Spain is betting its future in the semiconductor industry on a single card: gallium chips

SPARC Foundry is one of the best assets that Spain can cling to to get on a train, that of semiconductors, currently guided with a firm hand by USA, South Korea, Taiwan, China and Japan. This Galician company, however, does not pursue producing silicon chips. In this area, competing with the five powers I just mentioned is essentially impossible. SPARC’s plan involves building a manufacturing factory in the Valadares Technology Park, in Vigo. next generation photonic semiconductors. The interesting thing is that these chips will not be silicon; They will be manufactured using gallium arsenide (GaAs), indium phosphide (InP) or gallium nitride (GaN), and will most likely have a leading role in the telecommunications, defense, automotive, consumer electronics, quantum computing or the aerospace industry. Be that as it may, SPARC will not tackle the GIGaNTE project alone. Indra leads it with a 37% stake in SPARC Foundrywhich places the latter group as the majority partner of the company specialized in the production of chips. According to SPARC and Indra, the Vigo semiconductor plant will be operational during the first half of 2027 and will have the capacity to manufacture up to 20,000 wafers per year when it is able to work at full capacity. An interesting note: GIGaNTE, the name of this project, has been designed around the chemical formula of gallium nitride (GaN). Gallium aspires to be the protagonist of the next generation of chips Photonic integrated circuits use photons to process and transmit information. Photons are the elementary particles responsible for forms of electromagnetic radiation, including the manifestation of visible light. They have no mass and are capable of traveling in a vacuum at a constant speed: the speed of light. However, something worth not overlooking is that although we are referring to them as particles, they also manifest as waves, hence the existence of the quantum phenomenon known as ‘wave-particle duality’ to identify the wave nature of light. Although, as we have seen, SPARC will produce photonic chips, the core of its business will revolve around gallium arsenide and gallium nitride. Unlike silicon, They are not elementary semiconductors. And they are not because the latter are characterized by being made up of a single chemical element, while gallium arsenide (GaAs) is composed of gallium (Ga) and arsenic (As), and gallium nitride (GaN) is composed of gallium (Ga) and nitrogen (N). SPARC is going to produce photonic chips and the core of its business will revolve around gallium arsenide and gallium nitride The term semiconductor is appearing many times in this article, so it is a good idea that we review what it is about before moving forward. A semiconductor is an element or compound that, under certain conditions of pressure, temperature, or when exposed to radiation or an electromagnetic field, behaves like a conductor, and, therefore, offers little resistance to the movement of electrical charges. And when it is found in other different conditions it behaves like an insulator. In this last state it offers great resistance to the displacement of electrical charges. In elements with electrical conduction capacity, some of the electrons in their atoms, known as free electrons, can pass from one atom to another when we apply a potential difference at the ends of the conductor. Precisely, this electron displacement capacity is what we know as electric currentand we all know intuitively that metals are good conductors of electricity. Curiously, they are because they have many free electrons that can move from one atom to another and, thus, they manage to transport the electrical charge. Gallium nitride and gallium arsenide are semiconductors, and this implies that under certain circumstances they are capable of transporting electrical charge. When the appropriate conditions exist, the mobility of its electrons is much greater than in semiconductors such as silicon or germanium. And this means that its capacity to transport electrical charge is also superior. Another very interesting property of these compounds is their high saturation rate. It is not necessary for us to delve into this parameter to the point of excessively complicating the article, but it is interesting that we know that it reflects the maximum speed at which electrons can move. through the crystal structure of these compounds. This maximum speed is limited by the dispersion suffered by the electrons during their movement. Gallium arsenide transistors can work at frequencies above 250 GHz This property has very important repercussions. One of them is that gallium arsenide transistors can work at frequencies above 250 GHz, which is a quite impressive figure. In addition, they are relatively immune to overheating and produce less noise in electronic circuits than silicon devices, especially when it is necessary to work at high frequencies. On the other hand, gallium nitride can work at very high voltages and reach extreme temperatures without its performance or stability being compromised. Besides, allows manufacturing compact and efficient transformers Because it dissipates little energy in the form of heat, it will most likely play a fundamental role in the charging infrastructure of electric cars and base stations for 5G communications. Image | Generated by Xataka with Gemini More information | SPARC Foundry In Xataka | Spain steps on the accelerator in its particular chip race. And it does so with a total commitment to integrated photonics

