Semiconductors

US fabs to catch up with Taiwan tech

TSMC says future chip factories in the US will take two years or less to complete, a big step forward from the five years needed for its first Arizona plant. The goal is to narrow the technology gap with its cutting-edge Taiwanese fabs.

While the first US fab makes chips on a 4nm process, TSMC aims to start 3nm production in 2028 and reach 2nm ‘before 2030.’ This would bring American output closer to the most advanced nodes used in Taiwan.

For Apple, which relies heavily on TSMC, the move reduces geopolitical risks tied to China–Taiwan tensions. Critics, however, point out that all R&D remains in Taiwan, limiting the US’s chances of true semiconductor leadership.

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CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

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SK Hynix sees surge in chip orders ahead of US tariffs

South Korea’s SK Hynix has reported that some customers are accelerating orders ahead of potential US tariffs on semiconductor imports.

Speaking at the company’s annual shareholder meeting, Head of Global Sales and Marketing Lee Sang-rak noted that this trend, combined with reduced customer inventory, has contributed to favourable market conditions.

However, he cautioned that it remains uncertain whether the demand surge will continue.

The US government is considering a 25% tariff on semiconductor imports, prompting fears of price increases and supply chain disruptions. Analysts at Nomura have observed preemptive stockpiling in response, though the final decision on tariffs is still pending.

Meanwhile, competitors Micron, SanDisk, and China’s YMTC have raised their memory chip prices due to strong demand from the AI sector.

SK Hynix remains optimistic about growth, particularly in the high-bandwidth memory (HBM) chip market. CEO Kwak Noh-Jung stated that demand is expected to soar this year, with sales for 2025 already sold out and 2026 orders nearing finalisation.

He also dismissed concerns that Chinese AI startup DeepSeek’s low-cost models would slow demand for high-performance accelerators, arguing that AI advancements will drive further expansion in the memory chip industry.

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Quantum chip network boosts data security

Chinese scientists have developed a compact chip-based quantum digital signature network that drastically improves both speed and efficiency.

The system replaces bulky, expensive equipment with streamlined silicon chips, making it easier to integrate into today’s fibre networks.

The new setup allows multiple users to share a single central detector, reducing cost and complexity. By adopting a star network design and a new cryptographic protocol, the system can handle longer documents with fewer resources and lower delays.

The Chinese experiment outperformed previous quantum signature technologies, achieving reliable performance even over a 200 km fibre link.

Experts say this research opens the door to future applications in quantum e-commerce, secure communication, and digital finance.

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AI chip production to benefit from Rapidus and Quest Global alliance

Japanese chipmaker Rapidus Corporation has announced a strategic partnership with Singapore-based engineering firm Quest Global to develop advanced artificial intelligence semiconductors.

The collaboration focuses on producing low-power, high-performance chips using cutting-edge 2-nanometre technology.

Quest Global will support Rapidus and its clients by designing these next-generation AI chips.

The partnership is also expected to expand Rapidus’s customer reach by tapping into Quest Global’s broad international client base, enabling both companies to deliver new products to established and emerging markets.

Rapidus aims to begin pilot production of the new chips in April at a new facility under construction in Hokkaido, Japan, with mass production planned for 2027.

The move forms part of Japan’s broader effort to revitalise its semiconductor industry amid increasing global supply chain concerns.

Founded in 2022 with investment from major Japanese firms including Toyota and Sony, Rapidus was created to strengthen domestic chip manufacturing and reduce reliance on foreign suppliers in an era of growing geopolitical uncertainty.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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Samsung loses Qualcomm chip deal

Qualcomm is reportedly passing over Samsung for its upcoming Snapdragon 8s Gen 4 chip, choosing instead to stick with Taiwan’s TSMC for manufacturing.

Despite Samsung’s proven 4nm process and efforts to regain market confidence, Qualcomm appears hesitant to return after earlier issues with Samsung’s 3nm technology.

The new chipset is said to feature a mix of high-performance Cortex-X4 and A720 cores, notably lacking Qualcomm’s custom Oryon designs. However, this time around the company is being left out despite recent improvements in yield and packaging capabilities.

Samsung has focused on enhancing its legacy chip processes, recently beginning mass production of its fourth-generation 4nm chips.

The persistent trust issues seem to outweigh the technical strides, with Qualcomm opting to play it safe and rely solely on Taiwan’s TSMC’s consistency for this release.

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Malaysia under scrutiny over semiconductor exports to China

Malaysia plans to tighten regulations on semiconductor shipments following US concerns over the potential transfer of high-end Nvidia chips to China.

Trade Minister Zafrul Aziz stated that the United States has urged Malaysia to closely monitor shipments, ensuring that advanced AI chips do not end up in unauthorised locations.

The move comes amid increasing global scrutiny over AI-related technology exports.

Authorities in Malaysia are also investigating whether local laws were breached in a case involving servers linked to a Singapore fraud investigation.

The case involves transactions worth $390 million, and reports suggest that some servers may have contained Nvidia chips subject to US export controls. Singapore media have linked the matter to potential transfers to Chinese AI company DeepSeek.

The United States has been tightening restrictions on advanced semiconductor exports to China, particularly chips crucial to AI development.

Malaysia’s role as a key semiconductor hub has drawn greater attention, with US officials pushing for stricter oversight.

The government is expected to introduce measures to ensure compliance with international regulations while maintaining its position in the global chip supply chain.

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FuriosaAI rejects $800m acquisition offer from Meta

FuriosaAI, a South Korean startup specialising in AI chips, has reportedly turned down an $800 million acquisition offer from Meta.

Instead of selling, FuriosaAI plans to continue developing its AI chips. Disagreements over post-acquisition business strategy and organisational structure were reportedly the cause of the breakdown in negotiations, rather than issues over price.

Meta, which has been trying to reduce its reliance on Nvidia for chips specialised in training large language models (LLMs), unveiled its custom AI chips last year. The company also announced plans to invest up to $65 billion this year to support its AI initiatives.

FuriosaAI, founded in 2017 by June Paik, who previously worked at Samsung Electronics and AMD, has developed two AI chips—Warboy and Renegade (RNGD).

The startup is also in talks to raise approximately $48 million and is planning to launch the RNGD chips later this year, with LG AI Research already testing them for use in its AI infrastructure.

FuriosaAI’s decision to focus on expanding its chip production signals its confidence in competing with giants like Nvidia and AMD in the rapidly growing AI hardware market.

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AMD vs Intel in the CPU market battle

The competition between AMD and Intel remains intense, despite Intel’s larger market share. In recent years, AMD has emerged as the preferred choice for gamers, often topping sales charts, including Amazon’s CPU best-sellers list.

Just yesterday, AMD dominated the top 15 spots instead of Intel. Surprisingly, the top processor was AMD’s Ryzen 7 9800X3D, a high-end gaming chip, priced at $480, despite its occasional stock shortages.

The top 15 list featured a mix of older and newer AMD processors, such as the Ryzen 5 5500 and Ryzen 5 5600X, indicating that AMD has successfully kept older hardware relevant and in demand.

However, today’s best-seller list paints a slightly different picture, as Intel has managed to secure several spots, with older models like the Alder Lake chips offering more affordable alternatives to current AMD processors.

Interestingly, Intel’s latest Arrow Lake processors did not make it to the top 50 best-sellers on Amazon. This suggests that many customers prefer the more affordable Intel options or turn to AMD, which has shifted the market dynamics significantly in recent years.

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