Chip Industry Week In Review

Data centers

• UC Berkeley experts argue that AI progress does not require ever-larger data centers. Smaller open-source models are becoming capable enough for many tasks while using far less compute, energy, and water — and increasingly they could run on local HW.
• A 19-company coalition within the Open Compute Project unfurled a plan for a standardized silicon photonics-ready infrastructure for AI systems.
• Data-center network fabrics are undergoing another architectural shift as optical interconnects assume a larger role in AI-cluster connectivity. The push toward 1-megawatt racks is forcing fundamental changes in data center architecture, including cooling, power delivery, rack design, and 3D-IC packaging.
• CSIS recommends tying data center incentives to measurable community benefits, prioritizing brownfields and existing industrial or federal sites, and locating new compute capacity near universities, national labs and advanced-manufacturing hubs.
• CPO is taking off as AI data centers leverage every possible option for improving performance and reducing power, but keeping pace with demand is a challenge as CPO shifts from lab instrumentation to production ATEs on a factory floor.

Capacity

• ASE’s subsidiary SPIL broke ground on a nearly US$3.1B advanced packaging and test plant in Douliu, Taiwan. The 6-hectare facility is expected to add CoWoS capacity for AI chips, with first-phase production targeted for 2028 and more than 2,200 jobs planned at full buildout.
• Lam Research will spend $3B over 5 years to expand its R&D lab network, increasing its experiment capacity by more than 50%.
• China is rapidly gaining ground across the semiconductor supply chain, with legacy-chip capacity projected to approach half of global output by 2030 and domestic equipment makers expanding even as access to leading-edge AI chips remains constrained, predicts Rhodium Group.

Notable deals

• Lam Research and NY Creates are partnering to train about 3,500 university students in semiconductor process integration over the next five years. The program will deploy Lam Reserach’s SEMulator3D virtual fabrication software across colleges and universities in NY Creates’ Northeast workforce-development network.
• Sony Semiconductor and TSMC inked a deal on their next-gen image sensor joint venture in Japan. Sony will contribute about ¥465B (~$2.9B) and control the venture, while TSMC will contribute about ¥282B (~$1.8B). The Kumamoto operation is expected to begin volume production of smartphone image sensors in 2029. Required regulatory approvals are still pending.
• Nvidia’s new plan to mobilize $500B in 3rd party capital for AI infrastructure is getting mixed reviews. Some say it can extend the AI spending cycle with outside investors bearing most of the risk. Others question whether depreciating GPUs can be long-term infrastructure assets.
• Quantinuum and Oracle partnered to accelerate the adoption of hybrid quantum compute, with Oracle customers able to combine its graphics-processing and HPC services with access to Quantinuum’s 98-qubit Helios quantum computer at an Oracle cloud facility.
• Quanta and Quantinuum struck a deal to jointly develop hardware infrastructure for future quantum computers.

Memory

• Counterpoint says enterprise SSDs accounted for 48% of global NAND bits shipped in Q2, versus 26% a year ago, and YMTC moved into third place in NAND shipments with a 14% share.
• HBM has become a proving ground for 3D stack testing, DFT, and reliability.
• Kearney says the memory makers are deliberately limiting NAND investment and instead prioritizing higher-return HBM and DRAM, prolonging tight NAND supply.
• Kioxia and Sandisk released high-performance 2 Tb QLC 3D flash memory, featuring a CMOS directly Bonded to Array (CBA) architecture, improving performance without requiring a new NAND cell stack.
• SK hynix is restarting investment in its second Dalian Chinese NAND fab, reports Seoul Economic Daily.

Big bucks

• Intel raised $20B in an upsized base stock offering. “With this additional capital, Intel is now well positioned to meet the tremendous growth opportunity ahead of us in advanced node wafer manufacturing, advanced packaging, and the massive CPU demand,” said Intel CEO Lip-Bu Tan.
• Point2 Technology extended its Series B to a total of $136M, with participation from Arm, for its RF‑based interconnect solutions for AI data‑center infrastructure.
• The South Korean government is creating a ~$3.5B semiconductor fund targeting promising materials, components, equipment, and fabless companies, alongside $3.5B in trade financing for export-oriented suppliers and a $700M 10-year program supporting joint chip development, validation, and production by a variety of semiconductor companies.

