Maintaining Taiwan's Lead in Semiconductor Technology is Crucial
The semiconductor industry is witnessing an unprecedented race to advancement, with key players making significant strides in technology. Taiwan Semiconductor Manufacturing Co (TSMC) has taken the lead, having overtaken Intel in the tech race with its 7-nanometer chips in 2018. Now, TSMC is set to take another leap with the anticipated volume production of its new-generation chip process, A14, slated for 2028.
However, the industry landscape is not without its challenges. TSMC's dominance is being tested by newcomers, such as Rapidus Corp, a three-year-old Japanese chip company. Rapidus has prototyped its first 2-nanometer chips and plans to start volume production in 2027, potentially challenging TSMC's industry dominance.
Rapidus' progress has raised some doubts among industry veterans. C.Y. Shu, a semiconductor veteran, has expressed concerns about Rapidus' technology capabilities due to insufficient information regarding key data such as yield rates. Despite these doubts, Rapidus has reportedly reached 'identical logic densities' with TSMC's 2-nanometer chips, a significant achievement for the young company.
Meanwhile, other major players in the industry are facing their own challenges. Intel, once a dominant force in the semiconductor industry, is reportedly considering abandoning a similar process technology due to the massive costs of research-and-development amid its own financial difficulties. Intel is also struggling to secure orders for its 18A technology.
Samsung Electronics, another key player, is reportedly planning to delay production of its 2-nanometer chips to next year. The delay could potentially give an edge to TSMC and Rapidus in the race to produce the most advanced chips.
The global chip industry is experiencing intensifying competition, with more governments seeking to secure a foothold or maintain their position in semiconductors through financial incentives or tariff policies. The US government, for instance, reached a rare equity investment agreement with Intel to take a 10 percent stake using $8.9 billion in government grants under the CHIPS and Science Act. The EU aims to double Europe's share of global chip production to 20 percent by 2030 through the EU Chips Act.
As the competition heats up, countries like Taiwan are urged to safeguard their competitive edge in semiconductors to keep driving their economies. Without a similar 'chips act' in Taiwan, the government should be stepping up efforts to come up with industrial policies that help the nation maintain its position in the global semiconductor market.
In the midst of this global race, one thing is clear: the semiconductor industry is at the heart of technological advancement, and the race to produce the most advanced chips will continue to shape the future of technology.
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