Chip Industry Week in Review

Samsung and SK hynix joined OpenAI‘s Stargate initiative to ensure there will be enough memory chips to meet the needs of AI data centers. The goal is to produce up to 900,000 DRAM wafer starts per month. OpenAI also inked agreements to explore the development of next-gen data centers in Korea.

Axcelis Technologies (ion implantation systems) will merge with Veeco Instruments (compound semiconductor deposition and etch tools) in an all-stock transaction valuing the combined entity at roughly $4.4 billion with $1.7 billion in annual revenue.

Meta is acquiring RISC-V chip startup Rivos, valued at nearly $2 billion, to strengthen its in-house AI semiconductor development and reduce reliance on NVIDIA, reports Bloomberg. The deal will fold Rivos’ RISC-V and full-stack AI expertise into Meta’s MTIA (Meta Training & Inference Accelerator) program to accelerate its custom silicon roadmap.

Cerebras Systems raised $1.1 billion for its wafer-scale AI processors, which it claims can perform inference significantly faster than conventional chips. Then on Oct. 3, the company withdrew its IPO plans.

Taiwan’s top negotiator rejected a U.S. proposal for a 50-50 split in global chip production, dismissing comments by Commerce Secretary Howard Lutnick that such a deal was under discussion. Vice Premier Cheng Li-chiun stressed that no such terms were raised in the latest tariff talks and that Taiwan would not agree to them.

Global semiconductor sales were nearly 22% higher in August versus the prior year, reports SIA.  Other than Japan, all regions were up versus the prior year.  Also, the pure-foundry industry grew 33% YoY in Q2, with TSMC capturing 71% of the market, reports Counterpoint.

imec announced that longtime CEO Luc Van den hove will step down on April 1, 2026, to become chairman of the board. Patrick Vandenameele, currently chief strategy officer, will become the next CEO.

NIST published a 69-page evaluation of DeepSeek‘s AI models, finding “they lag behind the U.S. in performance, cost, security, and adoption.” Meanwhile, DeepSeek updated its AI model with a new “sparse attention mechanism designed to explore and validate optimizations for training and inference efficiency in long-context scenarios.”

Quick links to more news:

Global
In-Depth
Markets and Money
Product News
Security
Automotive
Research
Education and Training
Events and Further Reading

Global

Europe:

• The Semiconductor Coalition Europe, supported by EU Member States, unveiled a Joint Declaration calling for a revised EU Chips Act to strengthen Europe’s role in the global semiconductor industry. All 27 EU member states, along with more than 75 semiconductor companies, joined the Dutch-led Semicon Coalition that is pushing to revise the act to accelerate investment and skills training. SEMI added its support.
• Think tank Interface examined Italy’s national AI talent market, assessing the country’s ability to attract and lose AI talent.

Asia:

• CSIS argues Chinese lithography breakthrough claims “reveal more exaggeration than transformation in terms of leading competitive capabilities,” but it does show gradual progress in chipmaking.
• Huawei plans to double production of its Ascend AI chips next year.
• UST is partnering with India’s Kaynes Semicon to build a ~$400M joint venture OSAT facility in India. Also, Kaynes and SEALSQ will create a joint company, SEALKAYNESQ, to serve as a specialized hub for semiconductor security solutions, based in India.
• Kioxia and Sandisk‘s new 3D Flash Fab2 in Japan started operations.
• Marvell opened three new offices in Vietnam.

USA:

• Think tank IFP argues the proposed H-1B weighted system could end up helping outsourcers and hurting US-trained talent.
• Texas Instruments notified 163 employees at its Dallas “DFAB” site that they will be laid off in December as part of a multi-year plan to shut down its 150mm wafer fabs in Dallas and Sherman.
• PsiQuantum broke ground on its new site at the Illinois Quantum and Microelectronics Park in Chicago.

