Worldwide sales of semiconductor manufacturing equipment increased 5% from $102.6 billion in 2021 to an all-time record of $107.6 billion last year, SEMI, the industry association representing the global electronics design and manufacturing supply chain, reported today. The data is now available in the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) Report.

For the third consecutive year, China remained the largest semiconductor equipment market in 2022 despite a 5% slowdown in the pace of investments in the region year over year, accounting for $28.3 billion in billings. Taiwan, the second-largest destination for equipment spending, recorded an increase of 8% to $26.8 billion, marking the fourth straight year of growth for the region. Equipment sales to Korea contracted 14% to $21.5 billion. Annual semiconductor equipment investments in Europe surged 93%, while North America logged a 38% increase. Sales to the Rest of World and Japan increased 34% and 7% year over year, respectively.

Samsung Electronics has announced ambitious long term plans to expand its operation in South Korea. The company is set to invest around $230 billion in new fabrication facilities, with five locations marked for development in Yongin, a city located within the Seoul Capital Area. The five new factories with mixed foundry and memory manufacturing purposes, will form part of the South Korean government's intentions to assemble a mega semiconductor hub in the region.

South Korea's Ministry of Trade, Industry and Energy (MOTIE) on Wednesday revealed its intent to invest $422 billion by 2026 to boost production of six core technologies: semiconductors, electric vehicle batteries, autonomous vehicles, robots and displays. The government provided a breakdown of the total budget, and $260 billion has been allocated for the country's chip space to develop system semiconductors into the year 2026.

Samsung Electronics reportedly invested a record 53.11 trillion KRW (USD $40.2 billion) in expanding its semiconductor manufacturing capabilities, until March 2023, with investments throughout 2022 totaling $37 billion (47.87 trillion KRW). Business Korea reports that much of the investment was made toward increasing memory products manufacturing capacity, despite the ongoing slump in the PC and ICT industries from a possible economic recession. Samsung anticipates a continued growth in DRAM, possibly as the data-center and consumer-electronics industries transition to faster memory types. In particular, Samsung is undertaking a doubling in foundry capacity in its Pyeongtaek foundry.

The Biden-Harris Administration through the U.S. Department of Commerce's National Institute of Standards and Technology today launched the first CHIPS for America funding opportunity for manufacturing incentives to restore U.S. leadership in semiconductor manufacturing, support good-paying jobs across the semiconductor supply chain, and advance U.S. economic and national security.

As part of the bipartisan CHIPS and Science Act, the Department of Commerce is overseeing $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives. The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging. The Department will also be releasing a funding opportunity for semiconductor materials and equipment facilities in the late spring, and one for research and development facilities in the fall.

According to Bloomberg, Japan and the Netherlands are getting ready to join the US in limiting access to advanced semiconductor manufacturing equipment for China. The three nations are currently in talks—that might end as soon as today—over how they can impose joint limits on what kind of equipment and tools can be exported to China. Apparently there will be no official announcement if a deal is struck, instead the restrictions will simply be implemented as required.

Bloomberg states that the Netherlands will expand export restrictions that ASML is already under, which according to the publication means stricter export rules around DEUV machines, which are used in cutting edge semiconductor nodes. Japan is said to implement similar export restrictions for Nikon as well as Tokyo Electron, with the US already having implemented restrictions for Applied Materials. The export restriction deal is in part being done to appease US equipment makers, who have complained that their international competitors haven't been under the same export restrictions when it comes to China, as they have. The question is if the export restrictions will hinder China in the long run, or if the nation will simply push ahead and develop its own, competing semiconductor manufacturing tools.

Update Jan 28th: Japan and the Netherlands reached an agreement with the US on Friday and the two countries are said to be making individual announcements with regards to their individual agreements with the US.

