Taiwan Semiconductor Manufacturing Company (TSMC) has planned to build two fabs in Kumamoto Prefecture, Japan. Kumamoto’s newly appointed governor, Takashi Kimura, who took office in April, stated in an report from Bloomberg on May 11th that he would spare no effort to persuade TSMC to establish a third fab in the region. He has already proposed a visit to TSMC’s headquarters in Taiwan this summer to discuss related matters, aiming to transform Kumamoto into a semiconductor hub.

TSMC has not responded to this matter. While TSMC’s third fab in Kumamoto, as mentioned by Governor Kimura, has not materialized yet, and TSMC has not officially announced it, Bloomberg previously reported that TSMC is considering building a third fab in Japan, which would also be located in Kumamoto and produce more advanced chips.

Regarding the rumored TSMC Kumamoto Fab 3, Takashi Kimura stated, “We are prepared to give our full support.” He expressed his hope to attract numerous semiconductor-related enterprises and research institutions to Kumamoto, aiming to establish an industrial cluster similar to Taiwan’s Hsinchu Science Park. He also hopes Kumamoto will become a birthplace for various industries stemming from semiconductors, including AI, data centers, and autonomous driving technologies.

Kimura believes that during the preparations for TSMC’s first fab in Kumamoto, the region already possesses better-quality road and water infrastructure and an education system that better supports international school students, which could be advantageous.

TSMC’s Kumamoto Fab 1, a joint investment between TSMC, Sony Semiconductor Solutions Corporation, and Denso Corporation, was inaugurated in February. TSMC stated in an earlier press release that in response to customer demand, construction of the second JASM (TSMC’s majority-owned manufacturing subsidiary in Kumamoto Prefecture) fab is slated to begin by the end of 2024. The expansion of production capacity is also expected to optimize the overall cost structure and supply chain efficiency of JASM, with operations starting by the end of 2027.

In the future, the two fabs under JASM will enable a total monthly production capacity of over 100,000 12-inch wafers, providing 40-nanometer, 22/28-nanometer, 12/16-nanometer, and 6/7-nanometer processes for automotive, industrial, consumer, and high-performance computing (HPC) applications.

Capacity planning may be adjusted according to customer demand, with the Kumamoto fab directly creating a total of over 3,400 high-tech job opportunities. Through the investment, TSMC, Sony Semiconductor, Denso Corporation, and Toyota Motor Corporation hold approximately 86.5%, 6.0%, 5.5%, and 2.0% of the JASM shares, respectively.

The Kyushu Economic Research Association estimates that these fabs will contribute JPY 10.5 trillion (USD 67.4 billion) to the economy of Kumamoto Prefecture over the next decade.

Read more

• [News] Latest Overview on TSMC’s Global Expansion Initiatives
• [News] Rumored to Build Third Plant in Kumamoto, TSMC: Currently Focusing on Assessing the Construction of a Second Plant

(Photo credit: TSMC)

At its 2022 Tech Day, Samsung revealed the target to release advanced NAND chips with over 1000 layers by 2030. According to Wccftech, the South Korean memory giant now seems to get closer to the ambitious goal, as it plans to apply new ferroelectric” materials on the manufacturing of NAND.

At the latest VLSI Technology Symposium held in Honolulu, a doctoral student from the Electrical Engineering Department at the Korea Advanced Institute of Science and Technology (KAIST) shared how “hafnia ferroelectrics” may serve as a key enabler for low voltage & QLC 3D VNAND beyond 1K layer experimental demonstration and modeling, of which the interaction between charge trapping in the metal band and the ferroelectric switching effect could maximize the ‘positive feedback’ of dual effects, enable low operating voltage, a wide range of storage window, and negligible disturbance at a bias voltage of 9 V.

Though Samsung is not directly involved in the R&D process, according to Wccftech, the researchers are said to be directly linked to the company.

