TSMC

Samsung just surpassed TSMC for the first time in eight years. The problem is that it is a mirage

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We are in the middle of the results presentation season. Listed companies share how the last fiscal period went and, although it sounds boring, it allows us to learn interesting details about the business. For example, Apple thinks that the components crisis is going to get much worsebut also where the companies are. Samsung is one of those that can show the most chest due to its good results this beginning of 2026so good that it has achieved for the first time in eight years look face to face at your great rival in chip manufacturing: TSMC. The asterisk is that it is a mirage. a fortune. As we read in the South Korean media The Chosun Dailythe semiconductor division of Samsung Electronics is in luck. During the first quarter of this year, they achieved sales worth 81.7 trillion won with an operating profit of 53.7 trillion won. It is the first time that the division has achieved an operating profit of more than 50 billion won, but the most curious thing is the enormous leap they have made since last year. In the same period in 2025, Samsung reported sales of 44 trillion won with an operating profit of 16.4 trillion won. In fact, the company has earned more in these three months than during all of 2025. to the podium. This best performance has placed the South Korean company as the second best performing semiconductor company in the world. Who is above? Your best friend: Nvidia. The company that is the glue of AI reported an operating profit of 66 trillion won in this period and the two have gone hand in hand in this period. Memory (of course). Samsung got a little lost in the memory race for AI due to the good work of its great rival in this segment, also South Korean SK Hynix. However, he did not waste time and took the opportunity to research how to create the best HBM4 memory modules. This is the high-bandwidth memory that is used by artificial intelligence platforms such as those from Nvidia. In fact, a few weeks ago we told how Samsung had managed to convince Nvidia so much as to AMD to choose their HBM4 chips. Thanks to that impulse, dump all your production to memories for artificial intelligence equipment (regardless of what happens with the consumer market), the company has managed to see sales grow by 69.16% year-on-year and operating profits soar by 756.1%. In fact, the South Korean media points out that, even taking into account the number of devices that Samsung manufactures, the semiconductor division is the one that represented 93.8% of the company’s total operating profit. Very far away. Now, there is an even more interesting fact. All that amount of money has made Samsung the only semiconductor company that comes close to Nvidia, even surpassing, by far, the largest global semiconductor foundry: the Taiwanese TSMC. However, although the South Koreans’ goal is to dethrone the Taiwanese, things are going to have to change a lot because they are very far away in terms of market share. Because Samsung is making a lot of money, but there is a huge gap when it comes to contract chip manufacturing for external customers. This means that Nvidia, Apple and many others continue to come to TSMC first than to Samsung to manufacture its chips. Putting it down with numbers, it is estimated that TMSC took 70% of the market share last year compared to Samsung’s 7%. The plan. And there is a problem in all this: the AI ​​superboom. Because Samsung is doing great selling its memory to hyperscalersbut it is not attracting clients at the same rate and, if at some point the memory market deflates, accounts will begin to decrease. Samsung is moving to prevent this from happening by opening new chip manufacturing plants, partnering with American companies on American soil to develop the market outside Asia and flirting with being the foundry that manufactures chips for Nvidia or Apple in the United States. Other sectors. It is evident that the semiconductor arm is going like a rocket, but… what happens with the rest? On mobile and networks, Samsung reported sales of 38.1 trillion won with an operating profit of 2.8 trillion won. This is where investment comes into play. 6G networksbut also recent releases such as those of the family Galaxy S26 that they have not left as much money in the coffers due to increases in memory costs (Samsung already pointed out that They were not going to favor their own division and that if memory is more expensive, it is for everyone). In Display (TVs and monitors), sales fell 14% year-on-year with operating profits of 400 billion won due to the price of RAM, among other factors, and home appliances had an operating profit of 200 billion won. It is obvious where the goose that lays the golden eggs is and it is not surprising that Samsung wants to exploit it thoroughly. Image | Applied Materials In Xataka | The ratio of CPU to GPU in data centers is approaching 1:1. Intel knows exactly what that means

TSMC is not going to use its High-NA machines at the moment and has a compelling reason not to do so

