The United States has announced new export controls targeting advanced technologies, including quantum computing and GAAFET chip technology, aligning with similar measures by international partners. The updated regulations cover quantum computing equipment, advanced semiconductor production, and additive manufacturing technologies.
Commerce official Alan Estevez emphasised that these controls aim to keep pace with technological advancements and enhance their effectiveness through international cooperation. The most notable changes involve stringent reporting requirements for foreign national employees working on quantum computing in the US, while GAAFET controls will focus on production rather than design.
Trade lawyer Kevin Wolf highlighted that while these measures are intended to safeguard technological advancements, they might impact hiring in the quantum sector. Celia Merzbacher from the Quantum Economic Development Consortium expressed concern that these reporting requirements could deter small companies from hiring foreign talent, potentially limiting their access to skilled professionals crucial for innovation.
India and Singapore have signed an agreement to collaborate on semiconductor development, aiming to boost Singapore’s role in Indian supply chains. The Memorandum of Understanding (MoU) was signed during Indian Prime Minister Narendra Modi’s two-day visit to Singapore, marking his first visit since 2018. The partnership will focus on strengthening supply chain resilience, workforce development, and policy exchanges in the semiconductor sector.
Singapore, which accounts for 11% of the global semiconductor market, has been a key player in the industry. With a $10 billion incentive package to boost its semiconductor industry, India aims to compete with countries like Taiwan. India’s semiconductor market is expected to reach $63 billion by 2026, and the government has approved the construction of three semiconductor plants worth over $15 billion for sectors such as defence and telecommunications.
Modi also met with Singapore’s Prime Minister Lawrence Wong and President Tharman Shanmugaratnam during the visit. In addition to the semiconductor deal, the two countries signed agreements on digital technologies, education, skills development, and healthcare.
Taiwan Semiconductor Manufacturing Company (TSMC), in collaboration with leading global chip designers and suppliers such as Broadcom and Nvidia, is focusing on developing advanced silicon photonics technology. This initiative has gained momentum due to the increasing demand for faster data transmission speeds driven by the rise of AI applications. TSMC has established a dedicated R&D team of over 200 employees to explore high-speed computing chips based on silicon photonics, with production expected to commence in the second half of next year.
TSMC’s efforts aim to solve critical challenges in energy efficiency and AI computing power, positioning silicon photonics as a transformative force in the semiconductor industry. The company also targets a range of chip processes, from 45 to 7 nm, with mass production anticipated by 2025.
The silicon photonics market is projected to grow substantially, with significant developments expected as early as 2024. TSMC’s partnerships with major customers are crucial for advancing this technology, and it is poised to revolutionise applications across CPUs, GPUs, and other computing processes. As the semiconductor industry continues to evolve, TSMC’s commitment to silicon photonics underscores its role as a leader in shaping the future of high-speed data communication and AI innovations.
SK Hynix, the world’s second-largest memory chip maker, is set to begin mass production of its advanced HBM3E 12-layer chips by the end of this month. This announcement was made by Justin Kim, president and head of the company’s AI Infra division, during the Semicon Taiwan industry forum in Taipei. The South Korean company had previously revealed plans to ship these chips in the fourth quarter, with the next generation, HBM4, expected to launch in the second half of 2025.
High bandwidth memory (HBM) is a dynamic random access memory (DRAM) type that stacks chips vertically, allowing for greater space efficiency and lower power consumption. These advanced memory chips are crucial for processing large amounts of data in generative AI applications, making them an essential component of graphics processing units (GPUs) used in AI.
SK Hynix, along with Micron and Samsung Electronics, is a key player in the HBM market. The company has been a major supplier of HBM chips to Nvidia and has already provided HBM3E chips to an undisclosed customer earlier this year. According to SK Hynix CEO Kwak Noh-Jung, the company’s HBM chips are sold out for 2024 and nearly sold out for 2025, highlighting the high demand for these advanced memory solutions.
Europe’s leading computer chip industry group, ESIA, has urged the European Union to accelerate aid and introduce a revamped ‘Chips Act 2.0’ to support the sector. The group, which represents key chipmakers like Infineon, STMicroelectronics, and ASML, also called for the appointment of a dedicated ‘Chips Envoy’ to oversee the bloc’s semiconductor strategy.
The first EU Chips Act, launched in April 2023, aimed to boost Europe’s global chip market share to 20% by 2030. Despite several major projects, including a €10 billion TSMC plant in Dresden and a €30 billion Intel project in Magdeburg, the industry is not on track to meet the goal. Delays and the absence of timely aid have raised concerns, particularly around Intel’s ambitious project.
The ESIA is calling for a more streamlined aid process and fewer export restrictions to bolster the sector. While the group acknowledges the need for security, it advocates for a more proactive approach that focuses on incentives rather than defensive trade policies. Recent restrictions on ASML’s high-tech exports to China exemplify the challenges the industry faces.
Amid these obstacles, Europe’s chip sector is seeking strong leadership and faster policy implementation to compete globally. The success of upcoming projects and the timely rollout of ‘Chips Act 2.0’ are seen as vital for Europe’s future in semiconductor manufacturing.
China has issued a stern warning to Japan, threatening severe economic retaliation if it intensifies restrictions on selling and servicing chipmaking equipment to Chinese companies. The warning came as part of China’s ongoing effort to counter Japan’s alignment with US measures to limit China’s semiconductor production capabilities.
