Core Viewpoint - The U.S. government has revoked TSMC's authorization to freely ship necessary equipment to its Nanjing plant in mainland China, which may limit the production capacity of this mature process chip factory [2][3]. Group 1: Impact on TSMC - TSMC confirmed it received notification from the U.S. government that its "Verified End Use" (VEU) authorization for the Nanjing plant will be revoked by December 31 of this year, and the company is assessing the situation and taking appropriate measures [2][3]. - The Nanjing plant, which initially focused on 16/12nm processes, has shifted to expand its 28nm capacity due to increasing U.S. export controls, with a monthly production capacity of 20,000 wafers for 16/12nm and 40,000 wafers for 28/22nm [3][4]. - TSMC's mainland operations generated approximately NT$26 billion in profit last year, making it an important source of revenue despite its relatively low contribution percentage [3]. Group 2: Broader Industry Implications - The U.S. government's actions are seen as a significant threat to the operations of major semiconductor companies in mainland China, particularly those from Taiwan and South Korea [3][4]. - The shift from blanket approvals to individual license applications for semiconductor equipment has introduced uncertainty regarding the timeline for obtaining necessary permits, which could impact operational continuity [4]. - The U.S. has imposed extensive restrictions on mainland China's access to materials and equipment used for advanced chip manufacturing, aiming to limit China's AI capabilities [4].

Core Viewpoint - The U.S. has revoked the validated end user (VEU) status for Taiwan Semiconductor Manufacturing Co. (TSMC) and other foreign semiconductor manufacturers, impacting their ability to export key chipmaking equipment and technology to China, particularly TSMC's facility in Nanjing [1][2][4]. Group 1: Policy Changes - The revocation of VEU status will take effect on December 31, requiring TSMC to obtain U.S. export licenses for shipments of American-origin chipmaking tools to its Nanjing facility [2]. - The U.S. Department of Commerce is closing the "Biden-era loophole" for all foreign semiconductor manufacturers, allowing former VEU participants to operate existing facilities in China but prohibiting capacity expansion or technology upgrades [4]. Group 2: Impact on Companies - TSMC has stated its commitment to ensuring the uninterrupted operation of its Nanjing facility while evaluating the situation and communicating with the U.S. government [3]. - The Nanjing facility contributes less than 3% of TSMC's total revenue and represents a minor share of its global capacity, suggesting that the financial impact on TSMC should be minor [6]. Group 3: Industry Context - The policy changes reflect a broader U.S. initiative to tighten control over semiconductor equipment and technology exports to China, thereby strengthening U.S. influence over chip production in the region [5]. - South Korean memory chipmakers SK Hynix and Samsung also had their VEU privileges revoked, indicating a wider impact on foreign semiconductor manufacturers operating in China [3].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Asia Pacific (APAC) equity markets** and the transformative impact of **Artificial Intelligence (AI)** on these markets [1][16][106]. Core Insights and Arguments - **AI's Impact on APAC Markets**: AI is reshaping the APAC equity landscape, influencing economic and geopolitical standings of nations and individual companies [1][16]. - **AI Readiness Among Economies**: The US leads in AI innovation, but China is well-positioned with strong policy support, robust research, and manufacturing capabilities. Japan excels in semi materials and robotics, while India has a vast IT talent pool [2][55][106]. - **Investment Projections**: The global AI market is expected to grow from over **USD 300 billion in 2025** to nearly **USD 1.2 trillion by 2030**, with APAC potentially accounting for **USD 1 trillion** of this investment [4][21]. - **Sector Growth Forecasts**: Taiwan's AI foundry, Korea's High Bandwidth Memory (HBM), and China's AI chips and software sectors are projected to grow at **20-50% per annum**. In contrast, China's semi equipment and India's IT services may experience muted growth [4][21][47]. - **Geopolitical Dynamics**: AI could alter geopolitical influence by fostering regional economic integration, although political divisions may lead to technological fragmentation [3][106]. Important but Overlooked Content - **AI's Role in Economic Growth**: AI may decouple economic growth from labor force constraints, allowing countries like China, Japan, and Korea to achieve higher-than-expected GDP growth despite aging populations [26][107][108]. - **Public Acceptance of AI**: Surveys indicate that countries like India and China have higher public acceptance and trust in AI compared to developed nations like the US and Japan [67][69]. - **AI Startups and Unicorns**: The US leads in AI startups and unicorns, with over **55%** of new AI startups globally. China's new AI startups have slowed significantly, indicating a potential decline in private investment [77][78]. - **AI Research and Patents**: China leads in AI research publications and patents, producing **23%** of global AI journal publications and **70%** of AI patents granted in 2023 [82][83]. Conclusion - The APAC region is poised for significant growth in AI-related sectors, driven by strong government policies, technological advancements, and a robust talent pool. However, challenges such as public acceptance, investment fluctuations, and geopolitical tensions may impact the trajectory of AI development and its economic implications in the region [4][106][107].

