Recently, semiconductor overseas factories dynamic frequently, first of all, in the production expansion, Kyocera spent $470 million to build a chip material factory in Japan, Zeiss SMT expansion of DUV capacity, NXP confirmed and Taiwan Semiconductor and chip to discuss to build a plant in India. In addition, Japan plans to increase support for Rapidus, Samsung Electronics plans to develop the next generation of cryogenic solder, and announced an extended licensing agreement with AMD.
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Kyocera: Plans to invest about $470 million to build a chip materials plant in Japan
Kyocera said Wednesday it will invest 62 billion yen ($470 million) to build a new semiconductor-related component plant, according to foreign media. The new plant will break ground later this year in Kanshinori, Nagasaki, Japan, and the funds will be used until March 2029.
"We will dominate the market for advanced semiconductor components, which will double in the medium to long term," Kyocera President Hideo Tanimoto told a news conference in Nagasaki.
The project is expected to be completed by April 2026 and begin operations the following year, according to public data. The plant will produce fine ceramic components for chipmaking machinery, as well as packaging materials for advanced semiconductors. The plant is expected to produce 25 billion yen in FY2028. It will be the company's first domestic plant since it opened Ayabe in Kyoto Prefecture in 2005.
As semiconductor nodes shrink to a few nanometers in size, their production requires increasingly complex processes. This has resulted in a growing demand for ceramic components for photolithographic systems. Compared with metal parts, ceramics have stronger resistance to thermal expansion and corrosion. Kyocera has a global share of 70 to 80 percent in a range of ceramic components. So far, the company has responded to expanding demand by expanding capacity at its flagship plant in Kagoshima prefecture on Kyushu island and elsewhere.
Kyocera plans to spend 900 billion yen in total capital expenditure in the three years to March 2026, which is about double the capital expenditure in the previous three years. More than half of the capital expenditure will be spent on semiconductor-related businesses.
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Samsung: Developing next generation cryogenic solder, and AMD announced extension of licensing agreement
Samsung Electronics has started developing low-temperature welding technology for next-generation high-tech packaging and plans to complete the technology development and mass production by 2025, foreign media reported.
Solder is a material used to connect the packaging substrate to the tube core of a semiconductor chip. Unlike traditional solders, which require temperatures of 200°C or higher, using low temperature solders can reduce packaging process costs and defect rates.
In addition, on April 6, Samsung and AMD announced that they have extended their strategic intellectual property licensing agreement, under which Samsung Electronics will continue to license AMD's Radeon graphics IP.
"Together with AMD, Samsung has revolutionized mobile graphics, including our recent collaboration to bring ray-tracing capabilities to mobile processors for the first time in the industry," said Seogjun Lee, Executive Vice President of Development, Samsung Application Processors (AP). Leveraging our technical know-how in designing ultra-low power solutions, we will continue to drive continued innovation in mobile graphics."
Back in 2019, the two sides signed the first agreement allowing AMD to license its custom graphics IP based on RDNA graphics architecture to Samsung for use in smartphones and other mobile devices. Since then, Samsung has been using AMD Radeon graphics solutions for Exynos processors in its Galaxy smartphones.
According to Samsung's official financial report, the company achieved 43.38 trillion won in operating profit in 2022, down 15.99% from the previous year. Sales of 302.23 trillion won, up 8.09% year on year; Net profit rose 39.46 percent to 55.65 trillion won. Samsung is expected to report preliminary March quarter results on Friday. In the face of industry peers Micron, SK Hynix, Kai Xia and other production cuts, Samsung has been adhering to the expansion of production and capital, the current semiconductor cycle down, Samsung earnings continue to fall short of expectations, next it will take what measures?
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In short supply, Zeiss expanded its SMT DUV capacity
Carl Zeiss Semiconductor Manufacturing Technology Co., LTD. (" Zeiss SMT "), a manufacturer of optical components for semiconductor lithography equipment, will begin construction of a new optical component plant for the production of DUV (deep ultraviolet) lithography equipment at its plant in Wetzlar, Hesse, Germany, according to foreign media. It is scheduled to be completed by 2025.
