Globalization, the COVID-19 pandemic, the Russia-Ukraine war, inflation, the US dollar interest rate hikes, and localization have combined to pose severe challenges to the nearly $600 billion semiconductor market.According to the latest estimates from the World Semiconductor Trade Statistics (WSTS), the global semiconductor market revenue growth may slow to 4.4% in 2022, reaching $580 billion, and it is expected that the global market size will decrease by 4.1% year-on-year in 2023, dropping to $556.5 billion, marking a historical low. This indicates that the industry will still be in a downward cycle in 2023.The wave of de-globalization has led to disruptions in global supply chains and the reconstruction of local supply chains, especially against the backdrop of intensified competition between the two major powers, the US and China. The US remains unyielding in its blockade of Chinese semiconductors, causing significant harm. The US CHIPS Act, which violates market rules with high subsidies, is unprecedentedly attracting major players in the semiconductor industry such as TSMC, Samsung, and NXP to significantly increase their investment plans in the US. Perhaps in response to this kind of American banditry, the EU, Japan, and India have also introduced policies to compete for global giants to increase their investments in their own countries. These giants are simultaneously holding onto their positions in China while establishing factories or making technological investments in India, Vietnam, Singapore, Malaysia, and other Southeast Asian regions. With the support of a national system and market demand, China has initiated a vigorous wave of domestic substitution, accelerating the construction of a localized secure supply chain with unprecedented investment in scientific and technological innovation and collaborative efforts.In 2021, insufficient production capacity caused a chip shortage and a lack of talent led to soaring salaries. However, 2022 saw a dramatic reversal, with frequent order cuts, inventory accumulation, and continuous layoffs. The current chip industry is experiencing unprecedented oversupply, with excessive weakness in demand for computers and mobile phones, as the industry seems to have shifted from the high spirits of 2021 to a harsh winter. Institutions predict that global semiconductor capital expenditure will decline by 26% year-on-year in 2023. Under multiple influencing factors, semiconductor companies are under pressure to move forward, and manufacturers are optimizing product portfolios and market and capacity layouts, which may become a major direction for 2023. In 2022, advanced processes continued to advance, with 3nm starting mass production and 2nm planning progressing. Meanwhile, chip design, advanced packaging, and testing processes are continuously iterating, with small chips becoming an important technological means to continue Moore’s Law. In 2022, new technologies such as silicon photonics and quantum computing surged…In 2022, major powers competed fiercely, and giants battled in a complex and ever-changing landscape, but the unchanging factor is technological innovation.Moore’s Law has not ended; competition in advanced processes remains the core of current semiconductor technology, while manufacturing, packaging, materials, devices, and new generation information technologies are driving silicon-based semiconductors into a new peak.The following is a chronological overview of some important events in the semiconductor industry in 2022 for your reference.2022 Global Semiconductor Key Events Directory # NVIDIA abandons acquisition of ARM, the largest acquisition case in semiconductor history fails # AMD announces completion of the $49.8 billion acquisition of Xilinx # UMC to invest $5 billion in a new 22nm wafer fab in Singapore # Russia-Ukraine conflict impacts global semiconductor supply chain and raw materials # US sanctions Russia’s largest chip manufacturer # Tower shareholders approve its $5.4 billion acquisition by Intel # Chiplet interconnect standard UCIe established, founding members exclude mainland companies # Qualcomm completes $4.6 billion acquisition of Veoneer, integrating automotive chips with related software # AMD acquires edge computing startup Pensando for $1.9 billion # US seeks to form a “Chip4” alliance to blockade Chinese semiconductors # MaxLinear acquires Silicon Motion for $3.8 billion # Samsung Electronics to invest $360 billion over the next five years # Broadcom to acquire VMware for $61 billion # Nanya Technology to invest $10.7 billion to expand production! 12-inch DRAM plant construction begins # Japan approves TSMC’s factory plan with a maximum subsidy of 476 billion yen # Samsung announces the official start of mass production of 3nm chips # Infineon lays the foundation for its third factory in Kulim, further expanding power semiconductor capacity in Malaysia # The world’s first 232-layer NAND begins mass production # GlobalFoundries and STMicroelectronics announce plans to build a factory in France for nearly 4 billion euros # US lobbies the Netherlands to stop exporting ASML’s advanced products to China # US signs the CHIPS and Science Act, restricting companies receiving US subsidies and incentives from investing in China # US imposes export controls on EDA software for GAAFET integrated circuits (below 3nm) # US introduces the Inflation Reduction Act, which will impact the global electric vehicle industry chain and supply chain # Intel reaches a $30 billion partnership with Brookfield # Intel officially breaks ground on a $20 billion chip production base in Ohio # Samsung: The largest chip production line P3 in history has officially started operations # Micron invests $15 billion in a memory manufacturing plant # Vedanta partners with Foxconn to build a $20 billion semiconductor project in India # New US export controls on advanced computing and semiconductors to China # Global chip stocks plummet, with total market value evaporating by over $1.6 trillion # Kioxia and Western Digital’s joint venture Fab7 wafer fab completed, set to mass produce 162-layer NAND Flash in 2023 # EU countries agree