Development

The rise of 8-Inch SiC wafers

Recent developments in 8-inch silicon carbide (SiC) technology mark a significant transformation in the semiconductor sector, especially for power electronics. Japan’s NGK Insulators has successfully created 8-inch SiC wafers, which will be showcased at ICSCRM 2024, underscoring the rapid advancements in this field. Additionally, Resonac is nearing the commercialisation of its 8-inch epitaxial wafers, targeting mass production of both epitaxial wafers and substrates by 2025, while Onsemi is set to introduce its 8-inch wafers later this year.

In the U.S., Wolfspeed has introduced a new 2300V SiC power module, leveraging advanced 8-inch wafer technology to enhance renewable energy applications and fast charging solutions. Meanwhile, in China, Sanan Optoelectronics has launched its 8-inch SiC substrate factory, with plans for significant production capacity, further indicating the growing global demand for these materials.

Market analysts anticipate that the transition from 6-inch to 8-inch wafers will lower production costs, enhancing the accessibility of SiC technology. Larger wafer sizes significantly decrease unit chip costs, with projections indicating that the market share for 8-inch SiC products could grow from under 2% today to approximately 15% by 2026. This shift is expected to create new opportunities across multiple industries, including automotive and renewable energy, as prices for SiC substrates continue to decline.

With increasing competition and advancements in production technology, the SiC industry is on the brink of widespread adoption. As prices for 6-inch substrates fall and 8-inch technology becomes more prevalent, the future looks promising for silicon carbide as a key player in the evolution of power electronics.

US legislation aims to boost chip production

The US House has recently passed a bill aimed at streamlining federal permitting for semiconductor manufacturing projects, a move anticipated to benefit companies like Intel and TSMC. This legislation seeks to address concerns that lengthy environmental reviews could hinder the construction of domestic chip plants, an essential component of US manufacturing strategy, especially as chipmakers have pledged around $400 billion in investments following the 2022 Chips and Science Act.

Many projects are experiencing delays despite investments. Intel’s facilities in Arizona, initially scheduled to open in 2024, may now begin operations in early 2025. Additionally, a $20 billion project in Ohio has been pushed back beyond 2026 due to market challenges and subsidy holdups. The new bill introduces criteria to exempt some projects from National Environmental Policy Act (NEPA) reviews, enabling construction to start before the year ends.

The legislation poses a challenge for the Biden administration, which seeks to enhance domestic manufacturing while achieving ambitious climate targets. As the government tackles this dilemma, the urgency to lessen dependence on Asian chip production, especially from Taiwan, continues to be a key priority.

TSMC secures key facility for AI server demand

In mid-August, TSMC sealed a significant deal to acquire the AP8 facility from panel manufacturer Innolux in southern Taiwan, aiming to bolster its advanced packaging capacity. This new fab is set to produce advanced 3D Chip on Wafer on Substrate (CoWoS) IC packaging services, which are crucial for meeting the rising demand from AI server manufacturers. Expected to begin production in the latter half of 2025, the AP8 facility will have nine times the capacity of TSMC’s existing AP6 fab.

The acquisition, finalised for NTD 17.14 billion, came in under market expectations and was motivated by the need to bypass lengthy environmental assessments associated with new builds. TSMC intends to make internal modifications to the facility, enabling faster equipment installation, with deliveries set to begin as early as April next year.

TSMC Chairman C.C. Wei is optimistic about doubling CoWoS capacity in 2024 and 2025, with a goal of achieving a supply-demand balance by 2026. Analysts forecast that TSMC’s monthly CoWoS output could increase from 32,000 wafers this year to approximately 70,000 by the end of 2025, driven by this strategic expansion.

With an anticipated compound annual growth rate of over 50% for CoWoS capacity from 2022 to 2026, TSMC is committed to accelerating its fab construction timelines, aiming to reduce the typical 3-to-5 years down to just 2 years, ensuring it meets the surging market demand efficiently.

