2024-02-22 08:34:13
industry
Entered 2024.02.22 17:34 Modified 2024.02.22 18:01 Paper A2
One year of global ‘generative AI revolution’
(4) Speed of US semiconductor nationalismU.S. “Let’s regain semiconductor hegemony”… Is there a second chips law?
Commerce Secretary Lemondo targets Korea and Taiwan
“Silicon must be returned to Silicon Valley”
Open AI CEO Sam Altman (right) talks with Intel CEO Pat Gelsinger at a fireside chat at ‘Intel Foundry Services 2024’ held at the San Jose Convention Center on the 21st (local time). We are discussing ways to procure artificial intelligence (AI) semiconductors. /AP Yonhap News “Let’s return silicon (semiconductors) to Silicon Valley (the birthplace of America’s semiconductor industry).”
U.S. Secretary of Commerce Gina Lemondo, the U.S. commander in the ‘semiconductor hegemony war’, said on the 21st (local time), “The United States must take the lead in semiconductors that has been taken over by Taiwan and Korea.” This was at the ‘Intel Foundry Service (IFS) 2024’ forum held in San Jose, USA on this day. Intel CEO Pat Gelsinger responded by saying, “We will increase America’s semiconductor manufacturing share from 20% to 50%.” Whistle and applause poured out at the event venue. The U.S. government is blatantly pursuing its ‘Semiconductor America First’ policy. It appears that semiconductors, whose demand is rapidly increasing in the era of artificial intelligence (AI), have in fact been made into ‘strategic materials.’ Minister Lemondo emphasized, “In order for the United States to lead the world’s semiconductor industry, we will continue to support (companies building factories in the United States) whether it is the ‘Second Semiconductor Support Act’ or anything else.” The U.S. government is enforcing the Semiconductor Support Act, which provides subsidies and tax benefits worth $52.7 billion (regarding 70 trillion won) to companies building semiconductor factories in the United States.
An atmosphere of ‘push’ between American companies can also be sensed. Microsoft (MS) announced today that it will entrust the production of AI chips under development to Intel Foundry. The quantity is estimated to be $5 billion, which is Intel’s largest ever order amount.
As the AI semiconductor market grows rapidly, each country’s semiconductor hegemony is expected to become even stronger. NVIDIA, the world’s No. 1 AI semiconductor company, announced on this day that it recorded sales of $22.1 billion and operating profit of $13.6 billion in the last quarter (November 2023 to January 2024). It ranks first among semiconductor companies in the world. CEO Jensen Huang said, “There has been a ‘tipping point’ in generative AI.”
MS entrusted 5 billion won worth of chips to ‘newbie’ Intel… US semiconductor cartel begins
MS Natella makes a surprise appearance at Intel event… 5 billion won order for 1.8 nano foundry
‘Intel Foundry Service (IFS) 2024’ was held at the San Jose Convention Center in the United States on the 21st (local time). A familiar face appeared on the large screen set up at the event venue. The main character is Satya Nadella, CEO of Microsoft (MS).
Intel CEO Pat Gelsinger summoned the company via video conference while announcing a strategy to strengthen its foundry (semiconductor consignment production) business. What was truly surprising was not the appearance of CEO Nadella, but the words that came out of his mouth. He said, “We have become a customer of Intel’s 1.8 nanometer (㎚·1㎚=1 billionth of a meter) foundry process.” The estimated contract value is $5 billion (regarding 6.6 trillion won). At the event where over 1,000 people from the semiconductor industry gathered to announce the unexpectedly large contract, silence fell for a moment.
○ Spread of U.S. semiconductor hegemony
Gina Lemondo, U.S. Secretary of Commerce. It is reported that MS will produce its self-developed artificial intelligence (AI) semiconductor ‘Maia’ through Intel’s 1.8nm foundry process starting at the end of this year. Maia is a cutting-edge semiconductor that Microsoft, which is operating servers for generative AI services, is preparing to reduce its dependence on Nvidia’s AI accelerator.
CEO Nadella cited ‘ability’ as the reason for choosing Intel. He said, “I chose Intel to receive a stable supply of the most advanced, high-performance and high-quality semiconductors.” This means that they believed in the potential of Intel, which was called the ‘semiconductor empire’ as the world’s No. 1 central processing unit (CPU) company. There are quite a few people who are offended by CEO Nadella’s announcement. When looking at foundries alone, Intel is a latecomer with a 1% market share and 4 years of experience. This is why people in the semiconductor industry say, “Aren’t American companies pushing each other?”
The atmosphere at the event that day was reminiscent of the American Republican National Convention. This is because it exudes the scent of ‘America First’. That started with CEO Gelsinger. As the first speaker, he displayed a map on the screen showing ‘Semiconductor production share: 80% in Asia, 20% in the U.S. and Europe’ and said, “We need to change it to 50% to 50% within 10 years.” U.S. Secretary of Commerce Gina Lermondo (small photo), who appeared in the video along with CEO Gelsinger’s introduction as a ‘close friend and partner,’ shouted, “Make American semiconductors great.” The legitimacy of semiconductor hegemony was emphasized by putting AI semiconductors at the forefront. He said, “All chips cannot be made in the United States, but we must have leadership in chips that will lead the AI era. Just as the United States produced 40% of the world’s semiconductors in the past, the United States must lead global semiconductor production.”
○ “Overtake Samsung in foundry by 2030”
Intel said it would take the foundry leadership that had passed to Asia. To this end, it was declared that mass production of the 1.8nm process will begin by the end of the year. If this happens, it will be ahead of Samsung Electronics and Taiwan’s TSMC, which are planning to introduce the 2nm process in 2025. CEO Gelsinger said, “We will regain TSMC’s leadership through foundry services specialized in AI semiconductors.” The AI semiconductor market is expected to grow to 200 trillion won by 2030.
Domestic semiconductor companies such as Samsung Electronics and SK Hynix are paying close attention to the movements of the U.S. government and Intel. This is because if an ‘anti-Asian semiconductor alliance’ is formed in the United States and the European Union (EU), the business may be affected. There may also be difficulties in negotiating the Semiconductor Support Act with the U.S. government right now. Samsung Electronics is investing $17 billion to build a state-of-the-art foundry factory in Taylor, Texas, but is having trouble receiving an answer regarding the size of the subsidy. On this day, Intel’s senior management called TSMC “a great competitor and partner,” but did not mention Samsung Electronics. Instead, he expressed his intention to overtake Samsung, saying, “We will become the world’s second largest foundry company by 2030.” On this day, Intel showed off its power by calling on the highest level of American and European semiconductor companies such as Synopsis, Cadence, Siemens, and ARM.
San Jose = Reporter Hwang Jeong-su/Correspondent Choi Jin-seok [email protected]
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