Latest news with #semiconductorindustry
Bloomberg
21-07-2025
- Business
- Bloomberg
The Future of Quantum Computing
00:00 Before I ask exactly what you're going to be doing and the force of quantum. But first, why is Chicago the place to be spending? I think at least a billion is what you're committing in capital. Yeah. So Chicago, we figured it was the best place in the world to do what we're doing here, which is building the country's first utility scale quantum computer. And that's really about an understanding that that folks have of, you know, just how big and hard it is to build a system of that scale. Let's talk about that for the application, because I maybe loosely say that quantum is often hyped. The hype is around when it can be purposeful, when it is going to be really, truly useful. We have breakthrough after breakthrough. Jeremy, How are you going to be offering something really useful for commercial purposes? Yeah, you're right that there has been a lot of hype and a lot of talk of breakthroughs. And fundamentally I my, my view is that breakthroughs precipitate a decade or more of of hard work, you know, real hard technological development. It's not breakthrough. And then suddenly you have a new technology. And that's certainly true with quantum computing. And so our breakthrough was a decade ago when we were university professors and we figured out a path whereby we could leverage the the semiconductor industry in the trillions of dollars that have gone into that and adjacent industries to build the real thing, which is a million cubit scale fault tolerant utility scale quantum computer. And so that's what we're that's what we're doing right here in Chicago. You professor over at Stanford, at Bristol Universities as well. Jeremy And I'm thinking about how photonics has become the area of real focus for you. How does that differentiate you from what others are doing? Yeah. So you're absolutely right. It's the silicon photonics platform that we spent 20 years figuring out what's the platform that enables us to leverage that semiconductor industry, because it's been my conviction since, I don't know, the mid, mid to late nineties that unless we figure that out, it's not going to happen in my lifetime. And when we figured that out, we established CI quantum and we spent many years and much blood, sweat and tears grinding away at the really hard semiconductor engineering problems to, to make that work. And now we're at this point where we're, we're poised to, you know, to break ground and build that facility here. Can you hate to say put yourself against the competition, but when you've got IBM out there saying here in upstate New York, we're going to be getting there by 2029, a real use case, Quantum computer. Jeremy, you've got the race on with, well, companies you've helped devise before. What I'm thinking what Microsoft's up to us and Google, where are you in comparison to that race as we like to put it? Yeah, I firstly, I'm not sure that it's a it's a race when it comes to hard technologies. It's in some sense it's a filter, right? But, you know, I can't speak for all the other different folks that are out there pursuing this. But I can say that, you know, our approach has been very different from the beginning, which is to really focus on the scale that's required for really valuable commercial applications. And it's been the case for 25 plus years that that's a million cubits scale system. And so we have had nothing to do with doing small demonstrations, proofs of principle of quantum computing. And that's been a very deliberate approach because it's a bit like, you know, if you're if you're trying to get to the top of the Sears Tower here in in Chicago, then, you know, ladders are a good way to to try and get to the to the top. But if you want to get to the moon, ladders are not really the way to get you there. And so we've taken a pretty antithetical approach, I would say, from from the beginning, which is to really focus on scale. And so when you're talking about a million qubit scale system, as I said, it's been, you know, clear to me for a very long time that the only way to be able to do that is to leverage the, you know, trillion dollars and, you know, better part of a century that went into the semiconductor industry and leverage and a billion that you're going to be investing in that project. And you take us to the Sears Tower. I go back to Chicago. What is the workings been like with the governor? Why have you managed to think that that is going to be where the talent pool is basically for you going forward? Yeah, I think from from the governor to the alderman and the entire ecosystem, we've really enjoyed great partnerships here. And it's been driven by, as I said earlier, the understanding of just how big complex and hard this project is. You know, to build a utility scale quantum computer, that's a very that's a very big hard project. And I'll give you just one example of that. Early in our interactions with the with the city in the state, a big delegation came to us in Silicon Valley, led by the deputy governor and the head of Ed. The power utility came to that very first meeting. And I think that's a big differentiator for us as an organization and for the ecosystem here, is to understand that, yeah, we need to get you know, we need to get power to the site, etc., etc.. So that's that's a really big part of of our decision.
