TSMC Arizona's second semiconductor fabrication site has celebrated a "topping out" milestone—as documented in an official blog post (via LinkedIn) from yesterday. Workers were photographed installing an important/final piece of structure—the aforementioned "topping out" milestone signifies: "the last steel beam being raised into place on a construction project." The Taiwanese multinational semiconductor contract manufacturer has had a rough time in establishing operations out in the desert/greater Phoenix area—the "Fab 21 Phase 2" plant is not expected to meet its original 2026 opening window. TSMC Chairman Mark Liu is reportedly leaving his position due to consistent Arizona-related problems and delays.

The TSMC LinkedIn account shared some additional and certainly much-needed positive news: "We also recently achieved the topping milestone on our second fab's auxiliary buildings, which will supply the necessary utilities infrastructure to the second fab clean room." Thursday's blog (February 22) also discloses that the primary site—Fab 21 Phase 1—is still on track to begin production within the first half of 2025, thanks to "significant" bursts in construction progress. The author moved onto future production prospects: "Once operational, our two fabs at TSMC Arizona will manufacture the most advanced semiconductor technology in the U.S., creating 4,500 direct high-tech, high-wage jobs and enabling our customers' leadership in the high-performance computing and artificial intelligence era for decades."

Taiwan Semiconductor Manufacturing Company (TSMC) is set to open its new semiconductor fabrication plant in Kumamoto Prefecture, Japan, on February 24. This facility, known as Japan Advanced Semiconductor Manufacturing (JASM), represents a significant milestone for Japan's semiconductor industry. JASM spans 52 hectares and is designed to produce mature 40, 22/28, and 12/16 nm fabrication technologies in the Fab 1. The Fab 1 has an initial monthly capacity of 40,000 300 mm wafers, scalable to 50,000 wafers per month in the near term. However, TSMC is set to expand the Kumamoto facility with Fab 2, which will produce 7 nm and 6 nm nodes and is scheduled to begin operations at the end of the 2027 calendar year. The Japanese government is set to subsidize the Fab 2 expansion with around $5 billion in aid. Combining Fab 1 and Fab 2, the JASM Kumamoto facility could produce 100,000 300 mm wafers per month once the production of Fab 2 starts. According to market research firm TrendForce, JASM provides significant additional capacity for TSMC amid a global chip shortage. It also boosts Japan's domestic chipmaking capabilities, reducing reliance on imports.

JASM is the first brand-new foreign-operated fab built in Japan. The Japanese government provided grants and tax breaks to incentivize Kumamoto Fab 1 construction as part of a national strategy to re-shore more semiconductor production and is now doing it again with Fab 2. TSMC also received subsidies from customers like Sony, SSS, DENSO and Toyota. Dr. CC Wei, CEO of TSMC, stated that JASM will "shape Japan's semiconductor landscape over the next decade." TrendForce analysts echo this sentiment, noting that JASM's advanced nodes will enable cutting-edge chip designs from Japanese automotive and consumer electronics brands. The inauguration ceremony on February 24 will be attended by TSMC partners, customers, and government representatives. JASM is expected to ramp up production over the coming year. TSMC has other non-Taiwan investments, like the facility in construction in Phoenix, Arizona, which will start mass production of chips by the end of 2027 or early 2028. At that point, the global semiconductor capacity constraints will ease significantly.

COMPUTEX 2024, a global leading technology exhibition, featuring AIoT applications, generative AI & and startup ecosystems, will take place from June 4th to 7th at the Taipei Nangang Exhibition Center Halls 1 and 2. Themed "Connecting AI," this year's exhibition focuses on the latest global AI technologies and industry trends. The show will attract 1,500 international and local exhibitors using 4,500 booths. The Opening Keynote will be delivered by Dr. Lisa Su, Chair and CEO of AMD, on the morning of June 3rd to set the stage for the event.

