Tag Archives: semiconductors

TSMC’s CEO has a major concern about a chip production problem that could help Samsung Foundry

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TSMC is the world’s most important contract chip foundry in the world as it builds chips for some of the most influential fabless chip designers in the world. By “fabless,” we mean that these companies don’t have the production facilities (known as fabs-short for fabrication facilities) to build their chips thus making them “fabless.” You’re probably familiar with many of these companies including Apple, Qualcomm, Nvidia, AMD, MediaTek, and Broadcom. TSMC’s big name clients like Apple and Nvidia account for most of TSMC’s advanced process capacity TSMC has no trouble getting orders. For the third quarter of 2025, TSMC reported revenue of $33. 1 billion which indicates that the foundry is shipping plenty of chips. But C. C. Wei, CEO of TSMC, says that overall, chip demand is well ahead of chip supply. Wei says that based on what he sees currently, TSMC’s demand for chips is three-times higher than the amount that TSMC can fulfill at the moment. This is not good because it means that any slight problem could lead to the foundry facing a chip production bottleneck that could sharply reduce the availability of popular tech products that are powered with TSMC-built semiconductors. Chips made using advanced processes such as 5nm, 3nm and 2nm have even a greater production shortfall at TSMC leading Wei to note that TSMC’s production of these chips at current numbers is massively insufficient. Those TSMC customers lucky to have a long-term contract, like those we named at the end of the first paragraph, might not have as much to worry about as other firms do. Prospective TSMC clients sans a contract could be forced to wait a long time for production capacity to open up allowing their chips to be built. TSMC’s huge 70. 2% Q2 market share dwarfs Samsung Foundry’s 7. 3% Strong demand for AI chips from Nvdia, for example, probably leaves little to no room for TSMC to accept many uncontracted orders for production using advanced process nodes. Those turned away can run to Samsung Foundry although there are some reasons why TSMC had 70. 2% of the contract semiconductor foundry market during the second quarter this year. Samsung’s 7. 3% share put it a distant second behind TSMC. China’s largest foundry, SMIC, was third with 5. 1% of the market. Samsung Foundry’s poor yields have kept some chip designers away. You might remember that Samsung Foundry’s poor yields led Qualcomm to pull production of the Snapdragon 8 Gen 1 from the foundry. After revising the specs a bit, Qualcomm had TSMC produce the Snapdragon 8+ Gen 1; Qualcomm has stayed with TSMC ever since. Will customers feel comfortable using Samsung Foundry to cover their chip-production needs? The yield is the percentage of non-defective, functional chips sliced from a silicon wafer compared to the maximum number that could have been built from that wafer. Last year Samsung was forced to spend $400 million to buy additional Snapdragon 8 Elite application processors (APs). The money had to be coughed up when it became apparent that Samsung Foundry’s low yield on 3nm production meant that not enough Exynos 2500 APs could be bult in time for the 2025 flagship Galaxy S25 series. Now, with Samsung Foundry’s yield up, the capable Deca-core Exynos 2600 AP is expected to be deployed on the Galaxy S26 and Galaxy S26+ in certain regions. The big question is whether the current capacity shortage creates such desperation for some manufacturers that they are willing to take their chances with another foundry instead of TSMC. After all, the fact that TSMC is overwhelmed with orders can’t be a coincidence. However, this current set of circumstances could be just what the doctor ordered for Samsung Foundry. And with the early word on the Exynos 2600 AP being positive, the start of a Samsung Foundry turnaround could be at hand. Recommended Stories Building a 2nm fab costs approximately $28 billion and it takes three to five years to complete. Correcting TSMC’s chip shortage isn’t something that can be done quickly which means that it will probably take years for the foundry to add capacity. Can Samsung Foundry step up and take advantage of this situation?.
https://www.phonearena.com/news/tsmc-ceo-major-concern-about-chip-production-problem_id176031

CNBC’s The China Connection newsletter: China’s homegrown games capture overseas players as its cultural influence expands

