Semicon Briefing

Washington is considering forcing the Netherlands via bipartisan Match Act to completely prohibit ASML from selling and servicing DUV lithography machines to China – a country-level ban instead of previous company-specific individual regulations. If implemented, China's chip manufacturing would be cut off across the board, as DUV tools for mature nodes (28–90 nm) are the backbone technology of Chinese fabs like SMIC.

TSMC and Samsung have officially confirmed they will deploy ASML's High-NA EUV (0.55 NA) starting at the 1nm node – earliest around 2030 – and are instead relying on multi-patterning workarounds. Intel is thus the only major customer for the 165-ton machines in the production phase, which temporarily upgrades Intel's fab strategy but significantly slows ASML's High-NA rollout.

Qualcomm, previously almost exclusively a TSMC customer, is reportedly considering Samsung's 2nm process (SF2) for future high-end chips and would thus secure additional contract volume for Samsung's Taylor Fab. This diversification signals that Samsung's 15% price increase does not drive away customers but positions the fab as a more serious alternative to TSMC.

Samsung reportedly holds 167 trillion won (~$120 billion USD) net cash and faces the strategic decision of directing these funds toward higher dividends/share buybacks or toward semiconductor and new business investments. The debate intensifies given competitive pressure from TSMC and pressure from activist investors.

NXP Semiconductors is reportedly in active negotiations to acquire AI edge-chip specialist Ambarella, according to FT report from July 31 – the stock jumped 19% in one session as a result. A completion would significantly strengthen NXP's automotive AI portfolio and underscore consolidation pressure in the European-American chip midcap segment.

Apple is evaluating memory chips from Chinese manufacturer CXMT as a potential supply alternative for iPhone and MacBook – a sensitive move given US export controls that restrict technological collaboration. Polymarket puts the probability of actual Apple-CXMT purchase in 2026 at only 35%, but the test announcement alone increases geopolitical pressure on Washington and underscores the AI supply crunch in memory.