BALD Engineering - Semiconductor & Strategic Tech Weekly Summary

Tariffs, Trade & Supply Chain Disruptions

Despite the US exempting semiconductors from new tariffs, chip stocks plunged, dragging the Nasdaq Composite into a deeper correction—now down over 20% since December. Major players like Marvell, ON Semiconductor, Broadcom, and Microchip posted double-digit losses, while Nvidia and Micron also fell sharply, erasing much of their recent gains. The Philadelphia Semiconductor Index (SOX) dropped 7.6% in a single day, marking its lowest point since November 2023.

Adding to the pressure, China retaliated with a sweeping 34% tariff on all US imports, while concerns mount over broader supply chain disruptions.

Tariff Reality Check: The Taiwan Dependency

While most semiconductors are manufactured in Taiwan, relocating chip production to the US offers limited tariff relief. Even if chips are fabricated in the US, they often must return to Taiwan for testing and packaging, stages still dominated by Taiwanese subcontractors.

From Semiconductor supply chain by Calus Aasholm, subscribe to his blog here: https://lnkd.in/d2ZXMHjw

Claus Aasholm points out that, even if test and assembly were moved, final packaged chips are still sent back to Taiwan to be integrated into devices like phones, PCs, and servers. Moreover, the bulk of materials used across the value chain still come from outside the US.

Given these realities, and in light of unpredictable tariff policies, manufacturing outside the US currently remains more cost-effective and reliable. Notably, the Taiwan-specific tariffs could hurt US firms the most, as Taiwan leads in semiconductor design and in key product segments like PCs, servers, and smartphones.

Apple, heavily dependent on Southeast Asia for production, also declined 7.3%. Sub-equipment providers like MKS Instruments and Advanced Energy suffered proportionally steep losses before markets closed for the weekend.

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Technology Leadership & Industry Momentum - Ångström Era Has Arrived

At its Vision 2025 conference, Intel announced that its 18A (1.8nm) process node has officially entered risk production, marking a major milestone in its “five nodes in four years” roadmap set to reclaim tech leadership from TSMC. According to Intel’s Kevin O’Buckley, 18A will be the first node to feature RibbonFET gate-all-around transistors and PowerVia backside power delivery.

Intel is also progressing toward its 14A node, leveraging High-NA EUV lithography, representing a leap in scaling capability.

In parallel, Intel is bringing high-volume 3nm chip production to Europe in 2025 through Fab 34 in Leixlip, Ireland. This facility will support Xeon 6 server chips and expand Intel Foundry Services’ offerings in Europe—part of Intel’s push to localize and diversify its global footprint.

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Critical Materials, Tariffs & European Innovation

Looking ahead, the Critical Materials Council (CMC2025) summit kicks off next week in Austin, Texas, at a moment of intensified scrutiny on material dependencies. On April 2, the US imposed 10–50% tariffs on a broad array of semiconductor-enabling materials, many of which the US is a net importer of. The list includes:

1️⃣ Specialty Gases and Etchants

• Neon [Ne], Krypton [Kr], Xenon [Xe]

• Nitrogen trifluoride [NF₃], Hexafluorodisilane [Si₂F₆]

• Sulfur hexafluoride [SF₆], Carbon tetrafluoride [CF₄], Octafluorocyclobutane [C₄F₈], Trifluoromethane [CHF₃]

• Fluorinated silanes, Ultra-pure hydrogen [H₂]

2️⃣ High-Purity Metals and Elements

• Gallium [Ga], Indium [In], Germanium [Ge]

• Tantalum [Ta], Niobium [Nb], Hafnium [Hf], …

3️⃣ Rare Earth Elements (REEs)

• Yttrium [Y], Terbium [Tb], Dysprosium [Dy]

• Neodymium [Nd], Lanthanum [La], Cerium [Ce]

• Praseodymium [Pr], Samarium [Sm], Europium [Eu], Gadolinium [Gd], Scandium [Sc]

4️⃣ Semiconductor Substrates and Wafers

• Monocrystalline silicon wafers (300mm), Silicon-on-insulator wafers [SOI]

• Silicon carbide [SiC], Sapphire [Al₂O₃], Gallium nitride [GaN], Gallium arsenide [GaAs], Indium phosphide [InP]

5️⃣ Photoresists and Lithography Materials

• EUV photoresists, Chemically amplified resists (CARs)

• KrF and ArF excimer laser gas blends

6️⃣ CMP and Wet Process Materials

• Colloidal ceria, High-purity alumina slurries, High-purity silica [SiO₂]

• Advanced CMP slurries and pads, Rare-earth-based slurries

7️⃣ CVD/ALD Precursors

• Trimethylaluminum [TMA], Tetrakis(ethylmethylamino)hafnium [TEMAH], Titanium tetrachloride [TiCl₄]

• High-purity silanes [SiH₄, TEOS], Organometallic precursors for metal gates and high-k dielectrics

Gadolinium: A Strategic Blind Spot

A glaring vulnerability emerged: gadolinium, a rare earth essential for over 30 million MRI scans annually, is almost entirely sourced and refined in China. Prices have risen over 50% since 2017, and any disruption would heavily impact GE Healthcare, Bayer, Bracco, and Guerbet—all of whom rely on it for MRI contrast agents. Yet, it remains overlooked in US trade strategies.

Swedish Tech start up GREEN14 Breakthrough in Sustainable Recovery

In Switzerland last week, GREEN14 partnered with Oerlikon for a successful testing program using DC plasma equipment to validate its multi-material hydrogen plasma process. The company demonstrated the recovery of:

✅ Copper from copper sulfide

✅ Titanium from titanium dioxide

✅ Tungsten from tungsten oxide

✅ Aluminium from aluminium oxide

This progress confirms the scalability of GREEN14’s clean tech process, unlocking new sustainable pathways to critical raw materials beyond silicon. It supports Europe’s push toward resilience, emissions reduction, and strategic material independence.

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