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This report is from this week’s CNBC’s The China Connection newsletter, which brings you insights and analysis on what’s driving the world’s second-largest economy. You can subscribe here. The big story From Nezha 2 to Labubu, it’s been quite a year for Chinese cultural exports. Now, one of the latest titles to hit the $189 billion global gaming market is also from China. More than 2 million people played the martial arts video game “Where the Winds Meet” within 24 hours of its overseas release this past weekend on PlayStation and PC, according to the game’s Chinese publisher NetEase The free-to-play game puts a player in the shoes of a “young sword master” living in 10th-century China, whose backstory is developed through the journey of play. “Players can feel like they are a special character in history, finding their own life in the past, and striving for the future,” Beralt Lyu, lead producer of “Where the Winds Meet,” said in Mandarin, translated by CNBC. He said the team aimed to create a global game from the start, at least five years ago. The game was released in China late last year, boosting NetEase’s second-quarter earnings. The company will report its third-quarter results on Thursday. That game release came just months after Tencent-backed Game Science launched China’s first global top-tier video game, “Black Myth: Wukong,” which sold more than 10 million units in three days. Hero Esports “In the last two years, the biggest trend has been Chinese [companies] starting to slowly gain market share for PC, console games,” Will Wang, partner at Beijing-based BAI Capital, said in Mandarin translated by CNBC. “They must go global because the hardcore [console] gamers are all overseas.” While many venture capital firms are focused on AI and semiconductors, about 10% of BAI’s portfolio is related to gaming because the firm “believes a lot of business models and new innovations are all related to gaming,” Wang said, pointing to investments in augmented reality glass maker Viture and generative AI 3D animation creator Meshy. Even Nvidia now known as the AI juggernaut, got its start as a graphics hardware producer that only gamers were interested in. And companies International attention China’s emerging soft power in games has captured the attention of wealthy investors in Saudi Arabia. Executives from Savvy Games, which is owned by the country’s sovereign wealth fund PIF, visited China this month for two major esports events: the League of Legends World Championship in Chengdu and the Honor of Kings KPL Grand Finals in Beijing. “We haven’t yet had an opportunity to enter the PC console space, and so that’s another area, either in the West or in the East, so that’s also a focus for us,” said Brian Ward, CEO of Savvy Games. “It’s been a good market for buyers,” he said, noting the favorable environment could last for another year or two as it’s still expensive to borrow. In 2023, Savvy spent $4. 9 billion to buy “Monopoly Go!” developer Scopely, which this year acquired the game business of Niantic, the maker of “Pokémon Go.” While Ward said the Scopely acquisition gives Savvy an edge in Western mobile games, the company has its eye on another opportunity smartphone games in China and other markets. Mobile-based “Honor of Kings” last month claimed an average of 139 million daily players in China, with 260 million monthly active players worldwide. The game rolled out last year to the Middle East, North America, Europe and Japan even snagging a collab with Luckin Coffee in Singapore when I visited last month. This year’s “Honor of Kings” live China championship not only nearly doubled its attendance from last year, but set a Guinness World Record with 62, 000 attendees in Beijing’s Bird’s Nest stadium, the venue for the 2008 Summer Olympics opening ceremony. Tickets sold out in 12 seconds, according to Hero Esports, which organized the event. The finals also create opportunities for international interaction. Ahead of watching the game in China, Saudi Prince Faisal bin Bandar bin Sultan Al Saud, chairman of the Saudi Esports Federation, said he played a match with some Honor of Kings All Stars players. “The growth that you’ve seen in [the championship] is