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.

TikTok's parent company ByteDance has recently begun hiring chip designers to help develop specialized processors for fields where they haven't been able to find existing suppliers. The company is looking to design chips that are optimized for hosting their video, information, and entertainment apps without any plans to sell these processors to other companies. This latest announcement follows various other Chinese companies such as Alibaba and Baidu in developing custom processors to decrease their reliance on foreign companies and improve performance in specific tasks. The initial job listings only include 31 openings for positions such as experts, specialists, and interns with more staff likely required in the future.

It's not only Intel that has been showing off new graphics cards recently, as Chinese company Glenfly has revealed more details about its Arise-GT10C0 graphics card. To be clear from the start, this is not a graphics card for gamers, but rather for the PRC government and its computers, as the nation is trying to become self-sufficient when it comes to computer hardware for its government agencies and other government backed organisations. The 28 nm GPU has a clock speed of a whopping 500 MHz and delivers 1.5 TFLOPs of FP32 performance, which places it firmly in yesteryear's performance category. Glenfly claims support for up to 4K resolution, althought this is most likely only for desktop use.

The GPU is paired with 2 or 4 GB of DDR4 memory with a clock speed of 1200 MHz, using either a 64 or a 128 bit memory interface. The actual cards have a PCIe 3.0 x8 interface and have support for unspecified HDMI and DP interfaces, as well as D-Sub VGA ports. Driver support includes DirectX 11, OpenGL 4.5 and OpenCL 1.2. The GPU is also said to have hardware offload support for HEVC and H.264 hardware encoding, as well as decoding for both formats, plus most other common video formats, although, oddly enough, support for AVS, which is China's homebrewed video codec, is missing. OS support includes various Chinese flavours of Linux, Ubuntu and Windows according to Glenfly and outside of the x86 processor world, MIPS and arm based processors are said be supported.

Worldwide shipments of traditional PCs declined 15.3% year over year to 71.3 million units in the second quarter of 2022 (2Q22), according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. This was the second consecutive quarter of lower shipments following two years of growth. The decline was worse than expected as supply and logistics further deteriorated due to the lockdowns in China and persistent macroeconomic headwinds.

"Fears over a recession continue to mount and weaken demand across segments," said Jitesh Ubrani, research manager for IDC's Mobile Device trackers. "Consumer demand for PCs has weakened in the near term and is at risk of perishing in the long term as consumers become more cautious about their spending and once again grow accustomed to computing across device types such as phones and tablets. Meanwhile, commercial demand has been more robust although it has also declined as businesses delay purchases."

ASML is one of the critical semiconductors companies, as they provide tools for making actual silicon. Located in the Netherlands, they are famous for their DUV and EUV lithography tools, used to etch designs onto silicon wafers. According to the report from Bloomberg, the United States governing body is negotiating with the Dutch government to restrict the export of ASML's products to China. This came to affection following US Deputy Commerce Secretary Don Graves's visit to the Netherlands to discuss supply chain issues and meeting with ASML Chief Executive Officer Peter Wennink. While these suggested export restrictions could be beneficial to the strategic placement of US against China, it would hurt ASML's revenue as sales in China accounted for a 16% share of the company's revenue in 2021.

It is recorded that the Chinese spending spree on tools has been the greatest among every country, lasting for two years in a row. By banning ASML from exporting its lithography tools to China, the US could theoretically halt Chinese plans for achieving the government's intended semiconductor independence. The talks with the Dutch government and ASML are still a work in progress, so we are yet to see if the deal is finalized. Additionally, it is worth pointing out that the major US semiconductor manufacturing tool makers like Applied Materials and Lam Research are already banned from exporting to China.