Intel Foundry Services, the semiconductor foundry business of Intel, has onboarded an undisclosed fabless customer, the company disclosed in its Q4-2022 Financial Results presentation. This signals that the company wants to serve the semiconductor manufacturing industry beyond its own products, and scale up to demands, just like TSMC, UMC, Samsung Foundry, or other such semiconductor foundries do. The customer is looking to build chips on the Intel 3 foundry-node, which is rumored to offer performance/Watt and transistor-density figures comparable to TSMC 4N (4 nm EUV). Intel will extensively use Tower Semiconductor's silicon fabrication IP in the deal. Throughout its manufacturing lifecycle (from risk production to mass-production and completion), the deal is expected by Intel to generate over $4 billion in revenue for the company.Image Courtesy: VideoCardz

Intel CEO Pat Gelsinger, in an interview with CNN at WEF Davos, stated that semiconductor chip supply chains will have a greater influence on geopolitics than oil supply-chains over the next 50 years. Modern civilization is increasingly digitized, and most modern conveniences are "chipped" and connected in some form, which would put the chip-producing nations, or entities producing/supplying the chips at a distinct geopolitical advantage, similar to the oil-producing ones today. The location of "oil reserves [has] defined geopolitics for the last five decades," Gelsinger said; "where the technology supply chains are, and where semiconductors are built, is more important for the next 5 decades," he added.

We caught a taste of exactly what he meant when global semiconductor supply chains buckled around 2020-onward, hitting a multitude of other industries, including automobiles, construction, remote-work, consumer electronics, and much more. Unlike oil, which is a geographically constrained being a natural resource, chips can be manufactured almost anywhere, dictated only by geopolitical, trade, and IP barriers. Gelsinger calls for a much wider geographic spread of chip-production, so the supply-chains get resilient to disruptions due to unforeseen events. "We need this geographically balanced, resilient supply chain," he said. Gelsinger is at the forefront of advocating semiconductor manufacturing on U.S. soil to not only meet local demand, but also contribute to global supply-chain resilience. The CHIPS Act passed by U.S. Congress in 2022 will oversee more than $200 billion in public investments on semiconductor manufacturing and tech-research in the U.S.

Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach a new high of $108.5 billion in 2022, rising 5.9% from the previous industry record of $102.5 billion in 2021, SEMI announced today in its Year-End Total Semiconductor Equipment Forecast - OEM Perspective at SEMICON Japan 2022. The record high caps three consecutive years of record revenue. The global total semiconductor manufacturing equipment market is expected to contract to $91.2 billion next year before rebounding in 2024 driven by both the front-end and back-end segments.

"Record fab constructions have driven total semiconductor manufacturing equipment sales to cross the $100 billion mark for a second straight year," said Ajit Manocha, SEMI president and CEO. "Emerging applications in multiple markets have set expectations for significant semiconductor industry growth this decade, which will necessitate further investments to expand production capacity."

The worldwide semiconductor industry is projected to invest more than $500 billion in 84 volume chipmaking facilities starting construction from 2021 to 2023, with segments including automotive and high-performance computing fueling the spending increases, SEMI announced today in its latest quarterly World Fab Forecast report. The projected growth in global factory count includes a record high 33 new semiconductor manufacturing facilities starting construction this year and 28 more in 2023.

"The latest SEMI World Fab Forecast update reflects the increasing strategic importance of semiconductors to countries and a wide array of industries worldwide," said Ajit Manocha, SEMI president and CEO. "The report underscores the significant impact of government incentives in expanding production capacity and strengthening supply chains. With the bullish long-term outlook for the industry, rising investments in semiconductor manufacturing are critical to laying the groundwork for secular growth driven by a diverse range of emerging applications."