COMPUTEX 2024: Global Tech Giants Unite, Paving the Way for the Era of the AI Ecosystem
2024 is acclaimed as the AI PC era, with the development of artificial intelligence propelling products like AI PCs, AI servers, and AI smartphones to thrive in the market. This year's COMPUTEX covers six major themes: AI computing, Advanced Connectivity, Future Mobility, Immersive Reality, Sustainability, and Innovations. Collaborating with international technology powerhouses, including Acer, ASRock, ASUS, Delta, Gigabyte, G.Skill, Intel, MSI, Pro Gamersware, and more, shapes the AI ecosystem. Moreover, the InnoVEX exhibit for startups will connect innovative teams from around the globe, sparking cross-industry collaboration and revitalizing AI technology with fresh energy.

The cutting edge 2 nm EUV foundry node by TSMC is expected to enter risk product in Q4 2024, according to a report by Taiwan-based industry observer DigiTimes. 2 nm would be an important milestone for the foundry company, as it would be the first from the company to implement GAA (gates all around) FETs, the technological successor to FinFETs, which drove silicon fabrication node development for almost a decade, from 16 nm to 3 nm. The GAAFET technology will be critical for the foundry's journey between 2 nm and 1 nm.

TSMC is expected to risk-produce chips on its 2 nm node in its new fab at the Baoshan campus in the Hsinchu Science Park, located in northern Taiwan. Should all go well with risk production, one can expect mass production of chips by Q2-2025. Until then, refinements to the company's final FinFET node, the N3 family, will remain the cutting-edge of silicon fabrication. Samsung has a similar 2025 target set for mass production on its 2 nm node, dubbed SF2. Across the Pacific, Intel Foundry Services has its Intel 20A node, which implements GAAFET (aka RibbonFET) technology aiming for similar timelines, including an ambitious 2024 mass production target.

The publication of ASML's 2023 Annual Report has revealed some interesting insights into how the photolithography producer remains diplomatic in times of global tension. Peter Wennink (President, Chief Executive Officer and Chair of the Board of Management) discussed his company's carefully considered tightrope act—here is his message to stakeholders: "In 2023, demand for our DUV systems continued to be strong, particularly in China. During the previous two years, our Chinese customers had received significantly fewer systems than they had ordered, due to global demand for our systems exceeding supply. However, the shifts in demand timing from other customers that we experienced in 2023 meant that we had the opportunity to backfill these orders for mature and midcritical nodes to China, while of course complying with export regulations." ASML is seemingly keen to continue doing business with Chinese customers, despite having to juggle with strict international trade rulings—as revealed in their financial report, trade in this region accounts for "26.3% of our 2023 total net sales." This places China in a second tier position, just behind Taiwan (29.3% of 2023 total net sale).

ASML was expecting to deliver a grand total of 600 DUV equipment units to Chinese customers by the end of 2025, but trade restriction adjustments nixed that avenue of business. The report's "Strategy and products" section highlights the company's concerns about narrowed lanes: "Geopolitical tensions may result in export control restrictions, trade sanctions, tariffs and more generally international trade regulations which may impact our ability to deliver our systems, technology, and services." China's leading foundry—Semiconductor Manufacturing International Corp (SMIC)—is reportedly targeting a 5 nm process node, although this would require a major readjustment of its existing collection of (older) lithography equipment. SMIC's flagship Shanghai location cannot upgrade to the most advanced DUV machinery in ASML's catalog, therefore workers are reliant on slightly antiquated gear (previously tasked with 7 nm manufacturing)—low yields and added expense are the anticipated headaches.

Last week SK Hynix revealed ambitious plans for its next wave of High Bandwidth Memory (HBM) products—their SEMICON Korea 2024 presentation included an announcement about cutting-edge HBM3E entering mass production within the first quarter of this year. True next-gen HBM development has already kicked off—TPU's previous report outlines an HBM4 sampling phase in 2025, followed by full production in 2026. South Korea's Pulse News believes that TSMC has been roped into a joint venture (with SK Hynix). An alleged "One Team" strategic alliance has been formed according to reports emerging from Asia—this joint effort could focus on the development of HBM4 solutions for AI fields.

