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Japan Invests $3.9 Billion in Rapidus Chip Venture to Boost Tech Dominance

Japan has given the green light to allocate a substantial sum of ¥590 billion ($3.9 billion) in subsidies to Rapidus Corp., a semiconductor venture, as part of its ongoing efforts to ramp up chip production capabilities. This significant financial injection is aimed at aiding Rapidus in procuring chipmaking equipment and advancing its back-end chipmaking processes, revealed Economy Minister Ken Saito.

Strategic Investment in Next-Generation Semiconductors

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During a regular news conference in Tokyo, Minister Saito emphasized the critical role of next-generation semiconductors in shaping Japan’s industrial landscape and economic growth trajectory. He emphasized the pivotal nature of this fiscal year for Rapidus, underlining the importance of their endeavors in the semiconductor domain.

This move has sparked positive market reactions, with Japanese chip equipment makers such as Tokyo Electron Ltd. and Disco Corp. experiencing notable stock price surges in response to the subsidy approval.

Reviving Japan's Semiconductor Sector

This substantial funding forms part of Japan’s broader strategy, allocating around ¥4 trillion over the last three years to revitalize its semiconductor manufacturing capabilities. Prime Minister Fumio Kishida has set ambitious targets, aiming for ¥10 trillion in financial support to chipmakers, in collaboration with the private sector.

Geopolitical tensions and a growing awareness of the strategic importance of semiconductors globally have prompted governments worldwide to bolster domestic semiconductor production. This industry’s significance extends beyond consumer electronics, encompassing critical applications in automotive, energy, defense, and more.

Rapidus’s collaboration with Japanese researchers in nanotechnology and materials underscores the nation’s commitment to narrowing the gap with leading chip manufacturers like Taiwan Semiconductor Manufacturing Co. (TSMC). The aim is to leverage cutting-edge fabrication technology and enhance production efficiency.

Accelerating Innovation and Production Cycles

A substantial portion of the newly approved subsidies will be channeled into equipping Rapidus’s pilot line at its Chitose plant, collaborating with IBM Corp. researchers, streamlining production processes, and developing advanced packaging technologies. These initiatives align with Rapidus’s ambitious goal of mass-producing semiconductors using 2-nanometer processes by 2027, while achieving production cycles twice as fast as competitors.

Also Read: Xiaomi Shifts Focus from Apple to Tesla in the EV Market with 120,000 Orders in 36 Hours

President Atsuyoshi Koike of Rapidus emphasized the critical role these funds play in realizing their vision, highlighting the importance of the pilot line’s development.

Minister Saito also reflected on Japan’s past economic challenges, attributing part of its stagnation to a lack of understanding regarding semiconductor importance. He stressed the foundational role of chips in driving digitalization, decarbonization, and economic security, positioning semiconductors as the cornerstone of Japan’s industries and global economic infrastructure.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

China Boosts Chip Gear Purchases to $40B to Counter US Tech Curbs

China dramatically expanded its imports of chipmaking gear in 2023 as a calculated attempt to support its semiconductor sector and overcome limitations set by the US. Based on official customs statistics, Bloomberg calculated that imports of computer chip-related equipment increased by 14% to around $40 billion, the second-highest amount since 2015. This increase happened in the midst of a 5.5% overall dip in China’s total imports during the same time frame.

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Achieving self-sufficiency in chip manufacturing has been accorded top priority by the Chinese government and the semiconductor industry, especially in light of the difficulties caused by export restrictions enforced by the US and its allies.

The US sees China’s high-tech sector as a possible danger, and these limitations have made it harder for Chinese enterprises to have access to state-of-the-art chipmaking gear.

Chinese Chip Businesses are Making Significant Investments

Chinese chip businesses are making significant investments in constructing new semiconductor production facilities to boost national capabilities and get around export control obstacles. Crucially, these restrictions have restricted Chinese companies’ access to the equipment needed to manufacture the strongest and most sophisticated semiconductors.

