Latest news with #semiconductors
South China Morning Post
3 hours ago
- Business
- South China Morning Post
Tech war: US chip design software firm Synopsys halts China sales
Semiconductor design software firm Synopsys has told staff in China to halt services and sales in the country and stop taking new orders to comply with new US export restrictions, according to an internal letter reviewed by Reuters. Advertisement The US had ordered a broad swathe of companies to stop shipping goods to China without a licence and revoked licences already granted to certain suppliers, Reuters reported on Wednesday, citing people familiar with the matter. Products affected include design software and chemicals for semiconductors, they said. Synopsys on Thursday suspended its annual and quarterly forecasts after it received a letter from the Bureau of Industry and Security of the US Department of Commerce, informing it of new export restrictions related to China. The internal letter sent to staff in China on Friday said 'based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025'. Advertisement To ensure compliance, Synopsys said it was blocking sales and fulfilment in China and halting new orders until it received further clarification.
Phone Arena
4 hours ago
- Business
- Phone Arena
Everyone wants TSMC to build their 3nm chips as Samsung Foundry has trouble finding customers
Let's say you work for a major device manufacturer that is a fabless chip designer. In other words, while you design your own chips, you lack the facilities to produce them which explains the fabless label (Fab is short for a semiconductor fabrication facility). Suppose part of your job is to decide which foundry is going to build your chips. Right now, if you need advanced semiconductors, you have only two possibilities, TSMC and Samsung Foundry. But if you need your chips built using the most advanced process node of 3nm, there is no choice. TSMC is the foundry of choice. You might have to pay more and hope that there isn't a capacity issue that forces your order to be put on allocation by the foundry. However, if reliability is an issue, which it usually is, you want the foundry churning out 3nm chips with a 90% yield rather than the one with a 50% yield at that node which is Samsung Foundry. Big tech firms that count themselves as TSMC customers include Apple, MediaTek, Nvidia, and Qualcomm. The latter had decided to have Samsung Foundry produce the Snapdragon 8 Gen 1 during 2021-2022. However, the foundry reportedly had an extremely low 35% yield and Qualcomm pulled its business from Samsung Foundry. Instead, it reworked the chipset and had it built by TSMC as the Snapdragon 8 Gen 1+. Since then, Qualcomm has relied on TSMC exclusively to manufacture its flagship Snapdragon 8 SoCs. The extreme ultraviolet lithography machine helped to take chip production under 5nm. | Image credit-ASML While TSMC is clearly the most reliable in-demand foundry, Samsung Foundry is a distant second. Coming up fast behind Samsung is China's SMIC which happens to be the third-largest foundry in the world. Due to U.S. and Dutch sanctions, SMIC is not allowed to purchase an extreme ultraviolet lithography (EUV) machine used to transfer circuitry patterns onto silicon wafers using lines thinner than human hair. EUV machines allow for the placement of billions of transistors inside these semiconductors. SMIC reportedly is using older Deep Ultraviolet Lithography (DUV) machines, purchased before sanctions hit, to build Huawei's new 5nm Kirin X90 chip used to power the Mate Book Pro laptop. The foundry also uses multiple impressions in an attempt to make up for the lack of an EUV machine. However, this results in lower costs and higher prices for such chips. Still, SMIC is ready to make 5nm and 7nm chips for the Chinese automotive manufacturing sector which would be another blow to Samsung Foundry which has been doing brisk business making such chips for these Chinese-based firms. With 2nm chips coming to smartphones next year, including the iPhone 17 line, TSMC will remain on top and possibly stay there well beyond 2026.
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Is Nvidia's Deal With OpenAI a Game Changer?