Reports from last November pointed to a possible SK Hynix and NVIDIA HBM4 partnership, with TSMC involved as the designated fabricator. We are not sure if the emerging "One Team" progressive partnership will have any impact on previously agreed upon deals, but South Korean news outlets reckon that the TSMC + SK Hynix alliance will attempt to outdo Samsung's development of "new-generation AI semiconductor packaging." Team Green's upcoming roster of—"Hopper" H200 and "Blackwell" B100—AI GPUs are linked to a massive pre-paid shipment of SK Hynix HMB3E parts. HBM4 products could be fitted on a second iteration of NVIDIA's Blackwell GPU, and the mysterious "Vera Rubin" family. Notorious silicon industry tipster, kopite7kimi, believes that "R100 and GR200" GPUs are next up in Team Green's AI-cruncher queue.

DigiTimes Asia has reached out to insiders at fabrication toolmakers in an effort to delve deeper into claims made by industry analysts at the start of 2024—both SemiAnalysis and China Renaissance have proposed that TSMC is unlikely to adopt High-NA EUV production techniques within a five year period. The latest news article explores a non-upgrade approach for the next couple of years: "TSMC has not placed orders for high-numerical aperture (High-NA) extreme ultraviolet (EUV) tools and is unlikely to use the technology in 2 nm and 1.4 nm (A14) process manufacturing." Intel Foundry Services (IFS) will be one of the first semiconductor manufacturers to go online with ASML's latest and greatest machinery, although no firm timeframes have been confirmed. Team Blue's Taiwanese rival (and occasional business partner) is seemingly happy with its existing infrastructure, but industry watchdogs propose that cost considerations are key factors behind TSMC's cautious planning for the next decade.

The DigiTimes insider sources believe that TSMC will not budge until at least 2029, possibly coinciding with a 1 nm production node—analysts at China Renaissance reckon that High-NA EUV machines could be delivered in the future when facilities are readied for an "A10" codenamed process. TSMC published a very ambitious "transistor count" product timeline in early January (see below)—the first "1 nm" products are supposedly targeted for a 2030 rollout, but this schedule could change due to unforeseen circumstances. Intel is expected to "phase in" its fanciest ASML gear collection once the 18A process becomes old hat—Tom's Hardware thinks that 2026 - 2027 is a feasible timeframe.

Taiwan Semiconductor Manufacturing Company (TSMC) has reached a significant milestone, overtaking Intel and Samsung to become the world's largest semiconductor maker by revenue. According to Taiwanese financial analyst Dan Nystedt, TSMC earned $69.3 billion in revenue in 2023, surpassing Intel's $63 billion and Samsung's $58 billion. This is a remarkable achievement for the Taiwanese chipmaker, which has historically lagged behind Intel and Samsung in terms of revenue despite being the world's largest semiconductor foundry. TSMC's meteoric rise has been fueled by the increased demand for everything digital - from PCs to game consoles - during the coronavirus pandemic in 2020, and AI demand in the previous year. With its cutting-edge production capabilities allowing it to manufacture chips using the latest process technologies, TSMC has pulled far ahead of Intel and Samsung and can now charge a premium for its services.

This is reflected in its financials. For the 6th straight quarter, TSMC's Q4 2023 revenue of $19.55 billion also beat Intel's $15.41 billion and Samsung's $16.42 billion chip division revenue. As the world continues its rapid transformation in the AI era of devices, TSMC looks set to hold on to its top position for the foreseeable future. Its revenue and profits will likely continue to eclipse those of historical giants like Intel and Samsung. However, a big contender is Intel Foundry Services, which is slowly starting to gain external customers. If IFS takes off and new customers start adopting Intel as their foundry of choice, team blue could regain leadership in the coming years.

Faraday Technology Corporation, a Taiwanese silicon IP designer, has announced plans to develop a new 64-core system-on-chip (SoC) utilizing Intel's most advanced 18A process technology. The Arm-based SoC will integrate Arm Neoverse compute subsystems (CSS) to deliver high performance and efficiency for data centers, infrastructure edge, and 5G networks. This collaboration brings together Faraday, Arm, and Intel Foundry Services. Faraday will leverage its ASIC design and IP solutions expertise to build the SoC. Arm will provide the Neoverse compute subsystem IP to enable scalable computing. Intel Foundry Services will manufacture the chip using its cutting-edge 18A process, which delivers one of the best-in-class transistor performance.