semiconductor control

The Dutch government has taken control of Nexperia, a semiconductor company based in the Netherlands but owned by China. To do this, it has used its “Law of Availability of Assets” for the first time. And with this he has made the chip war face a new and tense episode. what has happened. Nexperia is a chip manufacturer that was spun off from the Dutch company NXP Semiconductors. In 2017 Nexperia was acquired for $2.75 billion by a Chinese state-backed consortium, and became majority owned by Chinese technology group Wingtech in 2019. As indicated in Financial Timesthe company has now been unexpectedly seized by the Dutch government, which has alleged “serious deficiencies in governance and actions.” That allows Dutch Economy Minister Vincent Karremans to take de facto control over Nexperia’s operations. Objective, protect Europe’s chips. It is the first time that Holland makes use of its “Law on Availability of Assets.” The economy minister assured that the decision was made due to “a threat to the continuity and safeguarding of crucial technological knowledge and capabilities in Dutch and European territory.” Nexperia produces used chips in the European automobile industry and in consumer electronics. Geopolitical tension. The Dutch government’s intervention in the company has escalated rapidly in recent days. In early October, several court decisions suspended the powers of Nexperia’s Chinese CEO, Zhang Xuezheng. A court later ordered that he be succeeded by a non-Chinese director with decisive voting power, in addition to transferring almost all of the shares to custodial management. Wingtech officials have called the decision an “act of excessive interference driven by geopolitical bias.” It was already on the “entity list”. The United States has already added Wingtech to its particular commercial blacklist —the famous “entity list”— in 2024, accusing it of helping China obtain sensitive semiconductor manufacturing technology. That forced US companies that wanted to work with Wingtech to obtain a specific license, and doing so is not easy. Restrictions on trade even with subsidiaries of companies on that list have become even more complicated a few weeks ago, which made working with Nexperia, a subsidiary of Wingtech, even more problematic. The chip war intensifies. This technological seizure is another clear symptom of the growing geopolitical reconfiguration that we are experiencing in the technological field. We are passing from the era of economic globalization to an era of technological sovereignty and national security. For decades, market efficiency caused companies to seek global ownership and production even in critical sectors such as semiconductors. This decision by the Dutch government once again signals the end of that era of complacency in which if a Chinese company acquired a vital chip company on European soil nothing seemed to happen. Now it happens. The Netherlands had already made things difficult for Beijing. If there is a leading technology company in Europe Nowadays that’s ASML. This semiconductor giant has an effective monopoly on photolithography machines SVU and High aperture SVU. The sanctions of the US and its allies ASML is prevented from selling in China its most advanced lithography equipment. Holland was therefore already one of China’s great “enemies” in this chip war, but the movement with Nexperia goes even further. And meanwhile, rare earths and tariffs. The seizure of Nexperia is the new chapter in this recent escalation of events that was reactivated last week. China imposed new restrictions on rare earth exportwhich caused the US government will increase tariffs by 100% to Chinese imports. Tension is increasing, and the chip war could have enormous consequences for the global economy. We are already seeing it in the stock markets: the announcement of the tariffs caused a notable drop in both the stock markets like in the cryptocurrency market. We will see how this new move by the Dutch government affects these assets. In Xataka | The biggest obstacle preventing China from winning the chip race is called ASML. So they’re trying to copy it

The US is dismantling the chips law. His blow will fit the semiconductor industry throughout the planet