The news follows Samsung’s official announcement in April, confirming that it has begun mass production for its one-terabit (Tb) triple-level cell (TLC) 9th-generation vertical NAND (V-NAND), boasted to improve the bit density by about 50% compared to the 8th-generation V-NAND, with the number of layers reaching 290, according a report by The Korea Economic Daily.

Industry sources cited by the report also revealed that Samsung’s future tenth-generation V-NAND is expected to reach 430 layers, which is scheduled to be released next year. Now the NAND ceiling may be able to hit 1000 layers, if the new ferroelectric materials work out fine.

Before Samsung, major storage giants such as Micron and SK Hynix had already surpassed the 200-layer milestone. Micron reached 232 layers with a storage density of 19.5Gb per square millimeter, while SK Hynix achieved 238 layers with a storage density of 14.4Gb per square millimeter. In early May, South Korea’s media outlet TheElec also revealed that SK Hynix has been exploring the potential of manufacturing 3D NAND at ultra-low temperatures, which may enable the company to produce its new-generation product with over 400 layers, with the help of Tokyo Electron (TEL).

(Photo credit: Samsung)

The South Korean government is said to be planning to introduce a comprehensive chip investment and research support plan, surpassing KRW 10 trillion (roughly USD 7.3 billion) in scale, to enhance its position in the critical semiconductor industry, as per a report from Economic Daily News.

According to a statement released by the South Korean Ministry of Planning and Finance on May 12th, Minister Choi Sang-mok stated during a meeting with local chip material, component, and equipment manufacturers that Seoul authorities are preparing a support scheme exceeding KRW 10 trillion in scale to aid all areas of the chip industry, including fabless semiconductor companies, chip materials, manufacturing equipment, etc., with details of this plan set to be announced shortly.

This plan may involve policy financing from the Korea Development Bank and the establishment of new funds through collaboration between state-owned and private financial institutions.

Given that large corporations like Samsung Electronics and SK Hynix already possess substantial resources, the South Korean government’s plan aims to support investments in small and medium-sized enterprises and in the backend process sector. This support will extend to investments in materials, components, equipment, chip design, and packaging processes to nurture the semiconductor ecosystem evenly.

Previously, South Korea announced the development of a large-scale chip cluster in the southern city of Yongin, with a total investment of USD 470 billion, looking to become the world’s largest semiconductor high-tech park.

As the United States and Japan continue to launch subsidy battles to attract semiconductor manufacturers to their respective countries, South Korea is also preparing a response plan.

The US government previously approved subsidies of up to USD 8.5 billion for US chip giant Intel and USD 6.6 billion for TSMC from CHIPs Act to alleviate future semiconductor supply constraints. The US government also announced on April 15th that it will provide up to USD 6.4 billion in subsidies to South Korean semiconductor giant Samsung Electronics for expanding advanced chip production capacity at its Texas plant.

In comparison, figures submitted by a subcommittee under Japan’s Ministry of Finance’s Fiscal System Council show that Japan will invest JPY 3.9 trillion (approximately USD 25.7 billion) over the next three years, equivalent to 0.71% of its GDP.

Read more

• [News] Samsung Receives USD 6.4 Billion Subsidy from US Government, Less than Intel and TSMC
• [News] Nikkei Highlights Japan’s Chip Subsidies Exceeding GDP Ratio of US, Germany, and France

(Photo credit: Samsung)

As a strategic technology empowering a new round of technological revolution and industrial transformation, AI has become one of the key driving forces for the development of new industrialization. Fueled by the ChatGPT craze, AI and its applications are rapidly gaining traction worldwide. From an industrial perspective, NVIDIA currently holds almost absolute dominance in the AI chip market.

Meanwhile, major tech companies such as Google, Microsoft, and Apple are actively joining the competition, scrambling to seize the opportunity. Meta, Google, Intel, and Apple have launched the latest AI chips in hopes of reducing reliance on companies like NVIDIA. Microsoft and Samsung have also reportedly made investment plans for AI development.

