Weekly Highlights

TSMC Returns to Longtan with USD 31.4bn Fab Investment, Targeting Sub-1.4nm Angstrom-Era Processes

On September 17, the draft expansion plan for Longtan Science Park under Hsinchu Science Park was approved, clearing a key hurdle for TSMCs return to Longtan. On September 18, supply-chain sources confirmed that TSMC had decided to build fabs in Longtan. Key points include:

• ●Process Positioning: Phase III of Longtan Science Park will prioritize sub-1.4nm (A14) angstrom-era advanced process technologies, making Longtan another major advanced-node manufacturing hub for TSMC after Southern Taiwan Science Park and Chiayi.
• ●Capacity Plan: The preliminary plan calls for three fabs, with the first targeted for completion around 2030 and preparations for mass production to follow.
• ●Investment Scale: Total investment is estimated at more than TWD 1tn (approximately USD 31.4bn), making it one of TSMCs largest single-site investments in recent years.
• ●Park Development: The Longtan Science Park expansion is expected to cover about 104 hectares, with total development spending of approximately TWD 95.628bn (about RMB 20.1bn). Public infrastructure construction is expected to begin in 2030.
• ●Background: As TSMC gradually shifts the focus of advanced packaging expansion to Chiayi and Southern Taiwan Science Park, Phase III of Longtan Science Park has been repositioned for advanced-node manufacturing, marking TSMCs return to Longtan after a three-year hiatus.

The project sits at the core of leading-edge wafer fabrication, with a clear upstream-to-downstream transmission path:

• ▲Upstream: Cutting-edge equipment and materials including EUV lithography systems, high-end photoresists, photomasks, and ultra-high-purity silicon wafers
• ▼Midstream: TSMCs sub-1.4nm angstrom-era advanced-node wafer manufacturing, competing globally with Samsung and Intel
• ●Downstream: Chip designers developing next-generation AI chips, high-performance computing chips, and high-end processors, extending through the AI server, data center, and supercomputing value chain

The impact will propagate through the supply chain, with different effects across segments:

• ■Upstream Equipment & Materials: Sub-1.4nm processes will sustain demand for EUV lithography systems, high-end photoresists, and photomasks, extending order visibility for ASML and other suppliers and benefiting advanced-materials vendors.
• ■Midstream Advanced Nodes: TSMCs advanced-node footprint will be further strengthened, while competition with Samsung and Intel below 2nm intensifies. A new wave of capacity additions is expected around 2030.
• ■Downstream AI Chips: Sub-1.4nm capacity will provide stronger performance support for next-generation AI chips, potentially accelerating the pace of AI compute upgrades.
• ■China Industry Perspective: With advanced-node equipment access constrained, Chinas semiconductor industry should pursue differentiated routes such as specialty processes on mature nodes, advanced packaging, and chiplets, while advancing domestic substitution of semiconductor equipment and materials.
• ■Customs Perspective: Imports of equipment and materials related to 1.4nm-class processes will keep rising. HS classification, duty/tax exemptions, and customs inspection turnaround for high-end lithography tools and materials are becoming key variables in the advanced-node supply chain.

Update 1 | South Koreas Amended Public Notice on Trade of Strategic Items Takes Effect September 1, Adding High-Performance AI Chips and Advanced Semiconductor Equipment to Export Controls

On September 1, the Ministry of Trade, Industry and Resources (MOTIR) implemented amendments to the Public Notice on Trade of Strategic Items, newly designating high-performance AI integrated circuits and advanced semiconductor manufacturing equipment as strategic items. Key points include:

• ●Controlled Categories: High-performance integrated circuits for AI, advanced semiconductor manufacturing equipment covering core wafer-fabrication processes such as lithography and etching, and nucleic acid synthesis equipment were newly added to the strategic-item control list.
• ●Licensing Requirements: Exporters of the covered goods must submit applications to the Korean government in advance and may ship the goods only after obtaining an export license. Exports without a license are prohibited.
• ●Background to Revision: The amendments incorporate more than 80 updates agreed under the four major multilateral export control regimes, including the Wassenaar Arrangement (WA) and Nuclear Suppliers Group (NSG), while also simplifying documentation for export license applications.
• ●Legislative Process: An administrative notice was issued from July 13 to August 12; the amendments were formally promulgated on August 31 and took effect on September 1.
• ●Industry Impact: South Korea is a major exporter of memory chips, led by Samsung Electronics and SK Hynix, as well as semiconductor equipment. The new rules will affect the pace of global shipments of AI chips and advanced equipment.

