Semiconductors

TSMC targets AI future with advanced chip designs

Taiwan Semiconductor Manufacturing Co. (TSMC) has introduced its cutting-edge A14 logic process technology at its North America Technology Symposium, held in Santa Clara, California.

The A14 process, touted as a major leap from its N2 predecessor, is aimed at enhancing AI capabilities through faster computing speeds and greater power efficiency. TSMC expects the A14 to enter production in 2028 and reports that development is ahead of schedule in terms of yield performance.

Alongside the A14, TSMC revealed significant advances in its Chip on Wafer on Substrate (CoWoS) technology, crucial for meeting AI’s growing demands for processing power and high-bandwidth memory.

A new SoW-X platform, based on CoWoS and capable of 40 times more computing power than current solutions, is slated for mass production in 2027. The company also confirmed plans to scale up its 9.5 reticle size CoWoS for volume production in the same year.

TSMC continues to broaden its innovation pipeline with developments across various domains, including 3D chip stacking and advanced packaging. It also unveiled the N4C RF, its latest radio frequency technology designed to support upcoming standards like WiFi8 and AI-powered audio platforms.

Risk production of the N4C RF is expected in early 2026, as TSMC strengthens its foothold in high-performance computing, mobile, automotive, and IoT markets.

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Trump threatens new tariffs within weeks

President Trump has signalled a potential early end to the current 90-day pause on tariffs for countries and companies not actively seeking trade agreements with the US.

While markets initially reacted positively to signs of easing tension with China, that optimism was short-lived as the administration quickly shifted direction.

Instead of waiting out the full pause period, Trump now suggests new tariffs could be imposed within two to three weeks, with rates possibly rising from 10% to as high as 50%.

The lack of clarity over which nations or firms are targeted adds further uncertainty. Although officials initially claimed around 90 countries were engaged in trade talks, that number reportedly dropped to just 15.

A vagueness like this, combined with the unpredictable nature of US tariff policy, has unsettled international markets and raised alarm across global supply chains.

Apple, among others, has managed to avoid immediate price hikes thanks to temporary exemptions and strategic stock management. However, those exemptions are due to expire shortly, leaving the company vulnerable to rising costs.

Instead of facing only Chinese tariffs, Apple may now contend with broader duties on semiconductors and products manufactured outside China.

If tariff relief fails to materialise soon, consumers could see higher prices on future Apple products, including the upcoming iPhone 17.

Without a clearer and more consistent trade strategy from the White House, global firms may struggle to adapt, and the fragile economic recovery could face renewed strain.

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India deepens ties with Finland and Denmark

India is intensifying its strategic ties with Finland and Denmark as part of a broader effort to deepen cooperation with key Nordic countries.

In recent high-level conversations, Prime Minister Narendra Modi spoke with Finland’s President Alexander Stubb and Denmark’s Prime Minister Mette Frederiksen.

These discussions focused on strengthening bilateral relations in advanced technologies such as quantum computing, 5G and 6G, AI, and cybersecurity, instead of limiting collaboration to traditional sectors. Sustainability, mobility, and digital transformation also featured prominently.

Modi and Stubb underlined the importance of India-Finland cooperation within the wider context of EU relations. Both leaders expressed hope for a timely conclusion of an India-EU free trade agreement, a sentiment echoed by European Commission President Ursula von der Leyen.

The collaboration aims to bolster efforts in AI for disaster response and climate resilience, secure telecommunications, and semiconductor development, especially given ongoing geopolitical shifts and the impact of the Russia-Ukraine conflict.

In parallel, Modi reaffirmed India’s commitment to the India-Denmark Green Strategic Partnership during talks with Frederiksen.

The alliance prioritises environmentally responsible maritime practices instead of relying on conventional methods, and promotes innovation in green technologies and anti-piracy cooperation.

With the third India-Nordic Summit scheduled for later this year in Norway, the focus will be on expanding trade, climate action, and peace efforts with all five Nordic nations.