not simply because of the game itself and the players, but being able to tell the story of the players and get people engaged with the human beings behind the game,” the prince said. He is also the vice-chairman of Savvy Games. “You see that with Wukong, the story being told there was really engaging, and that made it accessible, no matter where it went in the world. That’s something that we’re learning from,” he said. The Saudi Esports World Cup Foundation, which is also owned by the PIF, organizes the annual Esports World Cup and recently launched a documentary series with Amazon Prime about the gamers’ stories. A small world While the esports industry is booming, it’s still a small world, and all the money is interconnected. Savvy has a 30% stake in the Chinese esports organizer Hero Esports, which is also backed by Tencent the biggest company by market value in Hong Kong. Tencent also owns “Honor of Kings” through a subsidiary, and owns U. S.-based Riot Games, the developer behind “League of Legends” Tencent on Thursday reported 43% year-on-year international games revenue growth in the latest quarter to 20. 8 billion yuan, or nearly one-third of its games revenue. The company also noted growth in “mini games” that sit inside its widely used WeChat social messaging app. The takeaway: producing high-quality games requires capital, risk tolerance and talent factors favoring giants like Tencent and NetEase, BAI’s Wang said. But he sees a fundamental macro play: “We have a rather wild assumption that if AI replaces many people’s work and improves productivity, and if there is no war, then other than watching short videos, people will spend their time on games.” Chinese companies are also pushing into the global games market as new technology lowers barriers such as language and physical requirements. Although “Where the Winds Meet” draws heavily on Chinese culture and literature, translation didn’t seem too much of an issue for its global launch. The 9, 000-plus English reviews on popular gaming platform Steam mostly rated the game “very positive” and praised the “beautiful” graphics. Their main complaint? A confusing interface of navigation menus. But that wasn’t enough to deter gamers: “Where the Winds Meet” still ranked among the five most popular global titles on Steam as of Tuesday. Top TV picks on CNBC watch now Yicong Zhu, VP of Renewables and Power Research at Rystad Energy, said renewables in China will account for 40% of its energy generation by 2030. watch now Jasmine Bai, Vice President of Equity Research at Guangfa Securities Hong Kong, analysed China’s tech giants, especially their retail & AI playbooks. watch now Carlos Casanova of UBP said Beijing can still hit its 2025 GDP growth target even if the economy slows down, making any additional stimulus unlikely until after the National People’s Congress in March 2026. Need to know China’s property drag worsens. Official data for October showed a steepening decline in real estate, while retail sales growth slowed from September. World’s biggest sale fades. The extended Singles Day promotional period saw a slowdown in growth to 14. 2%, down from 26. 6% year-on-year growth reported last year, according to consumer research firm Syntun. China-Japan rhetoric escalates. Beijing over the weekend warned its citizens about travel to Japan, following a public war of words between the two countries around Taiwan. Quote of the week In the internet business, you either be a very big platform, or you be a very good product. And if you can do both, then that is really formidable. I think Tencent in game business, they managed to do both. Eric Wen, Blue Lotus Research Institute, Head of Research In the markets The CSI 300 was set to clock its second consecutive weekly decline, ticking 0. 8% lower this week. The mainland index has risen more than 16% this year. While Hong Kong’s Hang Seng Index was also down 2. 8% this week, amid a broader tech-led sell-off globally. The index is up over 28% year to date. The offshore yuan last traded at 7. 1111 against the dollar. Nur Hikmah Md Ali Stock Chart IconStock chart icon Coming up.
https://www.cnbc.com/2025/11/19/china-connection-newsletter-video-game-soft-power-tencent-netease-pif-where-winds-meet.html