Advancements

• KAIST developed a “programmable dynamic memtransistor, featuring a dual-functional gate stack that enables HW-level control of dynamic behavior without constant biasing or input preprocessing.” The researchers claim reduced prediction errors by up to 40-fold versus conventional devices.
• A team from NYCU, TSMC and others developed an ultrathin epitaxial aluminum-oxide interface for monolayer MoS₂ transistors, improving gate control while avoiding the mobility losses that have limited 2D devices for future transistor scaling.
• QuTech and TU Delft researchers demonstrated a flip-chip architecture that integrates superconducting qubits using electroplated indium bump bonds, achieving quality factors around 10⁶ and showing a potential path toward scalable 3D quantum-chip integration.

Financials, earnings

• Applied Materials, Ambiq, Cerebras, Coherent, Lumentum, QCi, SMIC, Supermicro, TSMC (July revenue).
• Of particular note, Applied Materials expects revenue from its advanced-packaging equipment business to grow more than 70% in 2026, driven by investment in HBM and 3D chiplet stacking.

Patent infringement

• Navitas Semiconductor filed a patent infringement lawsuit against Renesas Electronics, alleging that Renesas’ GaN products, including its SuperGaN power semiconductors, infringe four Navitas patents.
• Seoul Semiconductor and affiliate Seoul Viosys won a permanent injunction from the Delhi High Court barring Ornate Agencies from selling products that infringe Seoul’s opto-semiconductor patents.

Quick links to more news:

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

Global

Americas

• Siemens plans to invest more than $200M in new manufacturing capacity in Georgia and Texas to expand production of electrical infrastructure for data centers, semiconductor fabs, and other industrial markets.
• Indium opened a new manufacturing facility in Guadalajara, Mexico to expand production for electronics and semiconductor customers in the Americas.
• UC Berkeley will join Applied Materials’ EPIC Center in Silicon Valley as a research partner.

Asia

• NXP broke ground on its assembly and test site in Malaysia.
• South Korea plans to complete relocation and temporary dispersal of military facilities at the Gwangju Air Base by the second half of 2028, clearing the site for a new semiconductor industrial complex.

Reports and Deals

More deals, launches

• Onto Innovation completed its acquisition of a 27% stake in Rigaku for approximately $720M, deepening a partnership announced in April to develop X-ray-based process control technologies for semiconductor manufacturing.
• Semtech is selling its cellular IoT module business to Compal for $62M so it can focus on data center and LoRa connectivity.

Fundings

• Soctera raised $4M to develop its power amplifiers for mil/aero, halving thermal resistance and reducing GaN content by co-optimizing the semiconductor stack electrically and thermally.
• Discovered Materials launched with $9M to build AI agents that discover new materials for semiconductor chips.

Reports, opinions

• Nvidia’s great silicon showdown (Economist)
• Bans on Chinese open-source models will backfire (CEPA)
• China Presses a Weakness in America’s Tech Policy (Hudson)
• The Future is for Everyone: The Path to a Positive AI Future (Meta)
• AI is starving NAND capacity — and why relief is no closer than it is for DRAM (Kearney)
• Why Wall Street and Nvidia Are Building an Exotic Money Pipeline for the AI Boom (WSJ)

New Technologies

Design

• Vertical integration is becoming more common, but software iteration time is now much faster than hardware, making co-design a catch-up game for hardware. New tools are being developed to improve this situation.
• Movellus’ Aeonic on-die telemetry, clock IP, and droop response systems are available through the Samsung Advanced Foundry Ecosystem for advanced nodes.
• Google joined the OpenROAD Initiative aimed at open-source silicon innovation.
• Samsung adopted Anthropic‘s Claude Code and significantly shortened timelines for functional verification of customized SoCs and for early-stage software development for semiconductor projects, according to ChosunBiz.
• Microsoft will reportedly unveil its new Maia 300 accelerator in September, but TSMC capacity may be a hurdle, per the Information via Reuters.

