TSMC is reconfiguring its US strategy after a challenging start at its Fab 21 facility near Phoenix, Arizona. The company's initial module took nearly five years to move from groundbreaking to production—far longer than the typical two-year process observed in Taiwan. Early setbacks, including labor issues, rising costs, and cultural differences, slowed progress, but these hurdles have provided valuable lessons. With a clearer understanding of the local construction environment, TSMC plans to speed up future projects. Company executives have identified reliable local contractors and addressed many bottlenecks that once hindered progress. As a result, the Taiwanese maker is gearing up to accelerate construction timelines for its upcoming modules. Notably, TSMC intends to start building its third fab—Fab 21 module 3—this year, aiming for a pace similar to that in Taiwan.

In the current phase, TSMC is finalizing equipment installations for Fab 21 module 1 while laying the groundwork for module 2. The plan is to begin trial production of advanced 3 nm-class chips at module 2 in 2026, with high-volume manufacturing expected to kick off by 2028. The accelerated schedule for module 3 is seen as a pathway to faster production of next-generation chips, including those using the N2-series and A16 process technologies. However, rapid construction is not without risks. A critical concern remains the timely procurement of essential fab tools. Leading suppliers such as ASML and Applied Materials face significant backlogs and capacity constraints, which may delay the delivery of necessary equipment. As TSMC vows to build its US capacity more swiftly, the entire supply chain is watching closely to see if these supply chain challenges can be resolved, ensuring that the company meets its ambitious production timelines while expanding its foothold in the American market.

During the prestigious IEDM 2024 conference, NVIDIA presented its vision for the future AI accelerator design, which the company plans to chase after in future accelerator iterations. Currently, the limits of chip packaging and silicon innovation are being stretched. However, future AI accelerators might need some additional verticals to gain the required performance improvement. The proposed design at IEDM 24 introduces silicon photonics (SiPh) at the center stage. NVIDIA's architecture calls for 12 SiPh connections for intrachip and interchip connections, with three connections per GPU tile across four GPU tiles per tier. This marks a significant departure from traditional interconnect technologies, which in the past have been limited by the natural properties of copper.

Perhaps the most striking aspect of NVIDIA's vision is the introduction of so-called "GPU tiers"—a novel approach that appears to stack GPU components vertically. This is complemented by an advanced 3D stacked DRAM configuration featuring six memory units per tile, enabling fine-grained memory access and substantially improved bandwidth. This stacked DRAM would have a direct electrical connection to the GPU tiles, mimicking the AMD 3D V-Cache on a larger scale. However, the timeline for implementation reflects the significant technological hurdles that must be overcome. The scale-up of silicon photonics manufacturing presents a particular challenge, with NVIDIA requiring the capacity to produce over one million SiPh connections monthly to make the design commercially viable. NVIDIA has invested in Lightmatter, which builds photonic packages for scaling the compute, so some form of its technology could end up in future NVIDIA accelerators

Microsoft will allow home users to extend security support for Windows 10 beyond its October 2025 end-of-life date for a $30 fee per year. This marks the first time the Redmond giant has offered such an option to individual consumers, as extended security updates were previously available only to business and education customers. While the extension will maintain essential security patches, users won't receive new features, bug fixes, or technical support from Microsoft. This decision affects millions of Windows 10 users worldwide who may be unable or unwilling to upgrade to Windows 11, either due to hardware limitations or personal preference. While Microsoft strongly encourages users to transition to Windows 11, which offers enhanced security features and AI capabilities, many older computers don't meet the newer operating system's stricter hardware requirements.

The company will begin enrollment for the Extended Security Updates (ESU) program closer to the 2025 deadline. Microsoft will also continue providing Security Intelligence Updates for Microsoft Defender Antivirus through at least October 2028, offering an additional layer of protection for Windows 10 users. This move can be interpreted as Microsoft's acknowledgment of the significant number of users still running Windows 10 and the potential security risks of leaving them unprotected. Using an ESU package from an official source like Microsoft is always better than sourcing them from third-party like 0patch offers, and it is a welcome addition for millions of PCs running Windows 10 today.