The new 64-core SoC will be a key component of Faraday's upcoming SoC evaluation platform. This platform aims to accelerate customer development of data center servers, high-performance computing ASICs, and custom SoCs. The platform will also incorporate interface IPs from the Arm Total Design ecosystem for complete implementation and verification. Both Arm and Intel Foundry Services expressed excitement about working with Faraday on this advanced Arm-based custom silicon project. "We're thrilled to see industry leaders like Faraday and Intel on the cutting edge of Arm-based custom silicon development," said an Arm spokesperson. Intel SVP Stuart Pann said, "We are pleased to work with Faraday in the development of the SoC based on Arm Neoverse CSS utilizing our most competitive Intel 18A process technology." The collaboration represents Faraday's strategic focus on leading-edge technologies to meet evolving application requirements. With its extensive silicon IP portfolio and design capabilities, Faraday wants to deliver innovative solutions and break into next-generation computing design.

A Taiwan Economic Daily news article proposes that a couple of high profile clients are considering TSMC's 2 nanometer process—Apple is widely believed to be the first customer to join the foundry's queue for cutting edge services. The report posits that Intel is also signed up on the Taiwanese firm's 2 nm reservation list—TSMC is expected to start production in 2025—insiders reckon that Team Blue's "Nova Lake" CPU family is the prime candidate here. Its CPU tile is alleged to utilize TSMC 2 nm node. Intel's recent "Core" processor roadmaps do not display any technologies beyond 2025—many believe that "Nova Lake" is pencilled in for a loose 2026 launch window, perhaps within the second half of the year.

The existence of "Nova Lake" was revealed late last year by HWiNFO patch notes—a short entry mentioned preliminary support for the family's integrated GPU. Intel is engaged in hyping up of its own foundry's 20A and 18A processes, but remain reliant on TSMC plants for various bits of silicon. Industry tipsters reckon that aspects of "Lunar Lake" CPUs are based on the Taiwanese foundry's N3B node. Team Blue Corporation and United Microelectronics Corporation (UMC) announced a new development partnership last week, but initial offerings will arrive on a relatively passé "12-nanometer semiconductor process platform." TSMC's very advanced foundry services seem to be unmatched at this juncture.

LaminiAI appeared to be one of the first customers to receive an initial shipment of AMD's Instinct MI300X accelerators, as disclosed by their CEO posting about functioning hardware on social media late last week. A recent Taiwan Economic Daily article states that the "MI300X is rumored to have begun supply"—we are not sure about why they have adopted a semi-secretive tone in their news piece, but a couple of anonymous sources are cited. A person familiar with supply chains in Taiwan divulged that: "(they have) been receiving AMD MI300X chips one after another...due to the huge shortage of NVIDIA AI chips, the arrival of new AMD products is really a timely rainfall." Favorable industry analysis (from earlier this month) has placed Team Red in a position of strength, due to growing interest in their very performant flagship AI accelerator.

The secrecy seems to lie in Team Red's negotiation strategies in Taiwan—the news piece alleges that big manufacturers in the region have been courted. AMD has been aggressive in a push to: "cooperate and seize AI business opportunities, with GIGABYTE taking the lead and attracting the most attention. Not only was GIGABYTE the first to obtain a partnership with AMD's MI300A chip, which had previously been mass-produced, but GIGABYTE was also one of the few Taiwanese manufacturers included in AMD's first batch of MI300X partners." GIGABYTE is expected to release two new "G593" product lines of server hardware later this year, based on combinations of AMD's Instinct MI300X accelerator and EPYC 9004 series processors.

A DigiTimes Asia report posits that TSMC is preparing another VVIP foundry lane for Apple Inc.—insiders claim that the Taiwanese foundry giant is in the process of expanding production capacity into next generation 2 nm nanometer fields. This expensive and time consuming endeavor is only made possible with the reassurance of big customers being added to the foundry's order books. TSMC's 2 nm-class N2, N2P, and N2X process technologies are due in 2025 and beyond (according to recent presentation slides)—these advanced packages are set to drop with all sorts of innovations: nanosheet gate-all-around (GAA) transistors, backside power delivery, and super-high-performance metal-insulator-metal (SHPMIM). According to a DigiTimes source "Apple is widely believed to be the initial client to utilize the (next-gen) process."