Toyota Motor reportedly informed Japanese officials that China may retaliate by cutting off access to essential minerals required for automotive manufacturing. The concerns were raised during recent meetings between Chinese and Japanese officials, where China’s stance on the issue was made clear.
Japan recently began limiting exports of 23 types of semiconductor manufacturing equipment, joining a US-led initiative to curb China’s ability to produce advanced chips. These restrictions have sparked fears of further economic conflict between the two nations.
Toyota and China’s foreign ministry have yet to comment on the matter, while tensions over trade controls continue escalating in the region.
The Dutch government’s potential decision to restrict ASML’s ability to repair its machines in China could have significant repercussions for the global semiconductor industry. These machines are critical for Chinese companies such as Huawei and Semiconductor Manufacturing International Corp. (SMIC). Access to necessary repairs and spare parts is required to avoid operational failures or reduced efficiency, potentially disrupting semiconductor manufacturing in China.
China’s dependence on ASML is particularly acute because the country cannot produce comparable equipment domestically and cannot purchase ASML’s more advanced extreme ultraviolet (EUV) machines. The restriction on repair services could force Chinese chipmakers to seek less advanced alternatives or face significant production challenges, impacting their ability to manufacture high-performance chips.
The potential policy shift also highlights a broader alignment with US strategies to limit China’s access to cutting-edge technology. Under previous Prime Minister Mark Rutte, the Netherlands had less complied with US trade restrictions on China. However, the current administration’s willingness to collaborate with US and Japanese efforts marks a significant policy change. This evolving stance underscores the increasing geopolitical complexities surrounding technology transfer and trade, with the US also contemplating stricter controls, such as the foreign direct product rule, to tighten restrictions on China further.
Nations worldwide are boosting demand for Nvidia’s AI chips by developing AI models tailored to their languages and cultures. Countries increasingly adopt generative AI for national security and regional needs, contributing significantly to Nvidia’s revenues. The company’s forecast predicts low double-digit billions in revenue from these AI-driven initiatives by January 2025.
Nvidia’s hardware, such as the H200 graphics processors, plays a crucial role in building AI infrastructure, with Japan‘s National Institute of Advanced Industrial Science and Technology being a notable example. These efforts highlight the importance of AI expertise and infrastructure as national priorities.
While Nvidia faces challenges due to US export controls on chip sales to China, other regions continue to drive the company’s growth. Countries aim to build AI models customised to their political, cultural, and scientific contexts, which are essential for maintaining sovereignty in an AI-driven world.
Businesses are also tapping into this trend, with firms like IBM assisting nations like Saudi Arabia in developing AI models in regional languages. Nvidia’s GPUs are expected to benefit significantly from these global efforts to build national AI platforms.
Lip-Bu Tan, a high-profile board member at Intel, has resigned after disagreeing with CEO Pat Gelsinger and other directors over the company’s workforce size, risk-averse culture, and lagging AI strategy. His departure follows rising concerns that Intel’s turnaround efforts, led by Gelsinger, are hindered by inefficiencies and outdated practices. Tan, a semiconductor industry veteran, had joined Intel’s board to help restore its leadership in the chip industry.
Tan reportedly grew frustrated with Intel’s bloated workforce, which he believed was burdened by excessive layers of middle management. Despite attempts to streamline the company through layoffs, Tan argued that Intel had failed to make the necessary cuts to its bureaucracy. As competition in AI heats up, particularly with Nvidia, Intel has been criticised for falling behind in the race to develop cutting-edge AI chips.
Intel’s challenges are exacerbated by its struggle to build a foundry business that aims to manufacture chips for other companies. Without a bigger customer, the industry has yet to turn a profit. Additionally, a $5.4 billion deal to acquire Israel’s Tower Semiconductor was blocked by China, further complicating Intel’s efforts to expand its contract manufacturing capabilities.
Intel’s future remains uncertain as the company grapples with internal inefficiencies, external competition, and geopolitical obstacles. Tan’s exit has left a significant void on Intel’s board, raising further concerns about its ability to compete in a rapidly evolving semiconductor industry.
Vietnam’s Prime Minister Pham Minh Chinh has launched a strategic initiative to enhance the country’s capabilities in semiconductors, AI, and cloud computing. The initiative, outlined in Dispatch No. 83/CD-TTg, aims to develop a skilled workforce through targeted education and training in these critical technology sectors. The initiative calls for collaboration among various government bodies, including ministers and local authorities, to implement measures to drive these industries’ advancements.
The Ministry of Education and Training (MoET) leads this effort by guiding public and private universities to establish specialised units focused on semiconductor technology, AI, and cloud computing. The project includes creating new schools and departments dedicated to advancing research and training. The MoET will also modernise curricula by integrating cutting-edge technologies and AI into teaching methodologies while fostering partnerships with businesses and research institutions.
In addition, the Ministry of Planning and Investment will develop a strategic project for nurturing human resources in the semiconductor industry, with a long-term vision extending to 2050. The plan will also encompass AI and cloud computing, emphasising the establishment of innovation ecosystems. Meanwhile, the Ministry of Science and Technology will prioritise scientific research in these fields and create mechanisms to attract international talent.
Local government leaders are encouraged to attract investments to build semiconductors, AI, and cloud computing ecosystems. Deputy Prime Minister Le Thanh Long will oversee the implementation of this initiative, which aims to position Vietnam as a leader in these technology sectors, leveraging education and innovation to drive economic growth in the digital age.