Donald Trump Issues H-1B Visa Update

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President Donald Trump has defended his recent support for H-1B visas, arguing that the United States needs to bring in skilled foreign workers to bolster key industries, despite backlash from within his base. Speaking to reporters at the Oval Office on Monday, Trump said America no longer had enough trained workers in specialized areas like semiconductor manufacturing, and that importing talent was necessary until domestic workers could be trained. “We don’t make chips too much here anymore, but we are going to be in a period of a year, we’re going to have a big portion of the chip market. But we have to train our people to make chips,” he said. Why It Matters Trump’s renewed defense of the H-1B program puts him directly at odds with some of the most vocal figures in the MAGA movement, who view the visas as harmful to American workers and a betrayal of his immigration stance. His comments expose a growing tension inside the Republican Party, as the party’s populist wing seeks to curb high-skilled immigration, while the tech and manufacturing sectors warn that foreign workers are essential to fill gaps in domestic expertise. What To Know Trump recently sparked backlash from his supporters when he defended the H-1B visa program while speaking to Fox News’ Laura Ingraham. “You also do have to bring in talent,” he told her. When Ingraham contended that the U. S. had “plenty of talented people,” Trump responded: “No, you don’t, no you don’t. “You don’t have certain talents, and people have to learn. You can’t take people off an unemployment line and say ‘I’m gonna put you into a factory and we’re going to make missiles,'” he said. On Monday, the president doubled down, arguing that American workers did not have the skills needed to produce semiconductors, an industry he said the U. S. had “foolishly” allowed to move largely to Taiwan, and which he now planned to grow domestically. Many prominent Republicans have advocated for limiting or abolishing the H-1B visa program entirely. The Trump administration earlier this year introduced a $100,000 fee for companies seeking H-1B visas for their workers. What People Are Saying Conservative podcaster Steven Crowder wrote on X in response to Trump’s comments: “There’s no shortage of talent in America. If H-1B visas were really about ‘the best and brightest,’ they wouldn’t all go to the cheapest bidder.” Republican Representative Marjorie Taylor Greene said on X last week: “I am introducing a bill to END the mass replacement of American workers by aggressively phasing out the H-1B program. Big Tech, AI giants, hospitals, and industries across the board have abused the H-1B system to cut out our own people.” Florida’s Republican Governor Ron DeSantis said on X last week: “Republicans have a majority in Congress and could legislate elimination of H-1B (and any programs designed to import cheap foreign labor). Deeds, not words, are what matter.” What Happens Next Trump’s support for H-1B visas is likely to continue to put him at odds with conservatives who want to curb foreign labor.
https://www.newsweek.com/donald-trump-h1b-visa-update-11063913

Jensen Huang says that ‘without TSMC, there is no NVIDIA’

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It’s safe to say that much of the world’s semiconductors run on designs built by Taiwan Semiconductor Manufacturing Company (TSMC). At the last estimate, the company accounted for about 64 percent of the world’s contract chip manufacturing. These designs are also powering many of the AI technology breakthroughs being developed by NVIDIA.

With that in mind, it might come as little surprise that Jensen Huang, NVIDIA’s CEO, had nothing but praise for TSMC during its recent Sports Day event. In fact, Huang went as far as to say that NVIDIA wouldn’t exist without TSMC.

Huang made these comments during TSMC’s Sports Day, as reported by the online news outlet Focus Taiwan. The event took place last weekend at a stadium in Taiwan, where Huang highlighted TSMC’s crucial role in NVIDIA’s history and its broader impact on technology.

He stated, “Without TSMC, there is no Nvidia today. You are really the pride of Taiwan, you are also the pride of the world. Thank you for helping me build Nvidia.”

NVIDIA and TSMC have been collaborating for nearly 30 years. NVIDIA has consistently utilized the technological breakthroughs developed by TSMC in its products, including the company’s cutting-edge Blackwell AI chips.

With such a long history and shared success, Huang clearly has a strong interest in maintaining friendly relations with TSMC. This is especially important as TSMC and the Taiwan region navigate complex trade and export tensions with the United States government.

In summary, the partnership between NVIDIA and TSMC remains a cornerstone of technological innovation, driving advancements in AI and semiconductor manufacturing worldwide.
https://www.shacknews.com/article/146757/jensen-huang-tsmc-pride-of-the-world

Intel’s CEO Lip-Bu Tan Meets Saudi Official For a Potential Chip Partnership — Can Gulf Capital Power Team Blue’s Semiconductor Comeback?

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**Intel CEO Lip-Bu Tan Explores Potential Partnership with Saudi Arabia on AI and Semiconductors**

Intel’s CEO, Lip-Bu Tan, has recently met with Saudi officials to discuss a potential partnership focused on semiconductors and artificial intelligence (AI). This move could open up a new “capital front” for the struggling American chipmaker as it seeks to strengthen its financial position and expand its global footprint.

Over the past few months, Intel has been actively pursuing breakthroughs in the semiconductor industry. These efforts include refining the company’s foundry division and reevaluating strategies to maintain a strong balance sheet. During this period, CEO Lip-Bu Tan has engaged in key collaborations, including partnerships with NVIDIA, SoftBank, and interactions with the former Trump administration.