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On April 23, TSMC made official a strategic decision very important: has postponed the adoption of ASML’s extreme ultraviolet (EUV) and high aperture lithography machines until 2029. These are the equipment of manufacturing of more advanced integrated circuits that this company from the Netherlands currently has in its portfolio, and TSMC’s announcement caused ipso facto a drop of 3.3% of the value of its shares. It is not in vain that this Taiwanese chip producer is ASML’s largest client. In 2025 23.9% of total sales of this Dutch company came from TSMC. The main reason why this last company has decided not to use UVE High-NA machines of ASML in the short term is strictly economic. Each of them has a price of around 350 million euros, and, in addition, a single cutting-edge semiconductor plant requires the installation of several dozen of this equipment. TSMC considers that they are currently too expensive to make the manufacturing of advanced chips profitable. And, interestingly, Intel, Samsung and SK Hynix they are already adopting High-NA technology. This decision by TSMC brings great technical challenges The step taken by TSMC has not been improvised, as might be expected. In fact, over the past two years several managers at this company have publicly expressed doubts about the short-term adoption of ASML’s High-NA equipment. In January 2024 CC Wei, the current president and CEO of TSMC, surprised us with this statement: “We are studying it carefully, evaluating the maturity of the tool and examining its costs. We always make the right decision at the right time in order to offer the best service to our clients,” Wei assured. during a meeting. A few weeks earlier Szeho Ng, an analyst at China Renaissance, predicted that TSMC would not use ASML’s high-aperture UVE equipment until it introduced its 1nm integration technology. “We always make the right decision at the right time with the purpose of offering the best service to our clients” Last week it was Kevin Zhang, TSMC’s deputy chief operating officer, who clarified something very important: “I am amazed by our R&D team. They continue to find ways to drive technological development without using ASML’s High-NA UVE equipment. Someday we may have to use them, but right now we can continue to reap the benefits of current EUV technology without moving to High-NA which, as we all know, is extremely expensive.” In 2029, TSMC intends to have the A12 and A13 integration technologies ready for large-scale production, which are nothing more than derivatives of its A14 photolithography. From a commercial point of view these will be the first 1.2 and 1.3 nm technologies of this company. They will use GAA transistors (Gate-All-Around) and NanoFlex Pro technology. This latest innovation will allow IC designers to use fast cells for the critical parts of the GPU that need speed, and dense or efficient cells for the rest, thus optimizing the chip area down to the last millimeter. What we still do not know is what technical solutions TSMC engineers are going to implement to make it possible to manufacture 1.2 and 1.3 nm integrated circuits using ASML’s UVE equipment. It’s just a guess, but it seems unlikely that they will resort to the multiple patterning because this procedure compromises the performance per wafer and the cost of the semiconductors. TSMC would lose competitiveness. One last note: the multiple patterning Broadly speaking, it consists of transferring the pattern to the wafer in several passes with the purpose of increasing the resolution of the lithographic process. Image | ASML More information | Innovation Origins In Xataka | Bill Gates has X-rayed Intel. And his diagnosis is overwhelmingly accurate.

Samsung faces a very serious problem to surpass TSMC with its 2nm chips: the 60% curse

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When semiconductor manufacturers produce a chip wafer, some of those cores do not function properly. It’s normal. When they start a new lithographic node your performance per wafer usually has a wide room for improvementbut little by little, as engineers refine their integration processes, this parameter improves. A mature lithography can deliver very high performance to IC manufacturers, but a nascent technology can move in the orbit of 50% performance. Importantly, chipmakers need the per-wafer yield to be at least 60% to ensure node profitability and attract more customers. However, this figure is the minimum admissible. And in reality it must be much higher to optimize the competitiveness of photolithography from a commercial point of view. Currently TSMC and Samsung are manufacturing 2nm chipsbut according to the leaks the performance per wafer of its nodes is very different. And the South Korean company needs its 2nm node to be a success. The 1 and 2 nm nodes are crucial in the itinerary that Samsung has planned This reflection that Han Jong-hee, co-CEO of Samsung, made in mid-2025 express clearly At what point were you then? the largest company in South Korea: “First of all, I sincerely apologize that our stock performance has not met your expectations. Over the past year, our company has not responded appropriately to the rapidly evolving AI semiconductor market.” These words were addressed to his investors. Samsung needs to make its current best chip manufacturing technology a success A very important idea emerges from Jong-hee’s words: the competitiveness of your subsidiary specialized in the manufacturing of integrated circuits is essential for Samsung. Even so, problems were arising from several fronts. “Our technological advantage has been compromised in all of our businesses. It is difficult to see that efforts are being made to drive great innovations or take on new challenges. There are only attempts to maintain the status quo instead of generating disruptive changes,” said an internal statement written by Jay Y. Lee, the company’s president. In this scenario, Samsung needs its current best chip manufacturing technology, 2nm lithography, to be a success. And it’s in it. Integrated circuit producers do not typically make the per-wafer yield of their cutting-edge lithographs public, especially if it is relatively low. However, according to DigiTimes Asia Currently the performance of its 2nm nodes oscillates around 55%, so it is below the 60% threshold that we talked about a few lines above. For this company, it is essential to increase the yield per wafer of its 2nm lithography because with a yield of 55% the percentage of usable chips after advanced packaging probably ranges around 40%. To curl the curl, again according to DigiTimes Asiathe per-wafer performance of TSMC’s 2nm nodes ranges between 60 and 70%which places this Taiwanese company, which is Samsung’s biggest competitor and the leader of the chip manufacturing industryin a very favorable position when it comes to attracting new clients. If Samsung manages to raise the performance of its 2nm nodes above 60% during the coming months, it will put up a fight against TSMC. Otherwise you will suffer. Image | Generated by Xataka with Gemini More information | DigiTimes Asia In Xataka | We already know what the chips that will arrive until 2039 will be like. The machine that will allow them to be manufactured is close

