➀ TSMC, the world's leading contract chipmaker, announced a suspension of production for advanced AI chips for Chinese customers; ➁ The suspension is in response to a U.S. Department of Commerce directive; ➂ The directive is pending an investigation into potential violations.

➀ TSMC's 2nm technology development is progressing smoothly with plans for the new Taichung Hsinchu Science Park to start production in 2025; ➁ The price of the 2nm wafer is expected to be doubled compared to the 4/5nm, potentially exceeding $30,000, reflecting its sole supply situation and pricing power; ➂ The high investment in advanced process nodes, such as the over $4 billion for 3nm research and development, shows the importance of key supply chains; ➃ The cost of constructing a 3nm factory is estimated to be at least $15 to $20 billion; ➄ The development of advanced processes is a lengthy and resource-intensive process, often requiring 7 to 10 years, with the 2nm process having its path confirmed since 2016 but only recently becoming clear in terms of trial production timelines; ➅ The new process architecture involves substantial engineering support from equipment, software, and material industries; ➆ TSMC is following in the footsteps of the national mountain, overcoming many early difficulties and meeting the localization requirements of the supply chain; ➇ With the 2nm process expected to be released in 2025, supply chain companies are expected to see significant profit growth; ➈ M31's IP research has already entered the 2nm process platform supporting smartphones and high-performance computing, and Liwang is also developing 2nm technology in collaboration with leading wafer fabs; ➈ Material companies like Zhongsha and Shengyang Semiconductor are involved in diamond disks and recycled wafers for the 2nm process, with recycled wafers having a value approximately 4.6 times that of 28nm, offering significant commercial opportunities.

➀ Taiwan’s foundries and OSATs reported August revenue; ➁ TSMC showed strong YoY growth at 33% with US$7.8 billion in revenue; ➂ TSMC's dominance in advanced technology for AI and smartphone applications contributed to the growth.

➀ 3.5D packaging is emerging as a hybrid approach in the semiconductor industry, combining elements of 2.5D and full 3D-ICs. ➁ It addresses thermal dissipation and noise issues by creating physical separation between components. ➂ The approach allows for the integration of more SRAM, improving processing speeds and addressing the scaling limitations of SRAM. ➃ 3.5D also offers flexibility in adding processor cores and improves yield through the use of known good die. ➄ The technology is seen as a middle ground that balances performance improvements with manageable thermal and integration challenges.

1. Photolithography plays a crucial role in semiconductor manufacturing. 2. It enables the creation of intricate patterns on semiconductor materials. 3. The advancement of photolithography technology is essential for the production of smaller, more efficient electronic devices.

➀ Overview of semiconductor manufacturing processes, divided into front-end (wafer processing) and back-end (assembly and testing) stages. ➁ Detailed steps in the front-end process include silicon wafer input, cleaning, film deposition, photolithography, and impurity diffusion. ➂ Back-end processes involve chip assembly, packaging, and final testing for quality assurance. ➃ Advanced exposure technologies, such as stepper systems and immersion lithography, are crucial for achieving smaller transistor sizes. ➄ Emerging technologies like EUV lithography promise further miniaturization and efficiency improvements in semiconductor manufacturing.

1. TSMC has outperformed the S&P500 with a 73.5% return since January 2023. 2. The company's competitive advantage is rooted in its leadership in advanced process technologies. 3. TSMC's diversification of supply chain and focus on advanced technologies position it well for future growth and profitability.