Apple's ongoing pursuit of leading performance in custom silicon packages continues with each new generation of Apple Silicon. Today, we have alleged Geekbench performance figures of the upcoming M2 Max chip, designed for the upcoming Mac devices. Featuring the same configuration with two E-cores and eight P-cores, the chip is rumored to utilize TSMC's 3 nm design. However, that is yet to be confirmed by Apple, so we don't have the exact information. In the GB5 single-thread test, the CPU set a single-core performance target of 1899 points, while the multi-core score was 8737. While last year's M1 Max chips can reach 1787 single-core and 12826 multi-core scores, these configurations are benchmarked in a Mac Studio, which has better cooling and allows for higher clocks to be achieved.

Apples to apples (pun intended) comparison with the M1 Max chip inside of a MacBook Pro version with presumably the same cooling capacity, which gets 1497 single-core and 11506 multi-core score, the new M2 Max chip is 19.4% faster in single-core results. Multi-core improvements should follow, and this M2 Max result should be different from the final product. We await more benchmarks to confirm this performance increase and the correct semiconductor manufacturing node.

Semiconductor manufacturing is a significant investment that requires long lead times and constant improvement. According to the latest DigiTimes report, the pricing of a 3 nm wafer is expected to reach $20,000, which is a 25% increase in price over a 5 nm wafer. For 7 nm, TSMC managed to produce it for "just" $10,000; for 5 nm, it costs the company to make it for the $16,000 mark. And finally, the latest and greatest technology will get an even higher price point at $20,000, a new record in wafer pricing. Since TSMC has a proven track record of delivering constant innovation, clients are expected to remain on the latest tech purchasing spree.

Companies like Apple, AMD, and NVIDIA are known for securing orders for the latest semiconductor manufacturing node capacities. With a 25% increase in wafer pricing, we can expect the next-generation hardware to be even more expensive. Chip manufacturing price is a significant price-determining factor for many products, so the 3 nm edition of CPUs, GPUs, etc., will get the highest difference.

Kioxia Corporation and Western Digital Corporation today celebrated the opening of the state-of-the-art semiconductor fabrication facility, Fab7, at the Yokkaichi Plant in Mie Prefecture, Japan. Production capacity at Fab7 will ramp up in stages over time, in line with market trends. Total investment in phase one of Fab7 is expected to be approximately one trillion yen. Part of the capital investment in phase one of the Fab7 facility will be funded by a government subsidy that promotes cutting-edge semiconductor production facilities and ensures the stable production of semiconductors in Japan.

Fab7 has the capability to produce sixth-generation, 162-layer flash memory and future advanced 3D flash memory, is scheduled to start shipping 162-layer flash memory in early 2023. The facility uses artificial intelligence for enhanced production efficiencies and employs a space-efficient facility design that enlarges the space available for manufacturing equipment in its clean rooms. Fab7 is built for safety and sustainability, capable of absorbing earthquake shocks and implements the latest energy-saving manufacturing equipment.

Today, President Joe Biden joins Intel, Ohio Gov. Mike DeWine and other federal, state and local officials to celebrate breaking ground in the Silicon Heartland on two of the world's most advanced chipmaking facilities. As part of Intel's commitment to develop a skilled talent pipeline for its two new leading-edge chip fabs, Intel also announced the first phase of funding for its Ohio Semiconductor Education and Research Program. During this first phase, Intel is providing $17.7 million for eight proposals from leading institutions and collaborators in Ohio to develop semiconductor-focused education and workforce programs.

"Today marks a pivotal moment in the journey to build a more geographically balanced and resilient semiconductor supply chain. The establishment of the Silicon Heartland is testament to the power of government incentives to unlock private investment, create thousands of high-paying jobs, and benefit U.S. economic and national security. We would not be here today without the support of leaders in the administration, Congress and the state of Ohio, who share a vision to help restore the United States to its rightful place as a leader in advanced chipmaking," said Pat Gelsinger, Intel CEO.

Intel Corporation today announced a first-of-its-kind Semiconductor Co-Investment Program (SCIP) that introduces a new funding model to the capital-intensive semiconductor industry. As part of its program, Intel has signed a definitive agreement with the infrastructure affiliate of Brookfield Asset Management, one of the largest global alternative asset managers, which will provide Intel with a new, expanded pool of capital for manufacturing build-outs.