• Microsoft Announced an Investment Plan of over USD 11 Billion

Recently, according to multiple global media reports, Microsoft is developing a new AI mega-model called MAI-1. This model far exceeds some of Microsoft’s previously released open-source models in scale and is expected to rival well-known large models like Google’s Gemini 1.5, Anthropic’s Claude 3, and OpenAI’s GPT-4 in terms of performance. Reports suggest that Microsoft may demonstrate MAI-1 at the upcoming Build developer conference.

In response to the growing demand for AI computing, Microsoft recently announced a plan to invest billions of dollars in building AI infrastructure in Wisconsin. Microsoft stated that this move will create 2,300 construction jobs, and could contribute to up to 2,000 data center jobs when completing construction.

Furthermore, Microsoft will establish a new AI lab at the University of Wisconsin-Milwaukee to provide AI technology training.

Microsoft’s investment plan in the US involves an amount of USD 3.3 billion, which plus its investments previously announced in Japan, Indonesia, Malaysia and Thailand amount to over USD 11 billion in reference to AI-related field.

Microsoft’s recent announcements shows that it plans to invest USD 2.9 billion over the next two years to enhance its cloud computing and AI infrastructure in Japan, USD 1.7 billion within the next four years to expand cloud services and AI in Indonesia, including building data centers, USD 2.2 billion over the next four years in Malaysia in cloud computing and AI, and USD 1 billion to set up the first data center in Thailand, dedicated to providing AI skills training for over 100,000 people.

• Apple Reportedly Developing in-House AI Chip for Data Center

Apple has also unveiled its first AI chip, M4. Apple introduced that the neural engine in M4 chip is the most powerful one the company has ever developed, outstripping any neural processing unit in current AI PCs. Apple further emphasized that it will “break new ground” in generative AI this year, bringing transformative opportunities to users.

According to a report from The Wall Street Journal, Apple has been working on its own chips designed to run AI software on data center servers. Sources cited in the report revealed that the internal codename for the server chip project is ACDC (Apple Chips in Data Center). The report indicates that the ACDC project has been underway for several years, but it’s currently uncertain whether this new chip will be commissioned and when it might hit the market.

Tech journalist Mark Gurman also suggests that Apple will introduce AI capabilities in the cloud this year using its proprietary chips. Gurman’s sources indicate that Apple intends to deploy high-end chips (Similar to those designed for Mac) in cloud computing servers to handle cutting-edge AI tasks on Apple devices. Simpler AI-related functions will continue to be processed directly by chips embedded in iPhone, iPad, and Mac devices.

• Samsung might Start Pilot production for AI Inference Chip Mach-1

As per industry sources cited by South Korean media outlet ZDNet Korea, Samsung Electronics’ AI inference chip, Mach-1, is set to begin prototype production using a multi-project wafer (MPW) approach and is expected to be based on Samsung’s in-house 4nm process.

Previously at a shareholder meeting, Samsung revealed its plan to launch a self-made AI accelerator chip, Mach-1, in early 2025. As a critical step in Samsung’s AI development strategy, Mach-1 chip is an AI inference accelerator built on application-specific integrated circuit (ASIC) design and equipped with LPDDR memory, making it particularly suitable for edge computing applications.

Kyung Kye-hyun, head of Samsung Electronics’ DS (Semiconductor) division, stated that the development goal of this chip is to reduce the data bottleneck between off-chip memory and computing chips to 1/8 through algorithms, while also achieving an eight-fold improvement in efficiency. He noted that Mach-1 chip design has gained the verification of field-programmable gate array (FPGA) technology and is currently in the physical implementation stage of system-on-chip (SoC), which is expected to be ready in late 2024, with a Mach-1 chip-driven AI system to be launched in early 2025.

In addition to developing AI chip Mach-1, Samsung has established a dedicated research lab in Silicon Valley focusing on general artificial intelligence (AGI) research. The intention is to develop new processors and memory technologies capable of meeting future AGI system processing requirements.