TSMC and SK Hynix are suffocating Samsung. To defend itself, it is already preparing a brutal weapon: 1 nm chips

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Samsung Electronics has two major competitors in the semiconductor industry: TSMC and SK Hynix. The Taiwanese company TSMC leads the market for manufacturing integrated circuits for third parties with a share close to 70%, according to the consulting firm. TrendForce. Samsung is the second largest chip producer for third parties, although with a market share of 7.2% It is positioned very far from the leader of this industry. And the Chinese company SMIC (Semiconductor Manufacturing International Corp) is hot on his heels in third position with a share of 5.32%. Samsung’s other big business is memory chips. In this market it competes with the American company Micron Technology, but its biggest rival is the also South Korean company SK Hynix. In recent years, Samsung has led the DRAM memory integrated circuit manufacturing market with an approximate 40% share, while SK Hynix defended a very worthy 29%. Behind both was Micron Technology, with 26% approximately. However, during the first quarter of 2025 a very important setback occurred. SK Hynix controls none other than 70% of the market of HBM memory ICs (High Bandwidth Memory), so its leadership in this sector is overwhelming. If we look at the DRAM memory chips the figures are much more even, although SK Hynix also leads. TSMC and SK Hynix. SK Hynix and TSMC. These two competitors are two big headaches for Samsung, but the latter company seems unwilling to throw in the towel. Samsung plans to have its 1nm photolithography ready in 2030 In February 2025 the Taiwan Economic Daily published a report in which he assured that TSMC plans to develop a cutting-edge semiconductor plant that will be expressly designed to produce 1nm chips. It will be housed in the Taiwanese town of Tainan, and will be called ‘Fab 25’. It will work with 12-inch wafers, have six production lines and will begin large-scale manufacturing in 2030. It may seem like there is still a lot of time, but that is not the case. In fact, according to the newspaper Korea Economic DailySamsung is making efforts to step on the heels of TSMC. And, incidentally, surpass SK Hynix. Samsung’s future 1nm production lines will benefit from the refinements that the company is going to introduce to its 2nm nodes And Samsung engineers have already been working on their 1 nm photolithography for many months with the aim of concluding the research and development phase in 2030 to be able to start mass manufacturing in 2031. There is a lot at stakebut the development of this technology is by no means a piece of cake. In fact, this company is currently trying to optimize the performance of its 2nm nodes because its Exynos 2600 processor in smartphones Galaxy S26 and S26+ suffers when we compare its performance and energy efficiency with those of comparable chips manufactured by TSMC in its 3nm nodes. Be that as it may, Samsung’s future 1nm semiconductor production lines will benefit from the refinements that this company is going to introduce in its 2nm nodes. And, above all, they will take advantage of Fork Sheet technology with which its engineers seek to leave behind the limitations of Gate-All-Around technology (GAA). Fork Sheet It will allow them, roughly speaking, to dramatically optimize the space on 1nm chips by adding a non-conductive element between the transistors with one purpose: to eliminate empty spaces and pack a higher density of transistors on the same surface. It sounds really good. We will tell you more as soon as we have detailed information about this innovation. Image | Generated by Xataka with Gemini More information | Korea Economic Daily In Xataka | We already know what the chips that will arrive until 2039 will be like. The machine that will allow them to be manufactured is close

Samsung is NVIDIA’s best friend. AMD just got into the relationship and TSMC looks askance