Google CEO warns of AI divide and announces $120m education fund

Speaking at the UN Summit of the Future 2024, Google CEO Sundar Pichai described AI as the most transformative technology yet and announced a $120 million Global AI Opportunity Fund. The fund would provide AI education and training worldwide through partnerships with local NGOs and nonprofits.

Pichai highlighted four key areas where AI can contribute to sustainable development: language accessibility, scientific discovery, climate disaster alerts, and economic progress. He stressed the importance of harnessing AI for global advancement while addressing its risks.

He also warned of the potential for an ‘AI divide,’ where some regions may need to catch up in access to the technology. To combat this, Pichai called for smart global regulations that mitigate harm without promoting national protectionism, which could limit the benefits of AI.

Although Pichai did not mention the environmental impacts of AI, he emphasised the need for balanced regulation to ensure equal access and opportunities for AI development worldwide.

Voiceitt brings personalised AI speech recognition to remote work

Israeli company Voiceitt aims to revolutionise communication for people with speech impairments through its AI-powered speech recognition system. Using personalised voice models, Voiceitt helps those affected by conditions like cerebral palsy, Parkinson’s, and Down syndrome to communicate more effectively with both people and digital devices.

Voiceitt, launched in 2021 as a vocal translator app, is now integrated with platforms such as WebEx, Zoom, and Microsoft Teams. It allows users to convert non-standard speech into captions and text for video calls and written documents, opening up new opportunities for remote work and communication.

Co-founder Sara Smolley views the project as a personal mission, inspired by her grandmother’s struggle with Parkinson’s disease. Voiceitt is designed to offer accessibility in the workplace and beyond, with users like accessibility advocate Colin Hughes praising its accuracy but also advocating for more features.

As the field of speech recognition advances, Voiceitt partners with major platforms and complies with strict privacy regulations to protect user data. Smolley believes the technology will significantly improve users’ independence and enjoyment of modern technology.

UN adopts ‘Pact for the Future’

On 22 September 2024, world leaders convened in New York to adopt the ‘Pact for the Future’ – a comprehensive agreement designed to reimagine global governance in response to contemporary and future challenges.

The ground-breaking Pact includes a Global Digital Compact and a Declaration on Future Generations, aiming to update the international system established by previous generations. The Secretary-General stressed the importance of aligning global governance structures with the realities of today’s world, fostering a more inclusive and representative international system.

The Pact covers many critical areas, including peace and security, sustainable development, climate change, digital cooperation, human rights, and gender equality. It marks a renewed multilateral commitment to nuclear disarmament and advocates for strengthened international frameworks to govern outer space and prevent the misuse of new technologies. To bolster sustainable development, the Pact aims to accelerate the Sustainable Development Goals (SDGs), reform international financial architecture, and enhance measures to tackle climate change by committing to net-zero emissions by 2050.

Digital cooperation is notably addressed through the Global Digital Compact, which outlines commitments to connect all people to the internet, safeguard online spaces, and govern AI. The Compact promotes open-source data and sets the stage for global data governance. It also ensures increased investment in digital public goods and infrastructure, especially in developing countries.

Why does it matter?

The ‘Pact for the Future’ encapsulates a detailed, optimistic vision geared toward creating a sustainable, just, and peaceful global order. The Summit of the Future, which facilitated the adoption of this Pact as an extensively inclusive process, involves millions of voices and contributions from diverse stakeholders. The event was attended by over 4,000 participants, including global leaders and representatives from various sectors, and was preceded by Action Days, which drew more than 7,000 attendees. Such a forum shows firm global commitments to action, including pledges amounting to USD 1.05 billion to advance digital inclusion.

Biden and UAE leader to discuss tech advancements amid China concerns

The United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan is set to meet US President Joe Biden at the White House to discuss deepening cooperation in AI and advanced technology. The UAE, a major oil producer and long-time US ally, has ambitions to build its own tech industry and seeks increased access to American technology. However, US officials are cautious about the UAE’s growing ties with China, which has led to restrictions on certain tech exports.

