Latest news with #TSMC
ArabGT
2 hours ago
- Automotive
- ArabGT
Tesla Partners with Samsung in $16.5 Billion Semiconductor Deal
In a move that could define the next era of autonomous driving, Tesla has signed a game-changing $16.5 billion deal with Samsung Electronics to supply the next generation of semiconductor chips. These aren't just any chips—they're the brains behind Tesla's future self-driving systems, and they'll be built at Samsung's new facility in Taylor, Texas. For Samsung, this is more than a contract—it's a second chance. The company's chip foundry business has struggled to keep up with competitors like TSMC, and its Texas factory has been operating without major clients for months. That changes now. After the deal was announced, Samsung's shares jumped nearly 7%. Tesla's also saw a healthy bump in premarket trading. Why This Factory—and Why Now? Elon Musk took to X (formerly Twitter) to explain that the factory's location near his home in Texas makes it easier for him to keep a close eye on operations. He even said he plans to personally walk the production line to speed things up. Musk hinted that the $16.5 billion figure is just the beginning—suggesting production might scale much higher. Until now, Samsung's Taylor plant was underutilized. Equipment from ASML sat idle as orders failed to materialize. Tesla's involvement gives the site a clear direction and a high-stakes mission: deliver the AI6 chips that will power the most advanced version of Tesla's Full Self-Driving technology. Following the Roadmap: AI4, AI5, and Now AI6 Samsung currently produces Tesla's AI4 chips, which are used in its existing FSD systems. AI5 chips—scheduled to launch in late 2026—will be built by TSMC in Taiwan and eventually Arizona. The AI6 chips, set to follow in 2027 or 2028, represent Tesla's next leap in autonomous hardware. For Samsung, this is a critical part of Chairman Jay Y. Lee's strategy to diversify beyond memory chips and build a serious presence in the custom chip manufacturing space. But it won't be easy. Samsung still holds only 8% of the global foundry market, compared to TSMC's dominant 67%, according to TrendForce. Behind the Curtain of a Billion-Dollar Partnership When Samsung first announced the deal, it kept the client anonymous. But industry insiders quickly confirmed Tesla's involvement. The agreement runs through 2033—a decade-long partnership that could shift the balance of power in high-performance chip manufacturing. The timing is crucial. Samsung is preparing to release its quarterly earnings, and the numbers haven't looked great lately. A projected 56% drop in operating profit and over $3.6 billion in foundry losses this year alone have investors nervous. Meanwhile, TSMC continues to rack up deals with the likes of Apple, Nvidia, and Qualcomm. That's why this Tesla deal matters. It's not just about production volume—it's about relevance. It's about whether Samsung can still compete in the race for AI-driven hardware. And for Tesla, it's a bold move to ensure its autonomy ambitions stay on track.
Business Wire
9 hours ago
- Business
- Business Wire
STARLUX Airlines Launches Phoenix's First Nonstop Flight to Asia Starting January 15, 2026
TAIPEI, Taiwan & PHOENIX--(BUSINESS WIRE)--On the heels of the recent inauguration of its fourth U.S. destination--Ontario, CA--Taiwan-based luxury carrier STARLUX Airlines today announced nonstop service from Phoenix, Arizona to Taipei, beginning January 15, 2026. This marks Phoenix's first nonstop connection to Asia, establishing a new transpacific link from the state of Arizona. Reservations for the new Phoenix–Taipei route are now open. Fueled by strong tourism and business demand—including accelerated growth in Phoenix's tech sector following TSMC's landmark investment—STARLUX is seizing this opportunity to expand its North American network and strengthen its hub network between Asia and North America. The Phoenix-Taipei route will be served by the new-generation Airbus A350, with three weekly flights at launch, increasing to four weekly flights starting March 2026. Full schedule details are outlined below: Note: Please refer to the STARLUX Airlines official website for the latest schedule and related information. 'We are honored to launch the first nonstop flight connecting Arizona and Asia,' said STARLUX CEO Glenn Chai. 'As the fifth largest city in the U.S., Phoenix presents tremendous potential for both business and leisure travel. From its rich tourism offerings to its emergence as a hub for innovation and technology, the city continues to attract global attention--especially with the influx of leading tech companies. TSMC's presence has further encouraged the development of surrounding industries and deepened the exchange between Taiwan and Phoenix. This new route will meet the growing travel demand between the two regions and reinforces STARLUX commitment to fostering meaningful connections across the Pacific.' "Phoenix's place as a premier American city is further cemented today with STARLUX Airline's new Phoenix to Taipei nonstop service now being available for purchase," Phoenix Mayor Kate Gallego said. "This a testament to our market's international business growth and Phoenix Sky Harbor being one of the most well-run airports in the world." For travelers across the Southwest, the new nonstop