Notably, in anticipation of increased export restrictions, China saw a spike in imports from the Netherlands. The Netherlands has enforced regulations that impede Chinese enterprises, such as Semiconductor Manufacturing International Corp., from obtaining the newest equipment for producing chips. Lithography equipment imports from the Netherlands surged by about 1,000% year over year in December, totalling $1.1 billion, as businesses hurried to stock up before this month’s Dutch limitations went into effect.

The US government apparently requested that Dutch business ASML Holding NV stop shipments of some of its cutting-edge machinery to China even before the new limitations went into force. These cancellations happened just before export restrictions on expensive machinery used to make chips were supposed to go into force.

Also Read: Apple Music Will Pay Artists an Additional 10% Incentive For Spatial Audio Music

China’s significant investment in chip manufacturing equipment demonstrates its determination to become technologically independent and to get past international barriers. A crucial component of the country’s long-term economic plan continues to be its emphasis on developing a strong semiconductor sector.

The significant rise in imported chipmaking equipment demonstrates China’s will to maintain its leadership in the global semiconductor market in spite of outside obstacles.

Suhani Jain

I am a student pursuing my bachelor’s in information technology. I have a interest in writing so, I am working a freelance content writer because I enjoy writing. I also write poetries. I believe in the quote by anne frank “paper has more patience than person

CEO Behind the $7 Billion Deal Sets Sights on Japan’s Chip Linchpin, JSR

Leave a Comment / News, Tech News / By Suhani Jain

The CEO of Resonac Holdings, Hidehito Takahashi, has indicated an interest in acquiring a share in JSR, the largest manufacturer of photoresists worldwide, as he gets ready for yet another round of consolidation in Japan’s chip materials industry. This action comes after Japan Investment’s $6 billion acquisition of JSR, which is anticipated to drastically alter the nation’s supply chain for semiconductor materials.

Image Source: bloomberg.com

Takahashi thinks his business is the most logical partner for JSR. Takahashi is well-known for arranging Showa Denko’s 2020 acquisition of the bigger Hitachi Chemical, creating Resonac. He shows a great desire to actively engage in JSR’s future while acknowledging the possible price.

"I believe we are the most logical partner for JSR,” said the executive who orchestrated Showa Denko’s purchase of the bigger Hitachi Chemical in 2020 that led to the formation of Resonac. "It will be expensive, so we have to think about how we’d do it, but we want to get involved.”

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Japan has a vast network of relatively unknown businesses that specialise in essential materials like mask blanks and photoresists that are essential to the fabrication of semiconductors. But as demand for better semiconductor performance rises and research expenses rise, the industry is being forced to consolidate in order to remain competitive against international rivals.

One area where Japan can keep winning on the global stage is semiconductor materials, Takahashi Stated. He calls on leaders to look beyond their specialised fields and highlights the need to move away from a fragmented industry.

Resonac Hopes to Become a Chip Materials Juggernaut

With an annual revenue target of over ¥1 trillion and an EBITDA margin of at least 20%, Resonac hopes to become a chip materials juggernaut and join the ranks of multinational behemoths such as 3M and DuPont de Nemours. The 61-year-old Takahashi emphasises that Resonac need not be the only force towards consolidation, expressing a willingness to resign as CEO if doing so helps realise this goal.

"I'm not interested in Resonac swallowing everything. There is an ideal the industry should pursue. Let's think about how we can get there while keeping everyone happy," Takahashi states, emphasizing the desire to contribute to industry consolidation.

japantimes.co

Resonac’s chip materials division is anticipated to earn a profit in line with its record-breaking 427 billion in revenues in 2022. The business is positioned well in the changing semiconductor environment thanks to its focus on providing essential materials for next-generation circuits, which is being pushed by the expanding usage of artificial intelligence.

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Resonac is reorganising its operations to focus more of its efforts on the semiconductor industry. The company intends to sell off parts unrelated to semiconductors, including one of its oldest divisions, petrochemical materials. Takahashi says that efforts are being made to remove this unit off the company’s balance sheet, even if there may be difficulties in finding a buyer for it.