公众号记得加星标⭐️，第一时间看推送不会错过。 来源 ：内容 编译自 yole 。 由于传统的基于处理器的架构面临物理限制，这项技术在满足数据中心需求（尤其是人工智能和机器 学习）方面发挥着至关重要的作用。硅光子学实现的高速通信对于支持更快的计算至关重要。不断增 长的带宽需求不仅推动了硅光子学的发展，也推动了薄膜铌酸锂的发展，从而提升了网络的数据容 量。 光子集成电路，尤其是绝缘体上硅 (SOI) 和绝缘体上铌酸锂 (LNOI)，为具有高容量可扩展性的应用 提供了多功能平台，尤其适用于数据中心，而中国企业正在成为该领域的新领导者。由于硅片性能稳 定，电信是另一个高容量应用领域。除此之外，光学激光雷达、3D 集成、量子计算、光学陀螺仪， 甚至医疗光子学都拥有巨大的潜力，尽管一些应用面临技术和监管挑战。硅光子学向可见光谱的扩展 有望在未来开启更多创新用途。 硅光子产业格局正在围绕多元化参与者形成：积极参与硅光子产业的主要垂直整合参与者（例如 Innolight、思科、Marvell、Broadcom、Coherent、Lumentum、Eoptolink）；初创公司 / 设计公 司 （ Xphor 、 DustP ...

Core Viewpoint - The introduction of Backside Power Delivery Network (BSPDN) by major semiconductor companies like Intel and TSMC is a significant advancement in semiconductor technology, aimed at addressing the limitations of traditional chip designs and extending Moore's Law [2][4]. Group 1: What is Backside Power Delivery? - BSPDN is considered a breakthrough that continues Moore's Law, improving heat dissipation, reducing IR drop, and increasing chip density [4]. - Traditional chip designs concentrate power and signal lines on the front of the wafer, which becomes problematic as advanced processes approach 2nm and below [5]. Group 2: Importance of Backside Power Delivery - Reduces voltage drop and power loss, ensuring stable power supply during high-speed AI computations and server applications [6]. - Addresses thermal bottlenecks and IR drop issues caused by lengthy circuits, which can lead to operational errors or performance degradation [7]. - Enhances performance by separating power and signal, thereby reducing interference [8]. Group 3: Global Strategies for Backside Power Delivery - Three main solutions are currently being developed: imec's Buried Power Rail, Intel's PowerVia, and TSMC's Super Power Rail [10]. - imec is a leader in BSPDN technology, having published its findings in collaboration with Arm in 2022, utilizing BPR and nTSV architecture [11]. - Intel plans to implement BSPDN in its 18A process, expected to enter mass production in late 2025, focusing on complete separation of power and signal [11]. - Samsung will introduce BSPDN technology in its SF2Z process, with mass production anticipated in 2027 [12]. - TSMC's approach involves using Super Power Rail to direct power to the front transistors, which is crucial for maintaining its competitive edge in advanced processes [13]. Group 4: Implications for the Semiconductor Industry - BSPDN is seen as a key technology for extending Moore's Law, especially as traditional methods of shrinking transistors face limitations [15]. - The competition among major players to mature and commercialize this technology will determine their influence in the semiconductor industry over the next decade [13].

Core Viewpoint - The U.S. government has revoked TSMC's authorization to freely ship necessary equipment to its Nanjing plant in mainland China, potentially limiting the production capacity of this mature process chip factory [2][3] Group 1: Impact on TSMC - TSMC confirmed it received notification from the U.S. government that its "Verified End Use" (VEU) authorization for the Nanjing plant will be revoked by December 31 of this year, and the company is assessing the situation and taking appropriate measures [2][3] - The Nanjing plant, which initially focused on 16 to 12nm processes, has shifted to expanding 28nm capacity due to tightening U.S. export controls, with a monthly capacity of 20,000 wafers for 16/12nm and 40,000 wafers for 28/22nm [3][5] - The Nanjing plant generated approximately NT$26 billion in profit for TSMC last year, making it an important source of revenue despite its relatively low contribution percentage [3] Group 2: Broader Industry Implications - The U.S. actions highlight its influence over the electronic component supply chain, even affecting non-U.S. companies operating overseas [4][5] - The shift from blanket approvals to individual license applications creates uncertainty regarding the timeline for obtaining necessary permits for semiconductor operations in mainland China [5] - U.S. officials are reportedly working on solutions to alleviate bureaucratic burdens and expedite the processing of license applications, which have accumulated significantly [5]