In response to US concerns, the UAE has taken steps to reduce Chinese influence in its tech sector, including removing Chinese hardware and selling off investments from Chinese companies. These moves came ahead of a $1.5 billion investment from Microsoft into G42, a UAE-based tech firm. Despite concerns, the US sees potential to strengthen AI collaboration with the UAE, which is investing heavily in the field, with a focus on developing its own AI capabilities.

The UAE hopes that its investment in AI will secure its position as a global technology leader, well beyond its oil-producing years. While China also views the UAE as a potential long-term AI partner, Emirati officials have expressed a desire for closer alignment with the US, prioritising transparency and partnership in their AI ambitions.

Three Mile Island plant set for restart amid new deal

Microsoft has announced a deal with Constellation to help restart a unit of the Three Mile Island facility, which has been dormant since 2019 due to operational issues. This agreement has led to a significant increase in Constellation’s shares, which surged by 22%. It’s worth noting that no US nuclear plant has reopened after being shut down.

Jefferies analysts estimate that Microsoft may pay between $110 and $115 per megawatt-hour (MWh) for its 20-year fixed-price agreement with Constellation Energy, marking a notable premium compared to the market expectation of around $100 per MWh. This pricing reflects the growing recognition of the value of nuclear energy as a clean and reliable power source, particularly amid rising demand from data centres driven by AI technology.

Analysts emphasised that customers are increasingly willing to pay substantial premiums for nuclear energy contracts, which supports the financial viability of such projects and enhances the overall volume of power available in the market at competitive rates. This trend could encourage further investments in nuclear energy and strengthen the role of such facilities in meeting the country’s energy needs.

Qualcomm and Intel discuss potential merger

Qualcomm has approached Intel to discuss a potential acquisition, a move that could transform the semiconductor landscape. CEO Cristiano Amon is personally engaged in these early talks, which have yet to produce a formal offer. Reports suggest that Qualcomm is especially interested in Intel’s PC design unit and its overall portfolio as part of this exploration.

Intel, once the dominant force in chip manufacturing, has seen its stock plummet nearly 60% this year, highlighting its current vulnerability. A deal with Qualcomm would likely face intense scrutiny from antitrust regulators in the US, China, and Europe, possibly requiring Qualcomm to divest parts of Intel to gain approval.

If successful, this acquisition would mark a historic move in the tech sector, rivalling Broadcom’s attempted $142 billion takeover of Qualcomm in 2018. However, how Qualcomm would finance the deal, given its $13 billion cash reserves and Intel’s $122 billion valuation, remains unclear. Additionally, Qualcomm would need to navigate the complexities of managing Intel’s extensive manufacturing operations, a challenge for a company that currently relies on external contractors for chip production.

Intel is actively seeking to revitalise its business by prioritising AI processors and restructuring its operations, which includes pausing factory construction in Poland and Germany. As discussions with Qualcomm progress, both companies will need to navigate significant challenges in a rapidly changing market.

Apple expands iPhone 16 production to Brazil

The iPhone 16 series officially launches globally today, with Apple expanding production beyond China and India to include Brazil, where Foxconn is assembling the new model. This is the first time an Apple product is produced in South America at launch, helping the company avoid Brazil’s high import tariffs and mitigate potential supply chain disruptions.

Brazilian regulatory filings confirm that Foxconn’s factory in Jundiaí, São Paulo, is now mass-producing the basic iPhone 16 model. While the plant has previously assembled older iPhone models, this is the first time it is included in the launch lineup for a new release, although it will not produce the higher-end Pro variants.

Previous iPhone models, including the iPhone 14 and iPhone 15, were assembled in Brazil after their initial production in China. In contrast, the iPhone 16 is being produced in Brazil much earlier in the release cycle, highlighting Apple’s strategy to diversify its supply chain and reduce dependence on China. The Brazilian facility is currently focused on the base model, as entry-level iPhones tend to be more popular in the region.

This year also marks a significant milestone for Apple as it launches India-made iPhone 16 Pro and Pro Max models, showcasing the expanding manufacturing capabilities in India.

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