Suhani Jain

Samsung’s Profit Slide Slows in Sign of a Chip Market Bottom

Leave a Comment / News, Tech News / By Suhani Jain

After stopping losses at its chip division, Samsung Electronics Co. recorded a more gradual decline in quarterly profit, raising the possibility that the worldwide semiconductor sector had turned into a downward spiral.

A 78-cent reduction in operating profits was better than expected, according to some investors, and this helped Samsung’s shares rise as high as 4.4%, which is the biggest in more than a month. The biggest corporation in South Korea, along with its smaller competitors SK Hynix Inc. along with Micron Technology Inc., has been experiencing an industry slowdown. In response to sluggish demand for gadgets and an oversupply of chip inventory, dependable clients, such as manufacturers of personal computers and mobile phones, have reduced their purchases.

As per Samsung’s initial figures, operating income decreased to roughly 2.4 trillion won which is approximately $1.8 billion despite a decline of 13 percent in earnings in the three months leading up to September. The figures are better than the record 95 percent year-on-year decline in the previous quarter, which is in line with analyst predictions.

Expectations are rising that Samsung’s semiconductor business “has pretty much passed the bottom,” said Sanjeev Rana, head of Korea Research at CLSA. “And the recovery is underway in the fourth quarter.”

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Samsung now aims to take advantage of the long-expected rise in AI-related technology expenditure, which is being driven by enthusiasm among investors and customers for OpenAI’s ChatGPT launch last autumn.

However, Samsung is lagging behind tiny Hynix, the primary provider of next-generation DRAM to artificial intelligence chip manufacturer Nvidia Corp., in building the tools required to train artificial intelligence models. By 2024, Samsung claims it will have doubled its production capacity for high-bandwidth memory, which has the capability required to accelerate AI training

Samsung is a leader in the memory market, which quickly increased production to satisfy demand brought on by the epidemic. The business continued to spend throughout the recession, burdening itself and its major clients with excessive inventory.

“The result was better than expected,” said Lee Seung-Woo, an analyst at Eugene Investment & Securities. “The bottom for the memory chip industry is behind us and Samsung’s results showed that.”

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Also Read: BlackRock Invests in German Fintech Firm Targeting New Investors

However, Samsung and Hynix have stated they will withstand financial turmoil by reducing the manufacture of NAND chips used in personal computers and smartphones until AI-related demand turns into revenue.

Before trading on Wednesday, shares of Hynix had increased by more than 60 percent compared to Samsung’s rise of 20 percent earlier this year.

Suhani Jain

Intel CEO Says the Chipmaker’s Technology Is Central to AI Boom

Leave a Comment / Artificial Intellegence, News, Tech News / By Sandhya Gupta

In a bold and ambitious statement, Intel Corp.’s Chief Executive Officer, Pat Gelsinger, has emphasized the pivotal role that the company’s technology will play in the forthcoming AI revolution.

Speaking at Intel’s annual Innovation conference, Gelsinger outlined Intel’s advancements in production technology and developer tools for AI, underlining how these innovations are set to shape the AI landscape. Gelsinger believes that the surge in AI capabilities driven by personal computers will create unprecedented opportunities for developers and businesses. He described AI as a “generational shift,” one that will usher in a new era of global expansion where computing becomes even more fundamental to shaping a better future for humanity. Gelsinger stated, “For developers, this creates massive societal and business opportunities to push the boundaries of what’s possible, to create solutions to the world’s biggest challenges.”

Intel, once a dominant player in the semiconductor industry, has been working tirelessly to regain its leadership position. Gelsinger is resolute in his vision of Intel’s resurgence as a driving force in the AI computing sector. He argued that AI’s reach will not be confined solely to the data centers of major cloud providers, such as Nvidia Corp., which has been dominating the AI accelerator market. Instead, AI will extend its influence into new domains, including the PC market, which has seen limited growth in recent years.

