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Semiconductor Industry Calls for Stronger European Strategy

Seeking to explore semiconductor policy measures that can strengthen the industrial policy in the European Union, SEMI and the European Semiconductor Industry Association (ESIA) have successfully held a high-level roundtable event in the European Parliament under the auspices of Members of the European Parliament (MEPs) Bart Groothuis (Renew Europe), Oliver Schenk (European People's Party) and Dan Nica (Socialists and Democrats Party).

The 2023 European Chips Act marked an important milestone for Europe's semiconductor industry and overall industrial ecosystem, providing concrete measures to enhance competitiveness and technological capabilities. In order to build on the success of the Chips Act, after the roundtable, MEPs signed a joint declaration to the European Commission's Executive Vice President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, calling for an ambitious follow-up to the Chips Act that adds new research and development (R&D) funds, attracts new investments, and increases European competitiveness.

Vietnam to Begin First Wafer Fab Construction, Eyes Semiconductor Leadership in the Coming Decade

Vietnam's government has approved its first wafer fab facility, with an investment of 12.8 trillion VND (approximately $500 million). The first phase of the facility, scheduled for completion by 2030, is designed to manufacture specialized chips for defense, AI, and other high-tech applications. The project will receive government backing through direct funding—covering up to 30% of the total investment, capped at 10 trillion VND—and tax incentives. A special steering committee headed by the Prime Minister has been tasked with overseeing the project's execution and resource allocation. The new fab is a critical component of Vietnam's long-term semiconductor strategy, a phased approach toward building a domestic ecosystem for chip design, manufacturing, and testing. The current investment is modest compared to the typical costs of advanced wafer fabs, which can reach up to $50 billion.

Nonetheless, the project is a foundational, one-step-at-the-time move intended to spur further investments and technology transfer. Vietnamese officials have reportedly engaged in discussions with major international chip manufacturers—including US, South Korea, and Taiwan entities, such as GlobalFoundries and Powerchip Semiconductor Manufacturing Corp—to explore potential collaborative opportunities. Vietnam already hosts 174 semiconductor-related projects, predominantly focused on chip packaging and testing, in which global companies like Intel and Amkor have established significant operations. The second phase, from 2030-2040, envisions Vietnam emerging as a worldwide center for electronics and semiconductors. By expanding to at least 200 design companies, establishing two semiconductor chip manufacturing plants, and creating 15 packaging and testing facilities, the country intends to gradually develop independent semiconductor product design and production capabilities.

China Dedicates $55 Billion for Semiconductor, AI, and Quantum Computing Development in 2025

China's Ministry of Finance has allocated $55 billion (¥398.12 billion) for science and technology funding in 2025, marking a 10% increase from the previous year's $50 billion (¥361.9 billion). This expenditure now stands as the nation's third-largest budget item, following only national defense and debt interest payments. The 2024 allocation achieved a 97.6% implementation rate, indicating effective deployment of resources in the technology sector. The funding prioritizes initiatives under the "Science and Technology Innovation 2030" program, with significant investments targeting semiconductors, artificial intelligence, and quantum computing research. Rather than stimulating immediate breakthroughs, the incremental funding increase aims to strengthen existing projects and enhance technological self-reliance amid global competition.

This strategy shows some fiscal constraints imposed by China's economic slowdown while maintaining the country's long-term technological objectives. Supplementary measures bolster direct R&D investment, including enhanced support for fundamental research and specialized financing mechanisms for technology-focused enterprises. Tax reductions and targeted subsidies form part of a comprehensive policy framework designed to foster domestic innovation capabilities. While the funding increase shows commitment to technological advancement, effective project management and efficient resource allocation will be critical success factors, mainly as China competes more globally. Perhaps the most important milestone for this aid package will be supporting the development of advanced lithography tools to make sure that domestic companies can manufacture cutting-edge silicon.