Phoenix–Taipei route eliminates lengthy layovers in Los Angeles or San Francisco, offering a more direct, comfortable connection to Asia. Whether traveling for business, leisure, or family visits, passengers can now enjoy a seamless long-haul experience aboard STARLUX's signature luxury service. For inbound travelers from Asia, Phoenix serves as a vibrant gateway to the American Southwest—renowned for its dramatic desert landscapes, year-round sunshine, and proximity to iconic destinations like the Grand Canyon, Antelope Canyon, and Horseshoe Bend. As a growing hub for innovation, culture, and hospitality, Phoenix offers an unforgettable blend of natural beauty and urban sophistication. STARLUX Airlines currently operates 10 weekly flights between Los Angeles and Taipei, alongside daily service connecting Taipei with both San Francisco and Seattle. For Ontario, California, STARLUX offers four weekly departures. As STARLUX continues to expand its North American network, passengers will enjoy more seamless connections to major Asian cities via Taipei. STARLUX Tickets Open for Booking Airline ticket reservations for the new departure schedule for Phoenix can now be booked through travel agents and on About STARLUX Airlines Founded on the philosophy that luxury should be available to everyone, not just the elite, Taiwan-based STARLUX Airlines is a boutique international airline serving a total of 29 routes from Taiwan to the US, Japan, Macau, Vietnam, Thailand, Philippines, Malaysia, and Singapore. STARLUX passengers traveling between North America and Asia are able to enjoy an easy transfer in Taipei with its four US routes: Los Angeles-Taipei, San Francisco-Taipei, Seattle-Taipei, Ontario, California-Taipei. STARLUX prioritizes safety and offers unparalleled service with the goal of making flying a truly luxurious and unforgettable experience. For more information, visit or on our US social channels Facebook and Instagram.
Time of India
10 hours ago
- Automotive
- Time of India
Nvidia orders 300,000 H20 chips from TSMC due to robust China demand
Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the US firm to change its mind about just relying on its existing stockpile. The Trump administration this month allowed Nvidia to resume sales of H20 graphics processing units (GPUs) to China, reversing an effective ban imposed in April designed to keep advanced AI chips out of Chinese hands due to national security concerns. Nvidia developed the H20 specifically for the Chinese market after US export restrictions on its other AI chipsets were imposed in late 2023. The H20 does not have as much computing power as Nvidia's H100 or its new Blackwell series sold in markets outside China. The new orders with Taiwan's TMSC would add to existing inventory of 600,000 to 700,000 H20 chips, according to the sources who were not authorised to speak to media and declined to be identified. For comparison purposes, Nvidia sold around 1 million H20 chips in 2024, according to US research firm SemiAnalysis. Nvidia CEO Jensen Huang said during a trip to Beijing this month that the level of H20 orders it received would determine whether production would begin again, adding that any restart to the supply chain would take nine months. The Information reported after Huang's trip that Nvidia had told customers it had limited H20 stocks available and it had no immediate plans to restart wafer production for the GPU. Nvidia needs to obtain export licenses from the US government to ship the H20 chips. It said in mid-July it had been assured by authorities that it would get them soon. The US Department of Commerce has yet to approve those licenses, one of the sources and a third source said. Nvidia on Monday declined to comment on the new orders or the status of its license applications. TSMC declined to comment. The US Commerce Department did not immediately respond to a request for comment. Nvidia has asked Chinese companies interested in purchasing Nvidia H20 chips to submit new documentation including order volume forecasts from clients, said one of the sources and a fourth source. Key product in US-Sino trade war The Trump administration said the resumption of H20 sales was part of negotiations with China over rare earth magnets - elements essential for many industries and which Beijing had limited exports of as trade war tensions escalated. The decision drew bipartisan condemnation from US legislators who are worried that giving China access to the H20 will impede US efforts to maintain its lead in AI technology. But Nvidia and others argue that it is important to retain Chinese interest in its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei. Before the April ban, Chinese technology giants including Tencent, ByteDance and Alibaba substantially increased H20 orders as they deployed DeepSeek's cost-effective AI models as well as their own models. The popularity of Nvidia products in China, despite the advent of rival, albeit less powerful, offerings from Huawei, has been underscored by a boom in repair demand for its other banned GPUS - many of which have been smuggled into the country. After the April ban on H20 sales, Nvidia warned that it would have to write off $5.5 billion in inventories, while Huang told the Stratechery podcast that the company also had to forgo $15 billion in potential sales.