Yahoo
17-07-2025
- Business
- Yahoo
One of the most critical AI companies in the world just said it ‘cannot confirm' growth in 2026, wiping out $30 billion
Shares of ASML, the Dutch semiconductor equipment giant, tumbled 11% on Wednesday after the company announced it could no longer confirm that it will grow in 2026. The drop wiped out over $30 billion in market value and sent shockwaves through global tech markets, as investors digested the implications for the broader semiconductor and AI industries. The selloff followed ASML's second-quarter earnings report, which beat expectations on revenue and net profit, with robust bookings of $6.4 billion. However, CEO Christophe Fouquet's comments overshadowed the strong results: 'While we still prepare for growth in 2026, we cannot confirm it at this stage,' he said, citing escalating macroeconomic and geopolitical uncertainty, especially the threat of new tariffs on semiconductor equipment. Smart money watches ASML for signals on the tech cycle's health; a growth warning here may be the market's early clue that the AI and semiconductor supercycle is reaching a plateau—or at least preparing for turbulence. Why ASML's outlook matters more than most This isn't just a company-specific event—it could be a canary in the coal mine for the global tech and AI ecosystem. Why? ASML is the world's exclusive supplier of EUV lithography machines—the ultra-precise fabrication equipment that makes cutting-edge semiconductors possible. Every state-of-the-art AI accelerator, every data-center chip that powers generative AI, traces its technological lineage back to ASML's tools. So when ASML tells the market it 'cannot confirm' growth for 2026—despite beating on current earnings—it's signaling not just caution about its own pipeline, but a potential inflection point in the most future-critical segment of the electronics supply chain. In other words: if ASML's order book slows, it means that downstream chipmakers may anticipate softer demand, have rising uncertainty about capex returns, or are bracing for policy headwinds. The context matters: This is a moment when AI demand has been surging, but in 2025 it's now colliding with macro uncertainty, particularly driven by U.S.-EU tariff threats, China export restrictions, and capex fatigue after a historic tech investment wave. ASML's lead times are 12 to 18 months—with orders today reflecting confidence in global chip demand well into 2026. If that confidence is wavering, it ripples through the entire innovation economy. ASML is not just another tech stock—it is the linchpin of the global semiconductor supply chain. The company is the world's sole supplier of extreme ultraviolet (EUV) lithography machines, the critical technology that enables the production of the most advanced chips used in everything from AI accelerators to smartphones and data centers. What's behind the growth warning? Several factors converged to cloud ASML's outlook. One was tariff uncertainty. President Trump's threat of 30% tariffs on European imports, including semiconductor equipment, has rattled ASML's customers. The company warned that tariffs on new systems and parts shipped to the U.S., as well as possible retaliatory measures, could directly hit its gross margins and delay customer investment decisions. Ongoing trade disputes and export controls, especially involving China and the U.S., have made it harder for ASML to forecast demand. Clients are increasingly cautious, with some potentially postponing or scaling back orders. While Q2 bookings were strong, Barclays analysts noted ASML would need to double its current order pace to meet previous 2026 growth forecasts. The backlog coverage for 2026 is at its lowest in three years, raising doubts about near-term momentum. Market reaction The market's response was swift and severe as ASML shares fell 11%, their steepest single-day drop since October 2024, when a disappointing third-quarter earnings report led to the stock price falling 16%. Wednesday's selloff dragged down the broader European tech sector and hit U.S. semiconductor equipment peers such as Lam Research and Applied Materials. In contrast, AI chipmakers such as Nvidia and AMD rose, buoyed by positive news on U.S. export policy to China, highlighting a divergence between chip designers and the equipment supply chain. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
20-06-2025
- Business
- Reuters
China's rare earth magnet shipments halve in May due to export curbs
BEIJING, June 20 (Reuters) - China's overseas shipments of rare earth magnets halved in May from April, tumbling to their lowest levels in more than five years due to export curbs. Beijing said this month that it would speed up its approval process, a concession made after the U.S. and China agreed to dial back trade tensions. In the meantime, however, industry sources say Chinese customs officials have become increasingly cautious about processing rare earth cargoes. This is particularly so for rare earth magnets because there is only a single code to cover magnets despite there being a variety of chemistries, said the sources who were not authorised to speak to media and declined to be identified. China, the world's largest rare earth magnet producer accounting for over 90% of global supply, decided in early April to impose restrictions on exports of seven medium-to-heavy rare earth products and some magnets. That's rocked supply chains crucial to auto, aerospace, semiconductor and military equipment sectors around the world. Last month, China shipped out 1,238 metric tons of rare earth permanent magnets, down 52.9% from April and the lowest level for a single month since February 2020, data from the General Administration of Customs showed on Friday. April's shipments had also halved from March. On a year-on-year basis, May shipments were down 74%. Sources have also previously said that customs are holding up some shipments of lower-performance rare earth magnets used in appliances and consumer electronics because of confusion over how to apply Beijing's export curbs. China's commerce ministry said on Thursday that "a certain number" of rare earth export licence applications had been approved but did not disclose details. Chinese rare earth magnet producers JL MAG Rare-Earth ( opens new tab and Innuovo Technology ( opens new tab announced in recent weeks that they have secured a few export licenses for some clients. Exports of rare earth magnets for January-May slipped 14.5% from the same period last year to 19,132 tons, the lowest for the period since 2021.