US Self-Sufficiency of Semiconductors Unlikely According to Japanese Expert

According to Akira Amari, a Japanese politician and semiconductor industry expert, it's unlikely that the US will ever reach self-sufficiency when it comes to semiconductor production. This has nothing to do with foundries, as the US might manage to be self-sufficient in terms or raw chip production needs, but the country is said to be unlikely to be able to reach a complete supply chain of everything else needed to produce the chips. Countries like Japan, Taiwan, the Netherlands, Belgium, South Korea and more are heavily invested in supplying not only components needed to produce semiconductors, but also machinery and chemicals.

Amari is suggesting that these countries should form a co-operative alliance to help strengthen their supply chains at home, rather than putting all eggs in one basket to try and appease the US. This statement comes after TSMC promised to invest an additional US$100 billion over an unspecified time frame in the US. Time will tell if he's right or not, but it's unlikely that any country will ever be self-sufficient when it comes to making semiconductors, regardless of how big they are or what natural resources they have access to locally.

Global Top 10 IC Design Houses See 49% YoY Growth in 2024, NVIDIA Commands Half the Market

TrendForce reveals that the combined revenue of the world's top 10 IC design houses reached approximately US$249.8 billion in 2024, marking a 49% YoY increase. The booming AI industry has fueled growth across the semiconductor sector, with NVIDIA leading the charge, posting an astonishing 125% revenue growth, widening its lead over competitors, and solidifying its dominance in the IC industry.

Looking ahead to 2025, advancements in semiconductor manufacturing will further enhance AI computing power, with LLMs continuing to emerge. Open-source models like DeepSeek could lower AI adoption costs, accelerating AI penetration from servers to personal devices. This shift positions edge AI devices as the next major growth driver for the semiconductor industry.

Intel Announces Appointing Lip-Bu Tan as New CEO

Intel Corporation today announced that its board of directors has appointed Lip-Bu Tan, an accomplished technology leader with deep semiconductor industry experience, as chief executive officer, effective March 18. He succeeds Interim Co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus. Tan will also rejoin the Intel board of directors after stepping down from the board in August 2024. Zinsner will remain executive vice president and chief financial officer, and Johnston Holthaus will remain CEO of Intel Products. Frank D. Yeary, who took on the role of interim executive chair of the board during the search for a new CEO, will revert to being the independent chair of the board upon Tan becoming CEO.

"Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO," Yeary said. "Throughout his long and distinguished career, he has earned a reputation as an innovator who puts customers at the heart of everything he does, delivers differentiated solutions to win in the market and builds high-performance cultures to achieve success."

ASML and imec Sign Strategic Partnership Agreement to Support Semiconductor Research and Sustainable Innovation in Europe

ASML Holding N.V. (ASML) and imec, a leading research and innovation hub in nanoelectronics and digital technologies, today announce that they have signed a new strategic partnership agreement, focusing on research and sustainability. The agreement has a duration of five years and aims to deliver valuable solutions in two areas by bringing together ASML's and imec's respective knowledge and expertise. First, to develop solutions that advance the semiconductor industry and second, to develop initiatives focused on sustainable innovation.

The collaboration incorporates ASML's whole product portfolio, with a focus on developing high-end nodes, using ASML systems including 0.55 NA EUV, 0.33 NA EUV, DUV immersion, YieldStar optical metrology and HMI single- and multi-beam technologies. These tools will be installed in imec's state-of-the-art pilot line and incorporated in the EU- and Flemish-funded NanoIC pilot line, providing the most advanced infrastructure for sub-2 nm R&D to the international semiconductor ecosystem. Focus areas for R&D will also include silicon photonics, memory and advanced packaging, offering full stack innovation for future semiconductor-based AI applications in diverse markets.

4Q24 Global Top 10 Foundries Set New Revenue Record, TSMC Leads in Advanced Process Nodes

TrendForce's latest research reveals that the global foundry industry exhibited a polarized trend in 4Q24. Advanced process nodes benefited from strong demand in AI servers, flagship smartphone application processors (APs), and new PC platforms, driving high-value wafer shipments. This growth helped offset the slowdown in mature process demand, allowing the top 10 foundries to achieve nearly 10% QoQ revenue growth, reaching US$38.48 billion, and marking another industry record.