Donald Trump is fulfilling what he anticipated both during the electoral campaign and after returning to the White House. The Chips Law Approved in July 2022 By the government of Joe Biden He has never liked him. Has made it very clear in statements such as this last January: “In the very close future we will impose tariffs on foreign production of computer chips, semiconductors and pharmaceutical products to return the manufacture of these essential goods to the US (…) went to Taiwan; now we want them to return. We do not want to give them billions of dollars in the ridiculous driver program. They already have billions of dollars.” Three months before, in October 2024, I had already charged ferocity against this program of the previous administration In Joe Rogan’s podcast: “We put millions of dollars on the table so that rich companies came, they borrow the money and build chip companies here. And they will not give us the best companies.” The Department of Commerce has seized 7,400 million destined for chips During the electoral campaign the possibility that Donald Trump dismantled the Chips program if he arrived at the government was on the table. A priori the money that has already been delivered will not be returned to the administration, but a part of the funds remains in the hands of the Department of Commerce, which is currently led by Howard Lutnick. And the dismantling has already begun. As we explained last Friday, the US government plans Reassign at least 2,000 million dollars coming from the heading for research and manufacturing integrated circuits within the Chips Law. If this measure thrives these funds will be used to finance projects dedicated to obtaining and the processing of critical minerals. At the moment China controls extractionthe processing and distribution chain of a good part of this crucial strategic resource for many industries, such as integrated circuits, telecommunications, batteries or electric car, among others. The government plans to reallow at least 2,000 million from the game for the investigation and manufacture of chips However, this is not all. And it is that the US Department of Commerce has seized a fund of 7.4 billion dollars that was managed by the National Center for the advance of semiconductor technology (Natcast), which is a private non -profit organization. This money comes from the Chips program and was intended for the research and development of new technologies for semiconductors. The Department of Commerce has justified this seizure arguing that the creation of Natcast by the Biden Administration was an attempt to “avoid clear legal restrictions that They prohibit government agencies to create corporations“In addition, Secretary Lutnick has declared that this organization was “a bribe fund that did nothing but fill the pockets of loyal to Biden with dollars from US taxpayers.” A priori we might think that this measure only affects the US, but nothing is further from reality. Its impact will be received by the global semiconductor industry. American research has made fundamental contributions to the global integrated circuit industry, so the cut of funds for this item in the Chips Law will be a perceptible effect in this sector. As a button shows: the extreme ultraviolet radiation source (UVE) that they use ASML photolithography equipment It was developed by Cymer in the US. If we stick to Natcast’s role in the current semiconductor research, it is important that we do not overlook that this organization is involved in the construction of the extreme ultraviolet light accelerator (UVE) of Albany (New York). And also in the tuning of an Chips Research and Development Center in Tempe (Arizona). The Commerce Department has not yet confirmed What will you do with the 7.4 billion dollars That he has seized, so the future of New York and Arizona research facilities is uncertain. More information | Reuters | Tom’s hardware In Xataka | The US will not be able to contain the technological development of China. Experts from the chips industry forecast it

