With AI saturating TSMC’s factories, there’s someone ready to take over: Chinese foundries

Semiconductor Manufacturing International Corp, or SMIC, is the backbone of the semiconductor industry in China. Together with Huawei, he is the architect of the great government plan so that Chinese companies and data centers stop depending on foreign chips that, since punch on the table given in mid-2023 with the SoC of Huawei Mate 60 Prohas called a lot attention on the international scene. So much so that SMIC itself points out that there are already foreign clients who are changing orders so that they can manufacture them themselves. The reason? In the midst of the semiconductor crisis, China is one of the few places with available production capacity. Bottleneck. SMIC, and Chinese foundries, are in a different war: volume over sophistication. While TSMC, Intel and Samsung are fighting for superiority in the 2 nanometer war, China does not seem interested in that battle of the advanced nodes. The reason is simple: they barely represent 20% of the global chip market and producing them is extremely expensive. That strategy of being out of the forefront of the spotlight is working out well for them. It is estimated that between January and February, China has exported integrated circuits worth more than 43 billion dollars. It represents a growth of 21.8% and the reality is that, at this time, China cannot compete in technology with the one that dominates the segment: TSMC. The Taiwanese company is developing the most advanced nodes for clients such as Nvidia and Apple and a few years ago they stated that they could not handle all the demand. Today, that demand has skyrocketed with AI and TSMC is already saying that there may not be something for everyone. That is why there are 64 new factories planned to unblock the situation, 58 of them located in China. Orders. Returning to SMIC, Zhao Haijun, the company’s co-CEO, pointed out a few days ago during the earnings call that China is one of the few regions that has manufacturing capacity, which is motivating “many foreign clients to redirect their orders.” This is not news if we take into account the world situationbut the manager assures that some of these products “were previously manufactured in foundries abroad and are no longer produced there.” That is the relevant point in all this, since it states that, although SMIC as the largest national foundry is receiving the largest burden of these orders, there are other smaller companies that are also benefiting from the situation. This situation is occurring out of necessity, out of TSMC’s need, according to data from TrendForce. Because the Taiwanese company plans to reduce part of its capacity in mature nodes (to focus on cutting-edge ones), it is diverting part of that production and excess orders to Chinese suppliers and second-line foundries. This will also cause the wafers to be used to the millimeter and that from an average utilization rate of 80% in eight-inch wafers, the industry will go to 90% in 2026. Chips are needed and they will have to be scraped from wherever they can. domino effect. The situation is going well for a SMIC that reported revenues of 2,505 million dollars in the first quarter of this year, 11.5% year-on-year that will be surpassed in the second period of the year, with revenue growth of between 14% and 16%, well above the 7% that Wall Street expected. But it seems that not only SMIC is having good news within the current catastrophic situation in the components, memory and other segment. We already commented a few months ago that “crisis” could be synonymous with “opportunity” for the Chinese semiconductor industry because there were foreign manufacturers that were approaching them to have supplies, especially of RAM memories, which could cause the international flourishing of this industry traditionally overshadowed by the Samsung – SK Hynix – Micron trident. As we see in SCMPHua Hong is another Chinese foundry that is smaller than SMIC, but also saw its revenue grow 22.2% year-on-year due to increased wafer shipments and a higher average selling price. These companies that make NAND, DRAM and NOR memory chips are seeing their business grow, and analysts expect other domestic foundries focused on logic chips to also continue to grow over the coming months. not so untouchable. In any case, it is evident that the market leader continues to be TSMC, but if before it was an undisputed giant, now it is still that Goliath… for which its David is emerging. Several, in fact. Apple is no longer the preferred customer of a TSMC that has in mind Nvidia to your best ally and it has been ringing for a while that Intel could fill that spot in the heart of Apple. And, returning to 2 nanometers, AMD has been deeply involved in the battle for both consumer and AI segments for a few years and is looking for advanced chips. And, as in the case of Apple, since it is now Nvidia that has all the privileges of TSMC, AMD has looked a little further east to manufacture its 2nm chips. The lucky one? Samsung. Image | ASML In Xataka | ByteDance has already chosen its partner to manufacture its own chip. And it is a harsh message for China’s industry

Japan is saturating from the hordes of foreign tourists. So in the country they have begun to give them free flights