Meanwhile, India has overtaken Finland as the ‘World’s Happiest Country’ according to the latest Ipsos survey, with 88% of Indian respondents reporting happiness.

A milestone like this reflects a broader sense of national optimism and self-assurance as India continues to strengthen its global partnerships and expand its strategic influence across key sectors.

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Intel slashes jobs in major restructure

Intel is reportedly preparing to lay off more than 21,000 employees, roughly 20% of its global workforce, as part of a major restructuring drive.

The move comes ahead of the company’s Q1 earnings call and follows a year of significant transition under recently appointed CEO Lip-Bu Tan.

Tan, who took over from longtime leader Pat Gelsinger in late 2024, is aiming to streamline the tech giant’s operations and restore a focus on engineering.

The layoffs mark Intel’s second major job cut in less than a year, after the company reduced its workforce by 15,000 in August 2024. Struggling with a long-term slump, Intel has seen its stock fall by nearly 67% over the past five years.

As part of its pivot under Tan, Intel has begun divesting non-core units, including selling a majority stake in its Altera semiconductor business to private equity firm Silver Lake earlier this month. Intel has not yet issued an official comment on the reported cuts.

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Chinese AI sector eyes Huawei’s powerful 910C chip

Huawei is preparing to begin large-scale shipments of its new AI chip, the 910C, as early as next month.

The move is seen as a critical development in China’s ongoing effort to reduce reliance on US technology, especially after recent export restrictions on Nvidia’s H20 chip.

The 910C delivers performance on par with Nvidia’s H100 by combining two of Huawei’s earlier 910B chips in a single integrated package.

These enhancements, which include increased computing power and memory capacity, have attracted interest from Chinese AI developers scrambling for alternatives.

Despite Huawei’s refusal to confirm the reports, sources say sample shipments have already taken place. Some chips are being produced domestically using SMIC’s 7nm process, while others may involve components originally manufactured by TSMC, raising fresh regulatory scrutiny.

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TSMC struggles to block chip exports to China

Taiwan Semiconductor Manufacturing Company (TSMC) has acknowledged it faces significant challenges in ensuring its advanced chips do not end up with sanctioned entities in China, despite tightening export controls.

The company admitted in its latest annual report that its position as a contract chipmaker limits its visibility into how and where its semiconductors are ultimately used.

Instead of directly selling finished products, TSMC manufactures chips for firms like Nvidia and Qualcomm, which are then integrated into a wide range of devices by third parties.

Α layered supply chain structure like this makes it difficult for the company to guarantee full compliance with export restrictions, especially when intermediaries may divert shipments intentionally.

TSMC halted deliveries to a customer last year after discovering one of its AI chips had been diverted to Huawei, a Chinese tech giant on the US sanctions list. The company promptly notified both Washington and Taipei and has since cooperated with official investigations and information requests.

The US continues to tighten restrictions on advanced chip exports to China, urging companies like TSMC and Samsung to apply stricter scrutiny.

Recently, Washington blacklisted 16 Chinese entities, including firms allegedly linked to the unauthorised transfer of TSMC chips. Despite best efforts, TSMC says there is no assurance it can completely prevent such incidents.

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TSMC profits surge despite trade concerns

Taiwan Semiconductor Manufacturing Company (TSMC) posted a significant jump in quarterly profits, driven by robust demand for AI chips. Net income rose by just over 60% year-on-year to NT$360.7bn (£9.77bn), outpacing analysts’ expectations.

Revenue also grew by 41.6% compared to the same period in 2024, although it dipped slightly from the previous quarter due to weaker smartphone sales.

The world’s largest contract chipmaker has not yet seen any major changes in customer behaviour, including from Apple and Nvidia, despite increasing uncertainty over potential US tariffs on Taiwanese semiconductors.

While concerns about trade tensions grow, particularly with former President Donald Trump suggesting the US should reclaim chip production, TSMC says it is continuing with business as usual for now.

Instead of scaling back, TSMC is expanding its investment in the US, with plans to spend up to $160bn. Analysts believe this move could help the firm argue for a more favourable position should tariff negotiations intensify.