Intel is preparing to launch its next-generation desktop platform codenamed Rocket Lake-S. According to the presentation held by Intel today in Shenzen, China, we have official information regarding some of the platform features that Raptor Lake is bringing. Starting with memory support, Raptor Lake is still carrying the transitional DDR4 and DDR5 support, as the full swing towards DDR5 is still in progress. Unlike the previous generation Alder Lake, which brought DDR5-4800 support, Raptor Lake's integrated memory controller can drive DDR5 modules with a 5600 MT/s configuration. As DDR4 support remains, it is limited to 3200 MT/s speed.

Interesting information from the leaked slide points out that support for CPU-attached NVMe storage remains PCIe Gen4. While AMD will provide an AM5 socket with CPU-attached NMVe storage on PCIe Gen5 protocol, Intel is taking a step back and holding on to Gen4. The CPU is outputting 16 PCIe Gen5 lanes on its own. Motherboard vendors for the upcoming 700-series boards for Raptor Lake can still provide a PCIe Gen5 NVMe slot; however, it will have to subtract eight Gen5 lanes from the PCI Express Graphics (PEG) slot and route them to NVMe storage. As our testing shows, this will affect GPU's performance by a few percent. AMD's upcoming AM5 platform has no such issues, as the CPU provides both the PEG and CPU-attached NVMe storage with sufficient PCIe Gen5 bandwidth.

With the course of the COVID-19 pandemic constantly changing, China is sticking with its "Dynamic Zero-COVID Policy" and has been slow to lift the lockdown on its cities that have been recently affected by the outbreaks of the disease. Hence, the manufacturing industries of the major Chinese cities are facing delays in the resumption of normal operation, and a production gap has emerged in 2Q22. For the electronics ODMs, this production gap will be difficult to bridge in 2H22. Additionally, the ongoing global inflation is keeping prices of goods at a very high level, and this trend will dampen the peak-season demand surge during the second half of the year. The effect of the inflationary pressure has been especially noticeable in the demand for consumer electronics such as smartphones, notebook computers, and tablet computers. This, in turn, is also impacting the MLCC market in terms of demand and inventory. Currently, the general inventory level has risen above 90 days for MLCCs of all sizes. Therefore, TrendForce forecasts that prices of consumer-spec MLCCs will fall further by 3-6% on average in 2H22.

On the other hand, demand remains fairly strong in application segments such as high-performance computing solutions (which include servers), networking equipment, industrial automation solutions, and energy storage systems. Furthermore, IDMs in the semiconductor industry will be adjusting the allocation of production capacity as the market for consumer electronics continues to experience a slowdown in 2H22. As a result, the undersupply situation for certain ICs will ease. Moreover, demand will be propped up in the high-end segment of the MLCC market and other application segments (e.g., automotive electronics and industrial equipment). All in all, thanks to the demand related to automotive electronics, servers, networking equipment, etc., TrendForce forecasts that the annual total MLCC shipments will increase by 2% YoY to around 2.58 trillion pieces for 2022.

Intel officially launched the Arc A380 "Alchemist" entry-mainstream desktop graphics card in China, priced at RMB ¥1,030, including VAT, which roughly converts to USD $153. The Arc A380 "Alchemist" is based on the Xe-HPG graphics architecture, and the smaller DG2-128 (ACM-G11) silicon, which is built on the TSMC N6 (6 nm) silicon fabrication process.

The A380 desktop GPU is endowed with 8 Xe Cores, or 128 EU (execution units), which work out to 1,024 unified shaders. The chip features a 96-bit wide GDDR6 memory interface, running 6 GB of memory. Despite these hardware specs, you get full DirectX 12 Ultimate capability, including ray tracing, and the XeSS performance enhancement. There are also several content-creation accelerators, including Intel XMX, and AV1 hardware-encode capabilities.

Global fab equipment spending for front-end facilities is expected to increase 20% year-over-year (YOY) to an all-time high of US$109 billion in 2022, marking a third consecutive year of growth following a 42% surge in 2021, SEMI announced today in its latest quarterly World Fab Forecast report. Fab equipment investment in 2023 is expected to remain strong.