As part of Intel’s ambitious agenda, Gelsinger reaffirmed the company’s commitment to rapidly upgrading its manufacturing technology. He revealed that Intel 3, a cutting-edge chipmaking technique, will be introduced by the end of the year. Intel aims to overcome its past manufacturing setbacks and compete effectively with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.

Intel has also made strides in its accelerator efforts, with the Gaudi2 product line gaining recognition in certain areas. Gelsinger unveiled plans for Intel Core Ultra processors, equipped with an integrated “neural processing unit” designed to accelerate AI software in PCs. These processors are slated for release in December and are expected to bring AI capabilities to a wider range of personal computing devices.

Also Read: IBM Commits To Train 2 Million in Artificial Intelligence in Three Years, With a Focus on Underrepresented Communities

In a surprising move, Gelsinger announced that Intel would open its factory network to external customers, even if they were potential competitors. This venture into the foundry business is a bold step, requiring Intel to reestablish itself as a pioneer in advanced manufacturing by 2025, a promise that Gelsinger is determined to fulfill.

Pat Gelsinger’s resounding message at the Innovation conference is clear: Intel intends to be at the forefront of the AI revolution, leveraging its technological advancements and manufacturing prowess to shape the future of computing. As the AI boom continues to reshape industries and societies, Intel is poised to play a pivotal role in driving innovation and addressing some of the world’s most pressing challenges.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

Samsung Gains 6% on Reports It’s Joining Nvidia AI Suppliers

Leave a Comment / News, Tech News / By Suhani Jain

After news broke that Samsung Electronics Co. had been awarded the contract to provide cutting-edge memory chips to AI pioneer Nvidia Corp., It hiked by more than six percent.

The top electronics manufacturer in South Korea will begin selling HBM3, a new type of memory designed to operate with artificial intelligence acceleration devices, in the fourth quarter, according to Citigroup researchers which also involves Peter Lee. Since January 2021, its share price has gone up the highest. Until today, SK Hynix Inc., the arch-enemy of Nvidia, was the only supplier of high-bandwidth memory space for its artificial intelligence accelerators.

“Following its successful entry into Nvidia’s HBM supply chain, we expect Samsung to emerge as one of the leading suppliers of HBM3,” Lee and Josh Yang wrote in a report, “Citigroup’s Value for Samsung.” The target has been increased from 110,000 Won to 120,000 Won. “We see Samsung as a long-term beneficiary of the growth of the memory and AI computing markets.”
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The Korea Economic Daily disclosed a report on Friday, quoting anonymous business sources, that Samsung reached an agreement to provide HBM3 to Nvidia shortly after its chips cleared the United States chip developer’s last-stage quality checks. According to the report, Samsung will begin providing the premium memory chips in as little as next month.

The arrival of Samsung as an extra HBM3 provider will be advantageous to Nvidia. As it broadens its possibilities, the Santa Clara, corporation based in California, whose stocks have quadrupled in worth to a total market capitalization of 1.2 trillion dollars, can see greater cost by performance as well as a more consistent supply.

A representative for Samsung turned down to comment on this topic.

On hearing the news, Samsung’s manufacturers also saw their stocks rise, with Hana Micron Inc., a company that tests and packages chips, increasing by an average per day of 30 percent. Dedak Electronics Co., a provider of printed circuit boards, increased 7.4 percent.

HBM3, which researchers believe is suited for bandwidth-hungry artificial intelligence (AI) applications, is a technology in which Hynix leads the world. The latest HBM chip will reportedly be released by Samsung sometime this year. Hynix’s stock decreased 1.5 percent on Friday after initially gaining.

Suhani Jain

chip

Strategic Investment in Next-Generation Semiconductors

Reviving Japan's Semiconductor Sector

Accelerating Innovation and Production Cycles

Chinese Chip Businesses are Making Significant Investments

Resonac Hopes to Become a Chip Materials Juggernaut

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