to allocate over 40 billion euros to enhance semiconductor production capacity in the EU # Intel: 4nm and 3nm nodes are on track, 1.8nm technology is in use # TSMC Arizona relocation ceremony, investment increased to $40 billion # Tata Group plans to invest $90 billion in building a wafer fab in India over five years # US adds Yangtze Memory Technologies and 35 other Chinese companies to the “Entity List” # STMicroelectronics announces a three-pronged expansion plan # Japanese government to invest 7 trillion yen to promote domestic investment # TSMC 3nm process technology begins mass production # US-China economic gap further widens # NVIDIA abandons acquisition of ARM, the largest acquisition case in semiconductor history failsOn February 8, after regulatory authorities in multiple European and American countries expressed serious concerns, US semiconductor giant NVIDIA decided to abandon its acquisition of ARM, a chip company under Japan’s SoftBank Group. This $66 billion deal (approximately 420 billion yuan) was originally expected to become the largest merger in semiconductor history.Industry insiders pointed out that considering NVIDIA and ARM’s revenue scale in China, this massive acquisition undoubtedly also required approval from the Chinese side. However, since the acquisition has already raised red flags in Europe and the US, Chinese regulatory authorities had no need to rush to express their stance.In the European and American markets, on one hand, the UK is concerned that NVIDIA would move ARM’s headquarters out of the UK after the acquisition, and has been obstructing it on national security grounds; on the other hand, ARM holds a monopoly position in the mobile terminal IP field, with many American tech giants such as Apple, Qualcomm, Microsoft, and Google relying on ARM’s IP licensing, and US regulators would not only consider NVIDIA’s demands.# AMD announces completion of the $49.8 billion acquisition of XilinxOn February 14, AMD announced the completion of its acquisition of Xilinx, with former Xilinx board members Jon Olson and Elizabeth Vanderslice joining the AMD board. AMD announced its intention to acquire Xilinx in an all-stock transaction on October 27, 2020. The official did not disclose specific figures, but according to Reuters, the acquisition was approximately $49.8 billion.This transaction took place against the backdrop of AMD strengthening its competition with Intel in the data center chip market. The merged company will have over 15,000 engineers and will pursue a fully outsourced manufacturing strategy heavily reliant on TSMC. In the future, AMD is likely to integrate Xilinx FPGA IP into its CPU and GPU products, thus engaging in more targeted competition with Intel and NVIDIA.# UMC to invest $5 billion in a new 22nm wafer fab in SingaporeOn February 24, UMC (UMC.US) approved the construction of a new 22nm wafer manufacturing plant next to its existing 300mm wafer fab in Singapore. It is reported that UMC will invest $5 billion in this project, and considering this, the company’s capital expenditure budget for 2022 will be raised to $3.6 billion. The new plant is expected to achieve a monthly production capacity of 30,000 wafers in its first phase and begin production by the end of 2024. Additionally, the project has received support from the company’s long-term cooperative customers, which helps ensure its capacity in 2024 and beyond.# Russia-Ukraine conflict impacts global semiconductor supply chain and raw materialsOn February 24, as Russian President Putin declared war on Ukraine, the Russia-Ukraine war officially began, with complex factors and rapidly changing situations. The global semiconductor supply chain and raw materials will be affected. The global semiconductor industry heavily relies on two major raw materials, palladium and neon gas, with Russia supplying over 45% of the global supply; Ukraine is a major producer of neon gas.ASML, the lithography machine giant, is seeking alternative sources of neon gas to prevent supply disruptions caused by the conflict between Russia and Ukraine. Meanwhile, due to the US announcement of export sanctions against Russia, major chip and IT companies have announced the suspension of business with Russia. Companies like Intel and Dell have halted product deliveries to Russia to comply with the new export control regulations. TSMC has also announced the suspension of contract manufacturing for Russian companies such as Elbrus chips and has halted exports and all sales to Russia.The disruption of raw material supplies due to the Russia-Ukraine situation highlights the complexity and fragility of the semiconductor supply chain. The Russia-Ukraine war may further exacerbate the global chip shortage. Countries are beginning to plan the establishment of localized supply chains to protect their domestic markets.# US sanctions Russia’s largest chip manufacturerOn March 31, the US implemented a new round of sanctions against Russia, targeting mainly the technology sector, disrupting cybersecurity, and so-called “malicious cyber actors.”According to reports, the latest statement indicates that this round of sanctions involves 21 entities and 13 individuals, including Russia’s largest chip manufacturer, Mikron Holding, which manufactures and exports microelectronics products.# Tower shareholders approve its $5.4 billion acquisition agreement by IntelOn April 26, Intel’s acquisition plan for Tower Semiconductor made progress. Tower Semiconductor held a special shareholders’ meeting and approved the $5.4 billion acquisition by Intel. This transaction creates an end-to-end global diversified foundry that helps meet the growing semiconductor demand and provides more value to nearly $100 billion market scale foundry customers.It is understood that on February 15, 2022, Intel announced that it had signed a definitive agreement with Tower Semiconductor, a foundry for analog semiconductor solutions. According to the agreement, Intel will acquire Tower for $53 per share in cash, with a total transaction value of approximately $5.4 billion. Both boards have approved the transaction, but this cross-border merger still requires approval from antitrust authorities in various regions, and Intel expects the entire transaction to be completed within 12 months.Regarding this acquisition, Intel’s chairman for China, Wang Rui, stated, “Acquiring Tower Semiconductor accelerates Intel’s path to creating a world-leading, end-to-end foundry business. Intel Foundry Services (IFS) is an important part of Intel’s IDM 2.0 strategy, providing services to global customers and helping meet the growing demand for semiconductor manufacturing capacity worldwide.”