In-Depth

Semiconductor Engineering reporting this week featured these top stories:

• Smarter Packaging: How AI is Reshaping Assembly and Materials Control
• How To Cool 3D-ICs
• Voltage Regulation Moves Into The Package
• Video: The Rise Of AI Co-Processors

Markets and Money

Reports:

• The eBeam Initiative released results from its 14th annual Luminaries survey, predicting photomask revenues will rise in 2025, with mask writing ranked as the top investment priority for 2026. The survey highlighted strong expectations for growth in multi-beam mask writer purchases, as well as key technology trends including high-NA EUV lithography and curvilinear mask adoption.
• Market reports:
  • The global processor market (Yole)
  • DRAM module market (TrendForce)
  • Non-Energy Storage Applications of Carbon Nanotubes (IDTechEx)
  • The power GaN race (Yole)
  • ALD/CVD Materials (TECHCET)
• AI analyst reports: Fully autonomous AI agents deployments (Gartner), The agentic organization (McKinsey), Comprehensive approach to AI readiness (PWC), and No AI jobs apocalypse (Brookings).

Deals:

• PDF Solutions is teaming up with Lavorro to provide context-aware, GenAI-assisted support for fabs.
• AMD and IBM will collaborate on an AI infrastructure solution for Zyphra, an open-source AI company.
• GlobalFoundries and Corning announced a collaboration to develop detachable fiber connector solutions for GF’s silicon photonics platform, including Corning’s GlassBridge glass-waveguide edge-coupler and other vertical coupling mechanisms.
• Credo acquired Hyperlume, a developer of MicroLED-based optical interconnect technology for chip-to-chip communication.
• GS Microelectronics acquired Muse Semiconductor, a provider of multi-project wafer services.

Funding/Restructure:

• Rebellions raised $250M to accelerate production of its chiplet-based AI processors for large-scale inference.
• Phaidra raised $50M to deploy AI agents to optimize the operation of large-scale compute facilities.
• Wolfspeed completed its restructuring and emerged from Chapter 11 bankruptcy. The company also appointed five new board members.

Trending Tech Talk

The Rise Of AI Co-Processors: Keeping AI hardware current and relevant is becoming a challenge.

Product News

Alphawave Semi taped out UCIe chiplet IP that supports face-to-face configurations on the TSMC SoIC-X advanced 3D packaging technology. The UCIe-3D 5nm bottom die supports TSVs to supply power and ground to the 3nm top die.

Infineon is launching a high-density trans-inductance voltage regulator (TLVR) module specifically designed for high-performance AI data centers. The company also expanded its CoolSiC MOSFETs portfolio.

Keysight released its WirelessPro 3GPP AI Simulation Platform for wireless communication system engineers, including modeling, prototyping, and validation capabilities.

Manufacturing:

• Advantest released a power optimization solution for the V93000 SoC test platform, enabling real-time monitoring and dynamic control of tester power usage to reduce energy consumption and costs.
• Teradyne unveiled new PHY performance testing capabilities, aimed at boosting test throughput and accuracy for next-gen connectivity standards. The company also announced the launch of its Titan HP system level test platform for AI and the cloud, supporting up to 2 kW of power, with a planned upgrade to 4 kW, and introducing advanced thermal management features for high-volume chip testing.
• imec developed a GeSi electro-absorption modulator on its 300mm silicon photonics platform.
• TI introduced a new digital micromirror device for lithography for advanced packaging.
• Fujifilm rolled out its CMP slurry for advanced packaging.
• Nordson will debut its Auto Centering System at SEMICON West 2025, extending its WaferSense sensor line to capture real-time x, y, z offset data inside tools for more precise wafer transfer alignment.

Alchip and Ayar Labs launched a co-packaged optics solution to extend scale-up network connectivity beyond traditional rack boundaries.

Security

Research:

• Scalable MPC-Based Distributed Trust Architecture for Chiplet-based Heterogeneous Systems (UCF et al.)
• Exposing and Exploiting Incomplete Branch Predictor Isolation in Cloud Environments (ETH Zurich).
• AutoML in Cybersecurity: An Empirical Study (U. of Windsor et al.).
• Fault Injection in On-Chip Interconnects (Université Bretagne Sud).
• Also, security research presented at the recent USENIX Security Symposium is here.