SCIP is a key element of Intel's Smart Capital approach, which aims to provide innovative ways to fund growth while creating further financial flexibility to accelerate the company's IDM 2.0 strategy. Intel's agreement with Brookfield follows the two companies' memorandum of understanding announced in February 2022. Under the terms of the agreement, the companies will jointly invest up to $30 billion in Intel's previously announced manufacturing expansion at its Ocotillo campus in Chandler, Arizona, with Intel funding 51% and Brookfield funding 49% of the total project cost. Intel will retain majority ownership and operating control of the two new leading-edge chip factories in Chandler, which will support long-term demand for Intel's products and provide capacity for Intel Foundry Services (IFS) customers. The transaction with Brookfield is expected to close by the end of 2022, subject to customary closing conditions.

In President Biden's first year in office, the Biden-Harris Administration has implemented an industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. These policies have spurred an historic recovery in manufacturing, adding 642,000 manufacturing jobs since 2021. Companies are investing in America again, bringing good-paying manufacturing jobs back home. The construction of new manufacturing facilities has increased 116 percent over last year.

Today, President Biden will sign into law the bipartisan CHIPS and Science Act of 2022, which will build on this progress, making historic investments that will poise U.S. workers, communities, and businesses to win the race for the 21st century. It will strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the workforce of the future to keep the United States the leader in the industries of tomorrow, including nanotechnology, clean energy, quantum computing, and artificial intelligence. The CHIPs and Science Act makes the smart investments so that American to compete in and win the future.

Following the recent passage of the U.S. CHIPS and Science Act last week, GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing and Qualcomm Technologies, Inc. today announced they are more than doubling their existing strategic global long-term semiconductor manufacturing agreement previously entered into by GF's and Qualcomm's respective subsidiaries. Today's announcement secures wafer supply and commitments to support U.S.-based manufacturing through capacity expansion at GF's most advanced semiconductor manufacturing facility, in Malta, New York.

The announcement was made in Washington D.C. at a CEO Summit co-hosted by GF, Ford Motor Company, and Applied Materials, which included National Economic Council Director Brian Deese, Under Secretary of Defense for Acquisition & Sustainability Dr. William LaPlante, and National Security Council Senior Director for Technology & National Security, Tarun Chhabra underscoring the importance of domestic manufacturing to national and economic security. The Summit included CEOs and senior leaders from across the semiconductor supply chain from tool and wafer manufacturers to key suppliers to end users of chips manufactured in the U.S.

Micron Technology, Inc. (NASDAQ: MU) commends and thanks the Biden Administration for their leadership and the bipartisan work of Congress for passing the "Chips and Science" legislation. This is a big step towards securing the future of semiconductor manufacturing in the United States and advancing American innovation and competitiveness for years to come.

This legislation will bring leading-edge semiconductor manufacturing to the U.S., creating tens of thousands of jobs and tens of billions of dollars of new investments - transforming U.S. semiconductor innovation and supply chain resilience.

Intel and MediaTek today announced a strategic partnership to manufacture chips using Intel Foundry Services' (IFS) advanced process technologies. The agreement is designed to help MediaTek build a more balanced, resilient supply chain through the addition of a new foundry partner with significant capacity in the United States and Europe. MediaTek plans to use Intel process technologies to manufacture multiple chips for a range of smart edge devices. IFS offers a broad manufacturing platform with technologies optimized for high performance, low power and always-on connectivity built on a roadmap that spans production-proven three-dimensional FinFET transistors to next-generation breakthroughs.

"As one of the world's leading fabless chip designers powering more than 2 billion devices a year, MediaTek is a terrific partner for IFS as we enter our next phase of growth," said IFS President Randhir Thakur. "We have the right combination of advanced process technology and geographically diverse capacity to help MediaTek deliver the next billion connected devices across a range of applications."

