Chip Industry Week In Review

Chinese startup DeepSeek rattled the tech world and U.S. stock market with claims it spent just $5.6 million on compute power for its AI model compared to its billion-dollar rivals in the U.S. The announcement raised questions about U.S. investment strategies in AI infrastructure and led to an initial $600 billion selloff of NVIDIA stock. Since its launch, DeepSeek reportedly was hit by malicious cyberattacks and had to limit registrations.

Responses to DeepSeek:

• CSIS AI expert Gregory Allen commented that DeepSeek (DS) raised the floor of AI performance when you don’t have a lot of money and computing resources. But with its open-source algorithmic and architectural innovations, the U.S. will be able to explore the new ceiling of performance [related CSIS podcast]
• Intel’s former CEO, Pat Gelsinger, said the model is an “incredible piece of engineering” that will lead to greater adoption of AI, and serves as a reminder of three important lessons.
• Brookings Institution senior fellow John Villasenor makes the case that AI export rules may be accelerating China’s AI progress.
• Princeton University’s Warren Powell likened it to what the Soviet space program accomplished under similar conditions.
• Anthropic CEO Dario Amodei, in contrast, said threats are overstated and the releases don’t undermine the case for export control on chips.
• OpenAI’s Sam Altman said the model is impressive for its price, and it is invigorating to have new competitors. However, OpenAI reportedly is investigating whether DeepSeek used its models to train a chatbot, per WSJ.
• Microsoft CEO Satya Nadella said DeepSeek has real innovations, and such optimizations mean AI will be much more ubiquitous, which is good news for a hyperscaler and PC platform provider, according to a post-earnings call.
• MIT Technology Review explained how DeepSeek got around U.S. sanctions of its top chips.

Meanwhile, OpenAI launched a secure and private version of ChatGPT for the U.S. government, called ChatGPT Gov.

It was a big week for chip industry earnings reports: Advantest, ASML, IBM, Intel, Lam Research, KLA, Samsung (global), STMicroelectronics, Teradyne, Western Digital, Wolfspeed.  Stock impacts are here.

In U.S. government news:

• U.S. Secretary of Commerce nominee Howard Lutnick said the CHIPS Act was an excellent down payment to begin the process of re-shoring manufacturing, but he would need to read and analyze the grant contracts before committing to honoring them.
• The U.S. plans to impose tariffs on semiconductors to boost its domestic chip manufacturing, reports USA Today. But there is concern the move could drive up costs, disrupt supply chains, and push companies to shift production. The ITIF said proposed tariffs on Taiwanese semiconductors would backfire.
• The SIA commended the introduction in the U.S. House of Representatives of the bipartisan Semiconductor Technology Advancement and Research (STAR) Act, extending the duration of the Advanced Manufacturing Investment Credit and expanding eligibility.

Special Report: Plug-and-play chiplets are a popular goal, but does UCIe 2.0 move us any closer to that becoming a reality?

Quick links to more news:

Global
In-Depth
Markets and Money
Security
Product News
Auto and Space
Research
Events and Further Reading

Global

Asia:

• Mixel, provider of mixed-signal IP, opened a new branch for engineering development in Da Nang, Vietnam.
• Quadric established a subsidiary in Tokyo, Japan.
• Sony Semiconductor Solutions appointed Shinji Sashida as President and CEO.
• Tata said construction of Micron’s assembly and test facility in Gujarat, India will be complete by December 2025.
• U.S.-based CSET published a report, “Chinese Critiques of Large Language Models.”

Europe:

• Keysight and the University of Malaga opened a 6G research and innovation lab. Focus areas include new spectrum and components, AI/ML networks, digital twins, and networked sensing.
• Nova opened a new manufacturing facility and office in Bad Urach, Germany.
• A consortium of European research organizations and universities received €24 million from the EU to provide a cloud-based design platform that integrates various chip design tools for use with Chips for Europe pilot lines.

In the U.S., Argonne National Laboratory released its Aurora exascale supercomputer to researchers across the world, aimed at cancer research, materials discovery, energy technologies, and more.

Fig. 1: The Aurora supercomputer spans 8 rows and occupies the space of 2 basketball courts. Source: Argonne

In-Depth

Semiconductor Engineering published its Systems & Design newsletter this week, featuring these top stories:

• Chip Architectures Becoming Much More Complex With Chiplets
• Design Customization Puts Heavy Burden On Verification
• Chiplets Still A Challenge With UCIe 2.0

More reporting this week:

• Advanced Packaging Moving At Breakneck Pace
• Assembly Design Rules Slowly Emerge
• The Road To Super Chips

Markets and Money

Infineon published its 2025 predictions on GaN semiconductors, with expectations it will reach adoption tipping points in multiple industries.

Recent funding news:

• iPronics raised €20 million (~$20.8M) in Series A funding to deploy its optical networking engine for AI data centers.
• PseudolithIC raised $6 million to commercialize its hybrid semiconductor technology that integrates compound semiconductor chiplets into silicon wafers for RF and mmWave ICs.
• Alice & Bob closed a €100 million Series B round for superconducting cat qubits with bit-flip error correction.
• ZuriQ drew $4.2 million seed funding for a new trapped-ion quantum computer architecture.
• Pakal Technologies raised $25 million in Series B for its IGTO(t) high-voltage silicon power switch.
• Omnitron Sensors raised $13 million in Series A to produce its MEMS step-scanning mirror.
• VueReal secured $40.5 million Series C funding for high-volume microLED.