Read more

• [News] Microsoft to Build AI Data Center at Former Foxconn Planned Panel Plant Site in Wisconsin
• [News] Apple Allegedly Developing AI Processor for Data Centers, with TSMC as Its Foundry Partner

(Photo credit: Pixabay)

Looking at next-generation networks, a range of emerging technologies are playing pivotal roles. From ground-based B5G (Beyond 5G)/6G, Wi-Fi 7, and fixed wireless access (FWA), to non-terrestrial networks (NTNs) like low-orbit satellites, Taiwan-based companies are actively involved in shaping these developments. Going forward, the telecom sector is poised to see the integration of a new generation of terrestrial networks and satellite communication systems. This will ensure seamless wireless coverage across land, sea, and air. With Taiwan’s robust ICT industry playing a vital role, the forthcoming era of AI-enabled smart network promises boundless possibilities.

Involved in Establishing Industry Standards from the Beginning, Taiwan-Based Companies Have a Head Start in the Race for the 6G Technology

As new equipment for next-generation networks is being introduced to the market, the telecom sector widely anticipates that 2023 will herald the arrival of the 6G era. Many companies involved in this sector have also initiated their own 6G deployment strategies ahead of time. The scale of the 6G market is forecasted to exceed USD 40 billion in 2030, and the corresponding CAGR from 2023 to 2030 is projected to be 34.2%.

B5G/6G builds on the foundation of three major characteristics and usage scenarios of 5G: enhanced mobile broadband (eMMB), ultra-reliable low-latency communication (uRLLC), and massive machine-type communication (mMTC). Compared with 5G, B5G/6G promises communication speeds 10 to 100 times faster than 5G, with peak speeds reaching up to 1Tbps. Its latency is set to be just one-tenth of 5G, and its device connectivity is greater than that of 5G by 10 times. “The ITU-R Framework for IMT-2030” released by the Radio Communication Sector of the International Telecommunication Union (ITU-R) in June 2023, outlined three emerging usage scenarios for 6G: integration of sensing and communication, integration of AI and communication, and ubiquitous connectivity.

Analysts at TrendForce state that apart from having higher speed and lower latency, another prominent feature of 6G is its support for terahertz communication. This means that 6G will encompass not only existing ground-based networks as in previous generations but also low Earth orbit (LEO) satellites. Such integration will provide even more comprehensive network coverage. Moreover, 6G is closely intertwined with advanced sensing and AI functionalities, allowing for unprecedented optimization in end-to-end network performance, power consumption, and AI-enabled applications.

Unlike 5G, which mainly operates in the millimeter-wave frequency range (i.e., 24~71GHz), B5G/6G is going to bring about a significant advancement of utilizing higher-frequency millimeter-wave (mmWave) bands (i.e., 71~92GHz) and sub-terahertz (sub-THz) bands (i.e., 92~300GHz). It should be noted that terahertz bands (300GHz~3THz) are not a major focus in the development of 6G at the current stage.

In June 2023, 3GPP held its 100th member meeting in Taiwan, and local ICT companies that attended this event include MediaTek, Chunghwa Telecom, Foxconn, ASUS, Taiwan Mobile, Far EasTone, HTC, Quanta, Pegatron, Auden Techno, Rapidtek, and Askey Computer. Together, 3GPP and Taiwan-based companies are driving the advancement of 6G, and this collaboration will help Taiwan secure an influential position in the global telecom sector with respect to the development and market deployment of critical technologies.

With 2030 anticipated to be the inaugural year for 6G, many leading ICT companies have formulated forward-looking strategies. At this year’s Mobile World Congress (MWC 2024), Qualcomm unveiled the world’s first prototype of Giga-MIMO antennas designed to operate in the 13GHz band, thereby meeting the higher capacity needs of the upcoming 6G era.