TSMC has reportedly managed to produce yields at its Arizona facility that are on par with yields back home in Taiwan, making its expansion efforts successful. According to Bloomberg, TSMC did a trial production, a multi-month effort, to produce N4 node wafers with low defect rates. With wafers now in TSMC's labs for testing, it is reported that Arizona facility yields have achieved parity with their Taiwanese facilities back home. This indicates that TSMC's efforts to expand in the US are so far considered a success, as advanced chipmaking is a very complex process that is only done by a few makers and in very few locations. With TSMC expanding in the US now and proving that its technology can work on US soil, the company has a green light to start volume production in the first half of 2025.

However, this is only the beginning of TSMC's Arizona expansion. The Taiwanese giant plans to have a second fab operational by 2028 and produce 2 nm and 3 nm chips in the state. Additionally, there will be a third facility for 2 nm and more advanced nodes in Phoenix, bringing the total value of TSMC's US expansion efforts to $65 billion, with $6.6 billion from the CHIPS Act grants and $5 billion in loans from the US government. If upcoming fabs follow the lead of the first facility, US-based production needs will possibly be satisfied.

The market for artificial intelligence (AI) platforms software grew at a rapid pace in 2023 and is projected to maintain its remarkable momentum, driven by the increasing adoption of AI across many industries. A new International Data Corporation (IDC) forecast shows that worldwide revenue for AI platforms software will grow to $153.0 billion in 2028 with a compound annual growth rate (CAGR) of 40.6% over the 2023-2028 forecast period.

"The AI platforms market shows no signs of slowing down. Rapid innovations in generative AI is changing how companies think about their products, how they develop and deploy AI applications, and how they leverage technology themselves for reinventing their business models and competitive positioning," said Ritu Jyoti, group vice president and general manager of IDC's Artificial Intelligence, Automation, Data and Analytics research. "IDC expects this upward trajectory will continue to accelerate with the emergence of unified platforms for predictive and generative AI that supports interoperating APIs, ecosystem extensibility, and responsible AI adoption at scale."

New insights from Omdia's Desktop Monitor Intelligence Service show the gaming monitor market, featuring refresh rates over 120 Hz, is expected to grow by 9% YoY to 24.7 million units in 2024. Meanwhile, the smart monitor market, equipped with operating systems and streaming service portals, is projected to expand by 63% YoY to 1.2 million units.

In 1Q24, desktop monitor shipments hit 30.7 million units, a 5% increase year-on-year (YoY). The industry has been growing steadily since 3Q23, overcoming post-pandemic logistical disruptions. Notably, the gaming monitor market and smart monitors are expanding rapidly. This growth is driven by added value and high functionality, particularly in both monitor categories.

0patch plans to combat Microsoft's ending Windows 10 support by offering unofficial security updates for the 2015 operating system. Microsoft is ending Windows 10 security updates on October 14, 2025, after which the OS will stop receiving patches for vulnerabilities. The Redmond giant will provide you with an option to update your Windows 10 build, however, with a hefty fee slapped. Extended Security Updates (ESU) pricing structure follows a tiered model that doubles each year. From October 2025 to October 2026, the cost is $61 per device. The following year, from October 2026 to October 2027, the price increases to $122 per device. In the final year, spanning October 2027 to October 2028, the cost rises to $244 per device. For users planning to maintain Windows 10 until October 2028, the total expense over the three-year period would amount to $427 per device.

However, 0patch, a company focused on providing unofficial security updates for Windows OSes, will provide Windows 10 users with free and paid security updates post-end of service. Their system focuses on delivering targeted "micropatches" for critical vulnerabilities that emerge after Microsoft's official support ends. These micropatches are designed to be extremely precise and minimal, often consisting of just a few CPU instructions. A key feature of 0patch's approach is its non-invasive nature. The patches are applied directly to running processes in the computer's memory, leaving the original Microsoft files untouched. This method allows for rapid deployment of security fixes without requiring system reboots or interrupting user activities. The patching process is designed to be seamless and virtually unnoticeable to users. For instance, a user working on a document wouldn't experience any disruption while a micropatch is being applied. This approach is particularly beneficial for servers, where continuous uptime is crucial, as patches can be implemented without any downtime.