This sits at the semiconductor export-control policy layer and affects cross-border flows across the entire supply chain:

• ▲Upstream: Cross-border procurement and delivery of advanced semiconductor equipment, including lithography and etching tools, and high-performance AI chips
• ▼Midstream: Global supply-chain deployment and capacity allocation for wafer fabrication, memory chips, and AI accelerators
• ●Downstream: Global delivery schedules for end products including AI data centers, servers, and consumer electronics

• ■South Koreas tighter controls on advanced semiconductors will further restrict cross-border flows of semiconductor equipment and AI chips, raising supply-chain compliance costs.
• ■Approval cycles for Chinese companies procuring advanced semiconductor equipment and high-performance AI chips from South Korea may lengthen, requiring earlier procurement planning and license applications.
• ■Tighter export controls could accelerate domestic substitution, creating more opportunities for Chinese semiconductor equipment and AI chip suppliers to qualify and enter local supply chains.
• ■Customs Perspective: HS classification, export-control compliance reviews, and dual-use item license applications for semiconductor equipment and chips are becoming critical steps in customs clearance.

Update 2 | CXMT Corporation Accelerates DRAM Expansion, Monthly Capacity to Reach 350,000 Wafers by End-2026

On September 17, 36Kr published an in-depth report on CXMT Corporation, detailing its DRAM capacity expansion roadmap and latest progress. Key points include:

• ●Existing Capacity: The company operates two 12-inch DRAM fabs in Hefei and one in Beijing, each with monthly capacity of about 100,000 wafers, for a combined total of approximately 300,000 wafers per month.
• ●Expansion Target: Monthly capacity is expected to rise to approximately 350,000 wafers by end-2026, approaching Microns estimated monthly capacity of 385,000 wafers in the same period. The longer-term target is 600,000 wafers per month.
• ●New Fab Plan: CXMT is considering a second 12-inch DRAM fab in Beijing Yizhuang, creating a two-fab footprint alongside its existing Beijing facility.
• ●Performance: Gross margin for its core business rose to 84.84% in the first half, while capacity utilization remained high. The company has become Chinas largest and the worlds fourth-largest DRAM manufacturer.
• ●IPO Fundraising: Its STAR Market IPO-funded projects announced in July involve total investment of RMB 34.5bn, including RMB 18bn for DRAM technology upgrades. Equipment procurement has been underway since Q4 2025.

CXMT Corporation is a core player in DRAM memory manufacturing, with the following upstream and downstream links:

• ▲Upstream: Suppliers of DRAM manufacturing equipment, silicon wafers, photoresists, specialty gases, and other materials
• ▼Downstream: End markets including servers, PCs, smartphones, and AI data centers, as well as domestic memory module and system manufacturers

• ■Chinas domestic DRAM capacity continues to expand and global market share is rising steadily, helping reduce dependence on imported memory chips.
• ■Domestic DRAM equipment and materials suppliers are gaining more qualification and adoption opportunities, accelerating domestic substitution in memory manufacturing equipment.
• ■Amid the global memory shortage, CXMTs capacity expansion will provide domestic AI server and consumer electronics manufacturers with more local memory supply options.
• ■Rapid capacity expansion also brings depreciation pressure and technology-transition challenges. Yield ramp-up and the share of high-end products remain key metrics to watch.

• 1

  TSMC Discloses 2nm/3nm Expansion Plan for First Time: 2nm Capacity to Rise 22% in Six Months, 3nm Up 16%

  Event: On September 14, Taiwans Economic Daily News, citing supply-chain sources, reported that TSMC had disclosed its mid-2027 expansion plan to equipment and materials partners for the first time: 2nm monthly capacity is set to increase from about 90,000 wafers at end-2026 to 110,000 wafers (+22%), while 3nm capacity will rise from more than 180,000 to 210,000 wafers (+16%). TSMC has asked its supply chain to expand capacity in tandem.

  Position: Advanced-node wafer manufacturing, with expansion of 2nm GAA and 3nm FinFET capacity

  Impact: Strong AI chip demand is accelerating advanced-node capacity expansion across the board and extending order visibility for upstream equipment and materials suppliers. Near-term advanced-node capacity constraints are unlikely to ease materially, while domestic foundries need to accelerate differentiated technology and capacity strategies.