Recently, South Korea’s SK Telecom has partnered with Intel to develop “Inline Service Mesh,” capable of reducing latency in 6G backbone networks by 70% and boosting service efficiency by 33%. SK Telecom has also joined forces with Nokia and NTT Docomo to expand the scope of testing and validation for “6G AI-Native Air Interface (AI-AI),” which can contribute to further improvements in the performance and energy efficiency of networks.

With a World-class ICT Industry, Taiwan Occupies a Crucial Position in the Supply Chain for FWA-related Products

With the easing of the COVID-19 pandemic, many governments around the world are rolling out broadband subsidy schemes to address the issue of the digital divide. In addition to optical fiber infrastructure, FWA is also expected to play a vital role in rapidly expanding broadband access as it can provide fixed network services through mobile networks. FWA has the advantages of being highly cost-effective and eliminating the deployment of cables. Therefore, it offers the greatest benefit for remote rural communities where network connection costs are high, as well as countries with low broadband penetration rates.

Presently, the US is leading the adoption of FWA, followed by Europe. Since many countries have strict regulations concerning the preservation of historical buildings and other kinds of landmarks, local telecom companies have to devise network deployment methods that do not damage or modify building structures or local environments. Moreover, emerging countries, too, are actively investing in the build-out of FWA infrastructure. Examples include the Philippines, India, Vietnam, Indonesia, Mexico, South Africa, and countries in the Middle East.

TrendForce estimates that the shipment volume of 5G FWA equipment reached approximately 7.6 million units in 2022, marking a 111% year-on-year increase. The projected shipment volumes for 2023, 2024, and 2025 are 13 million units, 18 million units, and 22.5 million units respectively, with the corresponding year-on-year growth rates coming to 71%, 38%, and 25%. Additionally, research from Ericsson indicates that by the end of 2021, the number of FWA connections was nearly 90 million. This figure is expected to triple to around 230 million by 2027.

Taiwan has emerged as a global supply hub for FWA-related products, boasting the world’s most comprehensive and technologically mature industry chain for networking equipment, optical fiber communication equipment, and semiconductor components. Examples of notable suppliers for telecommunication equipment include Sercomm, Alpha Networks, ZYXEL, Gemtek, WNC, Askey Computer, Arcadyan, and Hitron Technologies. As for Taiwan-based suppliers for products related to fiber optic communication, they include Landmark Optoelectronics, PCL-KY, Apogee, Truelight, and Luxnet. Turning to suppliers for semiconductor components purposed for networking applications, Taiwan’s MediaTek has long been a major player. Altogether, these companies are expected to sustain impressive performance.

Local Team Is Being Formed for the Development of LEO Satellites

The Russia-Ukraine military conflict, now entering its third year, has highlighted SpaceX’s Starlink as a critical communication technology, sustaining uninterrupted communication links among various units of the Ukrainian armed forces. The conflict has greatly bolstered the reputation of Starlink and reignited the world’s interest in LEO satellites. As early as May 21st, 2021, Taiwan’s Executive Yuan approved a plan to promote the development of the “six core strategic industries,” including the aerospace sector. The plan prioritizes the development of LEO satellites and related ground equipment. Now, Taiwan’s government has provided additional funding of over TWD 40 billion into the field of LEO satellites. Specifically, the government supports the manufacturing of satellites, establishment of a local launch site, and cultivation of industry professionals.

During the 2023 Taipei Aerospace & Defense Technology Exhibition, Wu Jong-shinn, Director General of the Taiwan Space Agency (TASA), announced that Taiwan had initiated its program for the development of orbital launch vehicles. The program aims to launch a 200-kilogram satellite into low Earth orbit by 2023, at altitudes ranging from 500 to 2,000 kilometers above the Earth’s surface. Moreover, TASA plans to launch Taiwan’s first LEO satellite to support the B5G network in 2026. TRITON (FORMOSAT-7R), Taiwan’s first satellite with 83% of its parts locally sourced, was successfully launched in October 2023. This event represents an important milestone in the development of Taiwan’s aerospace sector and the related supply chain.