# Chiplet interconnect standard UCIe established, founding members exclude mainland companiesIn March, the UCIe (Universal Chiplet Interconnect Express) industry alliance was announced by ten companies including ASE, AMD, ARM, Google Cloud, Intel, Microsoft, Qualcomm, Samsung, and TSMC, with the aim of promoting the standardization of Chiplet interface specifications and has released the UCIe 1.0 version specification. UCIe is an open Chiplet interconnect specification that defines the interconnection between Chiplets within a package to achieve universal interconnection at the package level and an open Chiplet ecosystem.Within the industry chain, the advanced packaging technology that Chiplet relies on has not yet achieved unification, with top global foundries striving to achieve interconnection primarily through wafer processing, providing faster connections and better scalability; while packaging factories in mainland China and Taiwan are working to reduce wafer processing requirements, offering cheaper solutions that are more cost-effective than leading foundries.Only when the standard is widely adopted can its value be maximized. The ten initial members of UCIe, although representing Fabless, Foundry, OSAT, and IP, maintain the value chain of leading enterprises, which will further strengthen its market acceptance and dominance. However, without the participation of major packaging factories in China, this standard is unlikely to have true “universal value.” However, major testing and packaging factories such as JCET, Tongfu, and Huatian, as well as wafer manufacturing and design companies, should not sit idly by but should actively support and participate in the UCIe standardization process to enhance the voice of their Chinese counterparts.# Qualcomm completes $4.6 billion acquisition of Veoneer, integrating automotive chips with related softwareOn April 1, Qualcomm, in collaboration with private equity firm SSW Partners, completed the acquisition of Veoneer for $4.6 billion. Qualcomm’s CFO Akash Palkhiwala stated that Arriver’s ADAS software division will become an important part of Qualcomm’s rapidly growing automotive business. This also represents a key piece of Qualcomm’s entire automotive digital chassis, from 4G/5G connectivity, cloud services, in-cabin entertainment to smart driving.From a strategic perspective, this is also a milestone in Qualcomm’s diversification of its business model. The acquisition of Arriver also highlights the enormous potential opportunities for the commercialization of automotive chips and related software.# AMD acquires edge computing startup Pensando for $1.9 billionOn April 4, chip giant AMD announced the acquisition of Pensando for $1.9 billion, which was completed on May 26. AMD stated that Pensando, headquartered in Milpitas, California, produces chips and software designed to accelerate data flows in large server farms and reduce operational costs.Since its launch in 2017, Pensando has attracted significant attention, especially as this edge computing startup was founded by a group of former Cisco engineers, with support from former Cisco CEO John Chambers.AMD stated that Pensando’s distributed services platform will expand AMD’s data center product portfolio through high-performance data processing units and software stacks. The founders and employees of Pensando have joined AMD’s data center solutions group.# US seeks to form a “Chip4” alliance to blockade Chinese semiconductorsIn April, the US government proposed to establish a “Chip4” alliance with South Korea, Japan, and Taiwan, with the intention of using this organization to exclude mainland China from the global semiconductor supply chain, forming a blockade around mainland China in the global supply chain. Additionally, the formation of this semiconductor alliance aims to provide a forum for governments and enterprises to discuss and coordinate issues related to supply chain security, human resource development, R&D, and subsidy policies.Industry insiders predict that if the “Chip4” alliance is formed, among its members, Taiwan’s MediaTek, TSMC, and ASE, which connect design, manufacturing, and testing, will undoubtedly be invited; South Korea will be represented by Samsung and SK Hynix; Japan will be represented by Toshiba, Renesas, and Tokyo Electron; and the US will include heavyweight companies such as Applied Materials, Micron, Intel, Broadcom, and Qualcomm, forming the strongest alliance in semiconductor history. However, the progress of Chip4’s formation has been slow due to various interests in China.# MaxLinear acquires Silicon Motion for $3.8 billionOn May 5, US chip manufacturer MaxLinear announced that it has reached a final agreement to acquire NAND flash controller manufacturer Silicon Motion for $3.8 billion in cash and stock. According to the agreement, each American depositary share (ADS) of Silicon Motion (equivalent to 4 shares of Silicon Motion common stock) will be exchanged for $93.54 in cash and 0.388 shares of MaxLinear common stock, with a per ADS consideration of $114.34. Based on MaxLinear’s closing price on May 4, 2022, the total implied value of the transaction for Silicon Motion is approximately $3.8 billion.This strategic business merger is expected to drive transformational scale, create a diversified technology portfolio, significantly expand the total target market of the merged company, and create a leading semiconductor enterprise with high profit and cash generation.