Now, Intel appears to be setting its sights on the Middle East. According to Arab News, Tan met with Saudi Arabia’s Minister of Communications and Information Technology, Abdullah Al-Swaha, to explore opportunities for collaboration. The discussions centered around developing semiconductor and advanced computing technologies, as well as enhancing infrastructure for artificial intelligence and other future technologies.

While specifics of the meeting have not been disclosed, it is clear that Intel is keen on partnering with one of the largest economies in the Middle East. The Gulf nations—particularly the UAE and Saudi Arabia—are undergoing significant economic transformations, shifting their focus towards technological growth and expanding sectors like AI and semiconductors.

Saudi Arabia, despite having limited experience in semiconductor manufacturing, is known for its substantial investments in new ventures. The prospect of Intel establishing a chip manufacturing facility in Saudi Arabia is plausible, given the country’s considerable resources that could support large-scale operations.

For context, Qatar had previously approached TSMC (Taiwan Semiconductor Manufacturing Company) to set up advanced chip fabrication plants in the country. However, TSMC declined, citing concerns such as higher labor costs and supply chain challenges. Intel, conversely, requires significant investments and has already collaborated with SoftBank—a group backed by Saudi Arabia’s Public Investment Fund (PIF).

Though this potential partnership remains speculative at this stage, it aligns with a broader regional trend. Gulf countries are increasingly aiming to diversify their economies and reduce reliance on traditional oil revenues. With the growing global importance of semiconductor manufacturing, it makes strategic sense for these nations to invest in this high-tech sector.

As Intel pursues these new international alliances, the developments in the Middle East could represent a crucial step toward revitalizing the company’s growth and innovation in the semiconductor and AI industries.
https://wccftech.com/intel-ceo-lip-bu-tan-meets-saudi-official-for-a-potential-chip-partnership/

Dutch government seizes control of China-owned chipmaker amid trade tensions

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**Dutch Government Seizes Control of China-Owned Chipmaker Amid Trade Tensions**

*By Mudit Dube | Oct 13, 2025, 04:09 PM*

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The Dutch government has taken control of Nexperia, a Chinese-owned semiconductor manufacturer, amid escalating global trade tensions and growing national security concerns. Nexperia is a key supplier of chips to the European automotive and consumer electronics sectors.

The intervention was officially announced by the Dutch Minister of Economic Affairs on Sunday, marking a significant move in the ongoing scrutiny of foreign ownership in critical technology industries.

### Security Concerns Prompt Government Action

Invoking the “Goods Availability Act,” the Dutch government placed Nexperia under external management to prevent potential disruptions in the supply of vital goods during emergencies. This decision comes amid heightened trade tensions between the United States and China and follows Beijing’s recent tightening of rare earth element export restrictions—materials essential to European manufacturing.

### Governance Issues at Nexperia

The Dutch authorities cited “recent and acute signals of serious governance shortcomings and actions” within Nexperia as a key reason for their intervention. These deficiencies reportedly threaten the continuity and protection of crucial technological expertise and capabilities within both the Netherlands and Europe.

This move reflects increased government vigilance over Chinese-owned entities operating in sensitive sectors such as semiconductor manufacturing.

### Market Impact

Following the announcement, Wingtech Technology Co., the Chinese parent company that acquired Nexperia for $3.6 billion in 2019, saw its shares fall by the daily limit of 10%.

Despite the government’s intervention, Nexperia is allowed to continue its regular production. However, the Dutch government now holds the authority to block or reverse company decisions. Additionally, Wingtech has been ordered to suspend any changes to Nexperia’s assets, business operations, or personnel for up to one year.

### Wingtech Responds to Government Measures

Wingtech has condemned the Dutch government’s action, describing it as an “excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment.” The company maintains that it has “strictly abided by the laws and regulations of all jurisdictions” and operates with transparency at its sites in the Netherlands, Germany, and the United Kingdom.

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The Dutch government’s seizure of Nexperia highlights the increasing tensions and complexities surrounding foreign investments in strategic industries amid shifting global power dynamics.
https://www.newsbytesapp.com/news/business/dutch-government-takes-control-of-chinese-owned-semiconductor-manufacturer-nexperia/story