TrendForce notes that new U.S. trade tariffs under the Trump administration have started affecting the foundry industry. A surge in recent orders for TVs, PCs, and notebooks bound for the U.S. in 4Q24 is expected to extend into 1Q25. Additionally, China's consumer subsidy program—introduced in late 2024—has spurred early inventory restocking among upstream customers. Combined with persistent demand for TSMC's AI-related chips and advanced packaging, these factors suggest that despite Q1 being a seasonally weak quarter, foundry revenue will only decline slightly.

China Doubles Down on Semiconductor Research, Outpacing US with High-Impact Papers

When the US imposed sanctions on Chinese semiconductor makers, China began the push for sovereign chipmaking tools. According to a study conducted by the Emerging Technology Observatory (ETO), Chinese institutions have dramatically outpaced their US counterparts in next-generation chipmaking research. Between 2018 and 2023, nearly 475,000 scholarly articles on chip design and fabrication were published worldwide. Chinese research groups contributed 34% of the output—compared to just 15% from the United States and 18% from Europe. The study further emphasizes the quality of China's contributions. Focusing on the top 10% of the most-cited articles, Chinese researchers were responsible for 50% of this high-impact work, while American and European research accounted for only 22% and 17%, respectively.

This trend shows China's lead isn't about numbers only, and suggests that its work is resonating strongly within the global academic community. Key research areas include neuromorphic, optoelectric computing, and, of course, lithography tools. China is operating mainly outside the scope of US export restrictions that have, since 2022, shrunk access to advanced chipmaking equipment—precisely, tools necessary for fabricating chips below the 14 nm process node. Although US sanctions were intended to limit China's access to cutting-edge manufacturing technology, the massive body of Chinese research suggests that these measures might eventually prove less effective, with Chinese institutions continuing to push forward with influential, high-citation studies. However, Chinese theoretical work is yet to be proven in the field, as only a single company currently manufactures 7 nm and 5 nm nodes—SMIC. Chinese semiconductor makers still need more advanced lithography solutions to reach high-volume manufacturing on more advanced nodes like 3 nm and 2 nm to create more powerful domestic chips for AI and HPC.

CAST Releases First Commercial SNOW-V Stream Cipher IP Core

Semiconductor intellectual property core provider CAST today announced a new IP core that implements the SNOW-V stream cipher algorithm to meet the security and performance demands of modern communication systems. Available now for ASICs or FPGAs, the company believes it to be the first such commercial IP core.

The new SNOW-V Stream Cipher Engine provides a flexible and reusable hardware implementation of the official SNOW-V mechanism as published in 2019 by the IACR Transactions on Symmetric Cryptology. SNOW-V revises the SNOW 3G stream cipher algorithm to help satisfy the high-speed, low-latency security requirements of 5G, 6G, and future mobile networks. The core:

GlobalFoundries and MIT Collaborate on Photonic AI Chips

GlobalFoundries (GF) and the Massachusetts Institute of Technology (MIT) today announced a new master research agreement to jointly pursue advancements and innovations for enhancing the performance and efficiency of critical semiconductor technologies. The collaboration will be led by MIT's Microsystems Technology Laboratories (MTL) and GF's research and development team, GF Labs.

With an initial research focus on AI and other applications, the first projects are expected to leverage GF's differentiated silicon photonics technology, which monolithically integrates RF SOI, CMOS and optical features on a single chip to realize power efficiencies for datacenters, and GF's 22FDX platform, which delivers ultra-low power consumption for intelligent devices at the edge.

Intel Reportedly in Advanced Talks to Sell Altera to Silver Lake

A Bloomberg report said Silver Lake Management, a large private equity firm, has begun exclusive talks to buy a controlling stake in Intel's Altera division. Altera focuses on versatile chips that are widely used in telecommunications networks. The size of the stake is still being worked out, but negotiations have moved forward, people familiar with the deal said, speaking on condition of anonymity. They caution that things could slow down or the deal might not happen. When asked, people speaking for Intel and Silver Lake did not comment.