# Samsung Electronics to invest $360 billion over the next five yearsOn May 24, Samsung Electronics announced that it will invest 450 trillion won (approximately $360 billion) over the next five years to accelerate the development of semiconductors, biopharmaceuticals, and other next-generation technologies in response to increasingly severe economic and supply shocks. The group stated in a statement that 80% of the funds will be used for technology R&D and talent cultivation in South Korea, while the rest will be invested overseas.# Broadcom to acquire VMware for $61 billionOn May 27, chip manufacturer Broadcom announced that it will acquire cloud service provider and virtualization software giant VMware for $61 billion in cash and stock, with the deal expected to be completed in the 2023 fiscal year. This is one of the largest tech acquisitions in history, second only to Dell’s $67 billion EMC deal and Microsoft’s upcoming $68.7 billion acquisition of Activision Blizzard. Broadcom is known for its chip business, designing and manufacturing semiconductors for various devices, including modems, Wi-Fi, and Bluetooth chips.This massive acquisition of VMware aims to drive Broadcom’s software business. The combination of VMware and Broadcom could be a powerful combination focused on enterprise infrastructure and cloud computing.# Nanya Technology to invest $10.7 billion to expand production! 12-inch DRAM plant construction beginsOn May 31, Nanya Technology, a major DRAM manufacturer under the Formosa Plastics Group, announced that it will hold a groundbreaking ceremony on June 23 after obtaining construction permits for its new 12-inch plant. This is the largest investment by the Formosa Plastics Group in the technology sector in nearly a decade. According to Nanya’s plan, the new 12-inch plant will be located in the Nankang South Forest Science Park in New Taipei City, with a total investment of up to 300 billion New Taiwan dollars. The new plant will include a “main factory,” “R&D building,” and “water resource recycling center,” and will also build a separate facility for EUV lithography equipment to meet future advanced process needs.It is reported that the new plant will use Nanya’s self-developed 10nm-level (1A, 1B, 1C, 1D) process technology to produce DRAM chips, with plans for a three-phase expansion, and once completed, the monthly production capacity could reach 45,000 wafers, with mass production expected to start in 2025.# Japan approves TSMC’s factory plan with a maximum subsidy of 476 billion yenTo attract global semiconductor giant TSMC to establish operations in Japan, the Japanese government officially approved TSMC’s factory plan on June 17, promising a maximum subsidy of 476 billion yen (approximately 23.8 billion yuan). If all goes well, TSMC will collaborate with Sony Group and DENSO Corporation to primarily produce for Japanese customers.According to Kyodo News, countries around the world are competing for semiconductor procurement for various electronic products, and ensuring stable supply for their own countries has become an important issue for governments.Japan is lagging in semiconductor production, so the Japanese government hopes to solidify its production base through subsidies and other means.# Samsung announces the official start of mass production of 3nm chipsOn June 30, Samsung announced in an official statement that the company has begun mass production of 3nm semiconductor chips at its Hwaseong plant in South Korea. Unlike previous generations of chips that used FinFET technology, the 3nm chips adopt a new GAA (Gate All Around) transistor architecture, significantly improving power efficiency. Compared to traditional 5nm chips, the first generation of 3nm chips can reduce power consumption by 45%, improve performance by 23%, and reduce area by 16%. The second generation of 3nm chips can reduce power consumption by 50%, improve performance by 30%, and reduce area by 35%.The mass production of Samsung’s 3nm chips allows it to slightly outpace its competitors. In terms of competition, TSMC and Intel plan to start mass production of 3nm chips in the second half of this year and next year, respectively.# Infineon lays the foundation for its third factory in Kulim, further expanding power semiconductor capacity in MalaysiaOn July 14, Infineon held a groundbreaking ceremony for its third factory project in Kulim, Malaysia, with a total investment of over 8 billion ringgit (approximately 12.12 billion yuan), which will be used for the manufacturing of third-generation semiconductor products such as silicon carbide and gallium nitride, expected to be completed and put into production in the third quarter of 2024.Infineon’s COO Rutger Wijburg stated that the company’s front-end wafer manufacturing base in Kulim has formed a scale advantage, and once the third factory reaches full production, it will contribute an additional 2 billion euros (approximately 13.52 billion yuan) in added value, allowing Infineon to better meet the growing demand for power semiconductors.# The world’s first 232-layer NAND begins mass productionOn July 26, Micron Technology announced the launch of the world’s first 232-layer NAND, which is now in mass production at Micron’s Singapore plant, with the first batch of chips to be used in Crucial’s consumer SSDs. The 232-layer NAND flash represents a watershed in storage innovation, proving for the first time the ability to scale NAND flash production to over 200 layers.Micron’s 232-layer NAND uses a new 11.5mm x 13.5mm package, which is 28% smaller than Micron’s previous generation products, making it the smallest high-density NAND on the market. Compared to Micron’s previous generation NAND, the 232-layer NAND also offers up to 100% write bandwidth and over 75% read bandwidth, while introducing the industry’s fastest I/O speed of 2.4GB/s, which is 50% higher than the 176-layer NAND flash.# GlobalFoundries and STMicroelectronics announce plans to build a factory in France for nearly 4 billion eurosOn July 11, GlobalFoundries and STMicroelectronics announced plans to invest nearly 4 billion euros to establish a semiconductor factory in France at the “Choose France” summit held in Versailles, which will help the European Commission achieve its goal of producing 20% of the world’s chips by 2030. This is also the latest initiative for Europe to develop chip manufacturing to break free from Asian and American supply chains.