Mexico’s plan to stop being a second player in the semiconductor industry

Become Mexico into a scientific and technological power. That is the plan of President Claudia Sheinbaum who, since she held the position at the end of last year, has not stopped presenting proposals to achieve that goal. Fruit of this is the call ‘Mexico Plan‘, the intention of create your own cheap electric car. Now, Mexico wants to depend on others to obtain chips, becoming a technological power along the way. The key name of the project is ‘Kutsari’ and, although ambitious, it must face important challenges. KUTSARI. In a press conference, Sheinbaum advertisement The creation of the National Semiconductor Design Center “Kutsari”. He explained that “it is the union of many scientists, technological developers and public institutions of higher education that will put all their intelligence, design and creativity to generate new semiconductor designs.” The idea is ambitious and encompassed in the proposals of the Mexico Plan to revitalize the country and stop depending on both imports. In this case, imports of all types of chips for the devices that Mexico already produces and, thus, strengthen local manufacturing. Stop being a country that assembles chips to become one that designs and manufactures them, ultimately. Goals. Sheinbaum’s vision is clear: Creation of the National Semiconductor Design Center. Later, establish a semiconductor manufacturing center. Finally, create a chain that allows you to try, encapsulate and assemble those chips in equipment. In the statement, the president speaks of three venues located in Puebla, Jalisco and Sonora that, in addition, will be coordinated and supported by institutions such as the National Institute of Astrophysics, Optics and Electronics, the Advanced Studies Research Center of the National Polytechnic Institute, the National Autonomous University of Mexico and the National Polytechnic Institute. Kutsari means “sand” in Purépecha, the key material from which silicon is extracted to create semiconductors Roadmap. After the implementation of the first headquarters in which the semiconductors will be designed, a consolidation of them is expected for 2027. At some point next year, the idea is to start looking for how a private, public or mixed company could establish a factory that produces these chips in the face of consolidation in 2029 and 2030. The objective of these first Mexican semicondators is the automotive industry, the automotive industry is the automotive industry and medical equipment. They also mention “other strategic devices for the country”, without specifying what they would be. However, in the design of semiconductors the patents and that commitment of the country will be reflected in a modification of the Federal Law on Intellectual Property Protection with the objective of accelerating the patent process. Thus, this record of technological innovations will be expedited to expedite the production and sale process after the initial design phase. And it is also something that will allow protecting designs to possible plagiarism. Investments. We enter the critical part of the plan. As we mentioned, Kutsari is part of the Mexico Plan, but producing semiconductors is not only easy: it is not cheap either. Thus, the idea is to attract national private initiative and foreign investments that intend to seduce with the creation of a more powerful business technological mesh. Several companies are already betting on Mexico and, without leaving the chips segment, we have an almighty like Foxconn who is building in Mexico the Greater factory on the planet For Nvidia chips. Challenges. But, beyond the difficulty when establishing that new industry, Kutsari will encounter other challenges along the way. One is the very high competition with countries such as Vietnam either India that have been offering aggressive incentives for years for companies They move from China to their territoryeven seducing giants like Apple and Samsung. To that wild competition we must add that silicon is needed or germaniumtwo critical materials for semiconductors that are strategic in countries such as the United States and China. And, obviously, national and international talent is needed, as well as a stable political and economic environment, since chips do not develop overnight. On this, Sheinbaum has commented that “there is a lot of research in Mexico and now what we are doing is putting all these minds together”, a good touchstone that only needs to consolidate with good development policies that allow the country to enter to play in the complicated and competitive world of semiconductors. Image | ASML In Xataka | If the question is how to answer the US trade war, Europe believes to have the answer: smart tariffs

Lip-Bu will assume command at a decisive time for the semiconductor company

Lip-bu Tan It will be the new CEO of Intel. The experienced executive, one of the main candidates after the abrupt departure from Pat Gelsingerwill assume the position on March 18. With his appointment, he will relieve David Zinsner and Michelle (MJ) Johnston Holthaus, who have led the company interim since December. “Lip-Bu is an exceptional leader whose experience in the technology industry, deep relationships in product and casting ecosystems, and a proven history of value creation for shareholders is exactly what Intel needs in his next CEO,” said Frank D. Yeary, who temporarily led the board of directors while looking for a new CEO. A fervent Gelsinger critic will be new CEO of Intel But the story of so with Intel does not start here. In the past, he was a fierce critic of the management of Gelsinger and the management that the company was taking. The former Cadence Design Systems courses joined the Intel Board of Directors In September 2022 with the objective of promoting the restructuring plan of the semiconductor firm. However, the differences with Gelsinger and other members of the Board soon arise. According to ReutersSo considered that Intel had an oversized template and that the company was losing agility in an increasingly dynamic market. For him, the real problem was not only the size of the company, but its risk aversion, a factor that was leaving it behind the competition. The tensions reached its highest point in October 2023, just when Intel announced the dismissal of more than 10,000 employees In an attempt to reduce costs and improve your efficiency. So, in disagreement with the management of the crisis and the strategic decisions of Gelsinger, he resigned from his position on the Board of Directors. Now he returns to hold the highest position of the company. His appointment not only marks a leadership change, but also presumable turn in Intel’s strategy. So arrives with the mission of redefining the future of the company, making it more competitive and recovering the trust of investors. Intel stands out in its statement How he has a degree in Physics from the Technological University of Nanyang (Singapore), has a Master in Nuclear Engineering from the Massachusetts Technological Institute and an MBA from the University of San Francisco. In 2022, he received the Robert N. Noyce Award, the maximum recognition of the Semiconductor Industry Association. Images | Intel In Xataka | China prepares the mate to the US: it will have its own UVE lithography team to make chips in 2025

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