The news jolted the market, sending Intel shares up as much as 17% on Tuesday, Feb. 18, 2025, marking their biggest single-day gain in nearly five years. The surge was driven in part by separate speculation about a potential spinoff involving Taiwan Semiconductor Manufacturing Co (TSMC). By late afternoon trading in New York, Intel shares were up 15%, valuing the company at about $117 billion. If the sale goes through, it would mark a major shift for Intel as it tries to reshape its business. While there is no information on the size of the deal, last November Lattice Semiconductor Corp. and a group of buyout firms expressed interest in Altera. Some insiders said that potential buyers valued Altera at just $9 billion, a big drop for Intel, which bought Altera in 2015 for about $17 billion. Intel faces continued challenges following Gelsinger's departure, as the company searches for both a new CEO and a replacement for its Data Center and AI division head, who recently left to become Nokia's chief executive.

Global Semiconductor Manufacturing Industry Reports Solid Q4 2024 Results

The global semiconductor manufacturing industry closed 2024 with strong fourth quarter results and solid year-on-year (YoY) growth across most of the key industry segments, SEMI announced today in its Q4 2024 publication of the Semiconductor Manufacturing Monitor (SMM) Report, prepared in partnership with TechInsights. The industry outlook is cautiously optimistic at the start of 2025 as seasonality and macroeconomic uncertainty may impede near-term growth despite momentum from strong investments related to AI applications.

After declining in the first half of 2024, electronics sales bounced back later in the year resulting in a 2% annual increase. Electronics sales grew 4% YoY in Q4 2024 and are expected to see a 1% YoY increase in Q1 2025 impacted by seasonality. Integrated circuit (IC) sales rose by 29% YoY in Q4 2024 and continued growth is expected in Q1 2025 with a 23% increase YoY as AI-fueled demand continues boosting shipments of high-performance computing (HPC) and datacenter memory chips.

Synopsys Expands Its Hardware-Assisted Verification (HAV) Portfolio for Next-Gen Semiconductors

Synopsys, Inc. today announced the expansion of its industry-leading hardware-assisted verification (HAV) portfolio with new HAPS prototyping and ZeBu emulation systems using the latest AMD Versal Premium VP1902 adaptive SoC. The next generation HAPS-200 prototyping and ZeBu-200 emulation systems deliver improved runtime performance, better compile time and improved debug productivity. They are built on new Synopsys Emulation and Prototyping (EP-Ready) Hardware that optimizes customer return on investment by enabling emulation and prototyping use cases via reconfiguration and optimized software. ZeBu Server 5 is enhanced to deliver industry-leading scalability beyond 60 billion gates (BG) to address the escalating hardware and software complexity in SoC and multi-die designs. It continues to offer industry-best density to optimize data center space utilization.

"With the industry approaching 100s of billions of gates per chip and 100s of millions of lines of software code in SoC and multi-die solutions, verification of advanced designs poses never-before seen challenges," said Ravi Subramanian, chief product management officer, Synopsys. "Continuing our strong partnership with AMD, our new systems deliver the highest HAV performance while offering the ultimate flexibility between prototyping and emulation use. Industry leaders are adopting Synopsys EP-Ready Hardware platforms for silicon to system verification and validation."

ASE Technology Holding Co. Reports Q4 and 2024 Financial Results

ASE Technology Holding Co., Ltd., the leading provider of semiconductor assembly and testing services ("ATM") and the provider of electronic manufacturing services ("EMS"), today reported its unaudited net revenues of NT$162,264 million for 4Q24, up by 1.0% year-over-year and up by 1.3% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,312 million, down from NT$9,392 million in 4Q23 and down from NT$9,733 million in 3Q24. Basic earnings per share for the quarter were NT$2.15 (or US$0.134 per ADS), compared to NT$2.18 for 4Q23 and NT$2.25 for 3Q24. Diluted earnings per share for the quarter were NT$2.07 (or US$0.129 per ADS), compared to NT$2.13 for 4Q23 and NT$2.18 for 3Q24.