# US lobbies the Netherlands to stop exporting ASML’s advanced products to China, but the number of lithography machines sent to mainland China still exceeds 20% of the global totalSince July, the US has been lobbying the Netherlands to stop exporting ASML’s advanced products, including EUV (Extreme Ultraviolet) lithography machines, to China. ASML’s CEO Peter Wennink publicly questioned whether the US government’s push for the Netherlands to adopt export restrictions against China is reasonable. He stated that under US pressure, the Dutch government has been restricting ASML from exporting its most advanced lithography machines to China since 2019, benefiting American companies selling alternative technologies and products.However, the US’s persuasion seems to have not dampened the strong sales momentum of the company in China. ASML’s global vice president and president for China, Shen Bo, stated that the company is open to exporting integrated circuit lithography machines to China and treats all global customers equally, fully supporting within the framework of laws and regulations. Shen revealed that in the second and third quarters of 2020, the number of lithography machines sent to mainland China exceeded 20% of the global total.# US signs the CHIPS and Science Act, restricting companies receiving US subsidies and incentives from investing in ChinaOn August 9, US President Biden officially signed the CHIPS and Science Act into law, with the US government allocating approximately $52.7 billion in subsidies to the semiconductor manufacturing and R&D sectors. Additionally, the act provides a 25% tax credit for companies building chip factories in the US to attract the global chip industry to shift to the US while restricting companies receiving US subsidies and incentives from investing in China—requiring any company receiving US subsidies to manufacture chips domestically. Furthermore, the act authorizes the US government to allocate approximately $200 billion in subsidies to promote research and innovation in various fields such as artificial intelligence, quantum computing, and robotics over the next decade.Commentators point out that this act violates the WTO’s Agreement on Subsidies and Countervailing Measures and the fundamental legal principle of non-discrimination. It attempts to force chip companies to take sides and restrict their investment and development in China. A spokesperson for the Ministry of Foreign Affairs stated that this act is an example of the US’s economic coercion. Such restrictions and decoupling will only harm others and oneself. Any restrictions and suppression will not hinder the pace of China’s technological and industrial development.Chinese business circles have expressed strong opposition to this act, stating that its implementation will not only obstruct normal economic and trade cooperation between Chinese and American businesses in the semiconductor field but also harm the interests of global semiconductor companies, including American enterprises, disrupt the global chip market, and affect the optimal allocation and security stability of the global chip industry chain supply chain.# US imposes export controls on EDA software for GAAFET integrated circuits (below 3nm)On August 15, the US Department of Commerce issued regulations imposing new export controls on technologies necessary for designing GAAFET (Gate-All-Around Field Effect Transistor) structure integrated circuits, including EDA software, which officially took effect on the 15th. The Bureau of Industry and Security (BIS) of the US Department of Commerce released a temporary final rule. This rule establishes new export controls on four emerging and foundational technologies. Among these four technologies, the most concerning to the public is EDA software. The rule stipulates export controls on EDA software used for developing GAAFET structure transistors.The US’s violation of international trade rules will inevitably hinder international technological exchanges and economic cooperation, threatening the security and stability of global industry chain supply chains. In the current context of declining global economic growth and high inflation, countries should increase open cooperation efforts, jointly create an open, fair, just, and non-discriminatory technological development environment, and promote global technological progress and shared achievements to add momentum to the stable development of the world economy.# US introduces the Inflation Reduction Act, which will impact the global electric vehicle industry chain and supply chainOn August 16, US President Joe Biden signed the Inflation Reduction Act of 2022, worth $750 billion, into law, officially taking effect. According to the Inflation Reduction Act, the US government will provide substantial subsidies for green industries completed within the US, and the electric vehicle subsidy provisions included in the act also propose localization ratio requirements for the industry chain, raising concerns about its impact on supply chains, which may restrict the procurement of critical materials (such as lithium and cobalt). The US claims that this act aims to alleviate inflation and reduce deficits.Analysts point out that this move is intended to encourage domestic and foreign enterprises to shift their production bases to the US—it is also interpreted as another measure by the US to “restrict China.” Some analyses suggest that the electric vehicle subsidy provisions proposed in this act aim to exclude China from the supply chain. Essentially, it harms European industries and seeks to gain a competitive advantage for American enterprises. The China Council for the Promotion of International Trade responded that this is a typical practice of trade protectionism, an improper intervention in the global electric vehicle supply chain and industry chain, and seriously affects the free competition of the global electric vehicle industry. The act has also drawn unanimous backlash from the EU, which stated that it “seriously violates WTO rules, and Europe must prioritize defending its own interests!”