The Chinese technology giant, SMIC, has managed to advance its semiconductor manufacturing technology and shipped the first 7 nm silicon manufactured on China's soil. According to analyst firm TechInsights, who examined the 7 nm Bitcoin mining SoC made for MinerVa firm, there are doubts that SMIC 7 nm process is somewhat similar to TSMC's 7 nm process. Despite having no access to advanced semiconductor manufacturing tools, and US restrictions placed around it, SMIC has managed to produce what resembles an almost perfect 7 nm node. This could lead to a true 7 nm logic and memory bitcells sometimes in the future, as the node advances in SMIC's labs.

Having done an in-depth die analysis, the TechInsights report indicates that TSMC, Intel, and Samsung have a more advanced 7 nm node and are two nodes ahead of the Chinese SMIC. The results are not great regarding the economics and yield of this SMIC 7 nm process. While we have no specific data, the report indicates that the actual working chips made with older DUV tools are not perfect. This is not a problem for the Chinese market as it seeks independence from Western companies and technology. However, introducing a China-made 7 nm chip is more critical as it shows that the country can manufacture advanced nodes with restrictions and sanctions in place. The MinerVa SoC die and the PCB that houses those chips are pictured below.

The recent semiconductor shortage has put an unprecedented amount of focus on the industry. Both commercial and government entities have come to recognize the lack of advanced node semiconductor manufacturing capabilities onshore in the United States. Intel Foundry Services (IFS) entry into the commercial foundry space is poised to change all that. As part of IFS Accelerator program, Intel recently announced their new IFS Cloud Alliance program, with Microsoft Azure as one of the inaugural members.

This is the latest chapter in a partnership between Intel and Microsoft that stretches back decades all the way back to the early days of the personal computer. In the last few years, Intel and Microsoft have collaborated on advancing semiconductor design on the cloud by working together to bring out EDA centric cloud compute such as the FX series on Azure, working with EDA vendors to enhance their software to better take advantage of the elasticity of the Azure cloud, as well as collaborating on a secure cloud-based semiconductor development platform for the US Department of Defense RAMP and RAMP-C programs.

STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, and GlobalFoundries Inc., a global leader in feature-rich semiconductor manufacturing, today announced they have signed a Memorandum of Understanding to create a new, jointly-operated 300 mm semiconductor manufacturing facility adjacent to ST's existing 300 mm facility in Crolles, France. This facility is targeted to ramp at full capacity by 2026, with up to 620,000 300 mm wafer per year production at full build-out (~42% ST and ~58% GF).

ST and GF are committed to building capacity for their European and global customer base. This new facility will support several technologies, in particular FD-SOI-based technologies, and will cover multiple variants. This includes GF's market leading FDX technology and ST's comprehensive technology roadmap down to 18 nm, which are expected to remain in high demand for Automotive, IoT, and Mobile applications for the next few decades. FD-SOI technology has origins in the Grenoble (France) area. It has been part of ST technology and product roadmap in its Crolles facility since the early beginnings, and it was later enabled with differentiation and commercialized for manufacturing at GF's Dresden facility. FD-SOI offers substantial benefits for designers and customers, including ultra-low power consumption as well as easier integration of additional features such as RF connectivity, mmWave and security.

Based on a report by the Nikkei, Japan and the US have joined forces to speed up the development of semiconductor production at 2 nm nodes in Japan by 2025. It's not exactly clear how this is going to happen, but the two nations are said to have signed a bilateral chip technology partnership. The heavy lifting is said to be done by private companies from both nations, but in terms of research and actual chip production. Part of the reason for the move, is that Japan wants to be able to manufacture cutting edge ICs domestically for next-generation chips.