For the full year of 2024, the Company reported unaudited net revenues of NT$595,410 million and net income attributable to shareholders of the parent of NT$32,483 million. Basic earnings per share for the full year of 2024 were NT$7.52 (or US$0.470 per ADS). Diluted earnings per share for the full year of 2024 were NT$7.23 (or US$0.452 per ADS).

China's Semiconductor Equipment Spending to Decline in 2025, First Decline in Recent Years

China's dominance in semiconductor equipment procurement is expected to face its first setback since 2021, with spending projected to decrease from $41 billion to $38 billion in 2025, according to semiconductor research firm TechInsights. This 6% decline marks a significant shift for the world's largest buyer of wafer fabrication equipment, whose purchases represented 40% of global sales in 2024. The downturn reflects mounting pressures from both market dynamics and geopolitical constraints. US export controls targeting advanced semiconductor capabilities have intensified while domestic chipmakers grapple with overcapacity in mature node segments. SMIC, China's leading foundry, has already signaled concerns about oversupply risks in this sector, where Chinese manufacturers have rapidly expanded their market share against Taiwanese competitors.

Despite these headwinds, Chinese equipment manufacturers have notably advanced domestic capability development. Naura Technology Group has emerged as the seventh-largest global equipment manufacturer, while AMEC continues to expand its international presence. However, critical gaps persist in China's semiconductor equipment ecosystem, particularly in lithography systems, where dependence on foreign suppliers like ASML remains high. TechInsights data reveals that Chinese companies supplied only 17% of testing tools and 10% of domestic assembly equipment in 2023. The spending reduction comes after a period of aggressive stockpiling prompted by US sanctions to limit Beijing's access to advanced chipmaking capabilities, especially those applicable to artificial intelligence and military applications. However, Chinese manufacturers have demonstrated resilience, with SMIC and Huawei successfully producing advanced chips through alternative, albeit more costly, manufacturing methods.

Global Semiconductor Sales Hit $627 Billion in 2024

The Semiconductor Industry Association (SIA) today announced global semiconductor sales hit $627.6 billion in 2024, an increase of 19.1% compared to the 2023 total of $526.8 billion. Additionally, fourth-quarter sales of $170.9 billion were 17.1% more than the fourth quarter of 2023, and 3.0% higher than the third quarter of 2024. And global sales for the month of December 2024 were $57.0 billion, a decrease of 1.2% compared to the November 2024 total. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

"The global semiconductor market experienced its highest-ever sales year in 2024, topping $600 billion in annual sales for the first time, and double-digit market growth is projected for 2025," said John Neuffer, SIA president and CEO. "Semiconductors enable virtually all modern technologies - including medical devices, communications, defense applications, AI, advanced transportation, and countless others - and the long-term industry outlook is incredibly strong."

German Tech Supply Chain Sees Massive 35% Market Contraction, Semiconductors Drop 41%

The fourth quarter of 2024 also remained well below the same quarter of the previous year, with a decline of more than 35%. At EUR 704 million, the turnover of FBDi's reporting members was the lowest since the end of 2020. For the whole of 2024, reporting members thus lost 36% of their previous year's turnover, reaching EUR 3464 million.

The biggest losses were suffered by semiconductors, which lost 41% of the previous year's turnover over the year as a whole, ending up at EUR 2192 million. The trend was slightly more positive for IP&E, which achieved a total volume of 1120 million euros for the year as a whole, a decline of only 25%. Especially Electromechanics (-15.8% y-o-y and BtB 1.04) and Power Supplies (-20.0% y-o-y and BtB 1.04) stand out positively.

