Samsung Electronics faces challenges in securing tax breaks from the U.S. government for its new chip plant in Taylor, Texas

Samsung Electronics faces challenges in securing tax breaks from the U.S. government for its new chip plant in Taylor, Texas. Amid stiff competition from Intel, Micron Technology, and over 400 other chipmakers, Samsung's negotiations for subsidies under the $53 billion Chips and Science Act are ongoing. The plant, which will produce AI processors, has delayed its mass production start to 2025 due to rising construction costs and disappointing tax benefits. Intel, Micron, and TSMC are also investing heavily in U.S. facilities, intensifying the competition for government funding. Samsung, while not commenting on the negotiations, has highlighted its substantial U.S. investments and cooperation history at a recent event with U.S. lawmakers.

Source: [EXCLUSIVE] Samsung struggles to secure U.S. CHIPS Act funding (joins.com)

Hamas' Brutal Attacks on Israel Could Disrupt Global Tech Supply Chain and Intel's Expansion Plans

The escalating Israel-Hamas war, after Hamas brutal attack on Israel and innocent civilians, is affecting the global tech sector. Many professionals, including top executives, are now serving as reservists in the Israel Defense Forces, as highlighted by EPSNews. Intel, a major private employer in Israel, along with other tech giants like Nvidia, Apple, Amazon, and Microsoft, faces potential disruptions, especially with facilities near conflict zones. The blockade in Gaza and transportation interruptions further strain the supply chain, emphasizing the tech industry's vulnerability to geopolitical challenges.

Intel factory in Kiryat Gat, employing about 5000 workers, which manufactures computer chips (wWikipedia), Location of Intel Fabs in Israel (Google)

Kiryat Gat, situated in Israel's Southern District, is known for Intel's semiconductor fabrication plants, including Fab 28 and the upcoming Fab 38. Founded in 1954, the city has grown significantly due to Jewish immigration over the decades and it remains an educational hub with 25 schools serving over 10,000 students.

The Israel-Hamas conflict has intensified concerns over the global semiconductor supply chain, as CNBC reports. With Israel being a key player in chip production, the geopolitical unrest poses risks to the semiconductor industry. The recent kidnapping of an Nvidia engineer further accentuates these threats, prompting tech firms to prioritize their employees' safety in the region.

Bloomberg reported this summer of Intel Corp.'s initiative to set up a new manufacturing facility in Israel. This move is part of Intel's strategy to diversify its production sources. While details remain undisclosed, the facility will focus on wafer fabrication. Intel's CEO, Pat Gelsinger, intends to expand manufacturing bases outside Asia. The plant, expected to operate from 2027, will be located in Kiryat Gat and is seen as a significant foreign investment in Israel. This development aligns with the global shift in chip manufacturing, as seen with Intel's investment in Poland and Micron Technology's potential investment in India.

Sources: 

War in Israel to Impact Electronics Supply Chain - EPS News

Intel to Build in Israel as Chipmakers Move Beyond East Asia - Bloomberg

Israel Is an Important Link in the Global Chip Supply Chain - Bloomberg

Kiryat Gat - Wikipedia

New US Roadmap Identifies Critical Semiconductor Research Priorities

Advancing semiconductor research is essential to continued innovation in the chip industry and throughout our economy. As ever-shrinking semiconductor components face fundamental physical limits, next-gen breakthroughs are unachievable without major advancements. To help address this challenge, Semiconductor Research Corporation (SRC) today unveiled the Microelectronics and Advanced Packaging (MAPT) Roadmap, which defines critical chip research priorities and technology challenges that must be addressed to support the “seismic shifts” outlined in the Decadal Plan for Semiconductors released by SRC and SIA in January 2021.

The Decadal Plan identified five seismic shifts in the industry related to smart sensing, memory and storage, communication, security, and energy efficient computing. The MAPT Roadmap continues the spirit of the Decadal Plan and discusses how to achieve its system-level goals, outlining the implementation plan for the semiconductor industry. The fundamental research that will transform these obstacles is focused on advanced packaging, 3D integration, electronic design automation, nanoscale manufacturing, new materials, and energy-efficient computing. The MAPT Roadmap is framed around fundamental and practical limits of information and communications technology sustainability: energy sustainability, environmental sustainability, and workforce sustainability.

Federal government and private sector investments in semiconductor R&D have propelled the rapid pace of innovation in the U.S. semiconductor industry, spurring tremendous growth throughout the U.S. and global economies. Using the MAPT Roadmap as a guide, we must sustain and expand public and private investments in chip research to help unlock the transformative technologies of the future.

Source: SIA, Erik Hadland, Director of Technology Policy New Roadmap Identifies Critical Semiconductor Research Priorities - Semiconductor Industry Association (semiconductors.org)

U.S. and Netherlands Tighten Restrictions on Chipmaking Equipment Sales to China, Impacting ALD and ASM International

The United States and the Netherlands are set to impose stricter restrictions on the sale of chipmaking equipment to China, aiming to prevent the use of foreign technology for military strengthening. In their efforts to curb China's access to advanced semiconductor technology, the Dutch government plans to restrict equipment from ASML, the leading chip equipment maker in the Netherlands, while the U.S. plans to further withhold Dutch equipment from specific Chinese fabs. These measures will impact atomic layer deposition (ALD) firm ASM International as well.

Besides ASM and Lithography, ASM International and ALD is of national interest to The Netherlands. During the recent Royal State Visit of King Willem-Alexander and Queen Máxima of the Netherlands to imec, ASM, a long-standing partner of imec, was in attendance. With over 30 years of partnership, ASM has made significant investments in research and development and maintains a substantial on-site team at imec known in the industry as ASM B or ASM Belgium. During the visit, ASM had the opportunity to highlight its role in the semiconductor ecosystem of both the Netherlands and Belgium, emphasizing how this collaboration connects Europe to advanced semiconductor manufacturing activities on a global scale. (Source: ASM LinkedIn)

ASML, Europe's largest chip equipment company, dominates in lithography, a crucial step in the chip manufacturing process. The Dutch government intends to announce new regulations, including a licensing requirement, for ASML's deep ultraviolet (DUV) semiconductor equipment. ASML's more sophisticated extreme ultraviolet (EUV) lithography machines are already restricted and have never been shipped to China. The U.S. is expected to identify specific Chinese facilities, possibly including those operated by SMIC, China's largest chipmaker, in a new rule that restricts foreign equipment containing any U.S. parts. ASM International, an ALD firm, is also likely to be impacted by the new Dutch regulations.

The U.S. and Dutch measures aim to prevent China from gaining access to advanced chipmaking technology that could be used for military purposes. These actions reflect the ongoing tensions between the U.S. and China regarding national security concerns and technological competition. While the exact details and timing of the restrictions may change, the increasing limitations on chipmaking equipment sales are expected to have significant implications for the global semiconductor industry and the supply chain dynamics in the coming months.

Sources:

US, Dutch set to hit China's chipmakers with one-two punch | Daily Mail Online

State visit to Belgium – programme | News item | Royal House of the Netherlands (royal-house.nl)