South Korean giant SK Group has unveiled plans for substantial investments in AI and semiconductor technologies worth almost $75 billion. SK Group subsidiary, SK Hynix, will lead this initiative with a staggering 103 trillion won ($74.6 billion) investment over the next three years, with plans to realize the investment by 2028. This commitment is in addition to the ongoing construction of a $90 billion mega fab complex in Gyeonggi Province for cutting-edge memory production. SK Group has further pledged an additional $58 billion, bringing the total investment to a whopping $133 billion. This capital infusion aims to enhance the group's competitiveness in the AI value chain while funding operations across its 175 subsidiaries, including SK Hynix.

While specific details remain undisclosed, SK Group is reportedly exploring various options, including potential mergers and divestments. SK Group has signaled that business practices need change amid shifting geopolitical situations and the massive boost that AI is bringing to the overall economy. We may see more interesting products from SK Group in the coming years as it potentially enters new markets centered around AI. This strategic pivot comes after SK Hynix reported its first loss in a decade in 2022. However, the company has since shown signs of recovery, fueled by the surging demand for memory solutions for AI chips. The company currently has a 35% share of the global DRAM market and plans to have an even stronger presence in the coming years. The massive investment aligns with the South Korean government's recently announced $19 billion support package for the domestic semiconductor industry, which will be distributed across companies like SK Hynix and Samsung.

Micron has announced more precise timeframes for the commencement of operations at its two new memory facilities in the United States during its Q3 FY2024 results presentation. The company expects these fabs, located in Idaho and New York, to begin production between late 2026 and 2029. The Idaho fab, currently under construction near Boise, is slated to start operations between September 2026 and September 2027. Meanwhile, the New York facility is projected to come online in the calendar year 2028 or later, pending the completion of regulatory and permitting processes. These timelines align with Micron's original plans announced in 2022 despite recent spending optimizations. The company emphasizes that these investments are crucial to support supply growth in the latter half of this decade.

Micron's capital expenditure for FY2024 is set at approximately $8 billion, with a planned increase to around $12 billion in FY2025. This substantial rise in spending, targeting a mid-30s percentage of revenue, will support various technological advancements and facility expansions. A substantial portion of this increased investment - over $2 billion - will be dedicated to constructing the new fabs in Idaho and New York. Additional funds will support high-bandwidth memory assembly and testing, as well as the development of other fabrication and back-end facilities. Sanjay Mehrotra, Micron's CEO, underscored the importance of these investments, stating that the new capacity is essential to meet long-term demand and maintain the company's market position. He added that these expansions, combined with ongoing technology transitions in Asian facilities, will enable Micron to grow its memory bit supply in line with industry demand.

According to the latest report from Bloomberg, the US government under Joe Biden's administration has announced plans to provide Taiwan Semiconductor Manufacturing Company (TSMC) with a substantial financial support package worth $11.6 billion. The package is composed of $6.6 billion in grants and up to $5 billion in loans. This represents the most significant financial assistance approved under the CHIPS and Science Act, a key initiative to resurrect the US chip industry. The funding will aid TSMC in establishing three cutting-edge semiconductor production facilities in Arizona, with the company's total investment in the state expected to exceed an impressive $65 billion. TSMC's multi-phase Arizona project will commence with the construction of a fab module near its existing Fab 21 facility. Production using 4 nm and 5 nm process nodes is slated to begin by early 2025. The second phase, scheduled for 2028, will focus on even more advanced 2 nm and 3 nm technologies.

TSMC has kept details about the third facility's production timeline and process node under wraps. The company's massive investment in Arizona is expected to profoundly impact the local economy, creating 6,000 high-tech manufacturing jobs and over 20,000 construction positions. Moreover, $50 million has been earmarked for training local workers, which aligns with President Joe Biden's goal of bolstering domestic manufacturing and technological independence. However, TSMC's Arizona projects have encountered obstacles, including labor disputes and uncertainties regarding government support, resulting in delays for the second facility's production timeline. Additionally, reports suggest that at least one TSMC supplier has abandoned plans to set up operations in Arizona due to workforce-related challenges.

Construction of Intel's New Albany, Ohio fabrication site started back in late 2022—since then, a series of setbacks have caused anticipated timelines to slip. Team Blue's original plans included a 2025 opening ceremony—last month, this was amended to late 2026 or early 2027. New equipment deliveries have been affected by extreme weather conditions—Intel appears to be shoring up its flood prevention systems at their Licking County location. Ohio's Department of Development received a progress report at the start of this month, authored by Team Blue staffers—revised figures indicate that Fabrication sites 1 and 2 are expected to reach operational status somewhere within "2027-2028."