# Intel reaches a $30 billion partnership with BrookfieldOn August 23, semiconductor giant Intel announced that it has reached a $30 billion partnership with Canadian asset management giant Brookfield, which will provide funding support for Intel’s chip factory in Arizona. It is understood that Brookfield will invest $15 billion to acquire 49% of the chip factory’s shares while also providing some infrastructure experience; Intel will retain 51% of the shares. The partnership is expected to be completed by the end of 2022.# Intel officially breaks ground on a $20 billion chip production base in OhioOn September 9, Intel announced that it has officially broken ground on a $20 billion chip production base in Ohio. US President Biden, Ohio Governor, and Intel CEO Pat Gelsinger celebrated the groundbreaking of Intel’s latest manufacturing base in the US in 40 years. The company stated that total investment in this facility could reach $100 billion over the next decade, making it one of the largest semiconductor manufacturing plants in the world. It is expected to employ over 7,000 workers in the construction of this facility. Intel plans to establish two independent factories here, which are expected to create 3,000 jobs once completed. To support the development of new nodes, Intel has committed an additional $100 million to establish partnerships with educational institutions to build a talent pipeline and support research programs in the region.As part of Intel’s IDM 2.0 strategy, this investment will help increase output to meet the growing demand for advanced semiconductors, power Intel’s next-generation innovative products, and meet the needs of foundry customers.# Samsung: The largest chip production line P3 in history has officially started operationsOn September 8, memory chip manufacturer Samsung Electronics announced that it has begun operations at the P3 chip production line in its Pyeongtaek plant in South Korea. This plant will produce advanced NAND flash chips. This is the largest chip factory ever built by Samsung Electronics.Today, the Pyeongtaek plant has become the company’s most important semiconductor manufacturing center. Various manufacturing facilities here can be used to produce a range of chip products from 13nm DRAM to below 5nm process technology. Samsung Electronics will continue to add facilities in the 2.9 million square meter Pyeongtaek plant. Samsung has already begun preparations to open another new production line, P4, to further increase its production capacity.# Micron invests $15 billion in a memory manufacturing plantOn September 12, Micron Technology announced that it has broken ground on a $15 billion memory manufacturing plant in Boise, Idaho. This will be the first new memory chip manufacturing plant built in the US in 20 years, ensuring domestic supply of cutting-edge memory needed for segments such as automotive and data centers, while the accelerated applications of AI and 5G will drive the development of these markets.Micron’s CEO stated that the establishment of this plant is due to the recent passage of the CHIPS and Science Act, expected federal funding and credits from the CHIPS Act, and incentives provided by Idaho, with the new plant expected to create over 17,000 new jobs in the US by the end of the century.Micron will also establish another new plant in the US, with both plants producing DRAM chips widely used in data centers, personal computers, and other devices. Once operational, Micron’s DRAM output in the US will account for 40% of Micron’s global output, up from the current 10%. As part of Micron’s investment plan, it will invest $150 billion in production and R&D over the next decade and evaluate plans for establishing factories in various locations, with $40 billion of that investment allocated to the US.# Vedanta partners with Foxconn to build a $20 billion semiconductor project in IndiaOn September 13, Indian multinational conglomerate Vedanta signed an agreement with Foxconn to build a $20 billion semiconductor project in Gujarat, the home state of Prime Minister Modi, marking the largest investment in the semiconductor industry in India’s history.Foxconn expressed its satisfaction with the efforts made by Gujarat to attract semiconductor development locally and the improvement of government efficiency, as Gujarat in western India is recognized for its industrial development, green energy, and smart cities. With improvements in infrastructure and strong government support, confidence in establishing semiconductor factories locally is expected to increase significantly.# US imposes new export controls on advanced computing and semiconductor items to ChinaOn October 7, the US Department of Commerce’s Bureau of Industry and Security (BIS) released control measures on the export of advanced computing and semiconductor manufacturing items to China, aiming to limit China’s access to advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors, claiming that this move is to protect US national security and foreign policy interests. Subsequently, on October 28, the BIS released related FAQs to clarify some issues.In terms of items, this includes adding certain advanced, high-performance computing chips and computers containing such chips to the commercial control list, increasing new licensing requirements for end-use in China for supercomputers or semiconductor development and production projects, adding certain semiconductor manufacturing equipment and related items to the commercial control list, and increasing new licensing requirements for advanced chip production facilities in China for non-planar transistor structure logic chips below 16nm or NAND flash chips above 128 layers.It can be said that the recent targeted modifications to the US export control measures have a strong impact on related enterprises, but in light of the US’s actions in recent years, these control measures are not surprising. We look forward to Chinese enterprises breaking through under international pressure and hope for faster development of domestic substitution, seizing the “chip” of semiconductors, and also seizing the “chip” of various industries, which may be the only way for enterprises under the backdrop of the US’s blatant destruction of global cooperation.