Japan Will Tighten Control of Computer Chips and Quantum Tech Exports

Japan's central government will adjust its control over cutting-edge chips and quantum computer-related technology—a Japan Times news article proposes that new regulations will come into effect by the end of May. The report suggests that the nation's governing body is expanding its list of export-controlled items to include: "advanced chips, lithography equipment and cryo-coolers needed for the manufacture of quantum computers." The publication has gathered this information from revised foreign exchange laws. According to economy ministry officials, companies will be required to apply for external trade licenses—extra measures are being put in place to prevent the export of cutting-edge items to foreign military organizations. The updated terms are viewed as another step in tightening the supply of advanced semiconductor products to mainland China. Recent global events have paved the way for a new wave of AI chip-related restrictions.

Naturally, China has expressed concern regarding upcoming changes—they anticipate problems affecting supply chains and normal commercial exchanges between enterprises. According to the Japan Times report, the Ministry of Commerce in Beijing: "hopes Japan will make sure the measures don't hinder the economic and trade development between the two countries." The two nations have enjoyed a cordial semiconductor-centric trade relationship, skewed more in favor of Japan. Industry watchdogs believe that Chinese manufacturers have generated significant demand for Japanese-made production equipment. Japan's Ministry of Economy, Trade and Industry (METI) has updated its documents. According to the latest report, 42 new entities worldwide have been added to a list of: "foreign companies and organizations that would be subject to export oversight on any dual-use items. The additions come into effect on Feb. 5, it said. A total of around 110 Chinese companies, research institutions and other entities are on the list."

3M Joins Consortium to Accelerate Semiconductor Technology in the US

3M is expanding its commitment to the semiconductor industry by joining the US-JOINT Consortium, a strategic partnership of 12 leading semiconductor suppliers. The consortium drives research and development in next-generation semiconductor advanced packaging and back-end processing technologies anchored by a new cutting-edge facility in Silicon Valley.

"As the demands of AI and other high performance computing technologies increase, suppliers must work together to provide comprehensive solutions to tough challenges on increasingly shorter timelines." said Steven Vander Louw, 3M's president of display and electronics product platforms. "The companies in the US-JOINT Consortium represent US and Japanese innovation leaders in a range of advanced packaging technologies. 3M is pleased to join the consortium in order to bring our decades of materials science expertise, across more than 50 technology platforms, to help address these challenges."

Tata to Complete Micron's India Chip Facility by End of 2025

IndiaTimes reports that Tata Projects announced on Tuesday that Micron Technology's semiconductor assembly and test facility at Sanand near Ahmedabad (India) will be ready by December 2025. Amit Agrawal, Project Director at Tata Projects, said workers have finished 60 percent of India's first semiconductor plant, the rest will be done by year's end. The plant covers about 50 acres in the Sanand industrial area and the building started in July last year. Tata Projects is putting up this semiconductor Assembly, Testing, Marking and Packaging (ATMP) facility for Micron.

"An ATMP facility is essentially a backend fab facility where testing, packaging and marking of semiconductors are carried out. This is perhaps the largest back-end semiconductor fab unit in the world. So far, 60 percent of work has been completed on Phase-1 with the help of a total workforce of 3,500," Agrawal told reporters. "We will hand over this facility to Micron by December 2025 after finishing civil work, mechanical, electrical and plumbing work along with engineering-related tasks as per the designs given by Micron. The final call to commence the plant will be taken by Micron" added Amit Agrawal, Project Director at Tata Projects.

Samsung Electronics Announces Fourth Quarter and FY 2024 Results

Samsung Electronics today reported financial results for the fourth quarter and the fiscal year 2024. The Company posted KRW 75.8 trillion in consolidated revenue and KRW 6.5 trillion in operating profit in the quarter ended December 31, 2024. For the full year, it reported KRW 300.9 trillion in annual revenue and KRW 32.7 trillion in operating profit.

Although fourth quarter revenue and operating profit decreased on a quarter-on-quarter (QoQ) basis, annual revenue reached the second-highest on record, surpassed only in 2022. Meanwhile, operating profit was down KRW 2.7 trillion QoQ, due to soft market conditions especially for IT products, and an increase in expenditures including R&D. In the first quarter of 2025, while overall earnings improvement may be limited due to weakness in the semiconductors business, the Company aims to pursue growth through increased sales of smartphones with differentiated AI experiences, as well as premium products in the Device eXperience (DX) Division.

