Semiconductors

Intel revises timeline for Ohio semiconductor plants

Intel has announced a significant delay in its planned $28 billion semiconductor manufacturing project in Ohio, pushing the completion of its first factory to 2030.

Operations are expected to begin between 2030 and 2031, extending the initial timeline by at least five years. The second factory is now scheduled for completion in 2031, with production starting in 2032.

The chipmaker is adjusting its plans in response to financial pressures following its costly push into contract chip manufacturing.

Naga Chandrasekaran, general manager of Intel Foundry Manufacturing, stated that the decision was made to align factory operations with market demand and ensure responsible capital management.

The company has also been cutting costs through workforce reductions, dividend suspensions, and a broader expense reduction strategy.

Intel’s financial restructuring follows a challenging period for the company, which has struggled to regain its position in the semiconductor industry.

The delay in Ohio’s factory construction reflects a cautious approach to investment, with the company aiming to keep operating expenses at approximately $17.5 billion for 2025.

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A significant boost in Windows performance could come with Qualcomm’s latest chip

Qualcomm is reportedly developing the Snapdragon X2, a next-generation high-end processor for Windows PCs. Leaks suggest the new chip could feature up to 18 Oryon V3 cores, potentially boosting performance significantly.

The Snapdragon X2 is expected to adopt a system-in-package (SiP) design, integrating RAM and flash storage within the processor to enhance efficiency and data transfer speeds.

The processor is said to support configurations of up to 48GB of RAM and a 1TB SSD, according to leaked documents. While specific clock speeds remain unknown, it is described as a high-TDP variant, indicating a focus on raw power.

Qualcomm is also reportedly testing the chip with a liquid cooling system, suggesting efforts to manage heat output in high-performance environments.

Branding for the processor is expected under the ‘Snapdragon X2 Ultra Premium’ label, with a focus on competing against Intel, AMD, and Apple’s M-series chips.

Qualcomm previously confirmed its next PC processor, the Snapdragon X Elite Gen 2, would include the Oryon V3 CPU, following the success of its predecessor, the Oryon V2.

The Snapdragon X2 could improve the Windows on ARM ecosystem, offering better efficiency and performance. However, software compatibility challenges remain a key concern, as ARM-based Windows devices have previously struggled with certain applications.

Official details from Qualcomm are still pending, with more information possibly emerging at industry events such as Mobile World Congress.

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Singapore examines fraud case involving AI chip transfers

Singapore‘s government is investigating a fraud case involving servers supplied by US companies, potentially containing Nvidia’s advanced chips. Three men, including a Chinese national, were charged last week in connection with the alleged illegal transfer of these AI chips from Singapore to Chinese firm DeepSeek. Singapore’s Home Affairs and Law Minister K Shanmugam confirmed that the servers were provided by Dell Technologies and Super Micro Computer to local firms before being sent to Malaysia.

Authorities are still unsure whether Malaysia was the final destination, but they are working with US officials to determine if the servers contained restricted US export-controlled items. The US is already investigating whether DeepSeek has used banned Nvidia chips, which could lead to violations of export laws. The case forms part of a broader probe into suspected smuggling activities linked to AI chips being moved from countries like Singapore to China.

Singapore, a key market for Nvidia, is also examining allegations that DeepSeek may have acquired thousands of advanced Nvidia chips illegally. However, DeepSeek has denied these claims, stating that it only used legally purchased chips, including the Nvidia H800 model. The investigation is ongoing, with Singapore continuing to cooperate with US authorities.

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Senator Warren urges stricter AI chip controls on China

Senator Elizabeth Warren has called for tougher restrictions on Chinese technology, urging President Donald Trump’s nominee for a key trade role to reinforce AI chip controls.

In a letter to Jeffrey Kessler, the nominee for the Commerce Department’s Bureau of Industry and Security, Warren cited concerns over Chinese startup DeepSeek and its AI advancements. She argued for tighter enforcement of export restrictions and measures to curb chip smuggling.

Chinese firms like Huawei and SMIC, already on the US Entity List, continue to acquire American technology through front companies, Warren warned.

She pressed Kessler to address this issue and determine whether these companies violated US laws by producing advanced chips using American technology. Strengthened controls on ChangXin Memory Technology and high-powered inference chips, such as Nvidia’s H20, were also among her recommendations.

Kessler, who previously served as the Commerce Department’s top trade enforcement official, acknowledged China‘s progress in cutting-edge technology. His confirmation hearing before the Senate Banking Committee is set to examine how the US can maintain its technological edge while enforcing export restrictions effectively.

The debate comes amid ongoing tensions over AI and semiconductor technology between Washington and Beijing.