# Global chip stocks plummet, with total market value evaporating by over $1.6 trillionFollowing the release of new regulations by the US Department of Commerce on October 7, global chip stocks experienced a sharp decline in the following two trading days.In just four days from October 7 to October 11 (two trading days), the stock prices of chip companies such as TSMC, NVIDIA, AMD, and Samsung Electronics plummeted, resulting in a loss of over $240 billion (approximately 1.67 trillion yuan) in the global market value of the industry. It is estimated that the global chip industry will lose over 2 trillion yuan in market value throughout 2022.# Kioxia and Western Digital’s joint venture Fab7 wafer fab completed, set to mass produce 162-layer NAND Flash in 2023On October 26, storage chip giants Kioxia and Western Digital celebrated the completion of the Fab7 wafer fab located in Yokkaichi, Japan. Fab7 is Japan’s latest and most advanced semiconductor manufacturing plant, which will be indispensable for Kioxia’s future development.The total investment for the first phase of the Fab7 wafer fab is approximately 1 trillion yen (approximately 48.8 billion yuan), with part of the initial investment amount funded by government subsidies. The capacity of Fab7 will gradually increase over time, promoting the development of local advanced semiconductor production facilities and ensuring a stable supply of semiconductors in Japan. Fab7 has the capability to produce sixth-generation 162-layer NAND Flash and future more advanced 3D NAND Flash, with plans to start shipping 162-layer NAND Flash in early 2023.# EU countries agree to allocate over 40 billion euros to enhance semiconductor production capacity in the EUAt the end of November, EU countries agreed to allocate over 40 billion euros to enhance semiconductor production capacity in the EU. This is a continuation of the “European Chips Act” announced by the European Commission in February this year, which plans to mobilize over 43 billion euros in public and private funds by 2030 to support chip production, pilot projects, and startups, and to vigorously build large chip manufacturing plants. The EU’s plan aims to increase its share of global chip production from the current 10% to 20% by 2030.Although this act will not be passed until 2023, many semiconductor companies have already begun to take action, and the wave of large-scale construction of wafer fabs in Europe is already showing signs. However, based on Europe’s own industry foundation and market conditions, as well as internal disputes over the details of the provisions, this semiconductor revival plan still faces many uncertainties.# Intel: 4nm and 3nm nodes are on track, 1.8nm technology is in useIn early December, at the IEDM conference, Intel shared its process technology roadmap and its vision for chip designs expected to emerge in the next three to four years. As expected, Intel’s next-generation manufacturing processes—Intel 4 and Intel 3—are expected to be used for high-volume manufacturing (HVM) in 2023 and 2024, respectively. Additionally, the company’s 20A and 18A production nodes are expected to be ready for HVM in 2024, meaning that 18A will be launched ahead of schedule.At some point in 2024, the company will launch its 20A (20 angstrom or 2nm) node, which will use its ribbonFET transistor technology and a back power delivery system called PowerVia. Intel expects its 20A node to go into production in the first half of 2024; it will be used to manufacture small chips for the company’s client PC processor codenamed Arrow Lake.The company is also preparing its 18A (18 angstrom, 1.8nm) production node, which is expected to further enhance PPA (performance, power, area) advantages for Intel and its Intel Foundry Services customers. For 18A, Intel initially planned to use EUV tools with a 0.55 numerical aperture (NA) optical device, which would provide 8nm resolution (lower than the current 13nm resolution using EUV tools with a 0.33 NA). However, ASML’s High-NA EUV equipment will not be ready until 2025, while Intel’s 18A target is to be ready for manufacturing in the second half of 2025, ahead of its competitors.# TSMC Arizona relocation ceremony, investment increased to $40 billion, expected revenue to reach $10 billionOn December 6, TSMC held a relocation ceremony in Phoenix, Arizona, where the first batch of machines was moved into the new factory costing $12 billion. The estimated number of attendees is expected to reach 900, making it a grand event.This ceremony is quite grand, the largest in TSMC’s history. Not only did TSMC’s founder Morris Chang, President C.C. Wei, and Chairman Mark Liu attend the ceremony, but also US President Biden and US Secretary of Commerce Gina Raimondo were present. TSMC also invited suppliers and customers, including Apple CEO Tim Cook, AMD CEO Lisa Su, Applied Materials, KLA, and Tokyo Electron’s CEO to attend.At this ceremony, TSMC announced plans to increase its investment in the new factory in the US to $40 billion, three times the original budget of $12 billion, and to build a second factory. This is TSMC’s largest investment outside of Taiwan and one of the largest foreign direct investments in US history. TSMC Chairman Mark Liu stated that once the two factories in Arizona are operational, they will produce over 600,000 wafers annually, with estimated annual revenue reaching $10 billion. This will also create 13,000 high-paying jobs, of which 4,500 will come from TSMC, and the rest from supply chain vendors.Reports from Taiwan media in November indicated that TSMC’s first charter flight had already sent nearly 300 employees and their families to the US, and more than 1,000 TSMC employees and their families will be sent to the US in the future. However, Morris Chang is not optimistic about the business environment in the US, stating that the cost of manufacturing chips in the US is 