The introduction of LEO satellite communication into the consumer market can be traced back to February 2023 when MediaTek showcased the world’s first 5G satellite communication smartphone at MWC. Additionally, Huawei’s Mate 60 and Apple’s iPhone 14 and Apple Watch Series 8, released in the same year, all feature support for satellite communication. However, the related functionality is limited to either sending emergency messages or SOS emergency services. Nevertheless, AST SpaceMobile subsequently launched the BlueWalker 3 in September 2023, thereby establishing the world’s first “direct-to-cell” mobile broadband network. With the integration of terrestrial and non-terrestrial communication technologies under 6G, people will be able to access internet connection everywhere.

Taiwan Is Building the Most Competitive Industry Chain for Wi-Fi 7 so as to Seize Future Demand

Currently, Wi-Fi 6/6E still dominates the wireless network market. However, with the Wi-Fi Alliance releasing Wi-Fi CERTIFIED 7, MediaTek has established a coalition for the creation of a related testing and certification platform. Specifically, MediaTek is assisting its partners such as ASUS, BUFFALO, Hisense, Lenovo, TCL, TP-Link, and others in launching various kinds of devices that support the Wi-Fi 7 standard.

The market outlook for Wi-Fi 7 is bright as this new standard brings significant improvements in terms of transmission speed and latency reduction. Apart from being 4.8 times faster than Wi-Fi 6/6E, Wi-Fi 7 has important new features such as multi-link operation (MLO) and multi-resource units that meet the performance demands from various services and applications (i.e., “ultra” with respect to high transmission speed, low latency, and high reliability). Moreover, compared to upgrades between previous generations, there is strong confidence within the market that Wi-Fi 7 will rapidly attain widespread adoption and a higher penetration rate.

In the market for Wi-Fi chips, competition for dominance in the Wi-Fi 7 segment has been heating up since Qualcomm launched the FastConnect 7800, the world’s first Wi-Fi 7 chip, in February 2022. While many chip suppliers are still developing the first generation of Wi-Fi 7 chips, market leader Broadcom sought to outdistance its competitors by launching its second-generation Wi-Fi solutions in June 2023. Broadcom’s second-generation Wi-Fi 7 APs include the BCM6765 for residential networking equipment and the BCM47722 for commercial networking equipment.

Following suit, Qualcomm also unveiled its second-generation Wi-Fi 7 chip, the FastConnect 7900, on February 26th of this year. Designed for smartphones, the FastConnect 7900 is the industry’s first solution with a built-in AI engine and is scheduled to hit the market in the second half of this year. Meanwhile, Intel has introduced the BE200, a Wi-Fi 7 module designed for integration with the motherboard of a desktop or laptop PC. Currently, wireless networking cards with the BE200 are now available for purchase.

Moreover, various kinds of products and components containing Realtek’s Wi-Fi chips have been released into the market as well. They include Acer’s laptops, Azure Wave’s wireless modules, RichWave’s RF ICs, VPEC’s power amplifier, and networking equipment from WNC, Sercomm, and Senao Networks. Shipments of these end products have been gradually ramping up. All in all, with a plethora of new products hitting the market, 2024 can be regarded as the inaugural year for Wi-Fi 7.

TrendForce’s research indicates that after a downturn in 2023, the global market for Wi-Fi chips is projected to reach USD 20.9 billion in 2024, with a year-on-year growth rate of 6.1%. The market is expected to expand further to USD 21.9 billion in 2025, with a year-on-year growth rate of 4.8%. Regarding the market penetration of Wi-Fi 7, devices adhering to this standard accounted for just 1% of total shipments worldwide in 2023. By 2024, this share is expected to increase to 8%; and by 2025, it is forecasted to grow to 18%. According to Wi-Fi Alliance projections, the number of devices with Wi-Fi 7 will surpass 233 million in 2024; and by 2028, the total number of Wi-Fi 7 products across all categories will surpass 2.1 billion.

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(Photo credit: Sercomm)