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Lisa Su has been at the head of AMD since 2014. Captaining such an important ship, it is assumed that on some occasion he will have visited one of its main component suppliers. But it turns out that, in his role as CEO, he had never traveled to South Korea, home to one of the world’s leading foundries. The journey has paid off and AMD turns with latest generation memory. But the one who is happiest is the one who is going to allow AMD and NVIDIA to create their new platforms for AI. Samsung. Visiting. In Pyeongtaek, south of Seoul, is one of the main factories from Samsung. The South Korean company is expanding and has the objective of becoming one of the names of the American industry while maintaining its local muscle, and the plant inaugurated a few years ago is an example. This is how Samsung makes money: the secret is in the IPHONE As it could not be otherwise in these times, the facility is focused on the creation of memory chips to power the AI ​​hardware. SK Hynix and Micron are the two big competitors of Samsung in this field and are also opening and purchasing plants to increase their memory production. And AMD wants a piece of that pie because Samsung is, right now, the main supplier of next-generation memory. The agreement. The trip, apart from seeing the facilities, was the perfect setting to make the announcement that Samsung was will convert in the main memory supplier HBM4 from AMD. Specifically, the Instinct MI455X GPU, the next generation of the American company. Because when we talk about GPUs for AI, we talk more about NVIDIA (which also they just presented news) because they are pulling with everything (and in all sectors), but AMD is the other big one that doesn’t want to be left out of the conversation. They are achieving billion-dollar agreements with companies like Metathey have some growth forecasts stratospheric and although far from NVIDIAthey want to be in charge of providing the hardware for AI. Happy managers | Photo: Samsung HBM4. That Samsung is the one that supplies the HBM4 memory to AMD is great news for them because they are the ones that, at least for the moment, have the most refined manufacturing process for this type of memory. In the past they had already supplied the HBM3E for AMD’s current MI350X and MI355 accelerators, but the new agreement means that they will access the same type of memory as their own Samsung exclusively supplies -for now- to NVIDIA. Memory is not everything, obviously, but it plays a fundamental role. The higher and faster bandwidth, the more data per second it can handle. Think of this memory as a very wide and perfectly paved highway. And Samsung was the only one that had managed pass demanding NVIDIA tests for your new architecture Vera Rubin. Samsung at its best. And in this agreement it is evident that both parties win, but Samsung is achieving extreme recognition in recent months. Achieving the agreement first with NVIDIA and now with AMD implies that they separate from their main rivalalso South Korean SK Hynix, which is somewhat further behind with the development of its HBM4 chips. But, furthermore, the release AMD indicates that Samsung will also supply DDR5 memory to AMD’s EPYC servers and the possibility of them manufacturing some of AMD’s future chips has been discussed. Because Samsung manufactures memory, yes, but also other processors. There they have their own Exynos for the Galaxy S26but in the past they manufactured the most powerful Qualcomm Snapdragons and it has been proposed again that the South Korean company be the one make 2 nanometer chips from Qualcomm. On the other hand, they have already won a contract of more than 16,000 million with Tesla to create chips focused on AI. It is clear that TSMC is the main foundry in the world, but Samsung is determined to be one of the main hammers with which to build the future of AI. And, speaking of the king of Rome, the agreement means that Samsung manages to take over TSMC and AMD achieves a second role to reduce its dependence on the Taiwanese company. because there We already know that there is a best friendand it is undoubtedly NVIDIA. In Xataka | “It’s not a temporary squeeze, it’s a tsunami”: we are seeing live how the cheap smartphone disappears

TSMC is running out of capacity on the N3 node. And that’s going to affect everything you buy.