"The global semiconductor equipment industry remains on track to cross the $100 billion threshold for the first time as shown in our latest update of the World Fab Forecast,"said Ajit Manocha, president and CEO of SEMI. "This historic milestone puts an exclamation point on the current run of unprecedented industry growth."

Jon Peddie Research reports that the global PC-based graphics processor units (GPU) market reached 96 million units in Q1'22 and PC GPUs shipments decreased 6.2% due to disturbances in China, Ukraine, and the pullback from the lockdown elsewhere. However, the fundamentals of the GPU and PC market are solid over the long term, JPR predicts GPUs will have a compound annual growth rate of 6.3% during 2022-2026 and reach an installed base of 3.3 million units at the end of the forecast period. Over the next five years, the penetration of discrete GPUs (dGPU) in the PC market will grow to reach a level of 46%.

AMD's overall market share percentage from last quarter increased 0.7%, Intel's market share decreased by -2.4%, and Nvidia's market share increased 1.69%, as indicated in the following chart.

According to TrendForce research, as manufacturers actively shifted production capacity to 128 layer products, the market turned to oversupply, resulting in a drop in contract prices in 1Q22, among which the decline in consumer-grade products was more pronounced. Although enterprise SSD purchase order volume has grown, demand for smart phone bits has weakened due to the Russian-Ukrainian war, the traditional off-season, and rising inflation. Client inventories have increased significantly, so it remains challenging for overall bit shipment volume to offset potential decline. In 1Q22, NAND Flash bit shipments and average selling prices fell by 0.5% and 2.3%, respectively, resulting in a 3.0% quarterly decrease in overall industry revenue to US$17.92 billion.

Although China's smartphone stocking momentum was marginally weak considering the off-season, due to sluggish supply on the part of Kioxia and WDC, Samsung's 1Q22 client SSD shipment bit growth was driven up by an influx of rush orders and North American enterprise SSD client orders also recovered significantly in March. Overall bit shipments increased by 9% QoQ and ASP decreased by 2% QoQ. In 1Q22, the NAND Flash portion of Samsung's electronics business posted revenue of US$6.32 billion, up 3.4% QoQ.

According to TrendForce research, looking at NAND Flash wafers, the pricing of which more sensitively reflects the market, suppliers are increasingly motivated to cut prices in exchange for sales due to weak retail demand since March and a more conservative outlook for shipments of other end products. The price of NAND Flash wafers is expected to begin falling in May and the supply of NAND Flash will gradually overtake demand in 2H22. The price decline of NAND Flash wafers in 3Q22 may reach 5~10%.

At the same time, TrendForce indicates that February's contamination incident at Kioxia was expected to tighten the market in 2Q22 and 3Q22. However, as a consequence of rising inflation and the war between Russia and Ukraine, market demand for consumer products in the traditional peak season of the second half of the year is trending conservative and the prices of client SSD, eMMC, and UFS in 3Q22 will be flat compared to 2Q22, breaking from the original expectation that prices may rise. In terms of enterprise SSDs, as demand for data centers remains strong, no significant correction in demand has yet been observed. However, as the overall NAND Flash market gradually moves into oversupply, prices will only grow slightly by approximately 0~5% in 3Q22.

According to the report from Reuters, SoftBank has managed to regain control of the Arm China branch office that went rogue under the chairman and CEO Allen Wu's leadership. Arm China is SoftBank's venture to operate Arm Ltd. business in the Chinese region. That means that Arm can use all the licensing and development done on the mainland with SoftBank's supervision and conduct business. However, that idea was tough to pull off when now ex-chairman/CEO Allen Wu decided not to give up his leadership role for almost two years, despite being fired in 2020.