Jim Evers (Intel's Ohio Site Manager) stated: "we are making great progress growing the Silicon Heartland. In addition to the approximately $1.5 billion investment in completed spends through 12/31/23 referenced in the report, Intel has an additional $3 billion in contractually committed spends underway, totaling $4.5 billion committed toward our Ohio One projects." Intel committed a hefty $20 billion greenfield investment into the two Ohio wafer fab sites, but the latest progress report indicates that just under a quarter of that budget has trickled out of company coffers (so far). Evers's statement continued: "this investment is growing every day as we work to establish a new manufacturing campus to build leading-edge semiconductor chips right here in Ohio." A Tom's Hardware report reminds us about Team Blue's New Albany project receiving "over $2 billion in incentives." Industry rumors posit that the US government is readying a multi-billion dollar grant for Intel's Arizona facility.

Canalys' latest forecast predicts that an estimated 48 million AI-capable PCs will ship worldwide in 2024, representing 18% of total PC shipments. But this is just the start of a major market transition, with AI-capable PC shipments projected to surpass 100 million in 2025, 40% of all PC shipments. In 2028, Canalys expects vendors to ship 205 million AI-capable PCs, representing a staggering compound annual growth rate of 44% between 2024 and 2028.

These PCs, integrating dedicated AI accelerators, such as Neural Processing Units (NPUs), will unlock new capabilities for productivity, personalization and power efficiency, disrupting the PC market and delivering significant value gains to vendors and their partners.

ASML has revealed that its cutting-edge High-NA extreme ultraviolet (EUV) chipmaking tools, called High-NA Twinscan EXE, will cost around $380 million each—over twice as much as its existing Low-NA EUV lithography systems that cost about $183 million. The company has taken 10-20 initial orders from the likes of Intel and SK Hynix and plans to manufacture 20 High-NA systems annually by 2028 to meet demand. The High-NA EUV technology represents a major breakthrough, enabling an improved 8 nm imprint resolution compared to 13 nm with current Low-NA EUV tools. This allows chipmakers to produce transistors that are nearly 1.7 times smaller, translating to a threefold increase in transistor density on chips. Attaining this level of precision is critical for manufacturing sub-3 nm chips, an industry goal for 2025-2026. It also eliminates the need for complex double patterning techniques required presently.

However, superior performance comes at a cost - literally and figuratively. The hefty $380 million price tag for each High-NA system introduces financial challenges for chipmakers. Additionally, the larger High-NA tools require completely reconfiguring chip fabrication facilities. Their halved imaging field also necessitates rethinking chip designs. As a result, adoption timelines differ across companies - Intel intends to deploy High-NA EUV at an advanced 1.8 nm (18A) node, while TSMC is taking a more conservative approach, potentially implementing it only in 2030 and not rushing the use of these lithography machines, as the company's nodes are already developing well and on time. Interestingly, the installation process of ASML's High-NA Twinscan EXE 150,000-kilogram system required 250 crates, 250 engineers, and six months to complete. So, production is as equally complex as the installation and operation of this delicate machinery.

IBM has announced (on January 29) that Korea Quantum Computing (KQC) has engaged IBM to offer IBM's most advanced AI software and infrastructure, as well as quantum computing services. KQC's ecosystem of users will have access to IBM's full stack solution for AI, including watsonx, an AI and data platform to train, tune and deploy advanced AI models and software for enterprises. KQC is also expanding its quantum computing collaboration with IBM. Having operated as an IBM Quantum Innovation Center since 2022, KQC will continue to offer access to IBM's global fleet of utility-scale quantum systems over the cloud. Additionally, IBM and KQC plan to deploy an IBM Quantum System Two on-site at KQC in Busan, South Korea by 2028.