Sequans Communications acquired ACP Advanced Circuit Pursuit, a provider of RF transceivers and SoCs for cellular communications, to expand its 5G eRedCap development.

Yole reported that the RF market for consumer devices and predicts mobile phones and productivity devices will see a 6% CAGR between 2024 and 2030. The Wi-Fi/Bluetooth market is expected to exceed $25 billion by 2030, with Wi-Fi 7 and UWB technology redefining the industry. Yole also expects the piezoMEMS market to reach about $6 billion by 2030 at a CAGR of 6%.

Security

IBM and Palo Alto Networks published the results of a cybersecurity survey, with many organizations agreeing that better integration across security, hybrid cloud, AI and other technology platforms is needed.

Georgia Tech and Ruhr University Bochum researchers discovered two side-channel vulnerabilities on Apple CPUs, called Data Speculation Attacks via Load Address Prediction on Apple Silicon (SLAP) and Breaking the Apple M3 CPU via False Load Output Predictions (FLOP).

Recent security research:

• Protecting Analog Circuits Using Switch Mode Time Domain Locking (Northeastern University)
• Abnormality Detection Using Power Rising and Descending Signature (Southern Illinois University Carbondale)
• Reliability Attacks on Filtered Arbiter PUFs: A Critical Security Vulnerability (Western Washington University)

Portland-based Eclypsium raised $45 million towards its goal of securing AI-compute hardware and devices against nation state-sponsored supply chain attacks.

Abnormal Security reported on how cybercriminals use an uncensored model, GhostGPT, for malware creation, BEC scams, and more.

The Cybersecurity and Infrastructure Security Agency (CISA) issued a number of alerts/advisories.

Product News

Synaptics signed a definitive licensing agreement with Broadcom that includes Wi-Fi 8, ultra-wideband, Wi-Fi 7, advanced Bluetooth, and next-gen GPS/GNSS for the IoT and Android ecosystem, accelerating its edge AI strategy.

Keysight unveiled a design and test solution for LPDDR6 memory in mobile, client computing, and AI applications. The solution includes measurement-based noise compensation technology and enables performance analysis focusing on speed optimization, power efficiency, and reliability testing.

Keysight and KD Inc. teamed up on a Transmitter Distortion Figure of Merit (TDFOM) measurement and signal analysis metric for validation of Multi-gigabit Optical Automotive Ethernet physical layer.

Lam Research announced its Aether dry photoresist is now the production tool of record for a leading memory maker’s most advanced DRAM nodes. The technology improves EUV lithography resolution, reduces defects, and lowers chemical and energy use.

Siemens and SPX FLOW are collaborating on digital twin technology at an MxD (Manufacturing x Digital) center in Chicago, aimed at advances in food and beverage, chemicals, batteries, and more.

TeraSignal demonstrated interoperability between its intelligent chip-to-module interconnect and Synopsys’ 112G Ethernet PHY IP.

Flexcompute debuted a photonic IC design automation platform that integrates design, optimization, simulation, and fabrication-ready layouts.

Singular Photonics emerged from stealth to offer image sensors based on single photon avalanche diodes (SPADs).

Wave Photonics introduced a silicon nitride fabrication process and PDK designed for quantum photonics and emitters.

Kioxia open-sourced an “approximate nearest neighbor” search (ANNS) algorithm optimized for SSDs that enables retrieval-augmented generation (RAG) without placing index data in DRAM.

Xanadu built a photonic quantum computer with 12 qubits across four modular server racks networked together.

Auto and Space

IoT Tribe and Siemens launched the Flywheel Program to support early-stage startups developing agentic AI and advanced technologies for the aerospace and defence sectors. Startups will gain access to Siemens’ engineering expertise, global networks, and digital infrastructure. Applications are now open.

Infineon:

• Announced its rad-hard 512 Mbit QSPI NOR Flash memory for space and extreme environment applications received QML-V and QML-P qualification of the Defense Logistics Agency Land and Maritime.
• Introduced new isolated gate driver ICs for EVs designed for the latest IGBT and SiC technologies. The devices are AEC-qualified and ISO 26262-compliant, and they are targeted at traction inverters in xEV platforms.
• FORVIA HELLA selected Infineon’s CoolSiC Automotive MOSFET 1,200 V for its next-gen 800 V DC-DC charging

Volvo signed a purchase agreement for Northvolt’s shares in their green battery JV, NOVO Energy. Volvo now has full ownership.

Mangrove Lithium secured $35 million in financing to construct a lithium refining plant in British Columbia, Canada, for EV batteries.

Duke University scientists used Oak Ridge National Laboratory neutrons to show lithium flow could boost performance in solid-state batteries.

Research

IBM Research highlighted work on analog in-memory computing, including a 3D architecture for large models and phase-change memory for compact edge-sized models.

CEA-Leti detailed new approaches to improve chemical detection, high-speed communication, and lidar performance using integrated optics on silicon. 

Imec CEO Luc Van den hove offered perspectives for 2025 on topics including chips, quantum computing, photonics, and the use of 2D materials.

Events and Further Reading

Find upcoming chip industry events here, including:

Upcoming webinars are here.

Semiconductor Engineering’s latest newsletters:

Automotive, Security and Pervasive Computing
Systems and Design
Low Power-High Performance
Test, Measurement and Analytics
Manufacturing, Packaging and Materials