Not everything is terrible, as the SoftBank operation managed to make some progress in getting back the control of the Arm China venture. The company reports that the Arm China board has voted to replace Allen Wu unanimously and appoint Dr. Renchen Liu alongside Eric Chen as two co-CEOs. Dr. Liu is a vice dean at the Research Institute of Tsinghua University in Shenzhen, and the agency in Shenzhen has registered him as the company leader and general manager. Eric Chen is a managing partner at the SoftBank Vision Fund, helping Dr. Liu with business operations. Later after this decision, Allen Wu posted a letter signed by 430 employees that stated that there were law enforcement errors in his replacement process and that he would continue to lead the company. It is a matter of time before Chinese authorities take this action a step further and see more details.

According to TrendForce, Taiwan is crucial to the global semiconductor supply chain, accounting for a 26% market share of semiconductor revenue in 2021, ranking second in the world. Its IC design and packaging & testing industries also account for a 27% and 20% global market share, ranking second and first in the world, respectively. Firmly in the pole position, Taiwan accounts for 64% of the foundry market. In addition to TSMC possessing the most advanced process technology at this stage, foundries including UMC, Vanguard, and PSMC also have their own process advantages. Under the looming shadow of chip shortages caused by the pandemic and geopolitical turmoil in the past two years, various governments have quickly awakened to the fact that localization of chip manufacturing is necessary to avoid being cut off from chip acquisition due to logistics difficulties or cross-border shipment bans. Taiwanese companies have ridden this wave to become partners that governments around the world are eager to invite to set up factories in various locales.

One of the largest cloud providers in China, Alibaba, has today announced a preview for a new instance powered by Yitian 710 processor. The new processor is a collection of Alibaba's efforts to develop a home-grown design capable of powering cloud instances and the infrastructure needed for it and its clients. Without much further ado, the Yitian 710 is based on Armv9 ISA and features 128 cores. Ramping up to 3.2 GHz, these cores are paired with eight-channel DDR5 memory to enable sufficient data transfer. In addition, the CPU supports 96 PCIe 5.0 lanes for IO with storage and accelerators. These are most likely custom designs, and we don't know if they are using a blueprint based on Arm's Neoverse. The CPU is manufactured at TSMC's facilities on 5 nm node and features 60 billion transistors.

Alibaba offers these processors as a part of their Elastic Compute Service (ECS) instance called g8m, where users can select 1/2/4/8/16/32/64/128 vCPUs, where each vCPU is equal to one CPU core physically. Alibaba is running this as a trial option and notes that users should not run production code on these instances, as they will disappear after two months. Only 100 instances are available for now, and they are based in Alibaba's Hangzhou zone in China. The company notes that instances based on Yitian 710 processors offer 100 percent higher efficiency than existing AMD/Intel solutions; however, they don't have any useful data to back it up. The Chinese cloud giant is likely trying to test and see if the home-grown hardware can satisfy the needs of its clients so that they can continue the path to self-sustainability.

The Chinese market gets the very best of ZOTAC, with the company launching its flagship GeForce RTX 3090 Ti graphics card there, the RTX 3090 Ti PGF OC. This card is designed to be a tiny notch above the AMP Extreme Holo, and features the company's most elaborate-looking cooling solution. The card ships with the a factory-overclock of 1890 MHz boost—same as the AMP Extreme Holo—and its maximum available power limit is the same, at 495 W.

It's also likely that the PGF OC and the international AMP Extreme Holo share an identical PCB design, and the heatsink design appears similar, too. What's new is the cooler-shroud and back-plate design, which looks better thought-out than the AMP Extreme Holo: there's no hollow space toward the tail-end of the card for aesthetic reasons, with the shroud ending roughly where the heatsink does; and the backplate has a huge round vent that can take advantage of the large cutout in the PCB. The AMP Extreme Holo backplate doesn't fully take advantage of this cutout. The RGB lighting is also nicely done, across the front-face of the cooler shroud.