"We are excited to work with KQC to deploy AI and quantum systems to drive innovation across Korean industries. With this engagement, KQC clients will have the ability to train, fine-tune, and deploy advanced AI models, using IBM watsonx and advanced AI infrastructure. Additionally, by having the opportunity to access IBM quantum systems over the cloud, today—and a next-generation quantum system in the coming years—KQC members will be able to combine the power of AI and quantum to develop new applications to address their industries' toughest problems," said Darío Gil, IBM Senior Vice President and Director of Research. This collaboration includes an investment in infrastructure to support the development and deployment of generative AI. Plans for the AI-optimized infrastructure includes advanced GPUs and IBM's Artificial Intelligence Unit (AIU), managed with Red Hat OpenShift to provide a cloud-native environment. Together, the GPU system and AIU combination is being engineered to offer members state-of-the-art hardware to power AI research and business opportunities.

Intel has secured a $3.2 billion grant from the Israeli government for constructing a new $25 billion chip fabrication facility in southern Israel. This represents the company's largest-ever investment in a manufacturing facility. Intel's expansion aims to strengthen global semiconductor supply chains and reduce reliance on singular geographies like Taiwan. The new Fab 38 plant will be built alongside Intel's existing Fab 28 facility in Kiryat Gat. Construction has already begun, with operations slated to start in 2028 and serve until 2035. Intel expects to create thousands of local jobs as well. The company will receive a reduced 7.5% corporate tax rate and has committed to $16.6 billion in local procurement. The grant comes amid Israel's ongoing conflict with Palestinian militant group Hamas.

However, Intel's decades-long presence and investments in the country showcase economic priorities persevering. Its key processor technology was and is being designed in Israel labs. The Kiryat Gat expansion aligns with Intel CEO Pat Gelsinger's strategy of manufacturing diversification through mega-investments across the US, Europe, and Israel. It follows the company's record $20 billion fab project in Ohio. With significant government subsidies at each site, Intel aims to restore market dominance against rivals like AMD and Nvidia through scale of manufacturing. The new Israeli fab will complement Intel's lineup of leading-edge technologies and help maintain Israel's reputation as a global semiconductor hub.

Microsoft Gaming's chief, Phil Spencer, has issued a public-facing response to the recent leak of potential upcoming Xbox products (2024 to 2028): "We've seen the conversation around old emails and documents. It is hard to see our team's work shared in this way because so much has changed and there's so much to be excited about right now, and in the future. We will share the real plans when we are ready." The information dump (in part) consisted of presentation material prepared for (internal) April 2022 meetings, so it is possible that the Xbox division has changed direction in the meantime. Spencer was also involved in an August 2020 discussion with Microsoft marketing executives, regarding a possible buyout of Nintendo—according to leaked FTC legal case material. It should be noted that Microsoft has made attempts to acquire Nintendo in the past—but their approaches were "laughed off."

The Verge has managed to obtain an email distributed to Microsoft employees, as sent out by an embattled Spencer—he reiterates his public messaging of "real plans" in the company memo: "I know this is disappointing, even if many of the documents are well over a year old and our plans have evolved...We all put incredible amounts of passion and energy into our work, and this is never how we want that hard work to be shared with the community. That said, there's so much more to be excited about, and when we're ready, we'll share the real plans with our players."

A comprehensive leak of documents—from a FTC versus Microsoft case—has exposed short and long-term plans in the world of Xbox. It seems that a relatively mild refresh of current generation Xbox Series X and S is lined up for the second half of 2024, but presentation material (dated April 2022) also reaches far into the future with strategies for next-gen gaming hardware. The bigwigs at Xbox were projecting a "full convergence" of their proprietary "xCloud" gaming platform and physical console hardware to deliver "cloud hybrid games" for 2028—schemes and priorities could have shifted in the interim, given various legal challenges and takeover bids.

One of the slides points to Microsoft getting the technical nitty-gritty sorted by CY2023—with two main options presented for consideration: a licensed ARM 64 design or a "Zen 6-based" AMD 64 processor. The next-gen Xbox's GPU aspect could incorporate a Navi 5 design (RDNA 5)—weighing up either a co-operation with AMD, or an IP license of said graphics architecture. VideoCardz theorizes that: "the latter option seems more likely if the ARM 64 chip is chosen over the Zen 6 APU." A key goal in this area seems to be an implementation of "Next-Gen DirectX Ray tracing" and "ML-based Super Resolutions" features. A Neural Processing Unit (NPU) is marked as a key provision for the 2028 console—granting some nice-to-have perks including: latency compensation, frame rate interpolation and various enrichments of the user experience.