semiconductor manufacturing

The U.S. is in talks with Taiwan to shift towards a “50-50” split in semiconductor production, aiming to mitigate reliance on Taiwan’s dominance (over 90%) in the global market and bolster domestic chip manufacturing. Citing national security and supply chain resilience, the U.S. seeks to produce roughly half its semiconductor needs domestically, requiring substantial investment (>$500B). While Taiwan’s TSMC, a key player, invests in the US, the move challenges the “Silicon Shield” theory and reflects concerns about geopolitical tensions and potential vulnerabilities.

India aims to become a key player in the global semiconductor industry through its “Semiconductor Mission,” approving multiple projects with billions in investment. The plan focuses on building a comprehensive domestic supply chain, attracting fabrication, testing, and packaging facilities. While India possesses a large pool of engineering talent, experts caution that inconsistent progress and insufficient investment, compounded with challenges related to infrastructure, talent retention, and IP protections, may hinder the realization of its ambition. The country needs a dynamic ecosystem beyond just incentives to attract and retain major investments.

Micron Technology is investing $200 billion in US semiconductor manufacturing and R&D, creating 90,000 jobs. As part of the White House initiative, Micron commits to empowering 40,000 learners and educators in AI through educational programs, mentorship, and resources. This supports advancing AI education to address a skills gap. Micron, the only US memory manufacturer, is strategically positioned in the AI revolution.

Rocket Lab is expanding its U.S. semiconductor manufacturing with a $23.9 million award from the Department of Commerce. This investment will double compound semiconductor and space-grade solar cell production, enhancing domestic access to these technologies for spacecraft manufacturers and improving its capacity to quickly deliver integrated spacecraft systems for national security. This initiative is projected to create economic growth across multiple states and fortify the American semiconductor industrial base.

The U.S. CHIPS Act, designed to boost domestic semiconductor manufacturing, may involve the government taking equity stakes in companies like Intel, TSMC, and Samsung in exchange for subsidies. While not actively pursued now, this approach aims to ensure commitment to significant U.S. investments. TSMC, facing substantial U.S. investments, is reportedly prepared to forgo subsidies rather than accept forced equity, viewing the relatively small subsidy amount as less critical to its overall plans.

Nordson Electronics Solutions will showcase its latest semiconductor manufacturing innovations at SEMICON Taiwan 2025 (September 10-12, booth i2326). They will highlight automated fluid dispensing with the ASYMTEK® Vantage® system, featuring IntelliJet® jet valves for high-volume underfill and sealing applications. Experts will also discuss plasma treatment for impurity removal and surface preparation, bolstering semiconductor package reliability. Nordson’s brands offer solutions for fluid dispensing, conformal coating, plasma treatment, and selective soldering.

GlobalFoundries and Apple are expanding their partnership to advance semiconductor tech and bolster U.S. manufacturing. GF will manufacture wireless connectivity and power management chips for AI devices at its Malta, NY, facility. This builds on GF’s $16B investment in NY and VT sites, aligning with Apple’s $600B American Manufacturing Program pledge. The collaboration supports the push for domestic chip independence and AI leadership. This strategic move enhances GF’s position by focusing on specialized process technologies for next-gen devices.

TSMC faces pressure from potential U.S. tariffs and demands for significant investment. The U.S. is considering a 20% tariff on Taiwanese exports, prompting negotiation for a rate closer to South Korea and Japan’s 15%. Reports suggest the U.S. seeks a $300 billion investment from TSMC for a massive Arizona fabrication plant, potentially housing future 2nm and 1.4nm processes. This investment, exceeding 30 times TSMC’s equity, follows a prior $165 billion U.S. expansion commitment. TSMC has declined to comment on the rumors.

Tesla has reportedly signed a $16.5 billion deal with Samsung for AI chip manufacturing, intended for electric vehicles and robotics. The agreement focuses on the AI6 chip, potentially utilizing a 2nm process with production in Austin, Texas, starting in 2025. Despite this, Morgan Stanley analysts believe the deal will only minimally impact TSMC’s revenue, estimating a 1% reduction, as TSMC remains a key supplier for Tesla and xAI. TSMC is set to launch its 3nm A15 chip in 2026, while Samsung’s A16 isn’t expected until 2027.

Xiamen Customs intercepted a shipment of calcium fluoride sludge, disguised as industrial material, at Dongdu Port. The substance, a semiconductor manufacturing byproduct, is classified as prohibited foreign waste under Chinese law. Importing foreign waste is illegal, and the shipment will be returned with a fine imposed. Criminal charges may follow. The sludge poses environmental risks like soil and water contamination and health hazards including fluoride toxicity and potential heavy metal exposure, impacting ecosystems and human health.