The output value of the world's top 10 foundries in 4Q21 reached US$29.55 billion, or 8.3% growth QoQ, according to TrendForce's research. This is due to the interaction of two major factors. One is limited growth in overall production capacity. At present, the shortage of certain components for TVs and laptops has eased but there are other peripheral materials derived from mature process such as PMIC, Wi-Fi, and MCU that are still in short supply, precipitating continued fully loaded foundry capacity. Second is rising average selling price (ASP). In the fourth quarter, more expensive wafers were produced in succession led by TSMC and foundries continued to adjust their product mix to increase ASP. In terms of changes in this quarter's top 10 ranking, Nexchip overtook incumbent DB Hitek to clinch 10th place.

TrendForce believes that the output value of the world's top ten foundries will maintain a growth trend in 1Q22 but appreciation in ASP will still be the primary driver of said growth. However, since there are fewer first quarter working days in the Greater China Area due to the Lunar New Year holiday and this is the time when some foundries schedule an annual maintenance period, 1Q22 growth rate will be down slightly compared to 4Q21.

Foxconn, which is a key supplier of Apple products, announced on Monday, that it is suspending production in its Shenzhen plants to comply with a new COVID-19 lockdown in the region. The company is attempting to minimize the impact of this on the supply-chain, by increasing manufacturing output of its plants in other regions, it said in a statement. China is witnessing its highest surge in COVID-19 cases since 2020, and the fresh outbreak is expected to affect manufacturing across the country, as factories comply with cubs set in place by health officials. Besides Foxconn, two other suppliers of Apple, namely Unimicron and Sunflex, have announced a suspension of manufacturing operations in the Shenzhen area.

Intel and AMD will be releasing new CPUs that support DDR5 DRAM solutions for PCs and servers this year. In response, the DRAM industry led by South Korean suppliers is developing solutions to complement the arrival of the new CPUs. In the midst of the gradual shift to DDR5, DRAM suppliers will also scale back the supply of DDR3 solutions, according to TrendForce's latest investigations. With Korean suppliers accelerating their withdrawal from DDR3 production, Taiwanese suppliers yet to kick off mass production using newly installed capacities, and Chinese suppliers falling short of their expected yield rate, the global supply of DDR3 solutions will undergo an impending decline. With respect to the demand side, however, not only has the supply of networking chips been ramping up, but material shortage issues are also gradually easing. As such, buyers are now procuring DDR3 solutions ahead of time, resulting in a tight supply and demand situation in the DDR3 market. TrendForce therefore expects DDR3 DRAM prices to recover from a bearish first quarter and undergo a 0-5% QoQ increase in 2Q22.

In 4Q21, NAND Flash bit shipments grew by only 3.3% QoQ, a significant decrease from the nearly 10% in 3Q21, according to TrendForce's investigations. ASP fell by nearly 5% and the overall industry posted revenue of US$18.5 billion, a QoQ decrease of 2.1%. This was primarily due to a decline in the purchase demand of various products and a market shift to oversupply causing a drop in contract prices. In 4Q21, with the exception of enterprise SSD, the supply of which was limited by insufficient upstream components, the prices of other NAND Flash products such as eMMC, UFS, and client SSD, all fell.

TrendForce's summary of NAND Flash market sales performance in 2021 is as follows: although there have been signs of weakening since 2H21, thanks to remote services and cloud demand driven by the pandemic, revenue performance still grew significantly compared to 2020. Revenue reached US$68.6 billion, up 21.1% YoY, the second-biggest increase since 2018.

China is reacting to new outbreaks of the Omicron variant of the Coronavirus with partial lockdowns. This could further delay the availability of laptops with 12th Gen Intel Core processors and NVIDIA's Ti graphics cards, which debuted at the beginning of the year. The first factories have already been closed in Suzhou in the east of the country. Supply chain and logistics bottlenecks, a shortage of certain chip types and price increases are already on the horizon.

Due to the pandemic, laptops shipments reached a record high of 240 million units in 2021, according to TrendForce's investigations. However, the market has been abuzz recently and, as the global population of the fully vaccinated has exceeded 50%, relevant demand driven by the pandemic is expected to gradually weaken. Shipment volume will decrease by 3.3% year-on-year, revised down slightly to 238 million units. Chromebooks will account for approximately 12.3% of shipment volume, though it accounted for approximately 15.2% in 2021. The momentum of shipments has slowed down significantly which indicates that demand derived from the economic effect of remote working and teaching has subsided.