Apple and NVIDIA were reported to be ahead of many important clients in the queue for TSMC's 3 nm process nodes, so it is not surprising to see old patterns repeat (according to industry rumors) again. Apple is expected to update its next generation iPhones, iPad, and Mac laptop product lines with more advanced Bionic and M-series chipsets in 2025. Last year's roster included a rollout of 3 nm TSMC silicon across Apple A17 Pro and M3 ARM-based processors.

Intel Corp. and United Microelectronics Corporation ("UMC"), a leading global semiconductor foundry, today announced that they will collaborate on the development of a 12-nanometer semiconductor process platform to address high-growth markets such as mobile, communication infrastructure and networking. The long-term agreement brings together Intel's at-scale U.S. manufacturing capacity and UMC's extensive foundry experience on mature nodes to enable an expanded process portfolio. It also offers global customers greater choice in their sourcing decisions with access to a more geographically diversified and resilient supply chain.

"Taiwan has been a critical part of the Asian and global semiconductor and broader technology ecosystem for decades, and Intel is committed to collaborating with innovative companies in Taiwan, such as UMC, to help better serve global customers," said Stuart Pann, Intel senior vice president and general manager of Intel Foundry Services (IFS). "Intel's strategic collaboration with UMC further demonstrates our commitment to delivering technology and manufacturing innovation across the global semiconductor supply chain and is another important step toward our goal of becoming the world's second-largest foundry by 2030."

With computation potential far beyond current supercomputers, quantum computers are the subject of enthusiastic research and development worldwide. In 2023, Academia Sinica successfully overcame various bottlenecks in the fabrication, control, and measurement of quantum chips. In October, the creation of a 5-qubit superconducting quantum computer developed in Taiwan marked a significant milestone. Starting this week, it will be made available online to project collaborators.

Dr. Chii Dong Chen, Distinguished Research Fellow at Academia Sinica's Institute of Physics and Research Center for Applied Sciences, noted that this project is part of the quantum technology special project funded by the National Science and Technology Council. Initially scheduled to build a 3-qubit quantum computer by February of 2024, Academia Sinica's research team surpassed the development schedule approved by the National Science and Technology Council and built a 5-qubit system by October of 2023. The fidelity of the quantum bit logic gates reached an impressive 99.9%.

NVIDIA's intrepid CEO, Jensen Huang, has spent a fair chunk of January travelling around China—news outlets believe that Team Green's leader has conducted business meetings with very important clients in the region. Insiders proposed that his low-profile business trip included visits to NVIDIA operations in Shenzhen, Shanghai and Beijing. The latest updates allege that a stopover in Taiwan was also planned, following the conclusion of Mainland activities. Photos from an NVIDIA Chinese new year celebratory event have been spreading across the internet lately—many were surprised to see Huang appear on-stage in Shanghai and quickly dispense with his trademark black leather jacket. He swapped into a colorful "Year of the Wood Dragon" sleeveless shirt for a traditional dance routine.

It was not all fun and games during Huang's first trip to China in four years—inside sources have informed the Wall Street Journey about growing unrest within the nation's top ranked Cloud AI tech firms. Anonymous informants allege that leadership, at Alibaba Group and Tencent, are not happy with NVIDIA's selection of compromised enterprise GPUs—it is posited that NVIDIA's President has spent time convincing key clients to not adopt natively-developed solutions (unaffected by US Sanctions). The short hop over to Taiwan is reported not to be for R&R purposes—insiders had Huang's visiting key supply partners; TSMC and Wistron. Industry experts think that these meetings are linked to NVIDIA's upcoming "Blackwell" B100 AI GPU, and "supercharged" H200 "Hopper" accelerator. It is too early for the rumor mill to start speculation about nerfed versions of NVIDIA's 2024 enterprise products reaching Chinese shores, but Jensen Huang is seemingly ready to hold diplomatic talks with all sides.

