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World's largest foundry is attacked from within
World's largest foundry is attacked from within

Phone Arena

time4 days ago

  • Business
  • Phone Arena

World's largest foundry is attacked from within

When you're the top foundry in the world, you are obviously doing something right compared to the competition. Actually, you might look at this situation and ask, "What competition?" After all, TSMC's market share of approximately 67% is well above the share belonging to the second-place contract chip manufacturer, which is Samsung Foundry. The latter has only a 7.7% market share. TSMC has a client list (no, not THAT client list) that includes many of the top names in tech, including Apple, Nvidia, MediaTek, Qualcomm, and AMD. The foundry is about to embark on the next generation of chip production using its 2nm process node, which is the cutting-edge in advanced chip manufacturing. The foundry plans to start mass production at the 2nm node later this year. Inside a fab where chips are manufactured. | Image credit-TSMC Prosecutors were able to nab the six following searches conducted of homes belonging to some TSMC staff between July 25th and July 28th. The investigation now seeks to discover whether the stolen information has been released to other parties. Investigators in Taiwan searched the Taiwanese offices belonging to Tokyo Electron Ltd., a supplier based in Japan. Today, in a related story, Japan's Nikkei reported that TSMC fired several employees who were working at the foundry while trying to obtain critical and proprietary information about TSMC's 2nm chip development. TSMC told the Nikkei that recently it "detected unauthorized activities during routine monitoring, leading to the discovery of potential trade secret leaks." The foundry also stated that it took "strict disciplinary actions against the personnel involved and has initiated legal proceedings." TSMC says that it was on to the plot early thanks to an internal investigation it conducted. The information purloined from TSMC is important because Chinese foundry SMIC, the largest in the country, is limited to producing chips using a 7nm node. But this is mostly due to restrictions placed on the sale of advanced lithography equipment that keeps this gear out of the hands of Chinese companies. Media reports are calling the crime committed by the insiders an attack on national security. The Intellectual Property Branch of the High Prosecutors Office of Taiwan is conducting its investigation under the National Security Act of 2022. This Act is designed to prevent sensitive technology, especially tech related to semiconductors, from falling into the hands of foreign adversaries. -TSMC The Taiwan government has created a list of what it calls "National Core Critical Technologies," which includes technology used to produce integrated circuits (ICs) more advanced than 14nm. Obviously, equipment and technology used to produce 2nm ICs would be on this list. Reproducing, disclosing, and using trade secrets related to the list without authorization is a violation of the National Security Act. This is the first case involving semiconductors to be prosecuted under the Act. While TSMC has taken actions to protect its trade secrets, TSMC Chairman and CEO C.C. Wei has said that his foundry's technologies are difficult to duplicate. The company added that it will continue to strengthen its monitoring systems and it will continue to work with the relevant regulatory agencies "to protect our competitive advantage and operational stability." A statement from the prosecutors office released today confirmed that said that TSMC had conducted an internal investigation and that "TSMC discovered that its national core technology trade secrets had been allegedly illicitly obtained by a former employee in collusion with current employees."

Hot rumor has TSMC starting 2nm production in U.S. earlier than expected
Hot rumor has TSMC starting 2nm production in U.S. earlier than expected

Phone Arena

time6 days ago

  • Business
  • Phone Arena

Hot rumor has TSMC starting 2nm production in U.S. earlier than expected

The largest contract chip manufacturer in the world plans on having one of its U.S. fabs in Arizona, P3, produce cutting-edge chips made on the company's 2nm process node by 2028 at the earliest and by 2030 at the latest. TSMC has a client list made up of top tech firms like Apple, Qualcomm, AMD, MediaTek, Nvidia, and more. The fab has reportedly been under construction, and according to a report by the Chinese language Commercial Times website, we could see TSMC manufacturing 2nm chips in the U.S. earlier than expected. The Commercial Times says that TSMC could produce 2nm chips in Arizona as soon as next year. If true, this would take place just one year after 2nm production started in Taiwan. It is important to point out that the Commercial Times report does not match the official TSMC timeline. Having such advanced chips built in the U.S. is a huge advantage for the States, especially when you consider that China's top foundry, SMIC, is currently limited to building chips using a process node no lower than 7nm. However, there is speculation that SMIC could be producing chips using a 5nm process node by the end of this year. Since U.S. and Dutch officials prevent China from obtaining the latest lithography technology, SMIC is limited to using older lithography machines and multi-patterning techniques. The latter runs a silicon wafer through the etching process at least four times with the proper alignment to capture the correct transistor density and features. When TSMC started building and staffing its first fab in Arizona, the project seemed doomed by cultural differences between U.S. employees hired to work at the fab and Taiwan-based employees who were assigned to work in the U.S. to help the fab get off to a good start. Originally, 5nm chips were supposed to roll off the assembly lines in the U.S. by 2024 That was changed to 4nm chips (which are still considered in the 5nm class) by 2025. Eventually, 4nm chips started shipping during the fourth quarter of 2024, and this year shipments will be ramped up. As we noted above, officially, TSMC isn't supposed to start producing 2nm chips in the U.S. until 2028-2030. However, with tariffs taxing imports from nearly all of America's trade partners, there is a sense of urgency in moving some cutting-edge chip manufacturing to the States. Once all six fabs planned for Arizona are completed, TSMC expects to produce 30% of its advanced chips in the U.S. Getting cutting-edge chips built in the U.S. is one thing that President Donald Trump wanted, and regardless of how you feel about him, this is a situation where you have to give credit where credit is due. Kudos to President Trump. The U.S. now has the opportunity to run with this and truly become a global leader in cutting-edge chip manufacturing.

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