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There is a bottleneck that conditions everything in the technology industry and it has a very specific name: TSMC’s N3 node. AI has devoured 3nm chip manufacturing capacity faster than anyone anticipated, and right now there aren’t enough wafers to go around. Why is it important. The N3 node is not just the process where the most advanced AI chips are made. It is also where the iPhone, Macs, iPads, Qualcomm Snapdragons and Intel laptop processors live. When that capacity disappears absorbed by the demand for data centers, the impact does not remain in the server area: it reaches mobile phones, computers and any device that depends on the latest generation chips. Therefore, it reaches all of us. The context. For years, the N3 was almost the exclusive territory of consumer electronics. Apple was its first big customer with chips M3, M4 and M5 for Mac, and the A17, A18 and A19 for iPhone. Qualcomm uses it in its Snapdragon 8 Elite. MediaTek, in its most advanced Dimensions. That balance in which everyone was reasonably happy has been blown up in 2026. According to the analysis of SemiAnalysis (forgive the redundancy), in this exercise the AI ​​accelerators are going to absorb about 60% of all TSMC’s N3 production. In 2027, that figure could reach 86%, leaving mobile and PC manufacturers with hardly any access to the node. Between the lines. What has happened is a confluence that no one has managed in time. TSMC was slow to expand its capacity: Although the big AI investment cycle began in late 2022, with the bombshell arrival of ChatGPT, TSMC’s capital spending did not surpass its previous all-time peak until 2025. By then, demand had already caught up. The result is that TSMC today acts as an involuntary arbiter deciding who can build what and when. NVIDIA secured the N3P wafers for its new Rubin architecture before anyone else, displacing other clients. Google and Broadcom They got to the N3 even before NVIDIA, with the v7 TPUs already in production during 2025 and a big increase in volume this year. amd, AWS with his Trainium3and Goal with his MTIA They also compete for the same node. AND Apple, Qualcomm and Intel They are, in this new distribution, those who stand in line. The big question. Can anyone stand up to TSMC? In the short term, the answer is no. Intel Foundry has the political backing of the Trump administration and could capture assignments that add points to him. Samsung has landed some big contracts (including Tesla chips and, according to SemiAnalysisan entry in NVIDIA’s supply chain), but its technology remains behind. Foundry diversification is more of a strategic desire than a real alternative, at least for now. Yes, but. There is one nuance that should be remembered: the shortage of N3 is accelerating the transition to node N2the next step in TSMC’s roadmap. Some mobile manufacturers that planned to stay in N3 are moving ahead of schedule, not by technical choice or because the timing be the most logical, but because they have no other option. The shortage not only redistributes the present, it is also rewriting the product calendars of half the sector. In Xataka | Chinese memory manufacturers are no longer secondary players: they are the lifeline of the consumer market Featured image | Igor Shalyminov

TSMC is the ‘kingpin’ of chips and Apple has always been its best friend. That just changed

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TSMC is the foundry of the world. Although there are others like Samsung that have muscleit is the Taiwanese company that has conquered the high-performance chip segment. It has achieved this through capacity, technology and an alliance: that of Apple. For a decade, TSMC was Apple’s great friend, the one that manufactured its chips and the one that revolutionized – with the designs of Apple Silicon– the laptops. Now NVIDIA rules. And he has elbowed his way through. In short. In the midst of the AI ​​era and with a technological current in which it is impossible to separate oneself from NVIDIA, Apple has more than enough reasons to feel jealous. While the mobile segment faces cuts unprecedented due to the crisis of RAM and components, and with Tim Cook himself -CEO of Apple- commenting on the difficulties they will have This 2026, artificial intelligence is going like a rocket. Major memory manufacturers have pivoted to high-bandwidth memory for AI GPUs, and companies like NVIDIA, Phison, amd and even the Chinese ones like SMIC and Huawei They are clapping their ears. They have made the AI ​​Big Techs dependent on their hardware, and no one makes that hardware like TSMC. Result? According to the latest reports, NVIDIA will become its largest customer this year. The importance of ‘Customer A’. It may seem like an unimportant change of chips, but it is actually more relevant than we think. The difference between a ‘Customer A’ and a ‘Customer B’ implies that, faced with production bottlenecks, one of the two is given priority. We already saw this in the 2020 semiconductor crisis when, precisely, half of the industry was drowning (cars, cameras, TVs and mobile phones) while Apple did not have such bad forecasts because it was the darling of a TSMC that was going to focus on iPhone chips to consolidate a lucrative relationship that began with the Apple A8 of the iPhone 6. Jensen Huang himself -CEO of NVIDIA- has commented the quite proud play on a podcast. “Morris –Morris Chang, founder of TSMC and friend of Huang – will be happy to know that NVIDIA is TSMC’s largest customer right now,” said the CEO. It is because little margin: 19% for NVIDIA compared to 17% for Apple, but it is an achievement and a thermometer of how the industry is doing. Last year, NVIDIA’s contribution to TSMC was 12%, which is a considerable jump in a very short time. “I need a lot of wafers”. Obviously, this does not imply that TSMC is going to stop pampering Apple over other companies. Apple has a huge percentage of the mobile segment, but NVIDIA is crucial to keep the AI ​​machinery rolling. Despite the Google attempts with its TPUsthe agreements of OpenAI with Broadcomthose of Goal with NVIDIA and AMD or those of xAI manufacturing its chipsNVIDIA is still the one who splits the cod. Even Chinese companies need NVIDIA GPUs and, of course, NVIDIA is more than willing to take a cut. On a recent visit to Taiwan,. Huang met with local industry heavyweights and noted that “NVIDIA would need a lot of wafers this year,” putting even more pressure to a TSMC that is crucial in the artificial intelligence chain. Synonym of success. Samsung, Huawei and SMIC They are fighting to be alternatives in case TSMC collapses. But TSMC has put us on the couch and has been looking at how to diversify the business for a few years. In Taiwan they maintain the heart and the muscle, but the plant in Europe – in Germany – is underway and they already have an operational foundry in the United States. In fact, there are plans to expand it because they have more and more clients who need a very specific product that works like a Swiss watch. But this has a B side: all the industry’s eggs are in the same basket. If TSMC fails, the house of cards can collapse. There is already some report that indicates that the American plant that manufactures for Apple, Intel, NVIDIA or AMD is overwhelmed due to a huge amount of orders. And there, precisely, lies the importance of being a client A… or a client B. Images | TSMC, NVIDIA In Xataka | SK is one of the chip whales and it is clear about one thing: not all the money in the world will satisfy AI’s hunger for RAM

