Chip Industry Week In Review

New Taiwan adv. packaging site; M&A activity; GF’s CPO solution; Apple looks beyond TSMC; EU chip companies map; strong earnings; MIT’s new lidar chip; gallium production; AI inferencing at sea; quantum HW funding; PCIe 7 tool; home data centers; AI security warnings; temperature impact on EVs.

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Manufacturing

  • ASE and WUS are jointly building a ~$1.1B advanced packaging hub in Kaohsiung, Taiwan, for fan-out chip-on-substrate (FOCoS) and flip-chip ball grid array (FC BGA) technologies. The new site is expected to be completed by September 2029.
  • SpaceX filed documents for a “Terafab” semiconductor manufacturing and computing facility at Gibbons Creek Reservoir in Texas, with an initial investment of~$55B, and a possible total investment of up to $119B.
  • China is aiming to use 70% domestic chips by the end of this year, reports Nikkei Asia.
  • Apple reportedly held early-stage talks with Intel and Samsung about producing main device processors in the U.S., as the company explores additional domestic manufacturing options beyond TSMC, according to Reuters. Discussions point to continued pressure on major chip customers to diversify advanced-node supply chains amid capacity, geopolitical, and U.S. manufacturing concerns.

Big Deals

  • Applied Materials plans to buy ASMPT‘s NEXX business, a supplier of large-area advanced packaging deposition equipment.
  • Lattice will acquire firmware developer AMI for ~$1.7B to create a secure management and control platform.
  • Siemens partnered with Xometry to develop an AI-native marketplace to bring together suppliers and buyers of custom manufacturing. Siemens also invested about $50M into Xometry, and noted it has invested $1B in U.S. manufacturing over the last 5 years.
  • Nvidia and IREN inked a deal to deploy up to 5 GW of Nvidia’s DSX-aligned AI infrastructure across IREN’s Sweetwater, Texas campus, with NVIDIA receiving rights to invest up to $2.1B.

Innovations

Europe

  • CHIPDIPLO launched the EU Chips Ecosystem Tracker, an interactive map of more than 2,500 semiconductor companies across the EU.
  • CEOs from ASML, Siemens, and five other tech companies banded together in an opinion piece arguing Europe must simplify its digital rules, scale homegrown technologies such as semiconductors and AI, and act faster to protect its global competitiveness and technological sovereignty.

Reports

Research

  • An MIT team created a silicon-photonics lidar chip design that significantly lowers signal crosstalk, enabling wider field of view, compact solid-state lidar sensors for AVs, drones, and other sensing systems.
  • UC Berkeley-led researchers transformed titanium dioxide (TiO₂) into a ferroelectric material by reducing its thickness to less than 3nm, opening a path to ultra-scaled, energy-efficient electronic devices.

Quick links to more news:

Global
In-Depth
Reports and Deals
New Technologies
Security
Vehicles, Batteries
Workforce, Education
Trending Video
People
Research
Events and Webinars


Global

Americas

Europe

  • Merck KGaA opened a €20M metrology and inspection site in Saint-Ismier, France, expanding its production capacity.
  • Think tank Interface argues that Europe’s AI push could be limited by power-grid bottlenecks and inefficient accelerator use, so AI data centers should be planned around energy availability, grid flexibility, and compute-per-watt—not just chip supply.
  • The EU and Japan agreed to deepen digital cooperation across AI, data, quantum, semiconductors, digital infrastructure, and online platforms during the fourth EU-Japan Digital Partnership Council meeting in Brussels.

Asia

  • India’s government approved two more semiconductor projects, including Crystal Matrix’s GaN-based mini/micro-LED display and compound semiconductor facility in Dholera, Gujarat, and Suchi Semicon’s OSAT facility for discrete semiconductors in Surat.

In-Depth

Semiconductor Engineering published the Auto, Security and Edge AI newsletter, including:

Plus, two other top stories and one opinion piece.

Find all of Semiconductor Engineering’s recent newsletters here.