A number of companies have made commitments to invest in domestic infrastructure over the next several years. Chief among these initiatives is a joint venture among Oracle, SoftBank, and OpenAI. Known as Stargate, this consortium of technology leaders plans to invest $500 billion into artificial intelligence (AI) infrastructure in the U.S. Just last week, investors finally got an update on how Stargate is progressing. In perhaps a shock to absolutely no one, semiconductor powerhouse Nvidia (NASDAQ: NVDA) is involved with a new data center for OpenAI. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Let's dig into this deal and assess why it could be a game changer for Nvidia. How are Nvidia and OpenAI working together? As a refresher, OpenAI burst onto the AI scene a few years ago following a multibillion-dollar investment from Microsoft. While OpenAI's services, chief among them ChatGPT, have become heavily integrated throughout Microsoft's ecosystem, both companies have been seeking opportunities to branch out over the last year or so. For OpenAI, the company has reached a point whereby striking partnerships with other technology companies is essential -- hence the creation of Stargate. The reason for this is that as demand for ChatGPT grows, so does the need for compute power (i.e., more data center infrastructure). However, Microsoft simply cannot be the sole bridge to finance OpenAI's needs. Per recent reports, Oracle is planning to purchase an estimated 400,000 graphics processing units (GPU) from Nvidia for OpenAI's new data center in Texas. Of note, the GPUs are Nvidia's new Blackwell architecture and could cost Oracle up to $40 billion. Oracle will subsequently be leasing these chips to OpenAI as part of the deal structure, adding even more tailwinds to its fast-growing infrastructure-as-a-service (IaaS) division. Why is this deal important? I see two primary reasons why this deal is a game changer for Nvidia. First, global management consulting firm McKinsey & Company recently published a report in which it estimates nearly $7 trillion will be spent on AI infrastructure over the next five years. Within this grand total, McKinsey believes that hardware providers will be the biggest beneficiaries of rising AI capital expenditure (capex). Even though Stargate is still in its infancy, there are signs that hardware suppliers such as Nvidia are already benefiting from increased AI infrastructure budgets. Reports suggest that OpenAI is considering building more data centers beyond Texas. Given Nvidia's selection to lead this initial buildout, I'm optimistic the company could continue winning more contracts from the Stargate project -- hence, this could be the beginning of a long-term relationship between OpenAI and Nvidia. On top of that, it was reported earlier this year that OpenAI was collaborating with Taiwan Semiconductor Manufacturing to develop its own custom chipsets. While OpenAI may indeed eventually pursue custom silicon, it appears for now that the company's compute power relies heavily on data centers outfitted with Nvidia's GPUs. To me, this signals that demand for Blackwell continues to remain robust. Moreover, Nvidia's selection as a primary chip supplier for one of Stargate's initial projects underscores just how critical the company's hardware is for ongoing AI development. Should you buy Nvidia stock right now? For the first time in almost three years, Nvidia stock has actually taken a breather -- and a prolonged one at that. NVDA PE Ratio (Forward) data by YCharts Investors have been selling Nvidia stock throughout most of 2025, thanks in large part to uncertainty around new tariff policies and how they may impact Nvidia's ability to conduct business in China. Nevertheless, the company's forward price to earnings (P/E) multiple of 32.6 shows some clear valuation compression in the red-hot chip stock. I see the deal with OpenAI as a potential proxy for what's to come for Nvidia as Stargate and other AI infrastructure deals come to fruition. To me, the company's long-run prospects look as strong as ever -- despite some headwinds in key Asian markets for now. Investors with a long-run time horizon may want to consider scooping up shares of Nvidia right now, as the stock could witness a sharp rebound if it continues to win over more high-profile deals with AI's biggest developers. Should you invest $1,000 in Nvidia right now? 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Forbes
8 hours ago
- Business
- Forbes
Japanese Semiconductor Startup Secures $21 Million In Grants For Edge AI