Japan is filling with tourists. Only during the first half of the year added 21.5 million of foreign visitors, 21% more than during the same period of 2024. There are many. Many. Enough to he overwhelming It has become a Debate theme priority and be giving wings to the formation of extreme right Sanseitō, who managed to stand out in the July elections with the motto “Japan first”. The problem is that, far from being distributed in the country, that tide of visitors is concentrated in certain mass points. There are those who want to solve it giving flights To tourists. What happened? That Japan Airlines (JAL), one of Japan’s main airlines, has had An idea peculiar so that foreign tourism becomes more bearable to the country’s mass destinations: give tickets. Literally. The idea is that foreigners visiting Japan have free flights that encourage them to go beyond Tokyo or Osaka and explore less known corners, such as Sapporo, Naha either Hakuba. The goal is double: relieve pressure at the busiest points in the country and, incidentally, give a small push to foreigners to visit places that would never include in their itineraries. What do they propose? The first thing to clarify is that it is not a new campaign. Aviation Wire I already talked about her in October 2024but with mass tourism in the center of the debate and Japan turned into one of the most demanded destinations in the world, the campaign has gained popularity again. In recent weeks, media have talked about it as Soranews24, Time out or the specialized website Travel and Tour Worldconfirming that the initiative was launched in autumn without completion date. The idea too He has echoed in Spain. What are your details? The campaign consists of giving national flights to foreign tourists so that they can move through Japan, although (as usually happens) it has a small print. It is not available for all visitors and even those who can opt for it must meet before A series of requirements. From the entry the offer is available to users of certain countries, such as the United States, Canada, China, India, Australia, New Zealand, Taiwan, Vietnam or the Philippines, inter alia. In addition, the beneficiary travelers must reserve on their own the international round trip from their country of origin. Once in Japan it is when they can opt for one of the national tickets of JAL promotion, which must include in the same reserve. TTW precise An extra detail that demonstrates how the campaign aspires to relieve pressure in the most busy cities in the country: those visitors flying from the US, Canada, Mexico or China and decide to remain more than 24 hours in the city where they land (usually tokyo) must pay a rate of $ 100. Why is it important? Beyond the details of the campaign or if it really goes on account or not foreign tourists, Jal’s idea is interesting for another reason: it shows Japan’s attempts to make tourists’ avalanche more assumed and do not saturate its most popular destinations. That the initiative has had so much impact is also explained by who spears it: Japan Airlines is one of the main country airlines and on its website presume that your group has a total of 133 national routes and 66 international connections. This wide network of domestic connections is what intends to take advantage of foreigners explore places in the country less popular than Tokyo or the Las Geishas neighborhood of Kyoto, like ski slopes of Nisekothe reefs of Okinawathe mountains of Hakuba either Tomamu or the natural landscapes of Hearbetween a long (very long) and so on. In his favor he has the Encrying From Japan Rail Pass (JRP), which makes the plane win attractive in determining routes. So much tourism in Japan? Yes. The latest official statistics show that during the first half of the year he received 21.5 million of foreign tourists, a surprising fact for two reasons. The first, because it is a record for the country. The second, because it represents an increase of 21% with respect to the same semester of 2024, which gives an idea of the accelerated rhythm to which the sector is growing. Only in June the flow of foreign visitors grew by 7.6%. That boom has come accompanied by the arrival of Millions of dollarsbut has also submitted to the country (especially the most massive destinations) to A pressure that has electorally fed the formation of the extreme right Sanseito, which relies on A speech antituristic and antimigratory. The clearest example of that overwhelming It is located in three busy places: the Fuji, where They have started to charge a rate; The neighborhood of the Geishas de Kyoto, where They have prohibited to “paparazzi tourists”; And Fujikawaguchiko, who has had to cover his views to avoid the hordes of tourists to hunt the best Selfie. Does it work to give flights? It does not seem. As the statistics demonstrate, Japan continues to win tourists and Tokyo remains in The lists of the busiest places. The director of JapaneseLaura Tomàs, acknowledges in An interview with The confidential that the campaign also has some clear weak points. “The routes do not always fit the schedules, the information is not clearly communicated and in many cases the tourist ends up opting for the known.” Images | Matt Cramblett (UNSPLASH), Nomadic Julien (UNSPLASH) In Xataka | Japan will copy Venice to stop mass tourism. Two levels of transport price: the tourist pays more

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