AI data centers

• OpenLight’s photonic PDK is available for Tower‘s PH18DA InP-on-Si photonics platform in Cadence’s EDA tools, for applications such as optical interconnects, AI infrastructure, and sensing.
• Sivers Semiconductors and SemiNex announced a $3.4M program for high-power, multi-wavelength InP light sources needed for CPO and emerging scale-up and scale-out architectures.
• The Open Compute Project is collaborating with Google, Microsoft, and Nvidia to establish 800V DC as the open, standardized power architecture for AI data centers, accelerating the industry transition to LVDC (low-voltage DC).

Research

LBNL researchers demonstrated ferroelectric behavior in ultra-thin titanium dioxide (TiO₂) films, a material that normally behaves as a conventional dielectric. Because ferroelectric materials can switch at lower voltages, the discovery could provide a new materials path for reducing power consumption in future logic and memory devices while remaining compatible with silicon-based semiconductor manufacturing.

An Argonne-led team found that changing the geometric arrangement of nanomagnets can tune whether they settle into predictable or probabilistic states, offering potential ultra-low power logic and AI hardware applications.

Purdue researchers demonstrated 200mm wafer-scale M3D integration of atomic-layer-deposited indium-oxide semiconductors, fabricating more than 100,000 devices across three vertically integrated tiers.

Washington State and UW-Madison researchers created an AI-based power-delivery optimization method for 2.5D chiplet systems that predicts voltage droop on individual chiplets and adjusts operation before violations occur.

Even more technical papers:

• Threshold Voltage Modulation in HEMTs (NaMLab)
• Soft and stretchable transistor-based biosensors (Stanford)
• MoS₂ top-gate transistors using epitaxial interface engineering (NYCU, TSMC)
• Degree-of-polarization modulation for high-dimensional optical computing (Sapienza)
• Sovereign control, decarbonization & energy costs shape public support for data centers (Georgetown)
• High-Density Chiplet Integration using Face-Down COW Processes with Bumpless Interconnects for Heterogeneous 3D Systems (Science Tokyo)

Security

Attacks, vulnerabilities

• Taiwanese officials said an “unprecedented” AI-assisted attack compromised at least 85 government accounts and stole more than 2,500 personnel records after autonomous agents mapped 21 government systems, the Financial Times and the Dream Group reported.
• UCSD and Oberlin researchers developed a coin-sized hardware implant that, once physically installed in an externally accessible Boeing 737 port, can inject commands into the aircraft’s avionics network and potentially alter its autopilot flight plan, with remote control possible over Wi-Fi.
• Birmingham experts show how SIM cards can hijack smartphones, EV chargers, and other connected devices.
• Delta Air is investigating an incident where an “evil twin” hoax WiFi network appeared to passengers on board a flight to Atlanta. Attackers did not compromise any of the plane’s flight safety systems, company and FAA officials told the media.
• AI security startup CloudSEK said it has identified more than 2,500 organizations potentially exposed by an AI supply chain attack earlier this year involving LiteLLM, an open-source AI gateway tool.
• CISA issued new guidance on countering attacks from the Gunra ransomware-as-a-service variant, alongside several other national security agencies in the U.S. and South Korea. CISA’s alerts for the week are here.

Cybersecurity programs, releases

• BTQ and ITRI validated the QCIM PQC architecture and core IP in a hardware design environment, an early step toward implementing NIST-standardized post-quantum algorithms in CIM hardware.
• NIST is seeking feedback on modernizing the National Vulnerability Database with AI-enabled automation, including its new V-etalon tool for enriching vulnerability data and updates to better represent hardware vulnerabilities.
• OpenAI expanded its Daybreak cybersecurity partnership program, giving more organizations access to the company’s cyber-focused frontier models.
• DEF CON Franklin and the National Rural Water Association have partnered to develop a new program providing cybersecurity services to municipal water systems, on the heels of a series of Iran-linked cyber-attacks on local U.S. water systems.
• Hospital leaders in the U.S. have formed the Health AI Cybersecurity Work Group to develop industry-wide frameworks for defending against frontier AI cyber attacks.

