Chip Industry Week In Review

TSMC mature node capacity reduction; Photonics West highlights; Intel earnings; tariffs on memory makers; big fundings; Davos takeaways; ultrafast data transmission; DARPA’s IC heat program; new wafer smoothing tech; EV rankings; automotive hacking competition; side channel attacks utilizing memory reorderings; university blitz of hands-on IC training and labs.

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TSMC is expected to reduce its Fab 14 mature-node capacity by 15% to 20% to free up resources for its advanced packaging technologies, reports Counterpoint. The foundry will likely rely on its VIS affiliate site in Singapore (operational in late 2026) and other overseas fabs to ensure continued supply for older nodes.

Memory

  • The U.S. threatened 100% tariffs on South Korean memory companies that don’t expand their U.S. production capabilities, reports Bloomberg.
  • DRAM shortages may be disruptive for carmakers, starting next quarter, according to UBS.
  • Think tank Interface explores the relationship between skyrocketing HBM demand and increased emissions from fabs.
  • TrendForce projects the memory market will be worth $551.6B in 2026, a 134% YoY increase, surging 53% to $842.7B in 2027.
  • Yole forecasts inflated memory prices until 2027.

The World Economic Forum was held in Davos, Switzerland this week, with some notable chip industry sound bites:

  • Anthropic CEO Dario Amodei told Bloomberg that selling advanced AI chips to China would be a big mistake. “It’s a bit like selling nuclear weapons to North Korea.”
  • Nvidia‘s Jensen Huang called AI the foundation of the ‘largest infrastructure buildout in human history,’ comparing it to a five-layer cake — energy, chips and computing infrastructure, cloud data centers, AI models, and ultimately, the application layer. Huang also said that “robotics is a once-in-a-generation opportunity” for Europe, given its strong industrial bases.

Big Fundings

  • Upscale AI raised $200M for commercial deployment of its synchronized AI engine, which unifies GPUs, AI accelerators, memory, storage, and networking.
  • Neurophos raised $110M to deliver its optical processing unit that integrates more than 1 million micron-scale optical processing elements on a single chip.
  • Ethernovia raised more than $90M to build Ethernet-based, packet processor-centric networking chips for SW-defined autonomy and physical AI.

SPIE Photonics West conference and related highlights this week included:

  • CEA-Leti demonstrated a co-packaged microLED and organic photodetector architecture that enables optical sensing functions, along with a hybrid architecture that integrates quantum cascade lasers with silicon photonic platforms for mid-infrared applications.
  • Nuvoton showcased its 1.0 W high-power ultraviolet (379nm) laser diode for fine patterning and high throughput in maskless lithography for advanced packaging.
  • MIT demonstrated its new photonic chip with integrated antennas that cool trapped ions 10 times more efficiently than standard laser cooling.
  • Lumentum unveiled high-power laser platforms that support advanced manufacturing of electronics and semiconductors, as well as 3D sensing VCSELs.

Financial releases this week:

  • Intel beat Wall Street’s Q4 2025 expectations, despite reporting a quarterly revenue decline of 4% year-over-year and flat annual revenue compared to 2024. Guidance for Q1 was softer than expected due to low supply, but Intel expects better numbers in Q2.
  • Other earnings reports: Cyient, Mobileye, NVE.

Quick links to more news

Global
Funding, Deals, Reports
New Technologies
Automotive, Aerospace
In-Depth
Research
Universities and Workforce
Security
Trending Video
Events and Further Reading


Global

The Global Electronics Association officially released IPC-6921, Requirements and Acceptance for Organic IC Substrates, which provides unified specs for advanced packaging.

Asia/ Middle East

Europe

  • A €50M European test and production pilot line to make scalable and reliable photonic chips for quantum applications will launch this year.
  • The EU proposed a revised cybersecurity act, aimed at derisking the mobile telecom networks from high-risk third-country suppliers, including Huawei and ZTE. CEPA expresses skepticism about the new rules.

Americas

  • NETL has launched ClaiMM, a new digital platform dedicated to supporting U.S. research across the full critical minerals and materials (CMM) value chain.
  • CSIS‘ report, A Living Playbook for America’s Technology Long Game, asserts the U.S. “must (1) “play all the keys” by developing dexterity across technology types, (2) make speed-to-scale the organizing principle for enabling infrastructure and technology diffusion, and (3) defend its networks of innovators at home and abroad against mercantile and malign threats.”

In-Depth

Semiconductor Engineering published its Manufacturing, Packaging and Materials newsletter this week, featuring these top stories:

Plus:



Fundings, Deals, Reports

More Fundings, IPOs

  • Optalysys raised ~$31M to commercialize its silicon photonics technology.
  • AheadComputing raised $30M for its high-performance CPU microarchitecture for AI workloads.
  • Sensesemi Technologies raised INR 250M (~$2.7M) to develop edge AI chips for markets such as industrial automation and medical devices.
  • Noveon Magnetics raised $215M to expand its rare earth magnet capacity.
  • Quantum chip company SEEQC plans to go public via a SPAC merger with Allegro Merger.