EdgeCortix's Sakura-II module. As Japan races to develop its domestic semiconductor ecosystem, Tokyo-headquartered chip design startup EdgeCortix announced it received 3 billion yen ($21 million) from a government-backed agency to develop specialized chips that can power 'edge AI,' a rapidly growing field of AI that involves running applications on devices themselves instead of on the cloud. The fresh funds, in the form of a project award from Japan's New Energy and Industrial Technology Development Organization (NEDO), bring the five-year-old company's total funding to $86 million, including $49 million in non-dilutive government grants and $37 million in equity financing. It received a 4 billion yen ($27.7 million) subsidy from a separate NEDO program last November. Across three previous equity funding rounds, with the most recent being a $20 million raise in October 2023, the startup's investors include SBI Investment, a CVC unit of Japanese financial services conglomerate SBI Group; Monozukuri Ventures; Seoul-based VC firm Futureplay; and automotive chips maker Renesas Electronics, formerly under Japanese electronics giant NEC. Renesas is also a customer of EdgeCortix. 'Building systems that are significantly more performance-per-watt efficient for AI processing than the current status quo, whether that's GPUs or other types of systems, especially in constrained environments…that is a critical factor for almost all edge applications,' says Sakyasingha Dasgupta, founder and CEO at EdgeCortix, in a video interview. 'That essentially differentiates us from the broader edge AI market.' In addition to the startup's focus on optimizing energy efficiency, Dasgupta adds, what distinguishes EdgeCortix is its architecture, referring to the design and programming that powers chips. Its patented 'Dynamic Neural Accelerator' architecture is an IP core, akin to a 'brain' for AI computing that can direct processors within a chip and adjust the way its components interact. This IP core can be integrated with processors such as neural processing units (NPU), which are tailored for machine learning. The latest grant will finance the development of EdgeCortix's new chiplet, a type of chip that uses interchangeable components, as opposed to monolithic ones. Dubbed 'NovaEdge,' EdgeCortix's chiplet for edge AI is designed for high-performance generative AI inference and on-device learning, the company says. Founded in 2019, EdgeCortix operates as a fabless semiconductor company, meaning it does not own its own fabrication facility, or 'fab.' The NovaEdge chiplet will utilize a 12-nanometer node produced by billionaire Morris Chang's Taiwan Semiconductor Manufacturing Co. (TSMC). EdgeCortix plans to commence mass production at TSMC subsidiary Japan Advanced Semiconductor Manufacturing (JASM)'s facility in Kumamoto, Japan, by 2027. A plant of Japan Advanced Semiconductor Manufacturing Company (JASM). With a wide range of applications, ranging from robotics to industrial automation, EdgeCortix's chips and accompanying software have recently gained traction in the defense industry. Earlier in May, the startup inked an agreement with the U.S. Department of Defense's venture-oriented Defense Innovation Unit (DIU) to use EdgeCortix's products for defense technologies, including AI-powered vision and generative AI. In December, the DIU had announced it would launch a new effort to accelerate the adoption of generative AI in both warfighting and enterprise management. Specifically, on the battlefield, edge AI may help quickly process sensitive information in environments with limited network connectivity or potential cybersecurity threats. Tech giant Palantir–cofounded by billionaires Peter Thiel, Alexander Karp, Stephen Cohen and Joe Lonsdale–has developed a range of edge AI offerings for military purposes, including Skykit, a backpack-sized server that can act as a fully operational intelligence unit for soldiers, analyzing data from sensors on drones and surveillance equipment. In the nascent field of edge AI, the decentralization of AI represents 'a profound shift in the technological landscape,' according to a report published in February by consulting firm Deloitte. Such computing developments may be particularly effective for use cases 'requiring rapid responses or operating in disconnected environments,' including smart home devices, autonomous vehicles, wearable health monitors, and industrial Internet of Things (IoT) systems. Global spending on edge infrastructure is projected to grow from $25.3 billion in 2022 to $55.6 billion by 2027, the report added, citing research from the International Data Center (IDC). A Palantir Technologies Skykit on display. Japan's government-backed investments align with broader efforts to bolster domestic chip design and manufacturing, with the aim of establishing greater independence for advanced AI technologies. Last November, Prime Minister Shigeru Ishiba announced a $65 billion plan to invest in the country's chip and artificial intelligence industry by 2030, according to local media. Central to these efforts is the state-backed chipmaker Rapidus. In March, the Japanese government pledged an additional $5.4 billion to Rapidus, bringing its total government subsidies or grants to around $11.5 billion. Headquartered in Tokyo and backed by industry giants, including financial services groups MUFG Bank and SoftBank, electronics makers NEC and Sony, Toyota, and telecoms provider NTT, Rapidus aims to launch commercial production of 2-nanometer chips—some of the world's thinnest and most advanced—by 2027. A major link in the global semiconductor supply chain, Japan is also home to industry giants including billionaire Uchiyama family's Lasertec, which manufactures chip testing equipment; KKR-backed chip production equipment maker Kokusai Electric; Bain-backed Kioxia, Advantest (chip testing equipment); and Sumco, a silicon wafer supplier.