Intel released the substantive portion of its 12th Generation Core, Pentium, and Celeron desktop processors to the retail market, based on the latest "Alder Lake" architecture. The part that's making the most waves is the Core i5-12400, a 6-core/12-thread part that only features "Golden Cove" P-cores (no E-cores or the software-optimization issues they bring). The i5-12400/F, i5-12500, and i5-12600, are based on the "H0" die of "Alder Lake-S," which physically only features six "Golden Cove" P-cores, no "Gracemont" E-core clusters, and only has 18 MB of L3 cache. The larger "C0" die is used across the i5-12600K, Core i7 and Core i9 chips, physically has 8 "Golden Cove" P-cores, 8 "Gracemont" E-cores across two E-core clusters, and 30 MB of L3 cache. It's important to lay out this piece of information to understand what Intel did with the new Core i5-12490F processor that's spotted in markets across Asia.

Apparently Intel is sitting on a pile of "C0" dies, and decided to create the i5-12490F. This chip has 6 "Golden Cove" P-cores, no E-cores, but 20 MB of L3 cache; and is based on a heavily cut-down "C0" silicon. As an "F" SKU, it also disables the iGPU on the silicon. The clocks set are 3.00 GHz nominal, and 4.60 GHz boost, compared to 2.50 GHz nominal, and 4.40 GHz boost of the i5-12400/F, and identical clock speeds to the i5-12500. It's quite puzzling how the "H0" based i5-12500 is differentiated from this chip, given its lower 18 MB L3 cache amount. The base power value is set at 65 W, with maximum turbo power at 117 W. The i5-12490F can hence be simulated using an i5-12600K.

In a very confusing move, Intel has informed its suppliers that it won't accept components that have been made in or by labour from the Xinjiang Province in China, only to turn around almost instantly and apologise to China for the fact that it has done so. That said, Intel doesn't appear to have changed its mind, the company simply apologised due to the backlash from Chinese citizens, who are threatening to boycott Intel products.

Part of the reasoning behind the ban of components from the Xinjiang Province is said to be due to US laws and is apparently not entirely in line with Intel's own views on the situation. A statement from Intel said "We apologize for the distress caused to our esteemed Chinese customers, partners and the general public," although it's unclear if this is going to be enough to calm the Chinese public, which tend to be able to stir up quite a lot of trouble for foreign companies in China that are seem to be anti China.

China's technology reliance on 3rd party companies seems to be getting smaller. One of the leading technology companies in China, Huawei, has designed a laptop powered by a custom 5 nm Kirin SoC with DDR5 memory. Called the Dyna Cloud L420, Huawei has prepared this model for the Chinese market to provide a fully functional laptop that will get the job done, with no risk of the potential security backdoors implemented in the processor. Powered by a brand new Kirin 9006C SoC manufactured on TSMC's 5 nm process, it features eight unknown cores running at 3.1 GHz frequency. We assume that those are custom cores designed by Huawei. This SoC is accompanied by 8 GB of LPDDR5 memory, with 256 GB and 512 GB UFS 3.1 configurations storage options.

When it comes to the rest of the laptop, it rocks a 14-inch 2160x1440 display. I/O options are solid as well, as this machine has an HDMI video output, two USB-A, one USB-C, and Gigabit Ethernet using a mini-RJ45 port. Connectivity is provided by Wi-Fi 6 and Bluetooth 4.2. There is a 56 W/h battery that provides the juice to keep it running when it comes to the battery. And to complete all of that, this laptop officially only supports Huawei's proprietary Kirin OS (KOS) and Unity OS (UOS), with expected support for HarmonyOS in the future. Pricing and availability information is a mistery at the present date.