These are the most read DIGITIMES Asia stories in the week of August 12-16.

Japanese breakthrough in energy-efficient EUV technology could drive progress in this field

Japanese researchers at the Okinawa Institute of Science and Technology (OIST) have developed a groundbreaking new technology that dramatically reduces the cost and energy consumption of EUV lithography machines. This breakthrough could revolutionize the semiconductor industry and potentially disrupt the market dominated by a single major player, namely the Dutch company ASML.

China becomes self-sufficient in semiconductor equipment, but key exposure tools remain limited

Due to US sanctions on chip exports, China has become increasingly self-sufficient in semiconductor manufacturing in recent years, and companies such as AMEC and Naura have rapidly expanded their sphere of influence. However, exposure machines, the most important equipment in the semiconductor manufacturing process, remain a major obstacle to the ultimate self-sufficiency of the Chinese semiconductor industry.

China’s foundries are growing: SMIC and Hua Hong are running at full capacity due to rising domestic demand

China’s leading wafer foundries SMIC and Hua Hong Semiconductor have been able to fully utilize their newly added 12-inch production capacity, absorbing a surge in domestic orders. The increase is due to prices stabilizing and domestic IC customers shifting production to local supply chains due to peak season demand. As a result, both companies are operating at full capacity, with their production lines running at nearly 100% capacity.

Despite US pressure, Taiwan is sticking to its research and development in the field of advanced semiconductors

The US is reportedly pressuring Taiwan to change its laws to allow TSMC to produce chips with the most advanced process node technology on American soil. This demand includes moving TSMC’s R&D team to America. Despite the pressure from the US, Cheng-wen Wu, minister of the National Science and Technology Council (NSTC), said in an interview with DIGITIMES Asia that they remain committed to keeping TSMC’s semiconductor R&D in Taiwan.

Daxin develops chip manufacturing materials for 2 nm, CoWoS

Daxin Materials, a subsidiary of LCD panel maker AU Optronics (AUO) that provides specialty chemicals for semiconductors, displays and key raw materials, has developed chipmaking materials that support advanced 2nm manufacturing processes and CoWoS packaging. Both the 2nm processes and CoWoS materials are currently being verified, with the latter expected to take longer and thus unlikely to contribute to revenue in 2024. Nevertheless, the company remains cautiously optimistic about 2024 revenues.

Why Intel also had difficulties making chips in Arizona

TSMC’s Fab 21 in Arizona recently received concerns from The New York Times regarding the delay in chip manufacturing and sales, even though the project was announced four years ago. However, a DIGITIMES report highlighted that the problem is not only limited to TSMC, but also to Intel’s Gigafab complex in Arizona. The report pointed out that Intel’s progress is arguably even further behind that of TSMC, as Intel has not yet set a milestone for the first tool-in at its Arizona fabs, while TSMC reached its first tool-in milestone in December 2022.

Intel’s implementation of the CHIPS Act is hampered by performance, packaging dependencies and staff shortages

The $39 billion funding allocation under the CHIPS and Science Act (CHIPS Act) is nearing completion, but Intel faces major challenges in reviving its domestic semiconductor manufacturing supply chain. These include the company’s operational difficulties, continued reliance on Asia for packaging, a shortage of skilled labor, and environmental factors. Despite these challenges, Intel CEO Pat Gelsinger said he remains committed to his wafer manufacturing product roadmap.