China's lithography equipment sector has returned to the global semiconductor spotlight following reports that a domestically developed immersion deep ultraviolet (DUV) system has entered mass production.
TSMC is reportedly developing a new advanced chip-packaging technology modeled on Intel's Embedded Multi-die Interconnect Bridge (EMIB), signaling that competition in AI semiconductor packaging is becoming as critical as chip manufacturing itself. The project, internally described as "EMIB-like," is being developed with Taiwanese substrate supplier Kinsus Interconnect Technology as TSMC seeks to broaden its packaging portfolio and address growing customer demand.
The most revealing thing about Samsung Electronics' foundry commentary on its second quarter of 2026 earnings call was not any single number. It was the shape of the customer list: cloud service providers, AI/HPC designers, an LPU maker ramping at 4nm, and talks with Broadcom. This is not the mobile-centric foundry business Samsung has run for a decade. It is the profile of a fab catching overflow from a leading-edge market that has run out of capacity.
Growing demand for AI chips is sending a larger share of South Korea's semiconductor exports to Taiwan, where Korean-made high-bandwidth memory (HBM) moves into advanced packaging processes led by TSMC.
China's immersion DUV lithography programme has brought a little-known state-backed company into focus. Shanghai Aishengna Electronic Technology Group, founded in August 2023 with CNY7 billion (approx. US$1.03 billion) in registered capital, is reportedly coordinating limited production of domestically developed lithography systems.
GlobalFoundries has signed a letter of intent with the US Department of Commerce for a potential US$300 million award to accelerate US development of silicon photonics technologies used in AI and high-performance computing data centres.
Samsung Electronics' foundry business expects its 2nm project wins to more than double year-on-year in 2026, and the company is in talks with Broadcom and other major customers on multiple projects, foundry business EVP Sukchae Kang said on Samsung's earnings call for the second quarter of 2026. This is the clearest sign yet that its advanced-node business is gaining commercial traction after years of trailing TSMC.
Ennoconn Technologies held its 2026 Semiconductor x AI Applications Forum at Google's Asia-Pacific headquarters in Singapore on July 29 and signed a memorandum of understanding with the Singapore Manufacturers' Federation (SMF) on the same occasion. The event marked a further step in the Taiwanese technology group's expansion into Southeast Asia's semiconductor and artificial intelligence markets.
Italy and the US are set to sign a cooperation agreement tied to the US-led Pax Silica initiative on July 31, as Rome expands efforts to secure critical raw materials and semiconductor supply chains.
Samsung Electronics' Device Solutions (DS) division posted the most profitable quarter in its history in 2Q26, generating operating profit of KRW89.2 trillion (approx. US$61.6 billion) on sales of KRW127.5 trillion (approx. US$88.1 billion) — a 70% operating margin — as the AI-driven memory supercycle intensified.
Taiwan's semiconductor sector is set to become an even larger driver of electricity demand as AI-related expansion lifts output in wafer fabrication, memory, and advanced packaging. Taipower projected that the industry's power use would reach 52 billion kWh in 2026, underscoring how the island's chip ambitions are reshaping its energy system.
TSMC on Wednesday issued its third statement since a magnitude 7 earthquake struck Kumamoto, Japan on July 28, saying that utility systems at its JASM wafer fab are operating normally, equipment inspection and calibration are in progress, and construction at the site of its second Kumamoto fab has resumed.
