These are the most-read DIGITIMES Asia stories from the week of March 24 – March 29.
Semiconductor business like DeepSeek may emerge in China, says former TSMC R&D VP
China is advancing its semiconductor self-sufficiency despite US restrictions, with companies like SMIC producing 7nm chips and new startups like SiCarrier emerging. Former TSMC VP Burn-Jeng Lin suggests China may bypass traditional competition in advanced process nodes and instead innovate through alternative methods, materials, and architectures—similar to how DeepSeek disrupted AI development. Lin believes China could redefine semiconductor progress beyond just reducing chip size, focusing instead on cost, performance, and efficiency, potentially surprising the global industry with unexpected breakthroughs.
Intel Japan chair retires, defends Gelsinger strategies, cites 'bad timing'
Kunimasa Suzuki, chairman of Intel KK, will retire in March 2025 but will continue leading SATAS. Reflecting on Intel's strategies under former CEO Pat Gelsinger, Suzuki affirmed that IDM 2.0 and AI Everywhere remain sound but were poorly timed, leading to financial losses and Gelsinger's departure. Despite challenges, Intel remains focused on AI and foundry services, competing with TSMC and Nvidia while warning against AI market monopolization.
Intel does not manufacture in Japan but collaborates with Japanese firms and research institutions like AIST and Riken, expanding semiconductor partnerships. It also seeks advancements in quantum computing and photonic-electronic integration with NTT and Sony.
SK Hynix to pull M15X fab timeline forward by two months
SK Hynix is expediting equipment installation at its M15X fab in Cheongju, South Korea, moving up its timeline from December to October to meet soaring demand for high-bandwidth memory (HBM). Initially planned to produce 32,000 wafers per month, the company now aims for a significant capacity expansion, with final figures expected in April.
The M15X fab will manufacture 1b DRAM chips for HBM3E and HBM4, with mass production of 12-layer HBM4 expected in late 2025. SK Hynix projects a potential increase in total DRAM output to 230,000–240,000 wafers per month by late 2026. Nvidia's request for faster HBM shipments has intensified urgency, putting vendors in "full battle mode" to meet compressed delivery schedules.
SiCarrier rolls out 5 chip tools at SEMICON China 2025, challenging AMAT, TEL
SiCarrier made a major debut at SEMICON China 2025, unveiling five advanced semiconductor process tools named after famous mountains. The company, backed by Shenzhen's state capital, aims to challenge global giants like Applied Materials and Tokyo Electron by addressing China's semiconductor supply chain gaps.
SiCarrier has been quietly filing patents, including innovations in wafer processing and heating efficiency. It also partnered with Huawei to develop self-aligned quadruple patterning (SAQP), a technique that could enable 5nm chip production without EUV lithography.
TSMC's 2nm yield rate varies by product type; Apple and Nvidia to face different thresholds
TSMC's 2nm trial production is progressing, with reports suggesting a yield rate of around 60%, though final yields will vary based on chip design. DIGITIMES Research analyst Luke Lin notes that Apple's processors require higher yield rates (70-80%) than Nvidia's AI GPUs (50-60%) before mass production begins.
TSMC's 2nm capacity is expected to grow from 4,000-5,000 wafers per month in early 2025 to 80,000 wafers by late 2025, as new fabs in Hsinchu and Kaohsiung come online. Initial 2nm customers include AMD, Apple, and Intel, with mass production starting in late 2025.
SiCarrier bets on DUV for 5nm chips as SMIC's yield stalls at one-third of TSMC's
SiCarrier unveiled new 5nm-capable semiconductor tools at SEMICON China 2025, claiming they can manufacture chips without ASML's EUV lithography by using deep ultraviolet (DUV) and non-optical etching. The company has developed Self-Aligned Quadruple Patterning (SAQP) to bypass EUV restrictions, though the added process complexity lowers yields.
SMIC is using these tools but faces challenges, with its 5nm DUV process yielding only 33%—far below TSMC's—while production costs are 50% higher. Analysts suggest that without access to EUV, China must develop domestic EUV tools to remain competitive.
AI or bust: China chip sector to stage comeback at SEMICON China
AI is now the main driver of semiconductor industry growth, with global chip sales expected to exceed US$700 billion in 2025 and equipment investment projected to hit US$112.8 billion. China is set to account for nearly 40% of global semiconductor equipment demand, using AI momentum as a potential rebound strategy amid US sanctions.
Chinese manufacturers are expanding their presence at SEMICON China 2025, with Naura forecasting up to 44% revenue growth in 2024 and CCTech expecting profits to surge over 1,000% due to overseas demand.
Article edited by Jack Wu