SMIC is the Chinese TSMC and sums up all investment in AI

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The semiconductor industry has pressed the panic button. Unlike the chip crisis of 2020the new one has not been caused by a ‘perfect storm’ and has a first and last name: artificial intelligence. The push for this technology and the rampant construction of data centers has caused a stock out of all computer components. And if the world’s leading companies have been caught on the wrong foot, the Chinese ones are no exception. To the point that SMIC has confirmed the lean times. The Chinese industry has activated “crisis mode.” Crisis (don’t bother…). At this point, introductions are unnecessary. The RAM market is broken because the main players (Samsung, Micron and SK Hynix) have focused on creating memory for data centers. The reports point to an NVIDIA that would ‘pass’ on launching consumer GPUs this year because you need all possible wafers to create GPUs focused on AI. And after the SSD price risethe following can be the processors. A few days ago, a report from Reuters noted that Intel and AMD were beginning to notify Chinese customers to sit tight for new shipments of server CPUs. Because we always talk about NVIDIA as if it were the only one that creates components for data centers, but the chips Threadripper from AMD and Xeon from Intel are key parts of servers. According to Reuters sources, AMD has warned of an increase in delivery times from eight to ten weeks. And if we look at an Intel whose sales in China represent 20% of its general income, they point out that the price of the fourth and fifth generation Xeons are being rationed and, in addition, increasing the price by 10%. As with other components, they are not enough. From hope to victim. From Reuters they point out that AMD hopes that its relationship with TSMC will allow it to maintain the supply chain. The problem is that TSMC has to be working hard to supply all its customers. NVIDIA is putting pressureQualcomm also needs its premium range mobile processors this year and they are the ones that make Apple’s processors. SMIC -Semiconductor Manufacturing International Corp- is the main Chinese semiconductor company. It is the one that in recent years has gained prominence defy US restrictions and provide high-performance chips to Huawei. It is also the great hope, together with Huawei itself, to develop a GPU that can cope with NVIDIA. Zhao Haijun is the co-CEO of SMIC and has come forward to be anything but reassuring. Double reservation. SMIC is winning more money thanks to demand, but production capacity is limited, to the point that he considers that the industry has entered “crisis mode.” “Customers are hesitant to place orders because no one knows how many memory chips will be available and, therefore, how many orders for phones, cars or other products they will be able to build,” stated to investors. In fact, analysis from Counterpoint reflect this crisis with a figure: 2.5%. This is what would have lowered the shipping forecast for Honor, OPPO and Vivo phones for the coming months. That leads manufacturers to book with multiple suppliers, something Zhao has compared with the “double booking” behavior that can be seen on an airline. “If one airline is fully booked, passengers will immediately book another, making total bookings appear inflated even though actual demand has not increased proportionately.” In essence, if the production capacity is limited, but the companies that need chips reserve several suppliers that draw from the same source, it seems that the demand is beastly, although, in reality, this is not so much the case. The result is the same: the system collapses. Car-free highways. The note of the double reservation is not the only pearl that Zhao has left. It is evident that, whether they can handle the demand or not, it is good for SMIC because Chinese companies eager for chips to develop their AI (of which They don’t stop releasing new models) are purchasing components for their data centersand the executive commented that “no one has really thought about what exactly those data centers will do, but companies would love to build the total capacity of the next 10 years in just one or two years.” “It’s like building train stations and high-speed highways even if there aren’t that many cars that need them yet” – Zhao Haijun Three billion dollars. But it’s about being there, having a place at the table where the conversation that, they hope, will shape the future is being defined. American Big Tech plans burn more than 650 billion dollars this 2026 alone, a brutal increase if we take into account that the investment was 400,000 million in 2025. But if we look at the global estimate, with Alibaba, Bytedance or Tencent in the equation, the estimate is three trillion dollars for the next five years. Crisistunity. In the face of crisis, opportunity. We have already commented that AMD, Intel or NVIDIA they are saturated. Also Samsung, SK Hynix and Micron on the memory boat, and in that scenario is where there are certain companies that can begin to carve out a space for themselves at an accelerated pace. SMIC is one of them, satisfying the demand of local customers, but memory manufacturers such as CXMT or YMTC that They had never painted anything in the conversationyou have a chance. We already know that PC manufacturers such as Asus, Dell or HP are considering buying CXMT memories and that Lenovo has already started to do so. And it is not only a window for Chinese companies: Intel has an adventure with the Japanese SoftBank to stand up to Samsung and its HBM4 memories. And even ByteDance would be working on your own AI chip. The problem is the same one we have been talking about for a long time: no matter how much they increase production and no matter how much new players appear, they are all playing in the same game, that of allocating most … Read more

