TSMC is advancing its 2nm chip production, but a significant challenge is emerging regarding power supply. A report from S&P indicates that the foundry’s electricity consumption could nearly triple by 2030, potentially accounting for 24% of Taiwan‘s total electricity usage. In 2023, TSMC consumed nearly 250 GW of electricity, representing 8% of the island’s total power and 16% of the industrial sector’s demand.
The slow growth in Taiwan’s power generation could hinder TSMC’s production, which relies heavily on energy. Projections suggest that by 2030, TSMC’s power consumption could rise to 794 GW, driven by a 90% increase in wafer shipments. The report highlights that advanced manufacturing processes, such as extreme ultraviolet (EUV) lithography, require significantly more power than older systems.
Taiwan’s electricity reserve margin is falling short of the government’s target, currently below 15%. The Economic Daily News warns that if it drops below 10%, power supply stability could be compromised. Furthermore, Taiwan’s transition from coal and nuclear energy to natural gas and renewable sources might result in higher electricity prices, adding further pressure on the power supply.
Samsung Electronics has announced the mass production of its PM9E1, a PCIe 5.0 SSD that boasts the highest performance and largest capacity in the industry. Built on a 5nm controller and eighth-generation V-NAND technology, the PM9E1 offers enhanced power efficiency and powerful performance, making it an ideal choice for on-device AI PCs. Compared to its predecessor, the PM9A1, key attributes like speed, storage capacity, and security have all seen significant improvements.
The new SSD features an eight-channel PCIe 5.0 interface, enabling sequential read speeds of up to 14.5 gigabytes per second (GB/s) and write speeds of 13GB/s, more than doubling the capabilities of the previous generation. This impressive performance facilitates rapid data transfer for demanding AI applications, allowing large models to be transferred from the SSD to DRAM in less than a second.
Available in multiple storage options—512GB, 1 terabyte (TB), 2TB, and a market-leading 4TB—the PM9E1 is particularly suited for users needing high-capacity storage for large files, including AI-generated content and high-resolution videos. Its improved power efficiency, exceeding 50%, also supports longer battery life for on-device applications.
To enhance security, Samsung has implemented Security Protocol and Data Model (SPDM) v1.2, which includes features like secure channels and device authentication to prevent data manipulation during production or distribution. With the PM9E1, Samsung aims to expand its advanced SSD offerings to global PC manufacturers and plans to introduce additional PCIe 5.0-based consumer products to strengthen its position in the on-device AI market.
Global semiconductor sales reached a record $53.1 billion in August, marking a significant 20.6% increase from the previous year, driven primarily by surging demand related to AI, according to the Semiconductor Industry Association (SIA). This figure also reflects a 3.5% rise from July’s sales of $51.3 billion, indicating continued momentum in the semiconductor sector.
SIA President and CEO John Neuffer highlighted that August marked the highest sales total ever for that month and noted that sales have increased month-to-month for five consecutive months. The Americas led the growth with a remarkable 43.9% year-on-year increase, while China saw a 19.2% rise, and the Asia-Pacific region reported a 17.1% boost. Japan’s sales grew modestly by 2%, but Europe was the only region to experience a decline, falling by 9%.
The World Semiconductor Trade Statistics (WSTS) recently upgraded its global semiconductor sales forecast for 2024 to $611 billion, reflecting a 16% increase from last year. Strong demand in computing markets is driving this growth, particularly in the Americas and Asia-Pacific, which are expected to see increases of 25.1% and 17.5%, respectively. In contrast, Europe is projected to grow by just 0.5%, while Japan may experience a slight decline of 1.1%.
Looking ahead to 2024, WSTS predicts global semiconductor sales will rise to $687 billion, although growth will slow to 12.5%. Positive growth is expected across all regions, signalling a robust future for the semiconductor industry despite regional disparities.
Japan’s Fair Trade Commission has launched an investigation into the rapidly expanding generative AI market. Concerns have been raised about the dominance of US tech companies, particularly in semiconductors and the specialist workforce needed for AI development.
The commission has invited businesses and users to provide input on antitrust risks, with a first report expected next spring. The study aims to identify challenges for new companies entering the AI market, which often depends on advanced semiconductors and vast data resources.
Nvidia’s dominance in the semiconductor market, controlling 80% of chips used for AI, is highlighted as a potential barrier to competition. The commission also noted risks related to monopolisation of specialists by large IT companies and prioritising their own AI products.
Other nations, including the US, European Union, and South Korea, are conducting similar investigations. Study in Japan intends to balance AI’s benefits with ensuring fair market access and competition.
Jensen Huang, Nvidia’s CEO, has described demand for the company’s AI chips as ‘insane’, reflecting the increasing global interest in AI technology. His remarks came as Nvidia announced an expanded partnership with IT consultancy Accenture, aimed at scaling AI solutions for businesses worldwide.
The collaboration will see a new business group formed, focused on building custom AI systems using Nvidia’s cutting-edge technology. The partnership also involves Meta’s open-source AI models, Llama, further reinforcing Nvidia’s position as a major player in the growing AI ecosystem. Huang highlighted the role of the partnership in addressing global AI demand, marking the start of what he termed the ‘enterprise AI’ wave.
