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China’s AI chip ambitions crushed as US forces Samsung, TSMC to cut ties
US crushes China’s AI chip ambitions by limiting Samsung, TSMC
- Samsung and TSMC are blocked from supplying 7nm and below AI chips to Chinese firms.
- The US move disrupts the global chip supply, with Taiwan’s key role at risk.
- Samsung is also impacted by US regulations, limiting its ability to provide advanced chip manufacturing to Chinese clients.
TSMC banned AI chip supply to its Chinese clients following US orders. Now, a report suggests that Samsung is also subject to US restrictions, limiting the Foundry Division from supplying 7nm and below AI chips to Chinese firms.
The US-based Intel is also said to be complying with US regulations. Currently, only TSMC, Samsung, and Intel can provide foundry services for chips at 7nm or below. That said, China’s efforts to develop advanced AI chips will be fully blocked.
As all three major foundry players are now restricted, Alibaba’s AI chip design subsidiary, Pingtouge, could hit hard. China’s SMIC claims to have 7nm production capability, but it lacks the economic scale and efficiency to compete.
It’s worth noting that Chinese firms face setbacks in developing AI chips. The vendors will increasingly need to rely on NVIDIA and AMD for downgraded products, which meet US regulations.
The fresh US restrictions initially came to light from a notice TSMC issued last week. The chip manufacturer announced that it would suspend supply of 7nm and below technologies to all Chinese AI clients starting November 11.
Later on, the US Department of Commerce officially notified TSMC about the 7nm restrictions. Last week, TSMC highlighted that “as a law-abiding company, it is committed to complying with all applicable laws and regulations,” including export control laws.
Samsung Foundry Division also notified its Chinese clients. The company’s semiconductor decision is already in crisis. The latest US restrictions vanish the remaining growth aspect that the Foundry has been securing from its Chinese clients.
Via – TrendForce
Samsung made a strong return in the worldwide foldable market in the third quarter of the year. IDC reports that the global foldable smartphone market had a sharp shakeup during the July-September period this year.
The company faced intense competition from Chinese brands in the first half of 2024. However, its aggressive strategy and innovative devices such as the Galaxy Z Fold 6 and Z Flip 6 have pushed it back to the forefront once again.
IDC highlights that the foldable market grew by 23.6% during the third quarter. It shows the gradually increasing shift toward the new form factor. Huawei recently launched the world’s first tri-fold phone which has two foldable screens.
In particular, Samsung’s share in the foldable market rose from 14.8% in Q2 to 51.2% in Q3. This impressive performance is a testament to the success of their latest foldable handsets and targetted marketing strategies.
IDC report on 3Q24 Foldable Smartphone Market
Xiaomi, Honor, Huawei, and Motorola continue to be formidable players, collectively holding a 48.8% market share in the quarter ended on September 30. Among them, Samsung foldables are only available in the mass market.
Samsung working on its tri-fold phone. Recently, the US patent authority published a Samsung patent, revealing its plans for new form factors. The company may launch rollable and tri-fold display smartphones in the future.
Galaxy Z Fold Special Edition
Samsung launched a slimmer and larger foldable phone – Galaxy Z Fold Special Edition – in South Korea and China. The initial three stocks in Korea and the first in China sold out within minutes after the opening of the sale.
It is expected that the next Galaxy Z Fold, which will launch in 2025, will be inspired by the Galaxy Z Fold Special Edition’s design and specifications. A durable hinge and display will likely debut alongside a powerful camera setup.
Samsung could launch Galaxy S25 Slim alongside the S25 series next year. Recently, the launch date of the Galaxy S25 series has been allegedly revealed. The report also indicates that the S25 Slim’s official unveiling could also happen at the same time.
According to FNNews, Galaxy S25 Slim could launch at Samsung Unpacked 2025 alongside the S25 series. With the S24 series earlier this year, Samsung shared a sneak peek at the Galaxy Ring, which went on sale in July this year.
The next big product could be a sleek smartphone. We’ve heard April 2025 is the Galaxy S25 Slim launch timeframe. The revelation of the S25 Slim is worth looking at as it could bring potential Galaxy S26 series design changes.
Samsung is making sure the development of the Slim model to completed sooner. If the development and testing conclude early, the S25 Slim may come out alongside the Galaxy S25 series in January 2025 itself.
The Korean tech giant aiming for an early launch to gain an advantage in the thickness competition with Apple. The iPhone maker is also reportedly working on a thinner model, which could be marked as the iPhone Air next year.
Pay attention, the S25 Slim will be as powerful as the S25 flagship. The only difference could be in thickness, which is yet to be known. Meanwhile, the report suggests that the S25 Slim could measure less than 7.6mm thickness.
The slim model has the same performance as the Galaxy S25 but is thinner and more convenient. The specific thickness has not been disclosed yet, but it is likely to be thinner than the vanilla Galaxy S24 (7.6mm).
Samsung started mass production of Exynos 2500 using its cutting edge 3nm process node, Seoul Economic Daily reports. While the production commenced as an unexpected development, the chip won’t power the Galaxy flagship that you think.
According to the report (via Jukanlosreve), Samsung Foundry recently kicked off Exynos 2500 AP’s mass production using wafers at the Hwaseong S3 facility with 3nm process tech. The processor is expected to be featured in the Galaxy Z Flip 7 next year.
Last year, Samsung announced the Exynos 2500 will be made using a 3nm process node. It was anticipated to power the Galaxy S25 series. However, the low yield rate led the company to push the commercialization to the Z Flip 7.
This development could provide both expanded use of the chip, valuable mass production experience, and increased revenue. It could also serve as a stepping stone for the 2nm products scheduled for mass production next year.
Fabricating flagship SoCs usually takes about 5 to 6 months. That said, the timeframe aligns with the tentative Galaxy Z Flip 7 debut in July next year. The MX Division reportedly planned to ship 3.9 million units of the Z Flip 7 and Z Flip FE next year.
An industry insider stated, “This suggests that the MX division has concluded that the Exynos 2500’s performance is suitable for the new smartphone and has placed an order with the DS division.”
It’s a bold move by Samsung that could provide a lifeline to the Device Solutions Division. The company’s semiconductor business has been struggling in the recent past, particularly in the foundry and system LSI business units.
Although mass production of the AP has started, it is reported that yields are currently unstable, hovering around 20%. The lower yield rate harmed Samsung much as it left out winning clients for 3nm product manufacturing this year.