Micron has emulated TSMC and is spending $1.8 billion on a RAM factory. Don’t clap yet

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Taiwan is becoming one of the technological hotspots worldwide. If the country was already at the center of the technology sector because it is the home of TSMCwill now take on more prominence in the new era of AI. Your crown jewel is investing an astronomical sum in the United States and, now, the American Micron ends to close a $1.8 billion deal in Taiwan. And you can guess the goal. Keep feeding the data centers based on RAM memory. Micron. In recent weeks, Micron has been one of the big names in the technology sector. However, Crucial may sound more familiar to you. It is, or was, Micron’s brand for consumer RAM, but also for storage. Their products are very well regarded when it comes to assembling a PC in parts, but They turned off the tap at the end of last year and the last shipments will occur in February 2026. Now, Micron is shifting its focus to something much bigger and more lucrative: artificial intelligence. Specifically, supplying those same components, but to large companies that are setting up gigantic data centers. In the end, a data center It is made up of hundreds of “computers” that need both storage and RAM. The operation. Given the context, we come to the news. As the company itself has confirmedhave just signed an operation worth $1.8 billion to take over the P5 factory of the Powerchip Semiconductor Manufacturing Corporation -PSMC- company in Tongluo, Taiwan. An operation like this must pass several filters, but the company’s intention is for the transaction to be closed by the second quarter of this same 2026. They have stepped on the accelerator, and as soon as they can, they will begin to do one thing: increase the production of DRAM memory. clean room. Micron has confirmed that it is just one of the operations it is contemplating in a global expansion movement “to meet the long-term demand of its customers,” and acquiring a semiconductor factory makes perfect sense. Beyond the fact that the components and machines are different, there is something that factories of this type share: clean rooms. It is an extremely… well, clean facility stripped of any external elements. Suspended particles are kept at extraordinarily low levels, temperature, humidity and pressure are highly controlled parameters and the air is filtered numerous times per hour. Static electricity is reduced as much as possible and, ultimately, it is a clinical space so that no impurities interfere with something as sensitive as the manufacturing of semiconductors. It is, in short, like an operating room (or stricter if possible). Example of a clean room “All in one hour“Creating something like this requires a considerable investment (which is why new companies are entering to compete in the RAM segment, as rumored with Asusit is tremendously complicated), and that is why Micron has taken over existing facilities that they will only have to adapt to their activity. Besides, take the example of TSMC. In Taiwan, all components TSMC needs are “an hour” away. This allows the assembly line to be efficient, minimizing time, maximizing production and saving money. The new Micron factory will be very close to the one they already have in Taichung, being able to emulate that way of working that has led TSMC to excellence. Consumption RAM for when. Micron is expected to begin optimizing the manufacturing process in the new plant by the second half of 2027, but thanks to the context we gave before, we know that these “customers” are not those who want to assemble a PC in parts or even assemblers such as Asus, MSI, Lenovo or Gigabyte: they are the ‘Big Tech’ that are setting up data centers. In a recent interview, Christopher Moore, vice president of marketing for Micron’s client and mobile business, said the problem and the RAM bottleneck is elsewherebut also stated that this growth in data centers has gone from representing 30% of its market to 60%. He also stated that, although Crucial has disappeared, Micron will continue to supply memory to OEM manufacturers, but it is evident that the bottleneck is affecting, that prices are through the roof and that things are not looking good if you had to renew PC.E And, according to Micron’s vice president, it will continue until 2028. At least. Images | Maxence Pira, Hunter Trick In Xataka | Google doesn’t have rockets, but it is going to install data centers in space. SpaceX and Blue Origin rub their hands