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Singapore investigates alleged Nvidia chip smuggling

Three men have been charged with fraud in Singapore as part of an investigation that may be linked to the illegal transfer of advanced Nvidia chips to the Chinese AI company, DeepSeek. The United States is also probing whether DeepSeek used US-made chips, which are prohibited from being shipped to China. This case is part of a wider investigation into potential AI chip smuggling operations involving several individuals and companies across countries, including Singapore.

The charges focus on two Singaporeans, Aaron Woon Guo Jie and Alan Wei Zhaolun, who are accused of falsely claiming that Nvidia chips would not be transferred to unauthorised recipients. A third man, Chinese national Li Ming, is charged with committing similar fraud regarding the shipment of servers. These actions are believed to be connected to DeepSeek’s use of Nvidia chips, although the authorities have not confirmed the company’s involvement.

If convicted, the men could face up to 20 years in prison, a fine, or both. Singapore’s authorities have been actively investigating the smuggling network, with police recently arresting nine individuals in a raid across 22 locations, seizing records and electronic evidence.

Nvidia’s business in Singapore is substantial, making it the company’s second-largest market after the US. However, only a small percentage of its revenue comes from direct shipments to the country. Singapore’s government has emphasised its commitment to strict enforcement of export controls, underscoring that the nation will not tolerate any attempts to evade international regulations.

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Taiwan sets rules for TSMC’s overseas ventures

Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.

Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.

TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.

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Quantum chip manufacturing advances with PsiQuantum

PsiQuantum has developed a method to manufacture quantum computing chips at scale, solving a key challenge in the industry.

The company confirmed its chipset, Omega, is now ready for mass production through a partnership with GlobalFoundries, which is producing millions of the chips at its factory in Albany, New York.

The startup employs a photonics-based approach, leveraging widely used semiconductor manufacturing techniques. However, this method enables quantum calculations using particles of light while requiring less complex cooling mechanisms than other quantum technologies.

Manufacturing yields have matched those of standard semiconductors, according to company executives.

Findings on mass production were published in the journal Nature, highlighting the readiness of PsiQuantum’s technology. The company expects to complete a facility capable of performing commercial quantum applications by around 2027, aligning with recent industry predictions that quantum computing is now only years away from practical use.

PsiQuantum was valued at $3.15 billion in 2023, positioning it as a leading player in the race for commercially viable quantum computers. Other companies, including Microsoft and Google, have also made significant progress, with Google forecasting commercial applications within five years.

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China accuses Taiwan of selling semiconductor industry to the US

China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island’s government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan’s government says it has not received such investment proposals from TSMC.

China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan’s ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of ‘selling out’ its companies to the US. Taiwan, however, rejected these claims, with Taiwan’s Mainland Affairs Council affirming the importance of TSMC to the island’s economy and stressing its commitment to maintaining a leading role in semiconductor technology.

The US has been critical of Taiwan’s semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China’s claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan’s government.

TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan’s government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.

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Nvidia earnings test approaches as AI stocks tumble

AI-related stocks declined on Tuesday as investors braced for Nvidia’s earnings, expected to provide insight into AI demand and justify high valuations. Concerns over slowing infrastructure investments and competition from low-cost Chinese AI models weighed on the market.

Tech stocks suffered further losses after a report revealed Microsoft had scrapped data centre leases in the US.

Nvidia dropped 2.1% ahead of its crucial earnings release, while semiconductor firms like Broadcom and Micron slid around 2.1%. Investor scepticism over AI spending deepened following breakthroughs by China’s DeepSeek.

The sector also faced pressure from reports that Washington plans to tighten restrictions on Nvidia’s chip exports to China. US officials are consulting allies about stricter chip controls, adding to uncertainty in the market.

Data centre operators and power firms, expected to benefit from AI growth, also declined. Digital Realty slipped 1.2%, while power providers Vistra and Constellation Energy lost 5.9% and 3.3% respectively.

AI server maker Super Micro Computer led losses on the S&P 500, falling 8.7%, while Palantir dropped 3.7%.

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Intel’s high NA lithography technology shows early success

Intel has announced that the first two of ASML’s cutting-edge high NA lithography machines are now in operation at its factories. Early data shows these machines are producing more consistent results than previous models, with a reported reliability double that of earlier systems. This marks a turning point for Intel, which had struggled with the earlier generation of extreme ultraviolet (EUV) machines.

Intel’s production of 30,000 wafers in a single quarter using these new machines signifies a substantial step forward in chip manufacturing. These high NA machines can print features onto chips with fewer exposures and less processing time, streamlining the production process and reducing costs. This development is set to contribute to Intel’s upcoming 18A manufacturing technology, expected to power a new generation of PC chips later this year.

The company is also preparing to implement the high NA machines for the next generation of 14A technology, though no mass production date has yet been confirmed. This breakthrough is seen as a pivotal moment for Intel, positioning it to reclaim ground lost to rivals in recent years.

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