50% higher than in Taiwan.Frankly speaking, regarding TSMC’s actions in the US, both mainstream opinions in Taiwan and mainland China are filled with indignation, with some insightful individuals in Taiwan even stating that TSMC’s establishment of factories in the US is selling out the interests of Taiwan and China.TSMC’s move to the US has elements of being threatened, and the target of the threat is the US government. From a strategic perspective, elevating communication security to the level of national strategic security, establishing a localized industrial chain in the US to achieve complete decoupling from the Chinese market and long-term competition with China.It has become a foregone conclusion that high-end chips cannot be obtained, but at the same time, this presents an opportunity for Chinese enterprises. However, this opportunity requires us to invest more patience, wisdom, negotiation, and cooperation to independently develop our own high-end chips.# Tata Group plans to invest $90 billion in building a wafer fab in India over five yearsOn December 8, India’s Tata Group announced its entry into the semiconductor industry and plans to invest $90 billion over the next five years. The group chairman believes that this move will make India an important part of the global chip supply chain.In the current context of global chip shortages and the continuous diversification of the chip supply chain, although India’s demand for semiconductor-intensive products such as smartphones and electric vehicles is growing, the country has almost no semiconductor industry apart from software design, relying almost entirely on imports.As India’s largest conglomerate, Tata Group’s business operations span multiple sectors. Of course, the group has previously set a goal of occupying a key position in the global chip supply chain and expressed its desire to enter the semiconductor manufacturing industry.# US adds Yangtze Memory Technologies and 35 other Chinese companies to the “Entity List”On December 15, the US government added 36 Chinese technology companies, including Yangtze Memory Technologies, Cambricon, and Shanghai Microelectronics Equipment, to the “Entity List” in an attempt to further obstruct and suppress the development of China’s technology industry.The inclusion of these companies on the so-called Entity List by the US Department of Commerce means that any company on the list must obtain permission from Washington if it provides products involving US technology, and this permit is difficult to obtain.The latest move is part of the US’s attempt to restrict the development of China’s chip and artificial intelligence technology. Reports have previously indicated that the aforementioned companies will be prohibited from purchasing certain US components. A spokesperson for the Ministry of Foreign Affairs, Wang Wenbin, pointed out that the US has repeatedly generalized the concept of national security, abused export control measures, and taken discriminatory and unfair actions against foreign companies, politicizing and weaponizing economic and technological issues, which is blatant economic coercion and technological bullying.# STMicroelectronics announces a three-pronged expansion planIn December, STMicroelectronics officially announced another major expansion plan, investing 730 million euros to build a 6-inch silicon carbide substrate production line in Catania, Italy, expected to be operational in 2023. This is STMicroelectronics’ third major expansion plan following the announcement of new 12-inch lines in Agrate, Italy, and Crolles, France.# Japanese government to invest 7 trillion yen to promote domestic investment, focusing on providing investment support for advanced semiconductor productionOn December 8, the Japanese government announced that it will invest approximately 7 trillion yen to expand domestic investment. The core content is to provide investment support for advanced semiconductor production in Japan, among other things. According to Japan’s largest economic group, Keidanren, it is predicted that by the fiscal year 2027, the investment amount for domestic equipment in Japan will reach 100 trillion yen.Japanese Prime Minister Fumio Kishida participated in a public-private opinion exchange meeting aimed at expanding domestic investment at the Prime Minister’s residence on the 8th. He stated, “I have repeatedly mentioned that a virtuous cycle of growth and distribution is important, and the most important driving force for distribution is investment,” indicating that funds will be invested to strengthen Japan’s domestic capacity for advanced semiconductors and batteries, as well as support small and medium-sized enterprises in relocating production bases from overseas to Japan.# TSMC 3nm process technology begins mass productionOn December 29, TSMC held a mass production and expansion ceremony for its 3nm process technology in Tainan Science Park, officially announcing the start of large-scale production of 3nm chips. Chairman Liu Deyin stated that Wafer Fab 18 is a key production base for TSMC’s 5nm and 3nm processes, with a total investment amount reaching 1.86 trillion New Taiwan dollars, expected to create 11,300 direct high-tech job opportunities. At the beginning of the new year, TSMC will adopt the limited capacity N3 node process, and then shift to the more stable and efficient full production of N3E later in 2023, followed by transitioning to N3P in 2024, during which TSMC will also begin trial production of its 2nm GAA process at its Hsinchu factory and mass production in 2025.# US-China economic gap further widensOn December 11, US President Biden tweeted, stating, “According to independent expert predictions, this year the US economic growth rate may exceed that of China. This has not happened since 1976.”Comprehensive institutional forecasts indicate that the total economic scale for the entire year of 2022 is expected to exceed 120 trillion yuan, equivalent to about $18 trillion at average exchange rates. Meanwhile, the US is expected to surpass $25 trillion. The economic gap between the US and China is further widening.Source | Future Semiconductor