Globe and Mail
13 hours ago
- Business
- Globe and Mail
The CHIPS Act and Peraso Inc. (NASDAQ: PRSO): Advancing Semiconductor Innovation and National Security
The CHIPS and Science Act, a landmark $280 billion initiative, is designed to bolster domestic semiconductor manufacturing, strengthen supply chain resilience, and advance technologies critical to national security. Peraso Inc. (NASDAQ: PRSO), whose fixed wireless access (FWA) solutions rely on cutting-edge semiconductors, stands to benefit significantly from this federal initiative. CHIPS Act: Strengthening Semiconductor Innovation Peraso's advanced mmWave wireless technology, including its proprietary PERSPECTUS modules, depends on high-performance semiconductors to power beamforming, subscriber density optimization, and ultra-low latency communication. The CHIPS Act's targeted support for semiconductor design, manufacturing, and R&D directly aligns with Peraso's core mission. Key Provisions of the CHIPS Act Relevant to Peraso: Support for Semiconductor Design and Manufacturing: With billions earmarked for semiconductor innovation, Peraso could secure funding to expand and refine its wireless module production, improving both scalability and performance. Defense Applications: Peraso's proven technology in active war zones enhances its appeal for CHIPS-related defense funding streams focused on national security communication infrastructure. Incentives for Domestic Production: By establishing or scaling up U.S.-based production, Peraso can reduce dependency on foreign suppliers and capitalize on government incentives to drive cost efficiency and resilience. Beamforming Technology and Military-Grade Security Beamforming, a core component of Peraso's wireless architecture, enables precise signal direction and obstacle circumvention—making communications harder to intercept and more reliable in combat and urban zones. These stealth features have been tested in military deployments, affirming Peraso's role as a trusted innovator in defense communication. The CHIPS Act's prioritization of defense-sector semiconductor advancement opens clear funding pathways for Peraso's continued innovation in secure communications. Momentum Builds Across Semiconductor and Tech Microcaps In addition to Peraso Inc.'s (NASDAQ: PRSO) momentum, keep an eye on: These microcap tech and biotech stocks are moving aggressively in early trading, drawing increasing volume and media attention as investors seek the next breakout plays underpinned by catalysts such as R&D breakthroughs, M&A buzz, and sector-specific policy tailwinds. Global Implications: Peraso's Expanding Reach While the CHIPS Act is a U.S.-centric initiative, its global ramifications for semiconductor innovation, broadband infrastructure, and secure communications are profound. By leveraging CHIPS-backed funding and a strengthened domestic supply chain, Peraso can scale manufacturing, reduce costs, and expand its international footprint. With countries globally prioritizing secure broadband and military-grade connectivity, Peraso's reputation and reliability uniquely position it for strategic partnerships and multinational deployments. The CHIPS Act offers a transformative roadmap for Peraso Inc. (NASDAQ: PRSO) to amplify its role in semiconductor innovation and national security. Backed by military-proven technology and expanding global relevance, Peraso is more than a player—it's a rising leader in next-gen wireless, defense-grade communications, and broadband transformation. Investors should watch closely as the company continues to align with macro-level federal investments, with a potential ripple effect across small-cap tech innovators. 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