The research is said to be kicking off as soon as this summer, although no decisions have been made with regards to the manufacturing structure, with the Nikkei suggesting two alternatives, based on information from the Japanese Ministry of Economy. There will either be a joint partnership between Japanese and US businesses, or it could be a wholly Japanese owned setup. It appears that one major reason for this project is the production of ICs for the Japanese defence industry, as advanced electronics are needed in a lot of related products, ranging from fighter jets and missiles, to radar systems and communication systems. However, the article also suggests that the 2 nm node is suitable for everything from components for quantum computers to smartphones. Japan already makes advanced silicon wafers and many other parts and components used in semiconductor manufacturing, but the nation has fallen behind in the actual manufacturing of leading edge semiconductors over the past few years.

Intel's semiconductors nodes have been quite controversial with the arrival of the 10 nm design. Years in the making, the node got delayed multiple times, and only recently did the general public get the first 10 nm chips. Today, at IEEE's annual VLSI Symposium, we get more details about Intel's upcoming nodes, called Intel 4. Previously referred to as a 7 nm process, Intel 4 is the company's first node to use EUV lithography accompanied by various technologies. The first thing when a new process node is discussed is density. Compared to Intel 7, Intel 4 will double the transistor count for the same area and enable 20% higher performing transistors.

Looking at individual transistor size, the new Intel 4 node represents a very tiny piece of silicon that is even smaller than its predecessor. With a Fin Pitch of 30 nm, Contact Gate Poly Pitch of 50 nm between gates, and Minimum Metal Pitch (M0) of 50 nm, the Intel 4 transistor is significantly smaller compared to the Intel 7 cell, listed in the table below. For scaling, Intel 4 provides double the number of transistors in the same area compared to Intel 7. However, this reasoning is applied only to logic. For SRAM, the new PDK provides 0.77 area reduction, meaning that the same SoC built on Intel 7 will not be half the size of Intel 4, as SRAM plays a significant role in chip design. The Intel 7 HP library can put 80 million transistors on a square millimeter, while Intel 4 HP is capable of 160 million transistors per square millimeter.

As the world comes to grips with chip shortages due to supply chain disruptions and ripple-effects from the global pandemic, Intel's leaders are urging Congress to fund the CHIPS for America Act to create a more stable future for the U.S. tech industry.

In 1990, 80% of the world's semiconductors were produced in the U.S. and Europe. Today, 80% are produced in Asia, where countries provide substantial incentives to domestic semiconductor industries. This helps create a 30% to 50% cost disadvantage for companies that produce semiconductors in the U.S.
Increasing manufacturing in both the U.S. and the European Union is key to helping rebalance the global supply of chips. In February, EU President Ursula von der Leyen announced the European Chips Act, with the goal of doubling the EU's global semiconductor manufacturing share to 20% by 2030. It also provides for more R&D investments in disruptive technologies, supports small business and startups by attracting new talent to Europe for them, and focuses on building partnerships with like-minded countries to strengthen interdependencies.

ERS electronic, the industry leader in the market of thermal management solutions for semiconductor manufacturing, reveals the details of its third-generation flagship thermal debond machine, ADM330. The machine was introduced to the market in 2007 as the first-of-its-kind. Since then, it has become an industry-favourite and can be found on the production floors of most semiconductor manufacturers and OSATs involved in Advanced Packaging worldwide.
Earlier this month, the company was recognized for its continuous innovation and contribution to heterogeneous integration technologies with a 3D InCites "Equipment Supplier of the Year" award.

ERS is now giving a first look at the next-generation ADM330, which has changed its previously matte metallic appearance to a clean, white surface matching most equipment found in a cleanroom. In addition, the machine is now fully compliant with the GEM300 SEMI standards, thus allowing seamless integration into automated fabs and Industry 4.0 architectures. Warpage adjustment performance has also been improved thanks to a unique thermal chuck design that enables a strong vacuum performance three times better than its predecessor. Lastly, the new ADM330 offers an implemented add-on software feature allowing stand-alone laser marking for improved wafer traceability.