Yahoo
13 hours ago
- Business
- Yahoo
Nvidia Doubles Down With Massive H20 Order
Nvidia (NASDAQ:NVDA) just placed a fresh order for 300,000 H20 AI GPUs from TSMC (TSM) to keep pace with booming China demand. That order adds to an existing 600,000700,000 H20 chip stockpile and pushes China?bound inventory close to 1 million follows April's U.S. lift on H20 exports under the Trump administration, even though formal export licenses from the Commerce Department are still awaiting approval. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The H20 was built specifically for China with pared?down compute versus Nvidia's H100 and Blackwell lines to comply with 2023 restrictions, and now it's become a linchpin in Nvidia's China play. Analysts say the order underscores Nvidia's pricing power and volume leverage in AI's hottest market. With lead times of nine months to restart H20 production, Jensen Huang has doubled down on TSMC capacity to head off domestic Chinese rivals and blunt any hiccups from export rule changes. Nvidia shares popped on the news as investors bet on strong Chinese uptake to drive another leg of growth. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
14 hours ago
- Business
- Time of India
Nvidia places huge order of its most powerful AI chip in China but why it may not meet demands
Nvidia has reportedly placed a significant order for H20 chipsets with contract manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) last week. News agency Reuters report that this move signals a change in strategy, citing sources as saying that strong Chinese demand has prompted Nvidia to increase production rather than solely rely on its existing stockpile. The report said that Nvidia has ordered TSMC to manufacture 300,000 H20 chips that will add to the US chipmaker's current inventory of 600,000 to 700,000 H20 chips. For context, US research firm SemiAnalysis estimates Nvidia sold approximately 1 million H20 chips in 2024. Nvidia has also reportedly requested that Chinese companies interested in purchasing the H20 chips submit new documentation, including client order volume forecasts. Why Nvidia's latest H20 AI chip order for China is important Firstly, this order comes after the Trump administration reversed an effective April ban earlier this month, allowing Nvidia to resume sales of its H20 graphics processing units (GPUs) to China. The initial ban was implemented to restrict advanced AI chip access to Chinese entities, citing national security concerns. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pierce Brosnan's Wife Lost 120 Pounds - This Is Her Now Undo Crucially, Nvidia requires export licenses from the US government to ship these H20 chips. While the company stated in mid-July it had received assurances from authorities regarding expedited approvals, the US Commerce Department has yet to officially approve these licenses, according to multiple sources cited by Reuters. Nvidia specifically developed the H20 for the Chinese market following broader US export restrictions imposed on its more powerful AI chipsets like the H100 and the new Blackwell series, which are sold in other global markets. Nvidia CEO Jensen Huang had previously stated this month during a visit to Beijing that the decision to restart H20 production would hinge on order volumes, noting that reactivating the supply chain would take about nine months. Prior to the April ban, major Chinese tech firms including Tencent, ByteDance, and Alibaba significantly increased their H20 orders, deploying them for cost-effective AI models like DeepSeek's, as well as their own. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