News reports from Asia point to an ongoing price battle between major chip foundries in the region—sluggish market conditions in 2023 have caused the big industry names to adjust charges, in concerted efforts to retain customers. This situation has escalated in early 2024—news media outlets claim that mainland China-situated factories have plenty of new production capacity, and are therefore eager to get their order books filled. The reports point to: "Semiconductor Manufacturing International Corporation (SMIC), Hua Hong Semiconductor and Jinghe Semiconductor lowering the price of tape-out services to chip design companies in Taiwan." Industry insiders believe that several Taiwanese IC designers have jumped onto better deals, as offered by Chinese facilities—it is alleged that Samsung, GlobalFoundries, UMC and Powerchip have all experienced a worrying increase in customer cancellations (at the tail end of 2023). The loss of long-term clients has forced manufacturers—in South Korea and Taiwan—into a price war.

TrendForce's analysis of market trends stated: "Due to the mature manufacturing processes in China, unaffected by US export restrictions, the lowered wafer fabrication costs have become attractive to Taiwanese IC design companies seeking to enhance their cost competitiveness. Reports also indicate that this competitive pressure has forced Taiwan's foundries, UMC and PSMC, to follow suit by reducing their prices. UMC has lowered its 12-inch wafer foundry services by an average of 10-15%, while its 8-inch wafer services have seen an average price reduction of 20%. These price adjustments took effect in the fourth quarter of 2023." Samsung is reportedly slashing prices by ~10-15%, and is expressing a "willingness to negotiate" with key clients in early 2024. Reports state this is a major change in attitude for the South Korean chip giant—allegedly, leadership was unwilling to budge on 2023 tape-out costs. TrendForce reckons that TSMC's response was a bit quicker: "(having) already initiated pricing concessions last year, mainly related to mask costs rather than wafer fabrication. It was reported that these concessions primarily applied to the 7 nm process and were dependent on order volumes."

Global semiconductor capacity is expected to increase 6.4% in 2024 to top the 30 million *wafers per month (wpm) mark for the first time after rising 5.5% to 29.6 wpm in 2023, SEMI announced today in its latest quarterly World Fab Forecast report.

The 2024 growth will be driven by capacity increases in leading-edge logic and foundry, applications including generative AI and high-performance computing (HPC), and the recovery in end-demand for chips. The capacity expansion slowed in 2023 due to softening semiconductor market demand and the resulting inventory correction.

Intel is expanding immersion cooling collaborations with Taiwanese partners to strengthen its data center offerings for AI workloads. This includes developing an industry-first open IP complete immersion cooling solution and reference design. Partners like Kenmec and Auras Technology will be key in implementing Intel's advanced cooling roadmap. Intel is also cooperating with Taiwan's Industrial Research Institute on a new lab for certifying high-performance computing cooling technologies to international standards. With local ecosystem partners, Intel aims to accelerate next-generation cooling solutions for Taiwanese and global data centers. Advanced cooling allows packing more performance into constrained data center footprints, which is critical for AI's rapid growth. Intel touts a superfluid-based modular cooling system achieving 1500 Watts+ heat dissipation for high-density deployments.

Meanwhile, Kenmec offers a range of liquid cooling products, from Coolant Distribution Units (CDU) to customized Open Rack version 3 (ORv3) water cooling cabinets, with solutions already Intel-certified. Intel wants to solidify its infrastructure leadership as AI workloads surge by fostering an open, collaborative ecosystem around optimized cooling technologies. While progressing cutting-edge immersion and liquid cooling hardware, cultivating shared validation frameworks and best practices ensures broad adoption. With AI-focused data centers demanding ever-greater density, power efficiency, and reliability, cooling can no longer be an afterthought. Intel's substantial investments in a robust cooling ecosystem highlight it as a priority right alongside silicon advances. By lifting up Taiwanese partners as strategic cooling co-innovators, Intel aims to cement future competitiveness.