Deals

  • France’s CEA-Leti and Canada’s C2MI inked an MoU to develop joint projects in areas such as microsystems, advanced packaging, and photonics.
  • Scintil Photonics, Presto Engineering, and CEA-Leti will work together on a roadmap for optical interconnects.
  • Keysight is providing satellite channel and user segment emulation solutions to support ground testing of 5G non-terrestrial network capabilities as part of the Airbus UpNext SpaceRAN demonstrator.
  • SEALSQ and Kaynes are planning a joint venture in Gujarat, India, that will produce up to 300M PQC chips per year.
  • D-Wave Quantum completed its $550M acquisition of Quantum Circuits.

Reports/Opinions


Research

UC Irvine developed a new wireless silicon chip transceiver that achieves data transmission speeds of 120-Gbps, previously only possible through fiber-optic cables. “We call this technology a ‘wireless fiber patch cord’ because it offers the blistering speed of fiber optics without the physical cables,” said Payam Heydari, UC Irvine Chancellor’s Professor of EECS, in a news release.

DARPA provided an update on its Thermonat program, which drives advancements in modeling, predicting and verifying heat flow in advanced semiconductor devices. Highlights include UC Boulder-led efforts to bring high-accuracy thermal modeling tools for IC designers, as well as IBM’s and Ansys’ collaboration to model thermal behaviors of ICs at the atomic level.

Fraunhofer IIS highlighted advancements in hardware and software for spiking neural networks.

More recently published research:


New Technologies

Infineon introduced its next-gen USB 2.0 peripheral controller, designed for efficient and secure data transfer.

Cadence unveiled its sixth-generation HiFi iQ DSP, which uses a new architecture designed for next-generation voice AI and immersive audio applications to deliver over 40% performance uplift on numerous audio codecs compared to the previous generation.

Canon developed a wafer smoothing technology, called inkjet-based adaptive planarization (IAP).  “Topographical irregularity is thereby reduced to 5 nm or less, facilitating the uniform layering of structures—essential for subsequent downstream processing,” according to the news release.

MediaTek debuted new chipsets based on 3nm and 4nm processes for flagship and premium smartphones.

Blue Origin introduced TeraWave, a satellite communications network designed to deliver data speeds of up to 6 Tbps “anywhere on Earth.”


Automotive, Aerospace

New releases:

  • Keysight rolled out two EV charging test solutions for high-power and megawatt charging.
  • SK hynix achieved ASIL-D certification on its latest LPDDR5X automotive DRAM.
  • Volvo released its new all-electric midsize SUV built on the “SPA3” electric architecture, with a range up to 400 miles, plus an ability to add up to 211 miles in 10 minutes using a 400kW fast charger.

Industry:

  • Germany unveiled a new €3 billion subsidy program for electric vehicles, including Chinese brands.  Subsidies range from €1,500 to €6,000.
  • Canada is reducing its 100% tariff on Chinese EVs to 6.1% for up to 49,000 units annually. Tesla is expected to benefit, as it can now more easily export Shanghai-built vehicles to the Canadian market.
  • Volkswagen is now the top EV seller in Europe, overtaking Tesla.
  • Tesla‘s Cybertruck sales fell 48% in the U.S. in 2025, reports Inside EVs.

Auto/Aerospace research and reports:


Security

At Tokyo’s Pwn2Own Automotive 2026 competition, Synacktiv researchers used a USB-based attack to successfully hack Tesla‘s infotainment system, and Fuzzware.io exploited a number of bugs on charging controllers and connectors. Find more results of the competition here.

Nvidia issued high severity security bulletin updates on its CUDA Toolkit and Merlin Transformers4Rec.

Mitre rolled out an Embedded Systems Threat Matrix, a framework to safeguard embedded systems that power the U.S.’s critical infrastructure and defense technologies.

Morrison Foerster provided an alert on cybersecurity rules for the semiconductor sector, highlighting the laws that can apply directly and indirectly throughout the supply chain.

Recent security research

CISA issued new alerts/advisories.


Universities and Workforce

The SEMI Foundation has been approved by the U.S. Department of Labor as a National Apprenticeship Sponsor and will work directly with employers to design, register, and scale apprenticeship programs.

Universities are investing in hands-on semiconductor programs:


Workload-Specific Hardware Accelerators: What differentiates accelerators from other processing elements. Sharad Chole, chief scientist and co-founder of Expedera, talks about the role of neural processing units inside AI data centers, tradeoffs between performance and accuracy, and new challenges with chiplet-based multi-die assemblies.


Events and Further Reading

Upcoming webinars are here.

Find upcoming chip industry events here, including:

EVENTS Date Location
Hybrid Bonding Symposium Jan 22 – 23 Virtual and In-Person Silicon Valley
NIST’s Semiconductor Traceability and Provenance Workshop Jan 27 Rockville, MD
Semicon Korea Feb 11 – 13 Seoul
ISSCC: International Solid-State Circuits Conference Feb 15 – 19 San Francisco
Chiplet Summit Feb 17 – 19 Santa Clara
Wafer-Level Packaging Symposium Feb 17 – 19 Burlingame, CA
SPIE Advanced Lithography + Patterning Feb 22 – 26 San Jose, CA
Florida Semiconductor Summit Feb 23 – 25 Orlando
FLEX 2026—Technology Summit Feb 24 – 26 Phoenix, AZ
DesignCon Feb 24 – 26 Santa Clara, CA
DVCON 2026 Mar 2 – 5 Santa Clara, CA
IMAPS Device Packaging Conference 2026 Mar 2 – 5 Phoenix, AZ



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