Smarter Memory Paves the Way for EU Independence in Computer Manufacturing

New technology from Chalmers University of Technology and the University of Gothenburg, Sweden, is helping the EU establish its own competitive computer manufacturing industry. Researchers have developed components critical for optimising on-chip memory, a key factor in enhancing the performance of next-generation computers.

The research leader, Professor Per Stenström, along with colleagues, has discovered new ways to make cache memory work smarter. A cache is a local memory that temporarily stores frequently accessed data, improving a computer's speed and performance. "Our solution enables computers to retrieve data significantly faster than before, as the cache can manage far more processing elements (PEs) than most existing systems. This makes it possible to meet the demands of tomorrow's powerful computers," says Per Stenström, Professor at the Department of Computer Science and Engineering at Chalmers University of Technology and the University of Gothenburg.

Fujifilm Pumps ¥100 Billion in Semiconductor Material Expansion to Meet Chip Demand

According to Nikkei, Fujifilm Holdings is reportedly set to invest ¥100 billion ($640.5 million) by March 2027 to expand production capacities in the U.S., Japan, South Korea, and India. The main focus of the expansion is semiconductor materials, which are vital for the modern semiconductor supply chain. While the company has not officially confirmed the plan, it follows global efforts to straighten material supply chains as chipmakers ramp up the construction of cutting-edge fabs in these regions. The investment, doubling Fujifilm's semiconductor materials spending over the past three years, targets rising demand driven by new fabs from Intel, TSMC, Samsung, and SK Hynix, particularly for AI and HPC. Fujifilm, ranked fifth globally in photosensitive materials, is one of only five companies worldwide producing ultra-pure photoresists for extreme ultraviolet (EUV) lithography.

These photoresists must meet rigorous standards due to EUV's 13.5 nm wavelength, requiring precision in sensitivity, resolution, and compatibility with mask materials. Fujifilm strategically locates facilities near major hubs to strengthen partnerships with key clients. In Japan, a ¥13 billion ($83.27 million) plant in Shizuoka Prefecture is underway, while a South Korean site in Pyeongtaek will receive upgraded equipment by autumn. A Cheonan facility, set for spring 2027, aims to boost the output of chemical mechanical planarization (CMP) agents by 30%. The company also eyes India's emerging semiconductor sector, exploring partnerships or joint ventures to establish local production post-2027.

Hua Hong Semiconductor Recruits Veteran Logic Chip Designer, Formerly of Intel

Hua Hong Semiconductor (HHS) is China's second-largest chip manufacturer; trailing just behind its main rival: Semiconductor Manufacturing International Corporation (SMIC)—a recent recruitment drive has signalled the company's desire to advance further. Nikkei Asia believes that the recruitment of a former Intel executive—Bai Peng—will boost the development of logic chips, and in turn generate greater revenue. A late 2024 reshuffling of leadership positions produced a notable vacancy: company president—Bai Peng assumed this role, effective January 1. His career at Intel spanned three decades—by 2015 he became Team Blue's corporate vice president, although his tenure ended at some point in 2022 (according to a LinkedIn profile).

Industry watchdogs reckon that Hua Hong Semiconductor's freshly established chief will be tasked with advancing semiconductor production technologies. Peng's experience—being a former co-director of Logic Technology Development at the Intel Technology and Manufacturing Group—is cited as a crucial factor in diversifying the firm's product portfolio. HHS foundries produce a lot of 100+ nm-based designs—mostly in the fields of power semiconductors, analog chips, and embedded memory—but two locations are capable of churning out relatively complex silicon via a 40 nm process node. A new plant—based in Wuxi—is supposedly ready to push into sub-forty digits. The latest industry reports suggest that Peng and his colleagues will be focused on improving HSS's manufacturing processes—targeted advancements could open up new product lines: high-end enterprise and AI processors.
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