Core Viewpoint - TSMC is halting the use of chip manufacturing equipment from mainland China in its advanced 2nm chip factory to avoid potential disruptions from U.S. restrictions [2][4]. Group 1: TSMC's Production Plans - TSMC's 2nm production line is set to begin mass production this year, starting in Hsinchu City, Taiwan, followed by Kaohsiung City [4]. - A third factory is being constructed in Arizona, USA, for the eventual production of these chips [4]. Group 2: Impact of U.S. Regulations - The decision is influenced by a potential U.S. regulation that may prohibit chip manufacturers receiving U.S. funding from using equipment from "foreign entities of concern," interpreted to include suppliers from mainland China [4]. - The proposed "Chip Equipment Act" aims to restrict companies benefiting from federal support and tax credits from purchasing equipment from these entities [4]. Group 3: Supply Chain Adjustments - TSMC is investigating all chip manufacturing materials and chemicals used to reduce reliance on products from mainland China [4]. - The company plans to collaborate more closely with local suppliers in mainland China to enhance supply chain resilience and increase local procurement where possible [4].

Core Viewpoint - The recent leak of TSMC's 2nm technology has raised significant concerns within the semiconductor industry, particularly involving a breach of security protocols that allowed sensitive information to be transmitted to a Japanese company, TEL [3][4]. Group 1: Incident Details - The leak was facilitated by an engineer who exploited remote work conditions to access confidential documents using a company-issued laptop and personal mobile phone, bypassing digital monitoring systems [3]. - TSMC detected unauthorized activities through routine monitoring, leading to the identification of the leak and subsequent disciplinary actions against the involved personnel [3][4]. - A total of nine employees were implicated, including three involved in the 2nm trial production and six from the research support department [3]. Group 2: Implications for TSMC - TSMC has a zero-tolerance policy for breaches of commercial confidentiality and is committed to enhancing its management and monitoring systems to protect its competitive edge [3]. - The 2nm process is currently the most advanced in the semiconductor industry, with TSMC, Samsung, Intel, and Japan's Rapidus being the key players in its development [3]. - TSMC's chairman emphasized the uniqueness and value of TSMC's technology, which is difficult to replicate due to the complex knowledge and extensive experience required [3]. Group 3: Industry Impact - The incident has implications for TSMC's research center and its Fab20 facility in Hsinchu, highlighting vulnerabilities in the semiconductor supply chain [3][4]. - The leak's connection to TEL, a partner of Rapidus, raises concerns about competitive dynamics in the semiconductor market, especially following Rapidus's announcement of successful 2nm chip trial production [4].

Group 1 - The Russian National Space Corporation's president announced that the International Space Station will operate at least until 2028, with a possibility of extending to 2030 [1] - Media reports indicate that MediaTek's CEO expects the first batch of 2nm chips to begin trial production in September, with a projected revenue decline in Q3 due to earlier demand responses [2][1] - China successfully launched the Pakistan Remote Sensing Satellite 01 using the Kuaizhou-1A rocket, marking the 29th flight of this rocket [1] Group 2 - Arm's CEO revealed that the company is investing in developing its own chips, which has led to a disappointing forecast for the next fiscal quarter and an 8.65% drop in stock price [1]

Core Viewpoint - Japan's Rapidus has made significant progress in its $34 billion 2nm chip project, marking a milestone in the country's efforts to rebuild its domestic semiconductor manufacturing capabilities [2][4]. Group 1: Project Overview - Rapidus, a government-supported startup, has successfully produced Japan's first 2nm transistor and is collecting data to improve chip manufacturing processes [2]. - The company aims to optimize device characteristics, enhance performance and yield, and scale up for mass production, with a current defect rate target of 50% and future goals of 10%-20% [3]. Group 2: Industry Context - The production of transistors is a core process in the early stages of chip manufacturing, which also includes additional steps like wiring and packaging [3]. - The company utilizes advanced lithography machines exclusively manufactured by Dutch supplier ASML for transistor production [3]. Group 3: Strategic Importance - Rapidus is central to Japan's strategy to revitalize its domestic chip manufacturing capabilities, receiving support from major Japanese companies such as Toyota, NTT, and Sony [4].