Core Insights - TSMC's dominance in the foundry sector is reaffirmed, holding a remarkable 70.2% market share in Q2 2025 [1][5] - The total revenue of the top ten global foundry companies reached over $41.7 billion, marking a significant 14.6% quarter-over-quarter increase, setting a historical record [1][3] Group 1: TSMC's Performance - TSMC's revenue for Q2 2025 reached $30.24 billion, an 18.5% increase compared to Q1 2025, solidifying its leading position in the global foundry market [3] - In contrast, Samsung's revenue was approximately $3.16 billion, with a market share of only 7.3%, highlighting the stark difference between the two companies [3] - China's SMIC ranked third with a revenue of $2.21 billion and a market share of 5.1%, indicating a growing but still distant position compared to TSMC and Samsung [3] Group 2: Industry Dynamics - TSMC's high market share reflects its near-monopoly status in the foundry sector, crucial for industries ranging from smartphones to automotive [5] - The presence of more Chinese companies in the top ten foundry rankings suggests an increasing strength and potential for growth in China's foundry capabilities [5] - Despite the challenges ahead, Chinese foundry companies are making efforts to narrow the gap with leading firms like TSMC [5]

Core Viewpoint - The U.S. government will revoke TSMC's exemption for shipping critical equipment to its factories in China starting next year, which may weaken TSMC's production capacity and lead to delivery delays [1][3]. Group 1: Impact on TSMC - TSMC announced that it received notification from the U.S. government regarding the revocation of its "Verified End User" (VEU) status for its Nanjing factory, effective December 31, 2025 [1]. - Following the revocation, TSMC will need to apply for export licenses to ship U.S. chip manufacturing tools to its factories in China, which could complicate operations [1][3]. - TSMC is committed to ensuring uninterrupted operations at its Nanjing factory while evaluating the situation and communicating with the U.S. government [1]. Group 2: Broader Industry Implications - The policy change poses risks to the operations of semiconductor giants in China, with potential delays in delivery due to uncertainties surrounding the speed of license approvals [3]. - TSMC's U.S.-listed American Depositary Receipts (ADRs) fell by up to 2.3% following the announcement, indicating market concern [3]. - Major suppliers to TSMC, including Applied Materials, ASML, Tokyo Electron, and KLA, also experienced stock price declines, reflecting broader market impacts from the export restrictions [3]. Group 3: U.S. Export Control Context - The U.S. government previously banned the sale of advanced process chips and manufacturing equipment to China, with exemptions granted to South Korean companies Samsung and SK Hynix, which are now also facing revoked exemptions [4]. - The U.S. Commerce Department plans to issue licenses to allow companies to continue operating existing facilities in China but will not permit capacity expansion or technology upgrades [4]. - The U.S. government's actions are seen as detrimental to the global semiconductor supply chain, with China expressing strong opposition and warning of necessary measures to protect its companies [4]. Group 4: Challenges in U.S. Export Licensing - The U.S. is facing a significant backlog of license requests, with thousands of applications from U.S. companies for global exports, including to China, currently stalled [5]. - Industry leaders are concerned that prolonged delays in license approvals will result in lost market share to competitors, as Chinese clients seek alternative suppliers [5]. - The lack of progress in the licensing process is causing frustration within the industry, with no clear timeline for when licenses will be issued [5].

Some see perhaps falling another victim to this. This morning, we're learning that the US pulled their waivers for China's shipments of chip supplies. What's happening.Okay, so breaking news story. This relates to Tsmc's validated end user agreement which allows them to move gear to that mainland China facility in Yanjing. Basically, it's the same move that we saw from the United States last week, Friday, with Samsung and SK Hynix, where essentially any supplier associated with that facility in China has to ...

What's the need to know here specifically on TSMC in China. Well, this adds yet another speedbump for TSMC and its suppliers in trying to bring equipment, chemicals and other things that they need for this facility in Nanjing. It is not a major portion of Tsmc's overall manufacturing picture. It counts for a relatively small fraction of the company's revenue.And yet it is symbolically significant because the move mirrors what the US government announced on Friday, and that is that Samsung and SK Hynix would ...