New security research

New hardware-related security research from this week’s USENIX Security Symposium in Baltimore is now available, including:

Vehicles, Batteries

New technologies

• TIER IV will develop an open-source AI accelerator for Level 4 autonomous driving under a Japan’s JST program, including the chip architecture, compiler and toolchain for safer, lower-power edge AI.
• Kinetic Technologies announced the KTS1642Q, an AEC-Q100 qualified automotive load switch. The switch is designed to help automotive electronic systems withstand the demanding electrical conditions defined by ISO 16750-2 and ISO 7637-2.
• LX Semicon has started mass production for the LX61101, an automotive MCU for Hyundai and Kia vehicles. The product will be the first South Korean-produced MCU for either carmaker.
• Lockheed Martin unveiled a new 5G and AI-powered drone detection system it developed in partnership with Keysight and others.
• TrendForce says all-solid-state batteries have moved beyond lab proof-of-concept toward TRL 5–6, with Toyota, Honda, Nissan and Samsung SDI among companies ahead in pilot production.

Auto deals and funding

• The UK government has committed £65M in investment, with equal industry matching, to support advanced AV and EV technology development in the country.
• Archer signed a definitive agreement with Boeing to acquire its Wisk Aero, Insitu and SkyGrid subsidiaries through a new strategic investment partnership. The autonomous-flying shake-up will also yield Boeing a large stake in Archer going forward.
• The White House announced more than $3B in federal funding for a slew of domestic mineral mining and lithium-ion battery projects. The funding includes a conditional $1.4B loan to California battery-maker Sila Nanotechnologies.
• A new California state program offering $3,500 rebates for first-time EV buyers opened up, with consumers exhausting the allotment carved out for Tesla vehicles in just five days.

Vehicle technical papers

• Framework for Securing Automotive ECUs (Michigan Tech, et al)
• VLM-Guided Sensor Fusion for Robust Autonomous Driving (UC Irvine)
• Object Detection Utilizing Micro-Doppler Signatures in Automotive Radar
• Beyond-Visual-Line-of-Sight Drones Operation over Open RAN 5G (i2CAT)
• Learning-Based Behavior Planning for Automated Driving (RWTH et al.)

Trending Video

Improving Yield Through Shared Data: Increasing complexity due to advanced packaging, multi-die assemblies, and more devices under test is having an impact on yield, which in turn slows time to market and impacts overall chip costs. What’s needed is a way to share data that previously was siloed by chipmakers, fabs, and OSATs. Jayant D’Souza at Siemens EDA talks about the underlying drivers for sharing data, how it can be done securely, and why this is suddenly getting so much attention.

Quantum

Pasqal and Aeponyx generated four optical traps through a single PIC and used them to hold four individual rubidium atoms, a step toward replacing bulky free-space optics with scalable chip-based photonics for neutral-atom quantum computers.

TU Delft and ICN2 researchers integrated a high-field superconducting material with a buried Ge/SiGe quantum well using a lithography-compatible process that preserved high carrier mobility after a 500°C anneal. The approach could support tighter integration of superconducting and semiconductor devices for scalable quantum HW.

Workforce, Education

DHS is proposing an end to the 60-day grace period for laid-off H-1B workers.

U. of Michigan and LANL researchers will develop AI agents that automate HW-SW co-design, with the goal of accelerating development of specialized chips and computing systems for scientific workloads under a new DOE award.

Mahindra U. launched a  semiconductor HackerFab in India to give students hands-on experience building fabrication equipment including maskless lithography, sputtering, spin-coating and furnace systems.

Vietnam launched an ambitious national AI workforce initiative targeting 10 million workers trained in basic AI skills by 2030.

Events and Webinars

Upcoming webinars are here, including:

• Accelerate CPO Design w/Multiphysics Tools, Aug. 18 (India)
• How Modern Workloads are Driving Infrastructure Disaggregation, Aug. 18
• Mastering Layout Parasitics: Faster Analysis and Debug, Aug. 20
• Cadence Managed Cloud Service on AWS, Aug. 25
• Upgrading legacy products to USB-C, Aug. 26
• Advanced Packaging at Scale: Power, Performance, and Reliability in the Chiplet Era, Aug. 26

Find upcoming chip industry events here, including:

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