Reports and Deals

Fundings

More partnerships

  • Nvidia and Corning announced a multi-year partnership to expand US-based manufacturing of optical connectivity for AI infrastructure.
  • Sony and TSMC will collaborate on the development and manufacturing of next-gen image sensors.
  • Xanadu and EV Group announced a deal to develop heterogeneous integration and wafer bonding processes for industrial-scale photonic quantum HW.
  • Fraunhofer‘s FhCAP photonics division is teaming up with Aegiq to scale photonic quantum HW.
  • Anthropic will use all of SpaceX’s compute capacity at its Colossus 1 data center, providing access to ~300 megawatts of new capacity — enough to power 220,000 Nvidia GPUs.

Reports

  • Mature-node foundry pricing is beginning to rebound as AI servers, general-purpose servers, and edge AI drive demand for PMICs, power discretes, and other power-related processes, reports TrendForce. The firm expects average 8-inch capacity utilization among the top 10 foundries to approach 90% in 2026 and remain above 80% through the first half of 2027, while 12-inch mature-node capacity adjustments could create order spillover and pricing opportunities for second-tier foundries.
  • Outlook for Wide Bandgap Semiconductors (IDTechEx)
  • AI Optical Interconnect Boom (TrendForce)

Opinions


New Technologies

PCIe

  • Rambus introduced PCIe 7 switch IP with time division multiplexing, enabling efficient, scalable PCIe (Peripheral Component Interconnect Express) fabrics for data center infrastructure, distributed AI clusters, and HPC networks.
  • Diodes released a six-output, ultra-low jitter clock generator aimed at PCIe 7.
  • Toshiba launched 2:1 multiplexer and 1:2 demultiplexer switches to support high-speed interfaces such as PCIe 6 and USB4 V2.

Fig. 1: Rambus’ PCIe 7.0 switch IP with time division multiplexing. Source: Rambus

Uviquity rolled out a chip-scale deep-UV laser operating at 229nm, built on its aluminum nitride PIC platform.

Siemens EDA’s Veloce Strato CS hardware-assisted verification platform was used to verify Arm’s AGI CPU from subsystem through full-system level, supporting validation of key performance metrics for hyperscale deployments.

SiTime launched its Elite 2 Super-TCXO oscillator to boost GPU utilization and compute efficiency in AI data centers by delivering better time synchronization.


Research

A USC team created a framework for designing RFICs, using “a class of algorithms called metaheuristics, which explore enormous design spaces through guided randomness without needing prior examples.”

Fraunhofer IZM created a 99% efficient inverter that handles 500 kilowatts of power in a unit just one liter in volume.

Researchers at Argonne and Northwestern U. collaborated on designing and predicting new materials by controlling and understanding how the atomic structures form.

More IC technical papers

  • Performance and Energy Benefits of MRDIMMs (BSC, UPC, Micron, Intel)
  • Vibrational Exfoliation of 2D Materials (U. Birmingham)
  • Asymmetric thermal transport in a trilayer vdW heterostructure (Tsinghua, Peking U.)
  • Implementation of reservoir computing using coupled microelectromechanical drum resonators via sideband-pumped phonon–cavity dynamics (Univ. of Lille)

Find more chip industry research news in SE’s technical paper library.


Security

Warnings and attacks

  • AI is being integrated across the semiconductor ecosystem at a pace that far outstrips any rules to govern it, raising the specter of increased IP theft and security breaches with no obvious way to prevent them.
  • CISPA warns that on-body devices like smartwatches, smart glasses, VR headsets, and smart textiles pose major privacy and safety risks because they collect excessive amounts of high-resolution data that enable inferences about the wearer.
  • UK’s NCSC warns organizations to prepare now for an AI-accelerated “vulnerability patch wave.”
  • Numerous universities, including Rutgers, Baylor, and Duke, have been hit by a major ransomware attack on the Canvas platform, owned by Instructure.