The company’s Chief Financial Officer, Wendell Huang, acknowledged the risks posed by changing trade policies but said revenue growth is still expected in the next quarter.

Despite global pressures, TSMC remains optimistic, forecasting revenue between $28.4bn and $29.2bn. Although the company’s shares have fallen more than 20% so far this year, some analysts say the stock is now undervalued and well-positioned to rebound once market conditions stabilise.

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AMD warns of financial hit from US AI chip export ban

AMD has warned that new US government restrictions on exporting AI chips to China and several other countries could materially affect its earnings.

The company said it may face charges of up to $800 million related to unsold inventory, purchase commitments, and reserves if it fails to secure export licences for its MI308 GPUs, now subject to strict control measures.

In a filing to the US Securities and Exchange Commission, AMD confirmed it would seek the necessary licences but admitted there is no guarantee they will be granted.

The move follows broader export restrictions aimed at protecting national security interests, with US officials arguing that unrestricted access to advanced chips would weaken the country’s strategic lead in AI, instead of preserving it.

AMD’s stock dropped around 6% following the announcement. Competitors are also feeling the impact. Nvidia expects charges of $5.5 billion from similar restrictions, and Intel’s Gaudi hardware line has reportedly been affected as well.

The US Commerce Department has defended the move as necessary to safeguard economic and national interests.

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Microsoft unveils powerful lightweight AI model for CPUs

Microsoft researchers have introduced the largest 1-bit AI model to date, called BitNet b1.58 2B4T, designed to run efficiently on standard CPUs instead of relying on GPUs. This ‘bitnet’ model, now openly available under the MIT license, can even operate on Apple’s M2 chips.

Bitnets use extreme weight quantisation, storing only -1, 0, or 1 as values, making them far more memory- and compute-efficient than most conventional models.

With 2 billion parameters and trained on 4 trillion tokens, roughly the equivalent of 33 million books, BitNet b1.58 2B4T outperforms several similarly sized models in key benchmarks.

Microsoft claims it beats Meta’s Llama 3.2 1B, Google’s Gemma 3 1B, and Alibaba’s Qwen 2.5 1.5B on tasks like grade-school maths and physical reasoning. It also runs up to twice as fast while using significantly less memory, offering a potential edge for lower-end or energy-constrained devices.

The main limitation lies in its dependence on Microsoft’s custom bitnet.cpp framework, which supports only select hardware and does not yet work with GPUs.

Instead of being broadly compatible with existing AI systems, BitNet’s performance depends on a narrower infrastructure, a hurdle that may limit adoption, despite its promise for lightweight AI deployment.

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Europe struggles to explain quantum to its citizens

Most Europeans remain unclear about quantum technology, despite increasing attention from EU leaders. A new survey, released on World Quantum Day, reveals that while 78 per cent of adults in France and Germany are aware of quantum, only a third truly understand what it is.

Nearly half admitted they had heard of the term but didn’t know what it means.

Quantum science studies the smallest building blocks of the universe, particles like electrons and atoms, that behave in ways classical physics can’t explain. Though invisible even to standard microscopes, they already power technologies such as GPS, MRI scanners and semiconductors.

Quantum tools could lead to breakthroughs in healthcare, cybersecurity, and climate change, by enabling ultra-precise imaging, improved encryption, and advanced environmental monitoring.

The survey showed that 47 per cent of respondents expect quantum to positively impact their country within five years, with many hopeful about its role in areas like energy, medicine and fraud prevention.

For example, quantum computers might help simulate complex molecules for drug development, while quantum encryption could secure communications better than current systems.

The EU has committed to developing a European quantum chip and is exploring a potential Quantum Act, backed by €65 million in funding under the EU Chips Act. The UK has pledged £121 million for quantum initiatives.

However, Europe still trails behind China and the US, mainly due to limited private investment and slower deployment. Former ECB president Mario Draghi warned that Europe must build a globally competitive quantum ecosystem instead of falling behind further.

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