The recent attacks on cargo ships in the Red Sea are affecting not only oil shipments, but also cargo ships from Asia to Europe. All major carriers such as CMA CGM, Cosco, Evergreen, Hapag-Lloyd, Maersk, MSC and so forth are affected and all have delayed their shipments through the area. A coordinated security action called Operations Prosperity Guardian which includes over half a dozen nations so far, is getting ready to guide shipments through the affected area by Yemen, but it'll lead to slower shipments through the area.

TechPowerUp has already received reports from sources in Taiwan that their products are on some of these ships that are now stuck waiting for naval escorts through the area. However, it appears that there might be shortages of some computer components for the foreseeable future, alongside many other products that are being shipped this route and onwards via the Suez Canal. According to the BBC, it takes 25.5 days on average to ship goods from Taiwan to the Netherlands via the Red Sea and Suez Canal whereas the only alternative route via the Cape of Good Hope takes 34 days and adds extra fuel costs. Regardless of the extra shipping times and costs, it appears some shipping companies are willing to take the longer route to avoid being attacked. This is likely to have a knock on effect on prices for a lot of consumer goods in Europe, so if you haven't bought that hardware you've been holding off getting, now might be as good a time as any.

The Ryzen 7040 Series processor in Framework Laptop 16 is capable of running at a sustained 45 W TDP (Thermal Design Power) and we put together an excellent thermal solution to ensure it can do that while keeping CPU temperature, touch temperatures, and fan noise to a minimum. That 45 watts of CPU power needs to be efficiently conducted into the vapor chamber, heatpipes, and fins to be carried away through airflow from the fans.

Since neither the CPU die nor the vapor chamber surface are perfectly flat, a thermal interface material is needed to fill in gaps to avoid comparatively insulative air taking up that space. Traditionally, most computers use a thermal grease that has thermally conductive particles suspended in silicone. This works reasonably well, but the silicone itself isn't especially thermally conductive, and the paste can pump out or dry out over time, making it less effective.

Microsoft is preparing a big update for its Windows operating system. Currently at version 11, the company is gearing up for the launch of Windows 12, which is supposed to bring a monumental shift in the tectonic plates of the regular PC user experience. Enhanced by AI, the Windows 12 OS should utilize many features like generative AI, large language models, some GPT integration, and many other tools that could benefit AI, like photo editors. The confirmation for the Windows 12 launch coming in 2024 is sourced from the Taiwanese Commercial Times, which analyzed comments from Barry Lam, the founder and chairman of PC contract manufacturer Quanta, and Junsheng (Jason) Chen, the chairman and chief executive of Acer.

Both of them underscored the importance of AI and that AI PCs are coming with the next version of Windows. Supposedly, the launch date for Windows 12 is set for June 2024. In that timeframe, hardware vendors should roll out their SoCs embedding AI processing elements at every silicon block. Qualcomm is set to debut its Snapdragon Elite X SoCs in mid-2024, aligning with the alleged release schedule of Windows 12. With more players like NVIDIA, AMD, and others planning to utilize an Arm instruction set for their next-generation PC chips, we expect to see Windows 12 get full-fledged support for Arm ISA and treat it like a first-class citizen in the OS.

TrendForce investigations reveal a significant leap in the DRAM industry for 3Q23, with total revenues soaring to US$13.48 billion—marking 18% QoQ growth. This surge is attributed to a gradual resurgence in demand, prompting buyers to re-energize their procurement activities. Looking ahead to Q4, while suppliers are firmly set on price hikes, with DRAM contract prices expected to rise by approximately 13-18%, demand recovery will not be as robust as in previous peak seasons. Overall, while there is demand for stockpiling, procurement for the server sector remains tentative due to high inventory levels, suggesting limited growth in DRAM industry shipments for Q4.

Three major manufacturers witnessed Q3 revenue growth. Samsung's revenue increased by about 15.9% to US$5.25 billion thanks to stable demand for high-capacity products fueled by AI advancements and the rollout of its 1alpha nm DDR5. SK hynix showcased the most notable growth among manufacturers with a 34.4% increase, reaching about US$4.626 billion and significantly narrowing its market share gap with Samsung to less than 5%. Micron's revenue rose by approximately 4.2% to US$3.075 billion—despite a slight drop in ASP—supported by an upswing in demand and shipment volumes.

