These are the most-read DIGITIMES Asia stories from the week of May 12 – May 18. From China's push in DUV lithography and Samsung's resurgence in foundry orders to TSMC's aggressive fab expansion and Europe's looming ban on Chinese inverters, the week highlighted shifting power dynamics across the global tech and semiconductor landscape.
Current status of China's lithography equipment development: DUV
China is making early progress in domestic DUV lithography amid US export controls, unveiling a 193nm dry ArF system with 65nm resolution and 8nm overlay accuracy in September 2024, still behind global standards. Research into immersion DUV is led by the Chinese Academy of Sciences and Beijing RSLaser. SMEE is rumored to have delivered a 28nm immersion prototype, though unconfirmed and not production-ready. These efforts highlight China's long-term drive for semiconductor self-sufficiency, with advanced lithography still years from maturity.
Samsung secures orders from Nintendo, paving way for future orders from Nvidia and Qualcomm
Samsung Electronics has landed a key 8nm foundry order from Nintendo for the Switch 2, expected to ship 15 million units in fiscal 2025, using an Nvidia Tegra SoC—potentially paving the way for future orders from Nvidia and Qualcomm, who are also evaluating Samsung's 2nm GAA process alongside TSMC's. Samsung's 2nm yields currently stand at 40–50%, aiming for 60% for volume production, while 5nm orders are shifting their way due to faster delivery and better pricing. Idle production lines are restarting, with a full ramp-up planned for the second half of 2025.
As Chinese IDMs climb, Europe's powerhouses lose ground
As the global power semiconductor market fell to US$32.3 billion in 2024, Chinese IDMs Silan and BYD rose to sixth and seventh place with 3.3% and 3.1% market shares. Silan posted US$1.066 billion in revenue, while BYD's EV sales reached 4.25 million units. Infineon, Onsemi, and STMicro saw market share declines.
With local chip self-sufficiency still under 15%, China aims to hit 25% by 2025, driven by state support. Silan is scaling IGBT and SiC capacity with projects in Chengdu and Xiamen, while Hua Hong Semiconductor is expanding its foundry capabilities and partners with STMicro.
TSMC to accelerate expansion in 2025 with eight new fabs and one advanced packaging plant
At its 2025 Technology Symposium, TSMC announced plans to build eight wafer fabs and one advanced packaging plant to meet soaring AI and HPC demand. 2nm fabs in Hsinchu and Kaohsiung will start production this year, with Fab 25 in Taichung targeting 2028. AI chip shipments are projected to grow 12x from 2021 to 2025. MediaTek also highlighted trends in LLMs, edge computing, and 6G, signaling rising demand for energy-efficient silicon.
MediaTek teams up with Nvidia, but talent drain clouds alliance
MediaTek and Nvidia will launch a joint AI PC platform in 2025, featuring the GB10 Grace Blackwell chip for Nvidia's US$3,000 Project Digits, along with N1X/N1C processors delivering up to 200 TOPS. The alliance spans edge AI, smart vehicles, and global markets, with support from Dell, HP, Lenovo, Asus, MSI, and Compal. However, a talent exodus to Nvidia poses a growing concern for MediaTek.
TSMC to sell equipment to VSMC Singapore fab for US$71 million
TSMC approved the sale of US$71–73 million in equipment to VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between Vanguard International Semiconductor (VIS) and NXP Semiconductors. VSMC's Singapore fab, which broke ground in December 2024, aims for mass production by 2027 and sample output by late 2026. TSMC also reported first-quarter 2025 revenue of NT$839.25 billion (approx. US$25.53 billion) and NT$361.56 billion in net income, with US$15.25 billion in new capex approved.
Europe considers ban on Chinese solar inverters, citing cybersecurity concerns
Europe is weighing a ban on Chinese solar inverters—particularly from Huawei and Sungrow—over cybersecurity risks, echoing the US's 2019 move. With 80% of Europe's inverters sourced from China and Huawei controlling GW-scale capacity, the risk of remote disruption has drawn urgent attention.
The European Solar Manufacturing Council has proposed an "Inverter Security Toolbox," while Huawei faces expulsion from key EU industry groups. Critics warn the ban could raise costs by 30–50%, but the EU Commission is reviewing systemic risks to safeguard grid stability.
Article edited by Jack Wu
