoyuan, northern Taiwan.

Separately, eight Japanese heavyweights including Toyota Motor, Sony Group and telecoms giant NTT have formed a consortium to undertake 2-nm chip fabrication within the next five years, according to a report by Japanese public broadcaster NHK.


These forays by US allies into production of leading edge chips – used in high end smartphones and tablets – marks a sharp contrast to mainland Chinese wafer foundries that are being forced to stick with mature node chips due to US trade sanctions.

Analysts said the gap between China and global chip leaders is expected to widen further under the updated US restrictions that target advanced nodes, as foreign rivals will keep investing to push technology boundaries.

China’s top foundry, Semiconductor Manufacturing International Corp (SMIC), is only able to mass produce 14-nm chips – suitable for cars and home appliances – as it grapples with the challenges posed by the latest US sanctions.

SMIC warned investors this month of the negative impact from Washington’s latest moves after posting third-quarter revenue that was flat compared with the previous quarter.


However, China’s huge domestic market, especially lower-end segments served by legacy technology nodes, could provide a cushion for Chinese chip makers.

“China’s response to the latest US sanctions in the chipmaking sector could be a retooling focus on mature nodes or third-generation semiconductors,” said Arisa Liu, a senior semiconductor research fellow at the Taiwan Institute of Economic Research.


Liu said that the Japanese chipmaking initiative, which is likely to source technology from US tech giant IBM, was “more symbolic” because of the high threshold to enter the advanced wafer foundry business, as well as the difficulties in aligning views from several companies.

The updated semiconductor export controls announced by the US Department of Commerce on October 7 sent a jolt through China’s chip industry, crushing its ambitions to achieve more self-sufficiency in a crucial sector that is at the heart of US-China tech rivalry.

Chip makers that apply for subsidies under the recent US Chips and Science Act, including TSMC and Samsung Electronics, will be barred from investing in advanced chip facilities in China.


TSMC has seen steadily increasing demand for its advanced capacity, defined as process nodes at 7-nm and below – which have become the workhorse for central processing units used in high-end smartphones and tablets.


TSMC’s combined revenue from 5-nm and 7-nm nodes accounted for 52 per cent of its total revenue in the third quarter.

 
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Communist China is in big trouble @beijingwalker

Micron to spend up to $100 billion to build a computer chip factory in New York​

Micron plans to build a memory chip fabrication plant in upstate New York that it said will be the size of 40 football fields and create about 50,000 jobs. It may spend up to $100B over the next 20 years on the facility.


Taiwan’s TSMC to bring its most advanced chip manufacturing to Arizona​


$20 Billion Intel Semiconductor Plant to Break Ground After Passage of Cantwell-led Bill​


U.S. Commerce Secretary To Attend Ceremony At TSMC’s New $12 Billion Chip Plant In Arizona On Dec. 6; Biden Invited​


 
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Yes, I think so.

China didn't yet release any real product except just news.
 
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Another self bragging , self delusion report. Mighty mouse USA with all access of tools for making advance chips can't even match little Taiwan when comes to 3-5nm chip making and need Taiwan help. :rofl:

Remember, China is the largest chip market, we can shut off any enemies in future.
 
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China is developing whole semi-conductor industry ecosystem. From materials to equipment. From hard wares to soft wares. Which is a huge project and needs time. The capacity of a bucket is determined by the shortest stave. China needs time to heighten all its short staves. No other country has this capability. US just borrows staves from others. Once China succeeds, China will have infinite potential.

Technology progress is driven by market demand. China is the biggest market for semi-conductor.
 
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Another self bragging , self delusion report. Mighty mouse USA with all access of tools for making advance chips can't even match little Taiwan when comes to 3-5nm chip making and need Taiwan help. :rofl:

Remember, China is the largest chip market, we can shut off any enemies in future.
The highlighted is the real self delusion. As usual, you do not know what TF you are talking about. What Taiwan is doing is diluting their technological vulnerabilities, especially in the semicon industry, by building in the US. So can you mock US all you want, but in the end, we and the rest of the world will benefit, and not only that, the buildup towards product acceptance from these new US fabs will be faster than you think.
 