Taiwan colonizing the United States with TSMC as the spearhead

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TSMC is the big name in the global semiconductor industry. We all have companies like NVIDIA, Qualcomm, Intel or AMD in mind, but It is TSMC that produces most of the chips of these companies. The Taiwanese company produces around 60% of the world’s chips, but when we talk about the most advanced chips, that dominance is practically total. It is a technological candy that has decided to expand and, after the plant in the United States, continues to buy land to expand its footprint. And it is a move that further unbalances the balance in terms of chips. Necessary expansion. TSMC’s base of operations is in Taiwan, but a few years ago, the company saw clearly that they had to expand their operations framework. It is something that responds to a double need. On the one hand, the more footprint they have in other countries, the more the technology industry will continue to depend on their technique. On the other hand, the main factor: the threat of china. China and Taiwan are going through a period of growing tension. We have seen maneuvers by China that I’m sure they’ve made the Taiwanese nervous.. Also Taiwan operations for show that they could defend themselves and countries like Japan and, above all, the United States They are very aware of the situation. 87% of TSMC’s more than 80,000 employees operate in Taiwan and any open conflict between the countries would mean a stoppage in the company’s operations. Little joke with this: if its chips move the world, let TSMC stop producing would cause an economic collapse. Arizona. There is a third factor that is encouraging this international expansion. Although Europe, the United States and China seeks national sovereignty in semiconductor matterthe reality is that companies need the cutting-edge chips that only TSMC can reliably mass produce. And, while financing semiconductor plants, countries have decided to invest millions to attract TSMC to their territories. The plant that will open in Germany either that of Japan They are two examples, but the one that is already operating is the American one. Although Trump, with his protectionist policies and ‘America First’, does not like it being a foreign company that cuts the cod, TSMC already has a huge plant located in Arizona from which it produces key components of the iPhone 16. This facility is the company’s most ambitious project far from Taiwan, and what started as a $12 billion investment in 2020 has become a colossal $160 billion-plus operation. They started to produce 4 nanometer chips at the beginning of 2025 and the idea is refine machinery to reach 2nm in 2029. New lands. Within the ‘Made in the USA’ strategy of the large American technology companies, TSMC Arizona is vital. And considering the economic opportunity that the AI ​​era has opened up, with the astronomical need for chips to create products like NVIDIA’s solutions for data centers, TSMC wants to grab as much of the pie as possible. As we read in The Wall Street Journala series of factors such as Taiwanese investment and a relaxation in US tariffs on Taiwan would allow TSMC to expand further. According to the media, last week the technology company purchased 900 acres – about 360 hectares – of land adjacent to its current property in Arizona. The total has been almost 200 million dollars and the intention is to expand the facilities to reach a dozen. TSMC + NVIDIA Made in the USA (more expensive). With this move, TSMC would discourage the competition from trying to invest to stand up to them because, as we say, they are the ones who dominate the production of advanced chips and who have the capacity to supply their enormous customer base. Apple is one of those that already buys chips from Arizonabut NVIDIA has confirmed that its B30 GPUs will be the first made in the United States. Now, there is a toll. HE esteem TSMC Arizona prices on advanced nodes are between 5% and 30%. There are several factors. In Taiwan they have the policy of “everything at one hour”, so any material the factory needs is very close, creating an extremely efficient chain. That does not happen in the American factory, where suppliers are far away and you have to resort to air transportation, which increases the price. There is also the fact that the wages They are higher in the US than in Taiwan. Headache. Despite these conditions, and being a foreign company controlling the show on home soil, TSMC has so dominated the process that the companies it’s worth it because they know that the chips they get will be the best for their products. Furthermore, from a political perspective, these additional costs may even be reasonable if they ensure that a conflict in Taiwan would not completely paralyze its economy. For TSMC, expansion is a great move. At the political level, countries that embrace their factories also have a reason to attract investment and Big Tech and the CEO of NVIDIA himself is clear that swith those who will lead the industry for decades. However, it is still an industry dependent on a single entity. Without leaving the United States, the country got his hands on Intel in the middle of last year in an almost unprecedented move to turn the company into the great american foundry. With TSMC expanding its network at home, they are going to have it complicated despite having the best technology available. Images | NVIDIA, TSMC, Intel In Xataka | The world’s technology industry practically depends on a single road: the one that leads to the Spruce Prine mine

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