Core Viewpoint - The tariff policy is entering a practical implementation phase, with risks gradually being released. The acceleration of AI development and the emergence of product innovations in 2026 will significantly benefit the supply chain [1][2]. Group 1: Tariff Policy and Trade Agreements - The recent trade agreement between the US and Vietnam, effective from July 2, imposes a 20% tariff on US exports to Vietnam, with transshipped goods facing a 40% tariff. Conversely, Vietnam applies a 0% tariff on US goods. The ongoing Section 232 investigation into semiconductors and electronic products is expected to conclude within 270 days, with the President having 90 days to decide on potential actions [2]. - The easing of tensions between the US and China, highlighted by the recent lifting of restrictions on EDA exports to China, suggests that the negative impact of tariff negotiations on the supply chain will gradually diminish [2]. Group 2: AI Development and Product Innovations - Apple is actively seeking external collaborations to enhance its AI capabilities, particularly in improving Siri through technologies from companies like Anthropic and OpenAI. This indicates a potential acceleration in the deployment of Apple's system-level AI [2]. - In 2026, Apple is expected to introduce products featuring 2nm chips, enhancing computational speed, and a new cooling system utilizing steel and copper. Additionally, the first foldable screen product is anticipated to be launched, showcasing advanced industrial design with features such as no creases, ultra-thinness, and high durability, which could lead to a significant increase in shipment volumes over the years [3].

Core Viewpoint - TSMC has achieved a significant milestone with its 2nm process technology, boasting a yield rate exceeding 60%, which highlights its technological leadership in advanced semiconductor manufacturing [1][2]. Group 1: TSMC's 2nm Process - TSMC's 2nm process utilizes GAA (Gate-All-Around) technology, which is expected to improve energy efficiency by 10% to 15% and reduce power consumption by 25% to 30% [1]. - The chip density of TSMC's 2nm process is projected to be 15% higher than the current 3nm process [1]. - Major clients for TSMC's 2nm technology include Apple, NVIDIA, AMD, Qualcomm, and MediaTek, with AMD's next-generation EPYC Venice server CPU confirmed to use TSMC's 2nm process [1]. Group 2: Samsung's 2nm Efforts - Samsung is actively working on its 2nm process and plans to start production in the second half of the year, with speculation that it may be for the Exynos 2600 processor for the Galaxy S26 flagship phone [2]. - Despite Samsung's efforts to catch up, TSMC maintains a solid lead in the 2nm process technology [2].

Group 1 - TSMC's 2nm process yield for memory products has surpassed 90%, indicating significant manufacturing efficiency [1] - TSMC is targeting orders from major US tech companies such as Nvidia, Apple, Qualcomm, AMD, and Broadcom, with expectations of reaching full capacity utilization soon [1] - The Arizona facility is currently producing N4 chips, corresponding to 5nm and 4nm technologies, with Nvidia's AI chips undergoing process validation and expected to start production by the end of this year [1] Group 2 - TSMC's 2nm wafer production is projected to reach four times the volume of the previous year's 5nm production, reflecting strong demand [2] - Major clients like Apple, MediaTek, Qualcomm, and AMD are planning to utilize TSMC's 2nm process for their next-generation chips, which is expected to drive revenue growth [2] - Analysts predict TSMC's revenue growth of 26.3% and 14.1% for 2025 and 2026, respectively, with advanced process nodes below 7nm increasing from 68.8% in 2024 to 79.3% in 2026 [2] Group 3 - In advanced packaging, TSMC's CoWoS shipments are expected to increase from 585,000 units in 2026 to 923,000 units, with capacity rising from 660,000 to 1,000,000 units, representing year-on-year growth of 52% and 58% [3] - Despite currency fluctuations affecting profit expectations for 2025-2027, TSMC's revenue is still anticipated to grow by approximately 25% in 2025 [3]

Core Viewpoint - The article provides an overview of TSMC's wafer fabrication capacity across various fabs, highlighting the production capabilities and expected changes in output for the upcoming quarters. Group 1: TSMC's Fab Capacity Overview - TSMC operates a total of 17 fabs located in Hsinchu, Tainan, Shanghai, Nanjing, Kaohsiung, Washington, and Arizona [2][4]. - The data presented in the article is measured in KWPM, indicating the monthly capacity in thousands of wafers [3]. Group 2: Hsinchu Fabs - Hsinchu has the highest number of fabs, totaling seven, with capacities of 30, 60, 41, 93, 135, and 3 KWPM for the respective fabs [4]. - It is expected that the production capacity will remain stable in the latter half of the year, with Fab 20 showing a slightly higher increase [4]. Group 3: Tainan Fabs - Tainan houses three fabs: Fab 6 (8-inch), Fab 14 (12-inch), and Fab 18 (12-inch), with capacities of 102, 338, and 242 KWPM respectively [5][6]. - A slight reduction in production is anticipated for Fab 6 and Fab 14, while Fab 18's capacity is expected to increase [5]. Group 4: Shanghai Fab - Shanghai has one fab, Fab 10, with a monthly capacity of 105 KWPM, which is expected to remain relatively stable in the upcoming quarters [7][8]. Group 5: Washington Fab - Washington has one 8-inch fab, Fab 11, with a capacity fluctuating between 23 and 30 KWPM [9][10]. Group 6: Taichung Fab - Taichung has one 12-inch fab, Fab 15, with a first-quarter capacity of 287 KWPM, which is expected to experience slight fluctuations [11][12]. Group 7: Nanjing Fab - Nanjing has one 12-inch fab, Fab 16, which is focused on mature processes (28nm and above) [13][14]. Group 8: Arizona Fab - Fab 21 in Arizona is under construction, with production of 4nm chips expected to begin by the end of 2024, indicating currently low capacity [15][16]. Group 9: Kaohsiung Fab - Fab 22 in Kaohsiung is planned for 2nm processes, with multiple phases of construction; currently, the capacity is at zero [17].