Pierre Ferragu, the Global Technology Infrastructure chief at New Street Research, has predicted a very positive 2025 financial outcome for Taiwan Semiconductor Manufacturing Company Limited (TSMC). A global slowdown in consumer purchasing of personal computers and smartphones has affected a number of companies including the likes of NVIDIA and AMD—their financial reports have projected a 10% annual revenue drop for 2023. TSMC has similarly forecast that its full year revenue for 2023 will settle at $68.31 billion, after an approximate 10% fall. Ferragu did not contest these figures—via his team's analysis—TSMC is expected to pull in $68 billion in net sales for this financial year.

The rumor mill has TSMC revising its revenue guidance for a third time this year—but company leadership has denied that this will occur. New Street Research estimates that conditions will improve next year, with an uptick in client orders placed at TSMC's foundries. Ferragu reckons that TSMC could hit an all-time revenue high of $100 billion by 2025. His hunch is based on the upcoming spending habits of VIP foundry patrons encompassing: "a bottom-up perspective, looking at how TSMC's top customers, which we all know very well, will contribute to such growth." The Taiwanese foundry's order books are reported to be filling up for next year, with Apple and NVIDIA seizing the moment to stand firmly at the front of the 3 nm process queue.

Fueled by an AI-driven inventory stocking frenzy across the supply chain, TrendForce reveals that Q2 revenue for the top 10 global IC design powerhouses soared to US $38.1 billion, marking a 12.5% quarterly increase. In this rising tide, NVIDIA seized the crown, officially dethroning Qualcomm as the world's premier IC design house, while the remainder of the leaderboard remained stable.

AI charges ahead, buoying IC design performance amid a seasonal stocking slump
NVIDIA is reaping the rewards of a global transformation. Bolstered by the global demand from CSPs, internet behemoths, and enterprises diving into generative AI and large language models, NVIDIA's data center revenue skyrocketed by a whopping 105%. A deluge of shipments, including the likes of their advanced Hopper and Ampere architecture HGX systems and the high-performing InfinBand, played a pivotal role. Beyond that, both gaming and professional visualization sectors thrived under the allure of fresh product launches. Clocking a Q2 revenue of US$11.33 billion (a 68.3% surge), NVIDIA has vaulted over both Qualcomm and Broadcom to seize the IC design throne.

The introduction of Generative AI (GAI) has significantly increased the demand for advanced semiconductor chips, drawing increased attention to the development of complex calculations for large-scale AI models and high-speed transmission interfaces. To assist the industry in grasping the key to high-end semiconductor manufacturing and integration capabilities, the Heterogeneous Integrated Chiplet System Package (Hi-CHIP) Alliance brings together leading semiconductor companies from Taiwan and around the world to provide comprehensive services, spanning from packaging design, testing and verification, to pilot production. Since its establishment in 2021, the alliance has accumulated important industry players as its members, including EVG, Kulicke and Soffa (K&S), USI, Raytek Semiconductor, Unimicron, DuPont, and Brewer Science. Looking forward, the alliance is set to actively explore its global market potential.

Dr. Shih-Chieh Chang, General Director of Electronic and Optoelectronic System Research Laboratories at ITRI and Chairman of the Hi-CHIP Alliance, indicated that advanced manufacturing processes have led to a considerable increase in IC design cycles and costs. Multi-dimensional chip design and heterogeneous integrated packaging architecture are key tools to tackle this demand in semiconductors. On top of that, the advent of GAI such as ChatGPT, which demands substantial computing power and transmission speed, requires even higher levels of integration capacity in chip manufacturing. ITRI has been committed to developing manufacturing technologies and upgrading materials and equipment to enhance heterogeneous integration technologies. Achievements include the fan-out wafer level packaging (FOWLP), 2.5 and 3D chips, embedded interposer connections (EIC), and programmable packages. With both local and foreign semiconductor manufacturer members, the Hi-CHIP Alliance is establishing an advanced packaging process production line to provide an integrated one-stop service platform.