As corporations scramble to build AI infrastructure, Nvidia’s dominance in AI hardware, particularly in graphics processing units (GPUs), has been a key driver of the company’s success. Nvidia’s stock has surged, closing 1.6% higher, and more than doubling in value this year, while Accenture’s shares also rose by 1.2%.
Nvidia’s success is driven by widespread adoption of AI across industries such as healthcare, cloud computing, and finance. The partnership with Accenture represents the latest step in Nvidia’s strategy to secure its leadership in the enterprise AI market, which is poised for exponential growth in the coming years.
President Joe Biden has signed legislation that will exempt certain United States semiconductor manufacturing facilities from additional federal environmental reviews, helping to accelerate projects funded by the $52.7 billion CHIPS Act. The move is aimed at preventing potential delays that could arise from lengthy environmental assessments required under the National Environmental Policy Act.
While proponents argue that these projects have already complied with various environmental regulations at federal, state, and local levels, environmental groups like the Sierra Club caution that the reviews are essential to protect communities and workers from hazardous materials used in chip production. Critics are concerned about the risks of bypassing such safeguards.
The legislation is seen as a critical step to bolster the US semiconductor industry, with companies like Samsung, Intel, and Taiwan‘s TSMC set to benefit from billions in government subsidies. These funds are intended to strengthen supply chains, create jobs, and reduce dependence on foreign suppliers like China.
Despite the bipartisan support, some lawmakers, including Representative Zoe Lofgren, voiced opposition, citing past instances of semiconductor-related pollution. Lofgren argued that the reviews are a necessary tool to prevent similar environmental harm in the future.
The US Commerce Department announced its plan to allocate $100 million to promote the use of AI in developing sustainable semiconductor materials. This funding initiative is part of a broader effort overseeing $52.7 billion designated for US chip manufacturing and research, aimed at strengthening the country’s position in the semiconductor industry.
The new funding will support universities, national laboratories, and private sector companies in creating AI-driven autonomous experimentation methods. By harnessing the capabilities of AI, the initiative seeks to streamline and expedite the development of innovative semiconductor materials that are less resource-intensive, ultimately contributing to a more sustainable manufacturing process.
With the semiconductor industry facing increasing pressure to reduce environmental impact, this investment represents a significant step towards integrating advanced technologies to foster sustainable practices. The Commerce Department’s focus on AI in this sector underscores the potential for transformative advancements that can meet both economic and environmental goals, helping to secure a more resilient supply chain for the future.
Samsung Electronics is preparing to reduce its workforce by approximately 10% in regions such as Southeast Asia, Australia, and New Zealand. The company, which employs more than 267,800 people globally, has seen its shares fall by over 20% this year.
In Singapore, employees were called into private meetings with management to discuss upcoming layoffs and severance packages. While the reductions will primarily affect management and support roles, the company is determined to protect manufacturing positions. Similar workforce adjustments are expected in other international subsidiaries, though there are no immediate plans for domestic cuts.
Samsung’s struggles stem from increased competition in the AI market. Rivals such as SK Hynix have outperformed Samsung in memory chip production, while Taiwan Semiconductor Manufacturing Co. dominates custom-made chip production. To combat these difficulties, South Korean tech giant replaced the head of its chip division earlier this year, aiming to shift its corporate culture and improve efficiency.
Compounding the company’s woes, Samsung is dealing with labour disputes in its home market. The company’s largest union in South Korea called for a strike earlier this year, further complicating the situation. Despite the challenges, company’s leadership remains focused on regaining its competitive edge and addressing operational inefficiencies.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has initiated its routine typhoon preparations ahead of Typhoon Krathon. The storm is expected to make landfall soon, but TSMC remains confident that its operations will face minimal disruption.
TSMC emphasised that it does not foresee significant impacts on production or business continuity. Its typhoon protocols, which have been developed over years of experience, ensure that any potential risks are effectively mitigated. Move like this one allows the company to continue providing services to its global clients.
Typhoon Krathon has prompted widespread preparation efforts across Taiwan, with residents and businesses securing their properties and essential supplies. The island frequently experiences typhoons, so firms like TSMC are well-versed in storm readiness.
Despite the potential severity of the typhoon, TSMC’s proactive approach and robust procedures highlight its resilience. The company remains focused on maintaining its leadership in the semiconductor industry while ensuring the safety of its workforce.
The British government has purchased a struggling semiconductor factory from United States-based Coherent Inc. to safeguard domestic production of gallium arsenide semiconductors. These components are vital for military technology, including fighter jets. The plant, located in Newton Aycliffe, northern England, is the United Kingdom‘s only secure producer of these semiconductors.
The acquisition, estimated at £20 million ($27 million), ensures the preservation of 100 skilled jobs. While it is unusual for the government to intervene in private companies, the semiconductor industry has become a strategic priority due to its crucial role in both the economy and national security.
Semiconductors are key to the UK’s future technological advancements, particularly in growth and clean energy sectors. The British government has previously intervened in the industry, having bought Newport Wafer Fab three years ago to prevent a sale to a Chinese-owned firm.
The Newton Aycliffe factory, which had faced financial challenges after losing contracts, will receive government investment under its new name, Octric Semiconductors UK, as part of efforts to revitalise the business.