PwC’s 2026 Global Digital Trust Insights survey found that geopolitical risk is impacting how organizations shape strategy, and that many organizations view security as a work in progress. Agentic AI is also a top priority for cyber defense.

SEALSQ and Quantix Edge Security entered a definitive agreement to develop and deploy a post-quantum semiconductor personalization center in the Region of Murcia, Spain, making it the first of its kind in the country.

IDEMIA Secure Transactions launched the second phase of its cybersecurity suite. This expansion offers hardware security to organizations by protecting data and transaction information.

Analogue Insight IP Group launched its first U.S. venture, Analogue Insight SAFE, in Portland, Oregon. SAFE is focused on certification-grade security IP for next-gen SoCs and chiplets, including cryptographic primitives, secure boot, hardware roots of trust and more.

CISA issued new alerts/advisories.

Automotive

Deals:

• Mercedes-Benz announced a new investment in Athos Silicon, a specialized semiconductor company. The deal is meant to advance proprietary chiplet research and autonomous computing innovation.
• STMicroelectronics and Tobii inked a deal to combine Tobii’s interior-sensing technology with ST’s image sensors for driver and passenger monitoring.
• Hyundai Mobis is heading up a collaboration of more than 20 companies and research institutions to create the first private-sector-led Korean automotive semiconductor cooperation.

Products:

• Keysight expanded its EOL test portfolio, providing automakers and EVSE manufacturers with a scalable approach to production testing that accelerates time-to-market, reduces costs, and ensures readiness for evolving industry standards.
• Infineon announced its OptiMOS 7 power MOSFET family will expand from its current automotive focus to include high-performance switching and motor drives for the industrial and consumer markets.
• Synopsys introduced a digital twin racetrack at the STEM Racing World Finals in Singapore, combining its Discovery simulation software with NVIDIA’s Omniverse libraries to let students explore aerodynamics and real-time airflow visualization.

The recent U.S. EV tax credit expiration is expected to reduce sales of battery-powered cars, but experts expect the market eventually will recover.

Research

Peking University researchers demonstrated metal–oxide–semiconductor transistors built from aligned carbon nanotube (CNT) arrays that surpass 1 THz cutoff frequencies.

CEA Leti-led researchers developed a new hybrid memory system that combines the best traits of two previously incompatible technologies — ferroelectric capacitors and memristors — into a single CMOS-compatible memory stack.

ETH Zurich researchers developed a new software architecture that can divide a smartphone into several isolated domains that are completely independent of one another.

USC designed a “Universal routing of light via optical thermodynamics,” a new method to route light in non-linear systems.

KAIST researchers developed a “frequency switching neuristor” device that mimics the intrinsic plasticity of neurons by combining a volatile Mott memristor with a non-volatile memristor.

University of Massachusetts Amherst researchers built artificial neurons using protein nanowires synthesized from electricity-generating bacteria.

Education and Training

Intel rolled out its AI-Ready School Initiative to prepare students to become responsible AI solution builders. Intel will equip 250 schools with the necessary tools for responsible AI leadership.

Argonne National Lab is offering a two-week training program, Argonne Training Program on Extreme-Scale Computing, to provide a hands-on learning experience and prepare the next generation of exascale computing experts.

Onondaga Community College in New York partnered with Micron to launch a 3,000 square foot cleanroom simulator to help train students and community members.

Events and Further Reading

Upcoming webinars are here, including:

• • How to Implement DO-178C using Model-Based Design and Verification (Oct. 8)
  • ML-Enhanced TCAD Calibration With 10x Reduction in Time to Results (Oct. 15)
  • Next Gen CFD for High Tech: AI, GPUs, and Improved Conceptual Design Analysis (Oct. 16)
  • Pushing more power with CoolGaN (Oct. 22)

Find upcoming chip industry events here, including:

Upcoming webinars are here.

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