Government intervention

  • NIST‘s Center for AI Standards will conduct pre-deployment evaluations on AI frontier models from Google DeepMind, Microsoft and xAI, aiming to understand capabilities and protect national security before they are publicly available.
  • CISA unveiled a new initiative called CI Fortify, which aims to help guide critical infrastructure entities across all sectors to prepare for crisis or conflict. There were also additions to the Known Exploited Vulnerability catalog.
  • ENISA announced that four organizations joined the CVE Program as numbering authorities.
  • The AI OVERWATCH Act was introduced with bipartisan support to ensure that next-gen AI chips do not help China.

Security research and reports


Vehicles, Batteries

EVs and batteries

  • AAA’s recent study found that extreme climates hurt both EV and hybrid efficiency, with cold weather having the biggest impact. At 20°F, EVs lost 35.6% in MPGe (miles per gallon of gasoline equivalent) and 39.0% of calculated range, compared to hybrids losing 22.8% in fuel economy. At  95°F temperatures, EV efficiency fell 10.4%, and hybrid MPG fell 12.0%.
  • Keysight and CATARC will collaborate on a Joint Innovation Laboratory for Charging Test Technology to address charging compatibility, safety, overseas compliance, and charging infrastructure.
  • Quantinuum and BMW have expanded their collaboration to advance future mobility by applying quantum computing toward advanced materials science for the design and optimization of fuel cells.
  • Battery management systems are growing increasingly smarter with innovations in software and hardware that enable more accurate estimation of battery state of charge and health, along with predictive diagnostics.
  • Ford provided a glimpse into its new EV Development Center in California, with a $30,000 or so Universal EV truck slated for 2027.
  • Nyobolt raised $60M in funding for advancing robotic performance batteries.

Autonomous

Vehicle research and reports


System-in-Package Challenges: Engineering considerations in multi-chiplet designs.

Nir Sever at proteanTecs talks about the complexities of moving data between different types of chiplets, what kinds of physical effects engineering teams need to consider when placing chiplets next to other chiplets, and how to balance performance and power across chiplets before they are packaged together to ensure the whole package remains reliable throughout its expected lifetime.


Workforce, Education

Stony Brook University launched its NSF-supported program to train students in semiconductor and advanced nanomanufacturing skills, using paid hands-on experience, a Brookhaven National Lab collaboration, and industry partners including GlobalFoundries and Wolfspeed to help fill the U.S. semiconductor workforce gap.

Over 120 students participated in the University of Sheffield’sUK Tiny Tapeout,” submitting their own chips for fabrication.

Purdue University is hosting a “Building the U.S. Semiconductor Workforce” webinar on May 18, aimed at showing career opportunities in microelectronics.


People

Intel named Pushkar Ranade as CTO and Alex Katouzian as EVP/GM of Client Computing & Physical AI.

Katherine Yelick will be the next director of Lawrence Berkeley National Lab, bringing deep experience in HPC and AI.


Events and Webinars

Upcoming webinars are here, including:

Find upcoming chip industry events here, including:

EVENTS Date Location
IEEE International Memory Workshop May 10 – 13 Leuven, Belgium
ASMC: Advanced Semiconductor Manufacturing Conference May 11 – 14 Albany, New York
Embedded Vision Summit May 11 – 13 Santa Clara, CA
Siemens User2User Europe May 12 Munich, Germany
CadenceCONNECT: Tech Days Europe 2026 May 12 Edinburgh
Countdown to CRA Workshop: Cyber Resilience Act May 12 Santa Clara, CA
CadenceCONNECT: Tech Days Europe 2026 May 14 Bracknell
VOICE 2026 Developer Conference May 18 -20 Scottsdale, Arizona
Surface Preparation and Cleaning Conference (SPCC) May 18 – 20 Chandler, AZ
CadenceCONNECT: Tech Days Europe 2026 May 19 Cambridge
Electronic Components and Technology Conference (ECTC) May 26 – 29 Orlando, Florida
Hardwear.io Security Trainings and Conference USA 2026 May 26 – 30 Santa Clara, CA
CadenceCONNECT: Tech Days Europe 2026 May 27 Milan
Find all events here.



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