These are the most-read news stories in the week of August 21-25, 2023 on DIGITIMES Asia website:
Japan's export controls on lithography and thin film deposition more likely to be enforced, says DIGITIMES Research
As Japan's ban on semiconductor equipment exports to China officially went into effect on July 23, many are left wondering about its implications to Chinese semiconductor industry. A total of 23 types of semiconductor equipment were included by the export controls regime, covering lithography, etching, thin film deposition, heat treatment, cleaning, and inspection. According to DIGITIMES Research analyst Eric Chen, however, the restrictions on lithography and thin film deposition equipment are more likely to be enforced and thus impacting China's advanced semiconductor manufacturing.
SMIC's unspoken mission and Huawei's 5G smartphone chips
As Huawei boldly proclaimed the comeback of its flagship 5G smartphone in early August, rumors about Huawei commissioning China's largest semiconductor foundry SMIC to break through the US export sanctions flared up again. Apparently, SMIC is the most likely source of Huawei's 5G chips, which must be made by advanced semiconductor processing technologies. What did SMIC not say about its advanced foundry services? How is it coping with the business downcycle, alongside new export controls by the US, Japan, and the Netherlands on semiconductor equipment, to stay competitive?
China bets on chiplet technology to match 14/7nm performance
In the packaging and testing field, companies like Jiangsu Changjiang Electronics Technology (JCET), Tianshui Huatian Technology, Tongfu Microelectronics, and others have demonstrated considerable capabilities. In the post-Moore's Law era, the packaging of small chiplets has deemed to be a path forward for China's domestic packaging and testing industry. Leveraging chiplet technology allows companies to stack mature-node chips to achieve performance comparable to advanced processes like 14nm and 7nm.
Pursuing self-reliance, China witnesses surge in inbound and outbound semiconductor investments
In mid-August, due to the failure to get approval from China, Intel scrapped its merger deal with Israel-based Tower Semiconductor, the latest case that investment and merger and acquisition (M&A) deals were terminated in the chip industry when a rising number of M&A have been proposed and completed in recent years.
Taiwanese semiconductor companies slash recruitment and bonuses
The semiconductor industry continues market adjustment as no significant improvement is seen in the end market demand for mainstream consumer electronic products. Leading American IC design firms and Chinese chip manufacturers have reported layoffs, and many companies in the industry in Taiwan have begun to slash bonuses and slow down hiring.
Speculation arises about MediaTek being customer of Intel 18A
TSMC is facing challenges from Intel, which has support from the US government. Of its top-five customers, all, except for Apple, have been in initial talks with Intel over the possibility of embracing Intel Foundry Services (IFS), according to the speculation.
Intel's reportedly expanding fab site in Oregon will serve as a foundry for MediaTek using the Intel 18A technology, with production beginning as early as 2025.
In China's battle for AI, Huawei hands in its results first while Xiaomi's LLM evaluation is revealed
Xiaomi recently revealed its LLM for the first time. Data from evaluation platforms C-Eval and CMMLU is revealed as well. Chinese smartphone brands are joining the LLM race one after the other. Huawei's smart voice assistant "Celia" has already launched, and Xiaomei just had an impressive debut. The AI battle among Chinese mobile phone makers seems to be on the horizon.