• 2

  Nvidia Invests USD 5bn in Intel to Co-Develop Data Center and PC Chips

  Event: On September 14, Nvidia announced a USD 5bn investment in Intel at USD 23.28 per share. The two companies will jointly develop data center and PC chips, and Intel shares surged more than 30% in premarket trading after the announcement. Intel CEO Lip-Bu Tan said 18A is already in mass production, 14A is scheduled to enter production in Q1 next year, and current CPU supply meets only 50% of customer demand.

  Position: Cross-sector collaboration between AI chip design and advanced-node manufacturing

  Impact: Nvidia and Intel are moving from competition toward deeper collaboration, reshaping the AI chip supply chain. Intel could gain additional order support and improve utilization of advanced-node capacity, while domestic AI chip companies need to accelerate development of independent ecosystems in response to alliances among global leaders.

  Sources: Goodreturns, ifeng.com, Securities Times, NetEase News
• 3

  China Issues Preliminary Anti-Dumping Ruling on Japanese DCS, Sets Cash Deposit Rates at 80.8%–99.2%

  Event: On September 7, Chinas Ministry of Commerce issued Announcement No. 37 of 2026, making a preliminary determination in its anti-dumping investigation into imported dichlorosilane (DCS) originating in Japan and imposing provisional anti-dumping measures. Importers must post cash deposits with customs at rates of 80.8%–99.2%, effective September 8. DCS is a key raw material for semiconductor silicon wafer manufacturing.

  Position: Upstream semiconductor materials import/export segment; DCS is a core feedstock for polysilicon and silicon wafer production

  Impact: The cost of Japanese DCS imports will rise sharply, increasing raw-material procurement pressure on domestic wafer manufacturers. Domestic substitution for DCS is expected to accelerate, creating opportunities for local suppliers such as Tangshan Sunfar Silicon Industries Co., Ltd. (Sunfar) to gain market share. Anti-dumping measures on semiconductor materials are becoming a new variable in the supply chain.

  Sources: Ministry of Commerce Announcement No. 37 of 2026, CGTN, ComNews
• 4

  CanSemi Technology Inc. Launches IPO, Subscription Set for September 24, Adding New 12-Inch Specialty-Process Capacity in the Greater Bay Area

  Event: On September 14, CanSemi Technology Inc. released its offering announcement. Its ChiNext IPO registration has been approved by the China Securities Regulatory Commission (CSRC), with both offline and online subscriptions scheduled for September 24 and preliminary price inquiry set for September 18. The company currently operates two 12-inch fabs with planned combined monthly capacity of 80,000 wafers; after its Phase IV project comes online, total monthly capacity will expand to 120,000 wafers.

  Position: 12-inch analog specialty-process wafer manufacturing, focusing on power management, signal chain, MCUs, and related products

  Impact: The Greater Bay Area semiconductor manufacturing sector is set to gain another listed company as 12-inch specialty-process capacity continues to expand, accelerating domestic substitution in analog chips. Revenue CAGR reached 57.3% from 2023 to 2025.

  Sources: CanSemi Technology Inc. announcement, Securities Times, Shanghai Securities News
• 5

  NAURA Order Backlog Exceeds RMB 85bn, Up 58% YoY, with Production Scheduled into Early 2028

  Event: On September 16, the 21st Century Business Herald cited semiconductor equipment industry data showing that the order backlog at NAURA Technology Group Co., Ltd. (NAURA) exceeded RMB 85bn at the end of Q2, up about 58% YoY. Its production schedule extends through Q3 2027, with some incremental orders stretching into early 2028. H1 revenue reached RMB 20.161bn, up 24.9% YoY.

  Position: Semiconductor equipment manufacturing, covering etching, thin-film deposition, cleaning, thermal processing, and other equipment categories

  Impact: NAURAs strong order book reflects the dual drivers of domestic fab expansion and domestic equipment substitution. The RMB 85bn backlog provides strong support for earnings growth over the next 2–3 years, while equipment delivery lead times remain tight.

  Sources: 21st Century Business Herald; NAURA semiannual report

Table 1 · TSMC 2nm/3nm Advanced-Node Monthly Capacity Expansion Plan

Table 2 · Monthly Capacity Comparison of Major Global DRAM Manufacturers (End-2026 Estimate)

Note: Specific figures are subject to official disclosures by the respective sources. In the event of discrepancies involving qualifications or compliance information, announcements by the competent authorities shall prevail.