Chip Price Wars Unfold

To ensure the maximum utilization of their fabs today and in the future, Chinese chipmakers have already started cutting tape-out prices to retain existing customers and attract business from Taiwanese IC design companies, reports IJIWEI (via TrendForce). This trend comes as China is expanding its mature node production dramatically as it appears to plan to flood the market with chips to push out competitors. Chinese contract chipmakers have yet to increase their output considerably, but gaining customers will be important as it increases production throughout the coming quarters.


Mainland China-based SMIC, Hua Hong Semiconductor, and Nexchip reduced their tape-out service prices last year for Taiwanese chip design companies to secure orders for new capacity. As a result, some customers of GlobalFoundries, PSMC, Samsung Foundry, and UMC canceled their orders with their regular production partners as they geared up to move them to Mainland China's wafer fabs, according to the report.  READ MORE...

US China Chip War

The US is rapidly ramping up efforts to try to hobble China's progress in the semiconductor industry - vital for everything from smartphones to weapons of war.

In October, Washington announced some of the broadest export controls yet - requiring licences for companies exporting chips to China using US tools or software, no matter where they're made in the world.

Washington's measures also prevent US citizens and green card holders from working for certain Chinese chip companies. Green card holders are US permanent residents who have the right to work in the country.

It is cutting off a key pipeline of American talent to China which will affect the development of high-end semiconductors.

Why is the US doing this?

Advanced chips are used to power supercomputers, artificial intelligence and military hardware.

The US says China's use of the technology poses a threat to its own national security.

Alan Estevez, undersecretary at the US Commerce Department announced the rules, saying his intention was to ensure the US was doing everything it could to prevent "sensitive technologies with military applications" from being acquired by China.

"The threat environment is always changing and we are updating our policies today to make sure we're addressing the challenges," he said.

Meanwhile, China has called the controls "technology terrorism".

Countries in Asia that produce chips - such as Taiwan, Singapore and South Korea - have raised concerns about how this bitter battle is affecting the global supply chain.

And there were three significant developments in the chip conflict over the past week.  READ MORE...

A Semiconductor Better Than Silicon

MIT researchers say cubic boron arsenide is the best semiconductor material ever found, and 

maybe the best possible one. Credit: Christine Daniloff, MIT

Researchers from MIT and elsewhere have found a material that can perform much better than silicon. The next step is finding practical and economic ways to manufacture it.

Silicon is one of the most plentiful elements on Earth, and in its pure form, the semiconductor material has become the foundation of much of modern technology, including microelectronic computer chips and solar cells. However, silicon’s properties as a semiconductor are actually far from ideal.

One reason is that although silicon allows electrons to readily flow through its structure, it is much less accommodating to “holes” — electrons’ positively charged counterparts —and harnessing both is crucial for particular types of devices. 

Furthermore, silicon does a poor job of transporting heat, which contributes to the frequent overheating problems and pricey cooling systems in computers.

Now, a team of scientists from MIT, the University of Houston, and other institutions has carried out experiments showing that a material called cubic boron arsenide overcomes both of these limitations. 

In addition to providing high mobility to both electrons and holes, it has excellent thermal conductivity. It is the best semiconductor material ever found, and maybe the best possible one, according to the researchers.

Cubic boron arsenide has so far only been made and tested in small, lab-scale batches that are not uniform. In fact, in order to test small regions within the material, the scientists had to use special methods originally developed by former MIT postdoc Bai Song. 

More work will be needed to determine whether cubic boron arsenide can be made in a practical, economical form, much less replace the ubiquitous silicon. But even in the near future, the researchers say, the material could find some uses where its unique properties would make a significant difference.  READ MORE...