Core Viewpoint - The semiconductor industry is witnessing a significant shift towards 2nm technology, with major companies like MediaTek, AMD, and Nvidia announcing their plans to develop and produce 2nm chips, indicating a competitive landscape and technological advancements in the sector [1][3][9]. Group 1: MediaTek's 2nm Plans - MediaTek plans to launch its first 2nm chip in September 2025, potentially becoming the first company to reach this milestone, ahead of Apple and Qualcomm [3]. - The upcoming 2nm chip is expected to deliver a 15% performance improvement and a 25% reduction in power consumption compared to current 3nm chips, which is significant for Android devices [3][4]. - MediaTek will continue its partnership with TSMC, which is set to begin mass production of its 2nm process in 2026, aligning with MediaTek's timeline [3][4]. Group 2: AMD's Strategy - AMD has confirmed it will be the first customer for TSMC's 2nm process, with its next-generation EPYC server processor, codenamed Venice, expected to launch in 2026 [6][8]. - The company reported a 57% growth in its data center segment in Q1 2025, reflecting its focus on scalable server solutions [7]. - AMD is exploring partnerships beyond TSMC, considering Samsung as a potential second supplier, although it currently relies heavily on TSMC for its 2nm technology [8]. Group 3: Nvidia's Interest - Nvidia is reportedly interested in TSMC's 2nm technology, with CEO Jensen Huang acknowledging the high cost but potential value of the process [9][10]. - There are indications that Nvidia may collaborate with Samsung for an unnamed GPU using the 2nm process, although details remain unclear [10][11]. - The success of Samsung's 2nm process will be crucial for its future contracts, as Nvidia and Qualcomm are evaluating their options in light of Samsung's performance [12]. Group 4: Competitive Landscape - The competition in the semiconductor industry is intensifying, with companies like Broadcom and Intel also eyeing 2nm technology [13]. - The advancements in 2nm technology are expected to drive significant changes in the market, as companies strive to enhance performance and efficiency in their products [1][9].

Market Overview - The main board saw significant gains with stocks like Zhejiang Wenlian (+10.05%), Yingfangwei (+10.04%), and Mengwang Technology (+10.03%) leading the charge [1] - The ChiNext board also performed well, with Huibo Yuntong rising by 20.00% and Guoke Micro increasing by 12.54% [1] - The Sci-Tech Innovation board was led by Liyang Chip, which gained 15.49% [1] - Active sub-industries included SW Marketing Agency (+3.10%) and SW Optical Components (+2.41%) [1] Domestic News - A delivery ceremony for the first 12-inch high-purity silicon carbide crystal growth furnace in Hebei was held, utilizing advanced AI algorithms and PVT technology for AR glasses [1] - MediaTek's first 2nm chip is expected to complete tape-out in September, promising a 15% performance increase and a 25% reduction in energy consumption compared to 3nm chips [1] - China's smartphone exports plummeted by 72% to just under $700 million, highlighting the impact of tariffs imposed by the Trump administration [1] - Lenovo's self-developed 5nm chip SS1101 has been benchmarked, featuring a 10-core CPU architecture and achieving single-core scores over 2000 and multi-core scores of 6700+ [1] Company Announcements - Debang Technology announced a reduction in shareholding by the National Integrated Circuit Fund, decreasing its stake from 18.65% to 17.98% after selling 950,000 shares [2] - Qiangda Circuit declared a cash dividend of 4.00 yuan per 10 shares based on a total share capital of 75,375,800 shares [2] - Weirgao announced a cash dividend of 1.34 yuan per 10 shares based on a total share capital of 134,621,760 shares [2] - Meixinsheng reported a reduction in shareholding by WI Harper Fund VII, decreasing its stake from 6.96% to 5.87% after selling 1,215,000 shares [2] Industry Insights - Rivet Industries has launched military smart glasses aimed at enhancing close combat and logistical support in defense applications [3] - Texas Instruments is nearing completion of its first semiconductor manufacturing plant in Sherman, which will produce over 100 million semiconductors daily [3] - India is preparing for the next phase of its semiconductor plan, aiming for a 5% global market share by 2030, with $10 billion in incentives for potential manufacturers [3] - The Southeast Asian smartphone market saw a 3% decline in Q1 2025, with Samsung regaining the top position with 4.3 million units shipped, while Xiaomi was the only top-five vendor to achieve year-on-year growth [3]