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The highlighted is the real self delusion. As usual, you do not know what TF you are talking about. What Taiwan is doing is diluting their technological vulnerabilities, especially in the semicon industry, by building in the US. So can you mock US all you want, but in the end, we and the rest of the world will benefit, and not only that, the buildup towards product acceptance from these new US fabs will be faster than you think.
Chips advancement need commercial market to strive so they can have more funding and mature production. A product with no market value or shut off by largest market will only doom itself. China dictate that. Whoever lives or dead is decide by China. Like it or not! This is the truth. It is US who shut themselves from the market and higher end development are doomed to fail.

You really think Taiwanese are dumb to help American and shrink their own market?

How naïve u r... :rolleyes:
 
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If China controls the chip market above 12nm, how can American semiconductor companies make profits and survive?
Only rely on 7nm and 5nm markets? Or rely on subsidies from the US government?
 
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Chips advancement need commercial market to strive so they can have more funding and mature production. A product with no market value or shut off by largest market will only doom itself. China dictate that. Whoever lives or dead is decide by China. Like it or not! This is the truth. It is US who shut themselves from the market and higher end development are doomed to fail.

You really think Taiwanese are dumb to help American and shrink their own market?

How naïve u r... :rolleyes:
The semicon industry does not need China to survive, let alone thrive.


That is the real truth, not the pathetic propaganda the Party ordered to you to foist upon us in this forum. :lol:
 
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If the title is changed to "Taiwan, Japan and the US (with the help of Taiwan and japan) gallop ahead in..." then it would be a much more credible piece of journalism rather than just another propaganda work like this.

Everyone knows that the US desperately need the expertise from Taiwan as well as Korea and it cannot master the 10 nm process, while China is already successful at 7 nm process.

 
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The semicon industry does not need China to survive, let alone thrive.


That is the real truth, not the pathetic propaganda the Party ordered to you to foist upon us in this forum. :lol:
LOL..


Self delusion at its best. We are the largest semi conductor market. Like it or not...
 
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Greater China Dominates Global Microchip Exports [Infographic]
Jul 27, 2022,12:18pm EDT

The so-called Chips+ bill passed the U.S. Senate on Tuesday and has a good chance of becoming law as it moved on to the House. As fears of a confrontation with China are heightening, negotiations that lasted more than a year are finally coming to fruition for the bill which is looking to increase the competitiveness of the U.S. microchip industry, thereby alleviating dependency on Greater China and the shortage of microchips felt globally.

According to Yahoo News, the cost of the bill is still being calculated, but is expected to come in at around $79 billion spent over the next ten years. This includes a key provision of $50 billion that will go directly to U.S. chipmakers for the expansion of facilities as well as for research and development.

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This chart shows the countries with the biggest export values of electronic integrated circuits in 2020 (in billion U.S. dollars).

For now, Mainland China, Hong Kong and Taiwan are dominating global microchip production, which allows them to control half of the worldwide export market. As seen in numbers available from the UN Comtrade database, Greater China exports of microchips totaled almost $400 billion in the pandemic year of 2020—the latest for which full data is available. The U.S. exported semiconductors worth around $44 billion the same year, still the seventh-highest in the world.

In 2021, exports out of Greater China were back up to around $522 billion, while those out of the U.S. rose to just below $53 billion.

Rapid, ongoing shift in chip production

As recently as 1990, the U.S. still produced almost 40 percent of semiconductors globally, with Europe responsible for roughly another 40 percent. But the growth of cheaper production facilities in Asia set in motion a trend that quickly changed where microchips typically come from. Just ten years later, in the year 2000, Europe and the U.S. together contributed only slightly more than 40 percent to global semiconductor manufacturing, with Japan, South Korea and Taiwan taking up almost all the rest of it. By 2010, Mainland China had already carved out a small share of the market. That subsequently grew to around 15 percent by 2020 and is expected to expand to as much as a quarter of global production by 2030, taking away market shares from competitors in the U.S., Europe and Asia all at the same time.

As disruptions to supply chains caused microchip shortages during the Covid-19 pandemic, several countries started initiatives looking to reverse the above trend and boost production of the critical asset at home. Before the U.S., Japan and the EU had already announced actions to produce more semiconductors domestically. The fast growth of Mainland China’s chip production will be hard to catch up to, however.

 
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