Zeiss SMT, a subsidiary of Carl Zeiss, a leading German optical equipment manufacturer, provides optical components and photomask systems and process control solutions for semiconductor lithography devices, according to public information. Zeiss SMT also supplies optical components used by ASML, a Dutch manufacturer of semiconductor exposure equipment. According to Zeiss SMT, "More than 80% of the world's microchips are manufactured using our optical components."
Zeiss SMT's Wetzlar plant has been manufacturing optical components for DUV lithography for more than 20 years. Due to the increasing demand for semiconductor manufacturing equipment, Zeiss had no choice but to expand its existing manufacturing capacity. According to the press release, the new Zeiss SMT plant will have a total production area of more than 12,000 square meters and will create an additional 150 jobs. The facility will manufacture and develop optical components for the latest DUV lithography devices.
The company also announced on March 22, 2023 that it will expand its research and development site in Rossdorf, Hesse, Germany. It plans to invest more than 20 million euros by the end of 2026. The center focuses on nanostructural research and the development of systems to repair photomask defects with nanoscale precision.
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NXP is in discussions with Taiwan Semiconductor and Chipmaker to build a plant in India
According to the Economic Times of India, NXP is in discussions with contract manufacturing partners such as Taiwan Semiconductor Manufacturing and Globalfoundries to set up chip manufacturing plants in India. Kurt Sievers, president and CEO of NXP, said he told Indian Prime Minister Narendra Modi that he would "strongly recommend" India as a future location for NXP's contract manufacturing partner, the report said.
It is understood that NXP is expanding its R&D and chip design in India. It employs about 4,000 engineers at plants in Noida, Bangalore, Hyderabad and Pune.
At present, India has a strong product manufacturing capacity in the automotive, industrial and health care sectors, and the country has been pushing the entry of chip manufacturing.
Ashwath Narayan, minister for information technology, electronics and skills development in the Indian state of Karnataka, said ISMC Digital would build a $3bn wafer plant in Karnataka if it is approved on time, with construction expected to begin within months, Indian media reported earlier.
Construction of the plant, India's first chip-making plant, was scheduled to begin as soon as February, but current developments appear to be delaying it.
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Japan plans to increase support for Rapidus in a push for advanced chip development
Japan's Economy, Trade and Industry Minister Yasminoru Nishimura pledged to increase financial support for chipmaker Rapidus Corp as it focuses on developing cutting-edge semiconductors, components whose production is crucial for the country to excel in artificial intelligence and autonomous driving, foreign media reported.
According to public documents, Rapidus is a joint venture between eight major technology companies, including SONY and NEC, which was launched in Tokyo last year. Rapidus aims to produce cutting-edge 2-nanometer chips in Japan by 2025. Japan had already said it would invest 70 billion yen ($525 million) in Rapidus. Japan will invest $34.7 billion in Rapidus over the next 10 years through the Leading edge Semiconductor Technology Center (LSTC).
In late February this year, Rapidus President Junichi Koike said after meeting with Hokkaido Governor Nado Suzuki that Rapidus has decided to build a factory in Hokkaido, and that the site is expected to be the industrial park in Chitose City, Hokkaido.
According to industry media reports, Rapidus plans to build a 2-nanometer prototype production line in the first half of 2025, with the goal of catching up with Taiwan Semiconductor Manufacturing Co., LTD. (TSMC) and other world-class semiconductor competitors that have begun mass production of 2-nanometer products in 2025.
But reaching that goal would require about 7 trillion yen ($54 billion) to start mass production of advanced logic chips around 2027. As a result, the Japanese government may invest more through the LSTC to meet future demand.
However, some in the industry doubt Rapidus will be able to produce 2-nanometer chips in such a short time, as the technology is more advanced than those currently offered by leading players such as Samsung Electronics and Taiwan Semiconductor Manufacturing.